this kweek using old film to learn new things about 19 hundreds san francisco. mark zuckerberg heads to congress, and a ceo who turned his company around. our reporters from barons, john schwartz and connie cue yom me editor and chief at cnet, this week on press:here. >> good morning, everyone, i'm scott mcgrew. we're going to start with the ongoing crisis at facing book. the head of the new york city pension sfund call for mark

zuckerberging to resign as chairman of the board at facebook but remain ceo. that peption fund holds a billion dollars worth of facebook stock and it's sooen seeing its investment plummet. of this course after it reveals facebook allowed personal information of 80 million of its users to fall into the hands of cambridge analytica which thepd tuesday on the trump campaign. that's not facebook's only crisis. facebook was also under fire for failing to police the use of its social network by the russians who wanted to influence the 2016 presidential election. an idea zuckerberg first said was crazy but now acknowledging is a major crisis of its own. zuckerberg will testify before the senate on tuesday, the house on wednesday. facebook has sent representatives to congress before, but not the ceo. in fact, in this testimony back about russians in october, either facebook nor google nor twitter sent ceos, they sent lawyers. joe fran sella is an expert in

crisis pr. we have relied on him. john schwartz is with barons. joe, let me take you back to when this first was exposed in newspapers. facebook was incredibly silent for a very long period of time. and i understand it's necessary for a company to understand, okay, what are we dealing with here? let's make sure we have all of our ducks in a row. i think, and these other reporters may agree, they took way too long to jump in and say, all right, here's what's going on. >> yeah, i agree, absolutely, that they could have taken action much more quickly. and had they did take action, i think that what they did just the other day and have a bigger, broader conference with a wider -- >> this when zuckerberg went on the phone and you guys were on that as well, but yes. >> i think that should have been done right away. he did some selective outreach with cnn and a few other outlet's immediately. he should have gone more broad from the very beginning. and it would have been okay for him to say from the very

beginning, look, a plane has crashed, we're not quite sure everything that has happened, this is what we know so far and then answer as many questions as co. he took too long and it was a little bit too narrow. it would have been better for him in the short run, in the long run if he would have come out right away and been available to a wired range of media. >> what's troubling is not only did they wait too long, but even in the call on wednesday they reveal actually the problem's much wired than we -- >> they use the news cycle. >> they enhanced the news cycle,' apologized a lot, he was very vague. they also revealed that there's another waiy of scraping information that could apply to 1.2 billion use percent the it's just a comdif errors which tleeds one of the questions which we both heard about him being asked if he would resign. >> and i guess the question is now, he has been doing a lot of apologizing and a lot of talking in the past, certainly in the past week or so. but is it enough?

>> well, whether or not what he's doing, what he's proposing is enough remains to be seen. he's talked about changes that are being made to the platform, changes that are being made to policy. he's even saying that he's going to apply gepr across the platform universally. >> i'm going 0 jump in these are the new rules the eu is setting up to protect -- they take place in may. continue. >> exactly. whether or not those things are enough to fix his pr crisis remains to be seen. it's too early to say. >> why do you think had he a pr crisis? >> well, he had a pr crisis because he knew, i think, and facebook knew about everything that was going on and everything that was happening way before the stories broke. and what they could have done from the very beginning is said, look, this is what's happening, these are the things that are going on, we're going to be open and honest, we're going to talk to you about it as much aups ne --

as you need to hear about it and mostly we're going to let people know, the users know more about what's going on. it's the users that don't have a full understanding of how their data's being used. they should know that more from the beginning. >> doesn't it have an aspect of kind of a groundhog's day? haven't we for years been hearing about these problems that dpais facebook has regarding data accumulation and privacy and facebook will time and time again say, you know what? we've got sel regulatory practices in hand, we're working on it, just trusts. there's that pattern that's been going on for a couple years now. >> i agreet. what's happening to facebook, it's important to remember, can happen to any social network right now. they are the victims of unethical actors, they're the victims of aggressive nation states and others. and heil they do have a responsibility to keep things protected, they are being attacked. and what's happening to them could happen to anyone. now, they have a great opportunity right now to rewrite the rules of how data is protected, how users are protected online and they van

opportunity to lead the charge to come up with a whole new data standard for how social networks should operate. >> joe, we have a lout of entrepreneurs who watch this show and let's say they're just a small start-up. at what point is it right to create the crisis plan, the 2:00 in the morning ceo, okay, what? what happened? you can create a generic crisis sflan you're not going to know what the crisis going to be. >> if you're creating a company that relies on the internet do business, your crisis plan should be taking care of business on day one. if you're going to be doing business on the internet you are at some point going to be attacked, you're at some point going to be breached. and you better be ready for it. >> do you sit down in a board meeting and say let's go around the room, what's the worst thing that can happen, hackers what would we do if, what would we do if? i'll tell you who i was impressed by. we had the found irrelevant of lyft on and i had to explain to the viewer what lyft was. he said something to the effect of, you know, at some point i

