dow down 62, going for a string of losses first week we have seen thant long time. >> good morning. it is 8:00 a.m. out west, 11:00 a.m. on the east coast. "squawk alley" is live. ♪ welcome to "squawk alley". joining us this morning, founder, editor ceo of business insider. henry great to have you back. and kayla is here as well as we get started talking about apple. not all retailers are convinced apple pay will work. there are no plans to use apple pay with best buy saying the cost of supporting near field

communication too high. square, amazon and pay pal don't plan on making it usable with check out systems any time soon. people are laying down the battle lines. >> the most interesting statistic, carl, that i've seen there are 9 million merchants in this country that accept credit and debit cards, plastic of some form or fashion. apple has 2% of that market with 220,000 locations now accepting its technology. i'll tell you what retailers think. they think give me a technology where there is a network or a layer that's going to shoulder some of the liability in case of fraud because what we have with apple pay is something where yet again if that network is breached it's up to the retailer to deal with that and that's something they have been dealing with for a long time and they haven't necessarily been leading the charge on innovation. we still don't have chip and pin or a lot of other technologies that have come along between plastic and apple pay. >> but it's better than what we

have now, these dumb units that are very easy to complete fraud on. >> it's step up in security, but it's a major chicken and egg problem here. there's really, if you look at the consumer side, really is that much of an advantage? maybe more quicker. you need a credit card. sometime just give over number. question on the consumer side. merchant side big hurdle. cost as lot of known put in these machines and convert. there has to be a reason to do it. the reason mobile payments are working at starbucks because there's a loyalty program built around it. they can give you rewards and everything else. apple purposely insulated itself the from that where it's an anonymous payment. making the wallet completely irrelevant over the long haul where they replace everything,

driver's license we lug around and lose that would being a great to replace that. that's a long term vision. it's a good step in the right direction. the idea to suddenly take over the world next year is crazy. >> what was the story >> without question the iphones are the most important announcement. the watch, the 2016 and beyond story even if they hit the ball out of the park on unit sales it loses the needle a little bit. i think there's a long way to go in the product. you need an iphone to use it whether you wear a watch or not. is it adding that much. tiny screen, hard to use, tough product. it will take a lot of iterations. >> the iphone is the common thread. common technology for anything else they unveiled. you need iphone to be a user of these other technologies. the "new york times" has a funny piece basically saying on payments apple created something we didn't necessarily need. what they have to do now is convince us as consumers we need this and he describe as funny

anecdote where he's digging through his wallet and bypasses the driver's license or metro card to get his credit card and thank goodness apple has created a situation where he doesn't have to do that any more. >> you think the phone is the big story then the bear case on the apple is the big story. everybody in 2016 who makes a decent living around the world has one. >> that's the big story. this is by far the most profitable product apple has, something like 70% of profit comes from it. it is a one off. you are not going to get another product as profitable as this because of the subsidies. that's the whole thing. it is subsidized by the carriers. makes it very easy to buy. to your point this is a huge upgrade cycle because apple has been behind the market for two years. a lot of us dedicated iphone

users have been waiting for the big iphone. we're going to upgrade. they are talking about 80 million units in the fourth quarter. a staggering number. >> for context we usually talk 40, 43, 45, something like that. >> even if they don't get there, massive numbers. profitability over the next couple of quarters should be phenomenal. beyond that to your points what's next in smartphones? they will get a little better, a little faster, but now you got them in all sizes. i don't think we'll have the need to upgrade feeling with the next few versions. >> the jury is still out about whether the 6 plus will skim off some of the demand for the tablet. do you think the ipad will be at risk because how big the phone is? >> no question it will take some of the ipad demand. ipad has been struggling for a lot of reasons in part because of the subsidy issue. apple isn't making a lot of money on the ipad. >> you can keep it forever. >> they last forever. much slower refresh cycle.

