who is to say ali baba will be a success after the ipo. programs it's one of the best windows to get ohio we saw what happened on facebook, it took a long time for the stock to get whole again, plus with less proceeds to shareholders, they have less cash to try to turn the company around again. that -- the majority of their assets will still be locked up. okay. we will have that public mark. but again, we're not paying this management team to make these investment decisions. we are paying them to turn around the core business. >> that's true. at the same time we have been foging marissa myers, what will she do with that cash and can she hang herself if she spends it on something stupid or overpay for a property because she is looking for that shiny ring out there and she can overpay for it. >> that's the other speculation. the other thing is the "tell" is if you look at amazon's performance going into ali baba, you would have thought they got smacked around because of the comparison people are making. i'm not sure, but colin, do you think

back to you. >> ali baba comes to the rescue again.lia. >>> up next, much more on interel's earnings. cfo stacy smith breaking down the numbers in a first on cnbc interview. and do we give a passing grade to marissa mayer two years into her tenure? that's coming up on the "closing bell." but i've managed. ♪ i got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. ♪ when i finally told my doctor, he said my crohn's was not under control. ♪ he said humira is for adults like me who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. and that in clinical studies, the majority of patients on humira saw significant symptom relief. and many achieved remission. [ female announcer ] humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure

we have a new number for the valuation of aly baba. try $150 billion.amazon. yahoo! has a big stake in ali baba. nonetheless, yahoo! is down. we have to check out intel. they shipped a record number of profits last quarter.in they are up. back in a moment. ♪ i'd lift my arm and the pain back here was excruciating. i couldn't lift my arms to drum or to dance. when i was drumming and moving my rib cage and my arms like this it hurt across here. when i went to the doctor and said what's happening to me his first question was "did you have chickenpox?" i didn't even really know what shingles was. i thought it was something that, you know, old people got. i didn't want to have clothes on. i didn't want to have clothes off. if someone asked me "let's go dancing" that would have been impossible. stuart: intel is helping out all of the semi conductor stocks. nicole: that is right. they came out with their numbers. better than expected. not only is intel leading the dow jones industrial average, but it is bringing the others up along with it. how about arm holdi

all of which i believe will get a boost when ali baba comes public.tart with the company it's the longest online retailer. vipshop, mostly via a flash sale business money, check it out. you can hook it up. every day they announce a new sales event. a powerhouse of goods, cosmetics, otherwise dow products. each of which lasts for five days. you foe what, i like to think of vipshop as the chinese version of tj max. except it's all spun over the web. this is a terrific business model. china is very faer from well developed. there is huge demand for these discounts, very few places to actually find them. china doesn't have big off price bricks and mortar resale chains like we do. to compete against, the footballs are tremendous. when vipshop reported in may, they had 7.4 million customers. the company's revenue soared 126%, earnings more than quadrupled. yes, earnings, the may be the fastest grower out there in excess of 100%. the new model margins are steadily expanding, vipshop has eformous opportunities. accommodate rising customer demand and gradually

so, good things coming from ali baba.ot so good things coming from advertisers. >> thanks, caroline. apple and ibm. there is a deal. ryan chilcote, hopefully this time i can hear you. >> take two. it is always better the second time around. this is not a story that is going to move the market today but it will take all those that are over the age of 40 like me. the first mac came out when i was 11. that is 1984. it was advertised at the super bowl game. ibm was the company to beat. apple was the challenger. fast forward three decades, it is the other way around. a little bit about what we have with this partnership just announced yesterday between ibm apple is, if you can't beat them, join them. are going to work together to create business apps for iphones and ipads. sounds like a good idea. investors think it is. while lots of business people out there use their iphone and ipad for business, it is sort of business-light. you browse the web, check your e-mail, look at your calendar. how often do you get that approval for