asked him about safety. he said, listen, if we get big enough at some point we're going to kill somebody and we're ready -- we don't want that to happen, but we're ready for that. i was impress when'd they had half a dozen cars or whatever it was they were ready. >> well, i have to say i agree with you there are bad actors and you don't know what's coming around the corner, especially in a world where we're reinventing every rule every single day. in the case of facebook i think this speaks to a allergy problem and i'd like to hear other thoughts on this, they don't want to acknowledge what they are. are they a social platform? are they a media company? >> they don't want to be regarded as a media company. >> are they a communication platform? if so, communication they kind of fell down there. so it speaks to that problem of what responsibilities do they have and what context do they view themselves? and that is, i think, what has led to all these regulatory interventions that are starting to take place. what is facebook? >> yeah, that's a great question, right. if they can't answer it, it's hard for us to answer if the but i think without doubt what

facebook is, it's an online platform that relies on the voluntarily provided data of billions of people to make money. right? that is what it is. and if mark zuckerberg or anyone at facebook would say, look, this is what we are and that is what we do, people would feel a lot better about taking part in it. >> do you think also facebook is getting more flak? in a sense they're kind of in the eye of the perfect storm of bad things happening. but there's a backlash against big tech companies. >> right. >> there's distrust to them, not just facebook, google and twitter are going through the same thing the. in a sense they're taking fire for what some of the other companies were exploited in the elections. >> facebook is an easy target right now and what's happening to them can happen to anyone. they should take this and turn it into an opportunity to create a whole new data security standard for social networks and online communications. >> joe, i'm going to squeeze in one last question. that's is mark zuckerberg is going to talk to the senate on tuesday, to the house on wednesday, and of course we'll have lots of television cameras.

you know, martin went before congress and rolled his eyes. i know if i'm to go in front of congress and testify i'm not to roll my eyes. what advice would you give me if i were your client and said i got before congress. what sort of advice would you give me in that situation? >> i'd say be open, be honest, tell them what they want to know. they'll them what they need to know. and keep in mind that data issues online are a matter of national security. so when he's there testifying,ese he's not only testifying on behalf of facebook, he has the opportunity to help the united states as a nation better protect data online. and he should -- he should take that responsibility seriously. >> joe, when i'm in a major pr crisis i'm coming to you. >> all right. >> thanks for being here this morning. coming unlater, never before seen film showing san francisco long before the invention of avocado toast. but next, are going to the extreme to save a company when press:here continues.

welcome back to press: here. you don't need to know a lot about business to understand the basics of this stock chart in the say five-year chart for shares of extreme networks. something happened there in the last two and a half years or so and whatever it is it must good. extreme networks makes hardware and software that allows the movement of data. just a few years ago it was in a lot of trouble. it needed a big gamble to

survive. ed mirecord is that gambler. he came out as ceo at a bad time, laid people off, racked up debt to opportunity company around. thanks for being with us this morning. >> thanks for having me. >> i want to align to back in 2015 when you became ceo. why would, if you were asked to become ceo, somebody take a poker hand that had a pair of 2s? it just doesn't seem -- >> we had more than a pair of 2s. >> it didn't look like it on the surface. do you see my point, though? you knew you had to lay people off. you knew you had to make hard decisions. >> i wasn't coming in cold turkey. i was chairman of the board, i'd been on the board for six years. and extreme has a great product, great technology, strong team, and because i was on the board i knew a lot of the people. and i felt like we could win. i felt like we had all the ingreed gleni

ingredients in place to win, we just had to get focusinged. we playing in a large industry, 35 billion. extreme kind of lost its way, trying to play in too many markets. we had to get focused. >> you're still chairman of the board. >> i'm not. i had to give that up. >> that's what i was going to do ask you because it makes sense to me. we were talking about this with facebook, split those two positions. >> yeah. that's part of our governance, we believe that should be split. fortunately, as we've gone through this transition we've had a very supportive board. and that's been a key ingredient for us working through the changes. because, as you've mentioned, we've had our struggles. >> so before taking over and turning things around, you're on the board, how long were you on the board when you were seeing these issues and it's kind of a tricky transition, right? you're on the board, you see the problem, you're the person they're going to turn to. how does that whole process -- >> the way that it unfolded is that extreme merged with a company that was a merger of equals. and operationally things were