good product. out there. but if you're an apple shareholder you want the 6 to cannibalize the 6. >> samsung must have been watching apple very closely. check out the ad. >> this is exciting. >> two years for us to do groundbreaking. >> here it is. >> a bigger screen. aghh! >> wait, headline. bigger screen. >> yeah, it's like every phone has a bigger screen. >> unbelievable. >> what's that? >> that's exactly for the first two-thirds of that ad what the reaction was and the last bit, people are still excited about the bigger screen. >> competition is competition but i have to say that feels like bad karma. >> the gloves are off no doubt about that. next up luxury giant not too

impressed with the new watch in an interview that had a watch division. this watch has no sex appeal, too feminine and looks too much like the smart watches already on the market. to be totally honest it looks like it was designed by a student in their first trimester. >> it's a colorful disk, obviously get a lot of play. doi think apple weapons the higher end version, the gold plated version of the watch, excuse me the iwatch is actually moving into a very different market than they have been playing in. people talk about it as a luxury brand. they are not a luxury brand in the way rolex is a luxury brand and all of the other watches. if they are going to get into that market that's a skill set they haven't demonstrated. you can see why a designer might look at the watch. i'm sorry you can't mass produce luxury. that's the whole point. you can't dip it in gold.

>> hiring people from bayberry. >> they are moving in that direction. great company. hopefully they will get there. the value with luxury is often in scarcity and the idea kit be mass-produced, dip it in gold and there you go, that's a tougher sell. >> the onus is on those companies to develop a high priced exclusive watch band that goes on the apple watch. isn't that new industry cottage, or institutionalize that happening for smart foengs and that should be the opportunity for them, right >> look at the luxury watch market. we've had digital forever. people are still wearing the old rolexes, they love them. it's not that they tell time better it's that it's actually a status symbol. you like it's beautiful object. the watch is supposed to be a, for apple a utility. use to it do all these different things. i haven't heard the compelling case why you want it. i want a bigger screen than

this. i don't apartment smaller one. i don't object to carrying this all day. it's not a huge burden. to have another screen here that's hard to work with, hard to see, haven't been sold that there's some unique application other than the biometrics but not at $349 and another charge cord i have to carry on round. >> 49% of folks wear a watch and i don't see one on you. >> no need. >> twitter announcing first big debt sale raising $1.5 billion. announcing a new developer conference on mobile in san francisco next month and coverage of the stock initiated over canaccord comes a day, hen henry, after the world's well time interest sharing platform. >> fair enough. facebook has worked out. facebook's margins have been mind-boggling. i think that's the bull case

here. maybe twitter isn't quite as mass market as some of the other social networks out there, but look at the profit margins on facebook and when twitter liens into it maybe they have those kind of profit margins, maybe you can get to numbers that justify it. twitter clearly in doing convertible debt say interest rates look good. i want to sell equity at a higher price. that's what they are doing. the bet is stock will go up. not as dilutive. looking at the assumptions on these price targets are heroic. 45 times, 10% discount rate. 10% for twitter? if i'm going to take the risk of owning twitter, i might want to make more than 10% a year. >> heroic is a good description of some of those price targets. on the convert it seems wall street is split on this. on one hand you don't want to see a company with as little profits as twitter putting more debt on the company. on the other hand, when you still have a lot of stock to be

unlocked by executives, do you want to create another dilution event even if it's in five years for a stock where you don't know what trajectory for profits of that company will be. it's still experimenting. interest sharing as a platform or as cramer said this morning the new newspaper. we know what margins look like at newspapers. >> margins are going to be way better at twitter than newspapers unless they just completely blow it or get blown up by some new technology. this is a higher risk, converts are higher risk. things don't work out on the stock side you're saddled with debt. on the other hand it's hard to go back to the market immediately with the stock just recovering. we think the stock will go back to 75, we'll sell it at 75. >> the story is fwegt interesting. this month binghampton conference may add some new layers because a lot of people don't understand the deal and the a lot of other things. henry, great seeing you as

always. we also want to get a check on the markets. we're still lower almost two hours into trading. dow down by about 58 points. nasdaq down 15. the s&p down five. the president yesterday evening unveiling new plans to fight islam islamic insurgents. jobless claims as well rising to levels not sense june. china inflation also not great. so there are concerns in asia as well. but that's all trickling over to the u.s. markets still strongly into the red. shares of lululemon rallying after second quarter estimates. lululemon one of the top gainers on the nasdaq despite that being down. lululemon up 17%. intel, it's the biggest loser on the dow jones industrials. that company's stock down nearly