ali baba and investors other than yahoo!ely to make up the difference by increasing .he number of shares people familiar with the matter have told us. yahoo! will return at least half the cash it reaps from the ali baba ipo to shareholders. mulally's appointment to google's board less than two months after the technology company unveiled the latest drivinge for itself car. intel, the world's biggest semiconductor maker forecast three-quarter -- third quarter third quarter sales that topped analyst estimates. it will be 14 $.4 billion. the company says the forecast has fueled optimism for a stronger rebound in the pc market. welcome to "countdown." >> get ready for airbus. dealmade a $38 billion yesterday. with air asia. tony fernandez on why he decided to bet big. >> it is one of the greatest aircraft ever made. four years i kept pushing airbus. look.an back and took a >> how long have you been harassing them? >> four years. they told me know in many different languages. politely. to their credit they came through and built

snapchat is in talks with ali baba group for a financing round that could value the photo messaging company$10 billion. people with knowledge of the situation tell bloomberg the talks are ongoing. the terms of the funding could change, but if it is completed snapchat would join companies like dropbox, airbnb, uber with valuations more than $10 billion. alibaba group is gearing up for a u.s. ipo and has invested in a number of u.s. companies recently, including shop runner. joining us to discuss from new digital,he ceo of tbg and our editor-at-large, cory johnson. simon, i will start with you. snapchat has no significant revenue that we know of. $10 billion? is that fair? >> it is when you look at valuation approaching 200 billion dollars. it snapchat can take a bite out of that market, $10 billion might be cheap. offered $3cently billion, which they turned down. snapchat launched a new product, similar to a stream of information that disappears every day. that is getting one billion views a day. the numbers are getting significant. it could be worth the money. >> what do you think, cory? fa

ae margins for ali baba, for company like google, are close , they have yahoo!lly fallen off to three percent in the last quarter. costdo not run acquisition us through the income statement, but the acquisitions have brought them a lot of revenue. they farm out or delay the bad,sition, and despite you have falling margins. the pressure is inc. recently -- is increasingly on marissa mayer to perform. >> we are going to be all over yahoo! earnings later today. >> like a blanket. >> cory johnson, our editor at erlichman, thank you. young up, we will tell about a massive restructuring in which departments at microsoft could be impacted, next. ♪ >> its 26 minutes past the hour which means bloomberg television is on the markets. overall, equity markets are lower following comments by janet yellen. markets are down, pretty much flat. s&p and nasdaq are also selling. after earningsay beat analyst estimates. we will be back with more bloomberg west after this break. ♪ >> you are watching bloomberg west. i'm emily chang. janet yellen has been testifying before the banking

the other thing that is different is that this being ali baba, it might open the doors to snapchat inhina, in the way that some chinese blessed companies are allowed to do business in china, where facebook and google are not. that could make this business a lot more valued thomas sibley by the fact that it is an investment from alibaba. >> it is interesting also because alibaba has stake in its own messaging app. simon, what do you think about alibaba in particular being part of this potential financing round, and how involved they might be? >> as cory said, if they can take snapchat out of the billions of people who are in china, it could be a scary prospect for the networks which don't currently have access there. they already have the investment in we bow, which the majority of it is a decent stake. it gives them a few different bets on -- it is similar to twitter, facebook combination. snapchat is a slightly different approach, where the messages disappear. it could be huge. >> simon, cory, i want to talk about twitter's big earning report. twitter's monthly active users up 24%, s

reports say we could be just weeks from ann ali baba ipo.oup is expected to launch its initial public offering as soon as late july but timing is dependent on market emissions. that is the latest in a fox business network giving you the power to prosper. melissa: president obama likening his recent remarks in d.c. to the martin scorsese flick of the departed. >> who are you? mark wallburg says i am the guy doing my job. you must be the other guy. sometimes i feel like saying to these guys i'm the guy doing my job, you must be the other guy. melissa: as the immigration fight in d.c. battles on, though wave of illegal immigrants continues to flood into our southern border states. will carr is live with the latest. >> we confirm what border patrol stopped flights coming from texas to california with emigrants. they say they have done that because the backlog has eased in texas and has nothing to do with the protests we have seen over the last weekend have, protests that put the city in the national spotlight. we have seen protesters get out int

ali baba will go public after labor day. we expect by humongous ipo.sa: which begs the question why would they blackmail them for $300,000? if you're going to get it done you would ask a little more. they are about to go public. >> that is a legitimate question. if you think of it from the chinese side there are a lot of people who wish they could have gotten a piece of the pie, they still can technically by investing in the company if they want to but because -- melissa: it is great. >> a controversial company and we don't know everything about it. they are in need of filing several sec filings and haven't gotten approval to raise capital, they will get that. it is an interesting company. melissa: thank you for your reporting has always. the tech world power shift, companies like google outpacing their more traditional rivals with the earnings season. many analysts say this is just the beginning. at an end of the day it is all about money. ds on the clock, what am i thinking about? foreign markets. asian debt that recognizes the shift in the global ec