moving sideways. you can see it from a board. it's frustrating from a board position to watch that happen. that was going on and we realized we had to make a change in leadership and the board asked me to step in. because ways on the board, as i said before, i knew some of the players, i was familiar with the technology and industry. and extreme's got an incredibly loyal customer base, loyal partner base, and it was just a function of getting focus, resetting the strategy, and resetting the plan to drive better outcomes. that's what we did. >> what was kind of the core at the time? because not only are you behind and you've replaced the ceo, and then you layoff 1/5 of the staff, right? >> yeah. >> how do you get the team to come back and work together after something like that? >> that's the hard part. people have families, they have to pay bills and so that's the tough part. but, if you take out 20% of your

workforce, you're saving 80%. if you don't do that, the 100 people are slowly going decline. in our case everybody got on board. they realized it's a tough decision, you so v to make tough decisions in a turnaround, we did that. and then the 80% got fired up. we say wear the purple jersey to be extreme. we got everybody fired up to wear the purple jersey and then we went on a run and we -- >> didn't you also promote some people from within into leadership roles? >> we did. >> which is very unusual. >> the entire leadership team had been dhanged out but several people got promoted up weaned brought some people in from the outside. we have a great team and it's been a team effort the whole way. >> what's the percentage of successful turnarounds in tech? >> i don't know. >> i was just wondering. because i'm kind of -- >> we like to write about the ones than don't. >> well, yeah. in this case one of the things we had to do was set a realistic plan. what you don't want to do is set a plan that's not realistic. there's a culture change.

people want to win. if we start winning it's one quarter at a time, we set a plan in place and we hit it, we beat it. we set the next quarter in place and we beat it. so now we're 11 quarters in a row of meeting or exceeding our erngss guidance, it gives confidence to our board, investors, you pointed to the stock chart, our customers, our partners, people feel it. employees feel it. >> kind of like that sports analogy where you say why would a mappinger join a team that's losing. it's because it can only go up so maybe needs a jolt. >> that's the best time to get with the company, right? >> i like the baseball analogy in that as well. >> so what is your definition of culture? it's a big word that's ban did ied about whenever a company goes through a lot of drama. very different problem at uber with the toxic culture. but culture, culture, culture. what does that mean? >> two things. you know, on our side. one is what are you focused on? in our case we got focused on customer. the company had been very

product focused. we're going to build this product and the push it out in the market and see what happens globally. in our case we totally shifted over and extreme now will talk about customer-driven networking. very different from our allergy competitors that are pushing products out there. so customer-driven networking is really us trying to change the business outcome of our enterprise customers and our partners. so, you know, that's one piece. the other piece is winning. it's a mind set of what are the behaviors we have to adopt inside the company in order to win. it's things like having real conversations, you know. >> and i've talked. >> transparency. >> i've talked to employees and they think their winning. >> yeah. >> they really do. let me fire in two quick questions before we run out of time. number one, you purchased all of avia, right? >> that's right. not all had excuse me, correction. they're networking business. we started off with the acc decision of zebra wireless land and then we went into the avia business. we were able to buy that you the off bankruptcy. >> and you're still over that, right? >> we have borrowed money to

make those acquisitions, which is debt, but our leverage is very low. if you look at our cash flow, we're a little over one times leverage. >> and let me squeeze in one last one, that is what's your exposure on the tariffs? it could be i net positive, couldn't it, in the sense that chinese networking equipment or is it net negative or do you not even know at that point? >> we think it's a net neat trool. at the end of the day what happens to us is likely to happen to our competitors. if prices go up we would have to pass that on but it would be an industry phenomenon that we'd all have to deal with. up next, stumbling upon a san francisco bit of history at a flea market.

welcome back to press: here. there's a famous bit of old film about san francisco can called a trip down market street. it was shot by four brothers, the miles brothers who placed a camera on the front of a cable car. what's cool about this film is for years historians thought it was an interesting looking old san francisco. and then a historian named david keane examined the film carefully looking at the car license plate, the angle of the sur sun, even the rain puddles and figured out it was shot just shortly before the great 1906 san francisco earthquake.

and then our little story gets better. someone stumbled upon another film shot by the same brothers at a flea market. and that one was just after the earthquake. i would love to show it to you and i can't because they won't give me the video. i could show you a couple of stills. that's the market ferry building you saw earlier, that looks like something blowing pipt mentioned historian david keane, he's sitting with us. david keane has been digitizing every frame of that new film and he gave me three, three free shots of it. but you're debuting it really soon, right? >> that's right. >> tell me the story. it's in a can in a flea market? >> yeah. this guy named david silver finds this footage that's being sold at a flea market and buys it and doesn't quite know what do with it. puts it on a -- a post on a san francisco history website and

the guy who runs it, nick wright, asked his viewers what do you think about this? and nick's brother jason says, i'll buy it. and so jason buys it from david silver and then tries to find out -- >> at what dpoint we know what we've got? we've got one of the miles brothers' films. >> when it finally comes to me and i actually look at that time and start looking at it on a pair of rewinds, then i can see that this is footage that i haven't seen before. and i've seen a lot of san francisco footage in the past. so i set it up on my home-built optical printer and copy it frame by frame so that i can really see it because this is something you couldn't run through -- >> because you're just holding it up like this, right? >> yeah. it's too shrunken to run through a projector.