1%. carl? >> coming up this morning is apple pay a major problem for pay pal, one of the top executives at mobile payment company will join us on the first cnbc skbrir. almost ready for lift off, yahoo! talks about the massive alibaba ipo. and john ledger speaking out on apple, amazon and company's new deal for inflight service. find out what he had to say. "squawk" will be back in a minute. y. guys? no, no, no... the scarlet king is lord victor's son!! no don't. i told you! you guys are gonna be so surprised when you watch the finale!!! you're so lucky your car has wi-fi. yeah...i am. equinox from chevrolet... the first and only car company to bring built-in 4g lte wi-fi to cars, trucks and crossovers.

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welcome back to "squawk alley". pandora shares spike on a big partnership with bmg. this expands pandora's library and analysts are praising pandora for working directly with the music industry as music service struggles with high royalty costs. pandora shares trading now 4% higher. >> our next guest is no stranger to mobile payments with brands like paypal under their umbrella. why do they say apple pay is not a payment product or a payment network. we have the ceo of brain tree. bill, good morning. people have been talking about paypal for 48 hours now in a big way relative to april pail.

lay your response on us. >> well, i think the interesting thing about apple pay is that apple made a choice to go after sort of the very front end of the transaction, going after the plastic card form factor, right? they left the other 99% of the transaction to the existing eco system. so i think that's one of the things that we as a player that is unique in the industry in handling the consumer and merchant side of the network in dealing with that entire span of what it takes to process one of these payments, i think we have a unique view on what it takes to hand all mobile transaction, you know, across all of that from sort of security to fraud, to dealing with sort of multiple platforms, multiple devices, all these kinds of things. i think it's interesting they are trying to go after that plastic form. one of the big questions that's out there, i think a few of them, one of the toughest things is nfc has been around for a

decade and consumers haven't adopted it. does it solve the pay point for the consumer. is it easier to tap than swipe. there's this number quoted of 200,000 merchant terminals that are nfc enabled by sounds like a big number but in reality that's 2% of merchant location terminals. that means about 90% doesn't accept nfc. that makes it a tough long slog to get something going for nfc tap to pay. >> critics have said it's easy enough to build a layer on top of the bank account or on top of the existing ewallet. how easy if apple gets in the business. how much headway do you think you guys have and how easy is it for another entrant to come in to that market. >> those are the pieces that are really difficult. payments is a tough eco system.

other players, other major internet companies tried to enter the space with limited success. it's a very difficult space. those things are tough to solve. things like security. things like fraud. those are a lot of questions that merchants will have. it's noteworthy that, you know, you had many of the largest retailers -- most of the largest retailers including walmart and best buy not part of the announcement and these are some of the questions that will need have answers like those tough part of payments, who is responsible for the fraud when the fraud happens. is the retailer held holding the bag. authors still unanswered questions. >> do you think the athe option is going to be stickier on the consumer or merchant side? >> i think that's the tough thing in payments you need both to happen at the same time and that's why it's so hard to really get, you know, a new payments product going sue have this chicken and egg problem and i think on the consumer side there's this question of what's the value proposition.

i don't know consumers are screaming out saying i don't want to swipe any more. it's one of the easiest things a consumer does. on the merchant having to rewire hardware terminal. very expensive for them. there's not a benefit for the merchant either. there's some issues that merchant needs to solve who carries the fraud liability. it's tough to solve the two sides of the network. >> paypal is a venerable brand. is there any trepidation knowing what apple is capable snf >> the fact that apple has gone after the front of the transaction and made a conscious choice to leave everything else in the existing eco system. that's a place where we've bean trusted partner for many years. people know paypal as the trusted digital wallet but we're an open platform and handle all the other transactions of it as well. so we can be a digital wallet.

