coast for the hour, bloomberg industries paul sweeney.hour, bill gates and michael bloomberg, who is in-house anyway -- they will be in our studio talking about philanthropy. bill gates just came out with the annual letter. one of the main objectives of this letter for him was to debunk some myths about helping the poor in the world. it'll be a great conversation. >> the kind of thing you don't miss, regardless of what industry, you have to tune in and watch this. bloomberg television is on the market. let's take a look here at s&p futures. dow jones up .5%. markets aree the going to open well this morning. even as we await another polar federal buildings are closing in anticipation of snow? >> schools are closing in anticipation. >> and federal buildings. they need to stay home because it may snow. >> i hope that's wrong. vortex, orr temperatures will drop to about five degrees. it begins tuesday in the northeast, particularly along the coastal areas. 6-12 inches. vortex, itolar bolt t is company by snow. >> ever since the weather channe

also joining us, paul sweeney, u.s. director of research at bloomberg industry.peed that you talk about of the new new in technology. how does google try to keep up with the new new? >> it is a lot of investment in engineering, but it is also looking around in the valley and seeing who is doing what. >> is it a new delegation of authority? don't the principles of google know that they cannot do it all themselves? >> that has always been there in approach. it has been a very decentralized company all along. >> all, you have provided some insight on this. motorolaolves mobility. it was kind of a surprise for a lot of google investors at the time. here is google, a search company, software company, services company, and now they are getting into hardware manufacturing, distribution, and retail. if you step back from the motorola deal, it was all about recognizing i am interested in the patents and i recognize the future of the internet is mobile. i need to be a player in mobile. i need to be all over the mobile space, so let's get into that part of the business. >>

paul sweeney listened to the call and joins me now with details. what did you hear on that call? >> we heard the team make the case that time warner had seriously under managed time warner assets over the last half decade. the charter management team is in a position to really take those assets and really maximize the value of those assets. charter is trying to make the case for shareholders that assets would be in a much better position being managed by charter. >> what about charter? do you think they are going to come up with a higher bid? >> time warner says they want a significantly higher bid. the rumor in the marketplace is approximately $160 per share, well above where the stock is trading today and well above charter's initial deal. i think it will be somewhere in between. one of the issues is how much cash charter has to come up with. how much cash will shareholders demand? right now, the deal consists of $83 in cash. my sense is that charter will have to raise that to reduce the amount of stock they will ultimately have to buy from the company. >> what about charter's

paul sweeney, you know yahoo! well. what do you make of the quarter?> another disappointing quarter. a revenue growth story. >> there is no revenue. >> one billion users to generate revenue growth. digital advertising is going 15% a year. yahoo!, aol, unable to take advantage. marissa mayer is probably feeling pressure. >> we saw alibaba results. they are trailing. it is slower than it has been. it starts to slip -- to show some signs it is maturing, as well. >> right. indid slow a little bit terms of revenue growth in the third quarter. people generally feel very bullish about alibaba and e- commerce overall in china. alibaba, the valuation associated with the ipo, it continues to be the driving force. >> exactly. when people look at the price, they say mercer mayer turned around the company. the results, you do not see it. what we really see is dan lothian particular finding a way , followingf alibaba the -- finding a way to make that work as well. a good jobpany did returning proceeds to shareholders and making acquisitions. from that perspective th

paul sweeney and porter bibb are here. does this make sense to you, charter and time warner?dam hit it right on the head. this is the first of what is going to be a whole slew of bids. the deal is a long way from ever getting done. >> comcast doesn't really have to partner with anyone. they can do the deal on their own, and that is what time warner is betting on. they are just waiting for another bid to come in. charter sets the floor price here. they are not going to move until time warner and charter have gone at it for a while, and then comcast will come in, probably. it's not going to really speed up the process. if comcast is smart and its bankers are smart, which they are, they are going to advise their clients to wait it out and see how far this could go before jumping in. bid againstn't yourself, in effect. >> exactly. >> and the time warner shareholders are not going to be very happy with the deal that has so much charter stock in it. >> where is it ultimately going? time warner said they want 100 $50-one hundred $60. is that unrealistic? of $140.ld go north >> they