. >>> ali baba getting a $130 billion valuation ahead of the ipo.o's 25% stake enough to boost the stock? we're hearing from eric jackson at iron fire capital about why he's holding on to the stock. the core holding, by the way. more "fast money" straight ahead. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. at every ford dealership, you'll find the works! it's a complete checkup of the services your vehicle needs. so prepare your car for any road trip by taking it to an expert ford technician. because no matter your destination good maintenance helps you save at the pump. get our multi-point inspection with a synthetic blend oil change, tire rotation, brake inspection and more for $29.95 or less. get a complete vehicle checkup only at your ford dealer. habeing able to pay as we goo rawas crucial for a start up.s. having to fork out a lot of money up front was risky. you can launch a feature really quick, and if the feature doesn't work,

was keeping more of ali baba that originally anticipated. ryan chilcote and caroline hyde are here with the details. this is a nice big move. apple, ibm, finally we get the crossover between business and personal life. >> interesting that these are two companies that have been feuding for three decades. 1984, the mac comes on the scene. had, --cades that ahead, we know it is all about apple. it is slightly better for ibm. in a nutshell, they will make business apps for iphones and ipads. the likes of caroline hyde can now use their iphone or ipad for more than just browsing. she can say, i won approval for this for her posh dinner. if we had more businesslike things going on, i see something selling well over there and i want to put in a big order for that. that is something people are not doing in the mobile space right now. siemens, their employees have iphones. why wouldn't ibm want to get in that space? want you to put these earnings in context. this ibm deal with apple, that is less devices. >> so much growth going on in mobile at the m

. >>> coming up, ali baba is much anticipated but can you add it to your abort follow owe or google? the global rival series continues. >>> a big auto recall from ford. ford is recalling more than 100,000 vehicles in the u.s., six separate recalls in all. it's to fix a variety of safety defects including leaking roofs and corrosion. most of the recalled cars, 92,000 are for 2013 and 2014 ford tauruss and lincoln mks models to fix a problem with the drive shaft. in injuries reported. to see a full list of the recalled cars, go to nbr.com. >>> world cup semi finals being battled out, host nation brazil took on germany in the world cup semi finals and in the latest round of nbr's ultimate stock cup, two giants of the internet square off in the global marketplace. representing the u.s., it's google, going up against china, alibaba. >> reporter: at the core, google is a search engine, a company that helps you find stuff. it's profits embedded in search-related ads. how big is it? how many companies have ever become a verb? founded in 1998 by a stanford hpd students, it's headquarters in c

. >>> they are reportedly in talks with ali baba. it's an e-commerce company in china. a student founded the company in 2011. >>> singer and actress jennifer hudson, part of a new campaign to fight cancer. >> a million things come together. >> when we search for cancer's secrets. >> the public service announcement is for the non-profit group stand up to cancer. the campaign showcases the important work of cancer rese researchers who are developing new treatments and therapies. >>> they're trying to figure out which animal takes the longest time to hatch its eggs, and it's a long time. you ready for this? the deep sea octopus can guard its eggs for four and a half years. that's twice as long as the life span for other octopi. the mother octopus goes without food that entire time. >> oh, my goodness. there's a first time for everything. >> and this is my first time being able to come here with my daughter. >> and they're not the only ones. why today was such a novelty for so many families at the giants ballpark. >>> you're looking at the faces of some of the young people