we function as a payment method. one thing people don't realize we're one of the most common payments inside of itunes and google play. this is something we've expected for years there will be other players in the space and we've built for this. our latest platform makes it easy to accept other payment methods. we announced bit coin as well. >> another part of the conversation today. i got hand to it. it is in some ways like going up against the giant but you seem confident. i hope you will come back. >> excellent. >> thank you very much for joining us today. up next 13 years after september 11th, lower manhattan and the world trade center coming back in a big way. we'll check in on the progress of 1 world trade when "squawk alley" comes back.

can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live...

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>> european markets are down now for a fifth straight session and in fact they extended their losses through that session. the news coming out of europe that it would appear e diplomats are ready to fire the sanctions on russia. the fear is retaliation, sure enough one of the economy ministers from russia is being quoted by state media there as suggesting they may well retaliate in the form of automotive so watch the german carmakers closing as well which seems like a wild card. some of the second line gas and oil stocks and mining stocks have led slower. threw see the oil and gas and oil is under pressure. any dollar denominated commodity is brought hereunder pressure. some of those mining stocks are down for similar reasons though a number of them also causes if you know these guys have russian

connections too. the good news for most people coming out of the uk is we have a new poll suggesting that the scots are now not likely to vote for independence when they have that referendum this time next week and that's allowed sterling to recover as you can see from the drops we had earlier in the week. a number of ceos have been coming out to suggest that it's crazy for the scots to do that and big banks many of them state-controlled by the british taxpayer have been suggesting they would also take part in the balance sheet back into the united kingdom and away from scotland. royal bank of scotland which bears the name and lloyds as well. the wild card as we head into the evening is what's happening on the streets of barcelona. they too have called for protests has catalonia looks to secede from the rest of

barcelona. the difference here in spain is that any referendum they have and they may have one on the cards has not been ordered by madrid by the spanish government and, therefore, doesn't have the same danger and power that the referendum in the uk did which was allowed by prime minister david cameron. >> some incredible images from spain. thank you. 13 years after 9/11, $16 billion world trade center site is almost ready to open. what does this mean for the lower manhattan area? morgan brennan is across the river in jersey city and has some answers. >> reporter: well 13 years since those 9/11 terrorist attacks, the square mile known as lower manhattan has been rebuilt and reshaped to become one of the fastest growing neighborhoods in all of new york city over the past decade, an estimated $30 billion in public and private investment has come to the area,

including, of course, that $16 billion plus world trade center. that's helped transform the financial district a ghost town into a thriving almost 24/7 neighborhood where the residential population has doubled since 2004 wasn't it housing. miller samuel says home prices here have grown 2.4 times faster than the rest of manhattan since 2001. who is moving here? families with highest average incomes in the city which has also caused the number of schools to more than double on the commercial side the changes have been just as dramatic as wall street firms have down sized or left. we've seen media and tech companies move in the downtown alliance says 600 tech businesses called this area home in 2013 and that was a 24% jump from 2012 alone. this boom is likely to continue as most of the world trade center's development comes

online over the next year, most notably the $3.9 billion 1 world trade center, america's tallest where conde nast is the anchor at the nantz. the biggest change is the fences that surrounded ground zero for nearly 13 years now are starting to come down and that's really marking a new chapter in this revival story for what's arguably the most famous financial district in the world. >> all right. thanks so much for that, morgan. >> when we come back the next big deal on the horizon. we'll ask the ceo of scripps network is for sale. and mariano rivera will also join us live. ment.