you don't want to run a fillic like that. >> ruin it. >> yeah. it's already been damaged, actually, because it was so shrunken, somebody in the past had tried to trun through a projector and damaged the perforations all on one side. and fortunately the image wasn't damaged and the other perforations on the other side were clean so i was able to run it through my machine and copy 8,655 frames. >> how long is this film and can you describe some of what you see in it? >> it's nine minutes long. and it starts out on a trolley car on the old cable car tracks on 5th street going towards market street. >> and this is two days after the earthquake? >> probably about two weeks after the earthquake. >> okay. >> yeah. the end of april. and so it goes down the trolley cart tracks on fifth street, turns on to market street, goes down market street, and that

lasts about five minutes going down to the ferry building just kind of duplicating what they shot just a few weeks earlier. and then it cuts to another scene from a two-story building that used to be next to the ferry building showing the ferry building itself and pan oramming left across the ruins of what was san francisco and all of these wagons and carts lined up to get across the ferry building on to a ferry to oakland. and then it cuts to another scene showing the old city hall building in ruins. and dynamite explosions. >> that must have been the frame we showed, one of three frames that you were willing to give me. >> yeah. in this day and age, i'm imagining -- i mean, in that day and age, rather, there were very few movie cameras to be found. >> that's right. >> this is probably some of the only video.

>> there were -- when the other companies were based in chicago and new york heard with the earthquake, they send cameramen to san francisco. but from new york that took quite a few days to get there. the miles brothers had cameras already. they were actually on route back to new york. they were the first i coastal movie company, office in san francisco and one in new york r and they shot this trip down market street film and they were back to new york with the film and their cameras to get it released. and en route they heard about the earthquake, sent the film on to new york and went back with their cameras to shoot the aftermath. >> a lot of us have seen and we just saw the miles' first run down market street. people are curious and glancing at the camera like what it is. what is the feeling to the people who left? >> i think it's more of a

feeling of getting back to work. towards the beginning of the film there's actually some workmen on the tracks and they have to park, get out of the way for the trolley car to go by. and people are staring at the camera just as they did before the earthquake. i think there is a different vibe to what's going on. there's also trolley carts going on the other way from the ferry building and you see them fully crowded with people hanging off the side, taking the trip back. and it is a different look. >> david, there's about a minute left, let me ask you about modern day. you have these films, you're very good, i mentioned that you were able to figure out exactly when a certain film was made, et cetera. 100 years from now they'll have video of people eating ramon

soup and self phys. is that good or bad for historians? >> i think it's good if it can be saved. the problem with digital medium the standards change and you have to my great it to a new medium. and, you know, if they learned like they did with old nitrate film that is flammable and can be destroyed -- >> i imagine that some guy will find a little sd card in a flea market 100 years from now. >> who knows what will be. >> david keane is going to premier his film this coming weekend. i know it's sold out, but i'm sure we'll able to see it at some point. >> in june in san francisco. >> fair enough. david keane is our guest. we'll be back in just a moment.

that's our show for this week. my thanks to my gefrts and thank you for make us part of your sunday morning. gefrts and thank you for make us part of your sunday morning. uegefrts an thank you for make us part of your sunday morning. sgefrts and thank you for make us part of your sunday morning. tgefrts and thank you for make us part of your sunday morning. sgefrts and

thank you for make us part of your sunday morning. and thank you for make us part of your sunday morning.

to "comunidad del valle," i'm damian trujillo. and today, "los idolos del pueblo," los tigres del norte, right here in our studio, exclusive, on your "comunidad del valle." male announcer: nbc bay area presents "comunidad del valle" with damian trujillo. ♪ [singing in foreign language] [singing in foreign language] damian: yeah, this is another legendary band. this is banda recodo de don cruz lizarraga. they're here in our studio to enlighten us, because they're gonna be sharing a stage with los tigres del norte and paquita la del barrio. welcome to the show, gentlemen. alfonso lizarraga: thank you very much, my friend, damian. it's our very pleasure to stay with you here. damian: thank you. well, he said he didn't speak any english, but he's surprising us right now.