now, snap chat is said to be in financing talks with ali baba valuing the company at $10 billion.p chat lets users send video chips that disappear. >>> tonight, this year's list is out. the list from the center of science. >> the people who warn us about all the food that is really bad to eat. so tonight, cate caugurian shows us some of the food that made the list and asks, does anyone care? >> reporter: warning, this may change the way you look at your favorite food. >> red robin, yum. >> reporter: one of the top shame food, a1 pepper corn burger and fries. hungry yet in wait, the cool reese in this red robin meal is the equivalent of 7 double cheese burgers and a quart of coke. and it would take 12 hours of speed walking to burn it off. but does anyone care? i decided to test it out on my boyfriend and his roommate. >> the one that is bigger the fries. >> absolutely the one with the fries and the bacon. the burger here and the bacon and the fries. >> would you change your mind if i told you this one meal is the equivalent of 7 mcdonalds cheese burgers? >> you can have a splurge

chinese ecommerce giant ali baba getting into entertainment. vampires and madmen in china. betty draper, bella salon will all be in china. hunger games, madmen, twilight, part of the lion's gate brand, wall s

would you by ali baba itself? >> no.ad of itself. >> the fraud that you could have, there has been inventory. it just plain did not exist. china scares me for that reason. i would not put your money in a chinese company. now to the polar vortex. coming next week, we understand. temperatures in the low 50s and 60s. one of the climate change guys, what will they say about this? >> i am sure that they will find a reason to link this to the bad economy. if we are really going to try to link it to the economy, i will say that it is great for tourism. you can argue this either way. stuart: we have patrick moore on the show earlier. are you getting into this, nicole? nicole: i think that it would be good for business. people will be freezing. they did not quite tacky enough. i think it may be good for business. stuart: i have to go back to lebron. he is going back to cleveland. >> i do not get this at all. i am shocked. they were burning his jersey in the streets when he made that stupid decision on espn. i do not know why he d

on the 15th,rnings and then we have the ali baba ipo shortly after that. yahoo!pport level has been hovering between the 50 and 200. they just broke the 200 day moving average. i really like an upside play here. the august 30 six call, selling the august 40 one call. five dollar call spread. i'm doing that for the range of the dollar 30, a dollar 40. 41 reason i'm taking the strike as my short strike is that is the area we saw yahoo! trade at an all-time high. i like the upside here. i don't want to just go in and buy the stock. i feel like i can get much more bang for my buck by doing and options play like this. >> is there potential for it to get up towards that record level again? we get a goodr earnings report on the 15th or the closer it gets to the ipo, this is a cheap way to play alibaba through yahoo!. >> scott bauer, thank you so much. have a great holiday weekend. we will be on the markets again in 30 minutes. -- history on wall street. , in for trishson regan, and "street smart" starts right now. left ahead of an early closing bell for your fourth of j

ali baba and the rest of the world theoretically see the value there?oing from technology to connect everyone to technology that is only nice to people in the phone book. it could be a platform for the revenues -- and not saying there should be an investment like this but when people look at this -- that is why folks are so excited about this. so many people are connecting on this platform. sending pictures of all kinds of junk. >> is that why they are excited or are they excited because other companies will be valued -- >> the social spaces in china and the u.s. are so different. is there going to be a problem with a chinese company -- i am not even talking about regulation -- just in terms of culture, acquiring a u.s. based social media platform? >> that is based entirely on the degree to which they dig into how the organization is being managed. if they stay relatively hands-off, i don't think it will be a problem. track once to run snapchat the same way he runs ali baba -- >> in terms of global politics, chinese companies are able to do things in ch

. >> and people worrying they're going to bank money after ali baba, and go buy aol?well, just like a pinto and a yugo. nobody wants to buy it. >> time now for pops and drops. the big movers of the day. the gap, down 1%. >> well, this is one to avoid. they're not going to report earnings until the fall. i'd stay out of it. >> and chevron, down 1%. >> i think it has to do with crude being down 2%. they had a massive run after 2014 lows. they just rallieied 10%. >> how about modelez? >> well, this is one of the great ways to grow, in the e.m. food come sumgs trade. i would be cautious. >>> and finish line. >> i would stay away from this. >> and a drop from missing pets. how about this one. a lost spider? fliers placed around brooklyn to see if anybody has seen this tarantu tarantula. she's pregnant. >> how do spiders get pregnant? >> i missed that day in the birds and bees class. and lebron going back home to cleveland. value of the cavs, already back over $1 billion. ticket prices are going on the among the most expensive in the nba. it's the ticket. >> the way the ath