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cantor fitzgerald remembering the employees that were lost on 9/11 as they doverry year by donating all revenues raised today to various charities. we are with one of the special guests, athletes and dig any tears hoping to raise money. >> i don't think anyone we've seen super model, tv stars, we've seen other athletes come through this trading floor but nobody else has generated as

much excitement, mariano rivera. you have lived in new york for 19 or 20 years. still make your home here. tell us what it means here to participate in a day like today. >> participating on a day like this is special, knowing that what happened, especially that day, this date 13 years ago. you know it's amazing. step up and helping families with the loss of their loved ones especially on this day. and, you know, to be here and be part of that and recognize the job that he's doing is amazing. so i couldn't miss that. >> what s allowed to raise money for a specific charity, so hundreds of charities benefit from a day like today. tell bus the charity you're raising money for. >> we're raising money for the memorial foundation. we send kids to school, those

less fortunate, you know. bright kids but less fortunate. so we doing that and also raising funds to build the community center. that's going to be a big, big project. >> that's your home town right now >> right now. >> i have to ask you the yankees have had a tough year. they lost a lot of amazing players. they are lot offing derek jeter to retirement. how long will it take for them to rebuild? >> i wish it's now. it will take a little time. we have a lot of good players. good young boys. we have to find the right chemistry, the right people that to play here in new york and don't best. so hopefully not too far. >> okay. mariano, thank you so much for joining us today. we've been speaking with mariano rivera formerly of the new york yankees. carl, back to you. >> cnbc twitter feed goes

bananas. thank you so much. some top media and telecom leaders are gathered at new york city at the goldman sachs conference. david faber joins through. >> reporter: carl, thanks very much. i'm joined by ken love the chairman and ceo of scripps network interactive, hgtv travel channel and food network, many that you came up with, 20 years for hgtv. >> we just celebrated, 20 years of hgtv. hard to believe it's 20 years. >> they do tend to go by quickly. things change a lot particularly in the world you're in. so many different areas. one, of course, to think about is conso ligation die mongs the distributors. our parent company, comcast trying to acquire time waern. directv. some look at a smaller media company not small but smaller

versus the others. scripps howard can you compete how can you be able to have enough market power when these guys are together trying to jam you down. >> we've both been doing our respective jobs for a while. consolidation is not new to our industry. it's been going on for a while. we've always dealt with different distribution partners. going forward when people think about heft and quantity in dealing with the consolidated world we are focused on quality. quality of the brand and quality of the audience we delinquency and must have brands that our distribution partners want to carry and offer ancillary incentives like local ad sales which we do a very go of. then the partnership that we've had with comcast, with time warner, with at&t, directv, been very positive and we're also proponents of tv every where. when you put it all together, as

an independent company we feel very strong about the future, sit down and negotiate fairly. >> there were some rumors about skrips and discovery and general sense that the company would entertain a take over bid from another company. is that the case? >> well, you know, again, there are always rumors in our industry and rumors of rumors. in our case again we feel very strongly about the future of our company. we own our content. we got an incredible track record of delivering an upscale female audience. as a matter of fact our ratings have never been stronger. >> your ratings have never been stronger. ratings are not doing so great. >> some has to do with fact that the housing market has recovered. that's been helpful. our koirks home, food and travel, they never have been more popular with consumers and the fact that, you know, we're pretty family friendly.

there's no profanity, no violence. and i hear it constantly that viewers say i love to watch your network. we have 93% of our viewing david that's done live. second only to you guys, to news and to sports and part of that is people are comfortable with leaving our networks on for long periods of time. that bodes well for the future of our brands going forward. >> your move to the international markets has begun. it's costing some money. people look at the numbers report it quarterly and go spending some money when do we see a return. is that a long term strategy? >> it is a long term strategy and very much out of our playbook. we've always been a long term strategy company. you're right we got into the international business a little late. our initial toe in the water was syndication to selling our programming which we did successfully in 200 countries. we're launching networks and partnering networks. our revenue is about 15% of our

total revenue. we see it growing to 25%, 30%, a significant piece of business for us. again because we own the content much more economically for us to be able to transport that. the investment we think is sound, is solid and will have a good roi over time. >> final, the ad market. lot of people say it could be better. maybe even using the word soft. do you see it? >> generally coming off the upfront, we lack a little inventory. third year in a row where we had a billion dollar upfront. we feel very good about the scatter mark. we're seeing signs of uptick and built very much for a scatter business. we sold less than 50% of our inventory upfront which is less than what we've done in past years. i think we'll be fine. i don't see, david, as much movement to digital at this time from the typical cable network model. i think it's being speculated.