weeks, wee next few will be watching the ali baba ipo and what the company does with the money they raiseuch they are going to expand here in the u.s. what about ebay overseas and how you are expanding the business possibly in china? >> we are a global company and have the largest export visit -- business in the world. they are a great is this. their numbers from what we have seen are stunning. ofuspect the next couple years are going to be a story of the big companies further globalizing. our priorities have been russia, emergingrica, all the markets growing very rapidly. china willic certainly be our focus over the next few years. while alibaba moves out from china around the world, we will be moving hopefully from the united states into china and other markets. it will be very interesting to watch. coming up, the technology behind sarah palin's new media platform. that is next. ♪ >> welcome back to "bloomberg west." i'm emily chang. former alaska governor sarah palin became a household name which was the 2008 republican vice presidential nominee. her stances on issues have won her many

the next few weeks, we will be watching the ali baba ipo. do at the money they raise and how they will expand in the u.s. -- what about ebay? a mobile company and have the largest chinese export business in the world. great is this. their numbers are stunning. i suspect the next couple of ofrs are going to be a story big e-commerce companies further globalizing. russia,rities have been latin america, all the emerging markets are growing rapidly. >> even russia given all the contention? >> it continues to be and china will be in our focus over the next few years. when alibaba moves out from china around the world, we will be moving hopefully into china. >> that was ebay markets president there with bloomberg's eddie lew. coming up, the technology between sarah palin bosnia media platform. that is next. ♪ >> welcome back to "bloomberg west." i'm emily chang. sarah alaska governor palin became a household name which was the 2008 5 pence -- vice presidential nominee. her stances on issues have won her many fans and many critics. now she will hav

snapchat is said to raise money from ali baba. the valuation is said to be worth about $10 billion.his according to people with knowledge of the situation. last year, snapchat said thanks, but no thanks to a $3 billion takeover proposal from facebook. metlife doubled up on derivatives and chilean business. net income climbed last year. shares are down around three quarters of a percent in the after-hours trade. and investors are taking a bite out of shares of whole foods in the after-hours trading. salesmpany lowered its forecast this year, the reason, increased competition. sales are off from the 11% in initially projected. those are the headlines. >> thanks, carol. one company sells products on store shelves, popcorn, indiana. the company ceo and president is joining me right now hitesh hajarnavis. tell me about your business. >> we are one of the largest popcorn companies. number one in kettle corn. we have a whole range of popcorn products, from indulgent to popcorn ships. -- chips. of popcornroad array snacks. the consumption conscious snack or, that sounds like an oxymoron. >>

she would only be required to sell half the stake in ali baba. that means they will continue to receive a benefit from owning their alibaba share. they are getting a little bit of --ir cake and >> why would they have to sell shares in alibaba to give the money back to shareholders? couldn't they use that as collateral and take out a deck contract with their investors and pay them back that way? >> i talked to the chief financial officer of yahoo! many times about this. can said they looked at every way possible to modify it. the big concern is the taxes. aey have come up with solution. this is a better solution than what they had going forward. this is an agreement between yahoo! and alibaba. >> right. is up aftertock hours because of it. but if you separate the alibaba machination from the business of theo!, what you see is business of yahoo! is not doing wonderfully well. their operating margins are quite low. their operating profits are quite low. their revenue continues to increase. they spent over a billion dollars in acquisitions in the las

ali baba. they are about to cash in. we will have details in a moment.u daddy for defending our country. thank you for your sacrifice and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. stuart: some of the biggest winners will not be just plain old regular investors. some high level chinese officials. the companies that we call that amazon of china goes public. who are these "politically connected investors"? >> of the four major investors, all of them have had or currently have penciling. a grandson of a former president. very high ranking officials. this is the highest political class, stuart that we are talking about. stuart: when it goes public, it will be worth the $150 billion. >> if you look at when some of these partners bought in, their returns have quadrupled already. if they m

. >> it's called under the ali baba microscope. it was oversold. think you can call it a pop. >> we got a pop for apple up 3%. >> that's without that new product. you know we few yesterday ahead of the earning, they would not by a townsing that product. a bunch of firms come out today around upgrade tear targets for the stock, moving them up on average 8.5%. most of those are forth of 105 a drop for coinye, kanye is declaring vick over over the coinye, it features a cartoon of kanye, unfortunately, he may have trouble collecting any actual claim since the creators of the currency live outside of the united states, this is kanye west. >> the whole retirement was in coinye coins. >> they're going to merge with nautilus coins. shares of pepsi popping after a strong earnings report. still ahead, we'll tell you what traders are betting. this could be the beginning of more gains to come. more "fast" ahead. ♪ . >>> we got a fuse alert on changes to the marine apparel. >> this has been an interesting summer for american apafrl. itative named four new board

32 cents a share investors are mainly focused on what yahoo plans to do about the windfall from ali babaith the rail operator csx, it's expected to earn 52 cents a share in its second quarter on sales of about $3.25 billion of the the company is a good barometer for the economy, one of the perhaps leading indicators. csx marginally down. >>> and michael ward will be live on "closing bell" beginning 4:00 p.m. eastern time to discussing csx's results back over to you. >>> interesting here, because there seems to be less enthusiasm about the actual business, as dom was suggesting, it's all about the aliinto beena wind fall. >> and investors are becoming more harsh. they want them to utilize the cash more. the focus will be how will they use it? and as we've been discussing, what's a really interesting phenomenon is will we see mo merger and acquisitions? will that be the trigger that helps to keep the momentum? >>> marissa mayer was having those -- at that bar or whatever with tim armstrong out in sun valley. >> which is good for armstrong, but not good for her stock, that particular deal b

ali baba is waiting to launch its ipo until after the labor day holiday, it was originally suggested that the offer could come this summer. report said the company is holding down for the right time in from market. that is the latest from the fox business network giving you the power to prosper. 3rd and 3. 58 seconds on the clock, what am i thinking about? foreign markets. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. if you convert 4-quarter p/e of the s&p 500, its yield is doing a lot better... if you've had to become your own investment expert, maybe it's time for bny mellon, a different kind of wealth manager ...and black swans are unpredictable. melissa: now the latest on washington following the malaysia crash in ukraine, peter barnes joins me with the latest. >> the white house telling as vice president joe biden who is traveling in detroit today got off the phone in the last few minutes with the ukrainian president, quote, on the call t

as for yahoo, this is now all about the coming ali baba deal, yahoo owns a huge chunk of the chinese version of amazon, that's what some describe it as. we need to hear from the ceo marisa mayer. and if she tells us the core growth is accelerating, this stock might turn out to be the tech star of the third quarter. i do like it here. wednesday is bank of america day. oh, boy. you know what? all we want from bank of america is a good, clean quarter with no mistakes, no asterisk, and no new legal worries. i'll take the old legal worries, i'm fine with that! if we get that, the stock will see $17. if not, we'll just be watching $15 paint dry for another three months until the next quarter. we're also going to want to hear what rich kinder says when he gives us the report card from the kinder morgan complex he's created. why is it so important? because oil's been plummeting of late. of late, it's been down almost every day. and i bet rich will tell us if that's because of the explosion in u.s. production, where fewer real explosions in iraq and libya, once kinder morgan reports, i think

. >> ali baba. well.ommerce done they do not back the arch rival -- archrival. >> there will be attention. >> how did you guess. -- guess? >> they compete fiercely in the market. they are breaking away a little bit with the luxury end. says that they are using the taxi booking services. for anything, real estate to cinema. few namestioned a here and it gives me the impression that there is a lot of competition here for taxi apps. >> there are. the two big ones were mentioned. there is also lyft, which is announced a launch in beijing and easy taxi. they are all trying to grab market. none of them have at the luxury end. market in china is evolving and the government is starting to look closely at what is going on. there was af may, draft issued that said they are regulating services and looking closer at the industry. that could require the companies to share information or consider, as an extreme example, putting all of the services under the government, a huge blow to these companies. we do not kn