over time things will be fine. >> all right. good place to stop. thank you. back to you. i'll take it from there. he's gotten very good at dodging that take over question but always a great interview from ken lowe of scripps. we have duelling wireless companies sprint strengthening its position in an increasing competitive pricing landscape. >> we've been pretty clear. we think it's the most successful launch ever for an iphone and we're the only carrier that's putting one rate plan for the iphone. can you bet we feel very comfortable with the iphone. we made it simple. $50 with an iphone 6. talk all you want, text all you want and go at it with all the data you want. that's a statement we're making because we fell very comfortable it will be a great phone.

>> also offering this unlimited iphone for life plan. sounds good. i don't really know exactly how it would work. is it something you think consumers will gravitate towards? >> we call it iphone for life and guaranteeing use for $20 a month. pretty much every two years come back drop your iphone and pick up a new iphone. and $50 for unlimited and $20 for life. for $70 you have an iphone you can use all you want. when you compare to it the competition it's a world of difference. you're talking about saving thousands of dollars over the competition. before you commit to anything, look at sprint at two basic things. even though this industry looks confusing it's not. you have your service and phone. add it together and we're in business to make sure that we give the best value. >> time will tell if that new plan from the self-proclaimed underdog can gain tracks as it goes up against team mobile.

team mobile wasting no time after that deal fell apart free wi-fi calling on all of its device a partnership with gogo inflight for texting. t-mobile is trying to find new ways to sign on customers and keep them on. we spoke to john ledger yesterday and here's what he said. >> i think that was a good attempt at a new device by amazon. i think they will continue. as you say the hand set market is pretty heavily dominated by a couple of players. for us we work with all the hand set providers to make sure the capabilities need are resident. there are some great devices also out there from htc and from other players and certainly i think we'll watch this space. but right now i think a lot of excitement is about the new iphone capabilities which are amazing, beautiful devices. sam sanccontinues to launch a lot of new capabilities and

devices and as you say i think that space will benefit from multiple players. >> interesting to watch these guys trying to wean people off the subsidies. 3:00 a.m. night is when the iphone goes on sale. >> i want to take a quick moment to look at a tweet. let's hope amazon doesn't fall stroim the at&t curse that's facebook phone #one month. that's in reference to taking the price down to 99 cents. took more than a month but sometimes -- >> tough business. when we come back the apple watch isn't out until next year. but companies like yahoo! working hard on apps for that device.

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coming up at the top of the hour oil hitting its lowest level in more than a year and causing ripple effects throughout the global markets. we have your playbook ahead. president obama laying out his strategy for dealing with isis but is at any time right course of action. we'll hear from richard engel in iraq and a major general who served in iraq, bosnia and somalia. you may know him as lucky thompson, today however steve

buscemi is showing his charitable side. that's all straight ahead at the top of the hour. we'll see you in a bit. >> thanks so much. still a few months out before the apple watch begins hitting your wrist but active developers are hard at work to bring their programs to the device. you can see what looks like a little purple app among that honey comb feature on the screen during the debut of the apple watch that week there on the bottom left-hand corner. adam cahan oversees apple's mobile efforts. the question two days in is how do companies like yahoo! envision the consumer interacting with this watch. what sort of products do you build for it? >> it's an exciting product. when we look at it, what we see is an opportunity to make a really personal truly accessible kind of relevant experience.

one of the things that excited us most is we use a summarization technology. what we found is if we can distill the news into things that matter the most we can keep people informed and feeling like they were in the know. for something like the apple watch, what we found was we could take that summarization even further. the idea is at a glance can i really in a very simple way get to communicate to you what's important in the world. the only other thing i would say is the device and the form fact jobs one of the things that's exciting about it is it's incredibly personal. when you've got something that's on permanent display on your wrist and also has these sensors, what happens your experience of reading or other things is really becomes much more personal user. so what we did is we

emphasized -- i don't know if you're familiar with the news digest product we emphasize the beauty of the news and we have a coloring effect we use that makes the news just feel a bit more intimate for our users. >> in addition to distilled news, potentially weather, health information do you envision stock charts. what else do you envision to be dissteld? will there be ads? >> it's a terrific format what you would call heads up display or at an glance experience. so stocks certainly is an area of toints. weather. news and information. frankly breaking news and information is an area that we think is incredibly important. the ability to table communicate that something important happened and you just can glance down and see what's going on. in terms of ads it's early. i don't think many of us are looking at this just yet for

that kind of experience. usually when you see these new platforms come out what you want to focus on is user adoption and getting the right user experience and most of these notification areas are really about what actions can i take on that contend. you told me something. for example, we could have a

job isn't really influenced by that. well urk it's great,nd we celebrate the success of our, of our partners and certainly alibaba has been incredible in what they've been able to accomplish. it's not something that really we think about on a day-to-day basis. because it doesn't change sort of what i would be doing. and i will say, i had an opportunity to hear jack speak and, you know, he talks convincingly about his 100-year plan, and it is really remarkable. >> and it will be remarkable next week, of course that. and we appreciate you weighing in on apple and alibaba and giving us what you could. >> thank you for having me. adam contain. >> let's send it over to jane wells in l.a. >> carl, the great park city ski dilemma has been completely resolved now.

vail resorts has agreed to buy out park city mountain resort, which owned the bottom of the mountain for $182.5 million in cash. if you have a call, we've been reporting, vail he rented out the top of the mountain at park city, and pcmr, powder core, they were fighting, the ski season was threatened. yesterday, pc marr agreed to put up a bond to keep the season open. that's to longer necessary as vail has bought out the folks who own the bottom of the mountain. and powder is saying as part of that agreement, pcmr will, all pcmr employees will able to keep their jobs, vail must maintain them in their current roles. now vail is saying, you should see the stock sup, it intends to connect pcmr, along with the canyons resort it's rented next door for the 2015-16 ski season to create the largest single ski resort in the united states. 182.5 million in cash, the story

is apparently over. carl. back to you. >> some would argue that even that is a bargain. quite a high-profile buy for vail and certainly one that is moving the needle for investors today. when we come back, already a "jeopardy" champion, find out why ibm's super computer watson is setting its sights on education. the performance review.

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two bluetooth enabled security dwriss are battling it out this week. nokia is the world's first bluetooth pad locke. that's up against oval. it can detect chances in motion, acceleration, light, moisture or proximity. both will alert your phone. the poll closes in an hour, vote now, cnbc.com/techcrowd, tomorrow we get our winner. up next, watson goes to school, why ibm's super computer is focusing on education. across. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton,

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you just made partner. our best-ever pricing on mobile share value plans for business. now with a $100 bill credit for every business line you add. you've heard of watson, ibm's "jeopardy"-winning supercomputer. sharon epperson is taking a look at watson's next chapter with the future of education. >> meet watson, the computer that knows pretty much everything. >> watson is really the early stages of a whole new era of computing. think of it as the ultimate assistant that has time to read everything that's happening, and

start to put together high poyps on what might be going on. >> imagine having watson as your personal tutor. that's what education could look like in 25 years. computers with the power of watson, in the form of wearable technology, that will inevitably become smaller, cheaper, faster. >> so imagine having contact lenses for a fifth grader, who has an earpiece which talks to them and gives them audio. this fifth grader can walk down the street, blink you into existence, a photo of a textbook from the 17th century, they can listen to their tutor, ask them questions about what they're reading. this technologically is quite visible from where we are now. >> while artificially intelligent technology will be programmed to teach children, the main focus of these tutors will be to learn about their students. >> they would also know the different pathways that learners take their problems, they know when you're learning a times table, that they're really hard