is about to come into a lot of money based on its stake in ali baba.ight to sell a big chunk of that. it is going to free up a lot of money. we have reason to believe this could make sense. there is recent for it. -- there are reasons. a lot of synergy. you could boost your bottom line and cut costs. they are similar businesses. the question you want to ask is is aol where marissa and yahoo! need to go? does it get them into mobile? is a game changer? a lot of it is duplicate of businesses. >> conte businessnt. -- content business. aol is still very much a dial-up company. am i right? >> there are still a lot of people with those aol.com e-mail addresses. >> we think that is crazy but that is where more than half their revenue comes from. what about yahoo! and streaming concerts? >> today if you wanted to watch the dave matthews band play, all you have to do is go online. it is part of a partnership announced with live nation where they will stream 365 dfays a year, one concert a day. for live nation, they have 23,000 concerts a year. they want people

they will keep a bigger stake in ali baba after it goes public. we know the stock has done phenomenally well. >> she was spirited about the revenue line. this segment is not doing well. banner ads. >> stabilizing. there shares are down in the free market. yahoo! reported sales that fell last quarter. operationally, there are still some issues. >> earnings growth that yahoo! this year, based on consensus estimates, 3%. that is it. >> that tells you what you need to know. those are the front-page story. an optimistic view on the american economy. we are thrilled to bring you on short notice. david kirkpatrick. bloomberg to meaning editor on apple -- contributing editor on apple and ibm. i want to talk about yahoo! first. is it still a train wreck? >> i don't think of it as a train wreck, but a company that is trying to find its way through transition that nobody has the formula for. i have had a number of people say that marissa mayer my number doing that great of a job, but who can do a better job? who can say this company? they are trying to becom

>> it is backed by ali baba. the alibaba app to pay.ther one, you can use a wallet to pay for that. takes alikes -- uber pay as well, lined up with alibaba. they are using this service as a gateway to other services. myriad of other services you can get through the gateway, the portals. >> that is the ultimate long game, isn't it? time for a look at the other stories we are following today. david english with the details. >> give the ceo his job back, or pay up. that seems to be the message from the hedge fund which went american apparel $10 million. wine capital believes -- lion charney leftif the company, it would be in default. was ousted in allegations of sexual misconduct and ms. up-ice -- and misuse of corporate funds. hope for a deal at angela merkel's visit. lufthansa has struggled to keep up with competition from rivals in the emirates and turkish airlines. said to be selling a stake in its project in western australia. people familiar with the matter said the houston-based company is said to be in discussions with the buyers.

earnings were ok, but the fact they're going to hold onto a bigger portion of the ali baba stake fors more impactful. think newer- i companies tend to hold onto cash a little bit more longer and they want to get a few quarters under their belt before they start shortly thinking about their use of cash. >> what will you be looking for in the tech world in the next week? intel reported this week. the pc industry seems to be -- is it back from the dead? we don't know. it is a big industry and has a lot of tentacles and other spaces. i want to see continuity and see if the recovery carries over to the home consumer space. >> with microsoft, was this a failure of steve ballmer, these announcements? was it a repudiation of mr. ballmer? >> the fact that most of the job cuts are in an organization that just acquired. a hardware organization, not the software one. >> fair enough. historically, they're also walking way for most of the android business. if you were to read the tea leaves that way, that is one popular media angle, but the fact is, we're looking at it of the job status cuts aside

. >> you're not going to get it until ali baba in september. >> the synchro anies. >> i think that'soing to be taken up. >> virgin america filing. >> yeah. >> you can smell branson saying strike while the eastern's hot. >> one of the things i didn't like about last week the only airline that benefitted from the earnings was united, which has been considered to be the poorest of carriers. i think that -- i'm focused on yahoo! which will take the alibaba money and reinvent. yelp regarded as being the zillow of the food restaurant business. i keep thinking if yahoo! were to come after one of the companies with the cash, buy yelp -- horrendously expensive acquisition but it would get buzz -- you see what happened with zillow, zillow, analysts saying 50, 60, 70, zillow overvalued. in meantime zillow kept winning accounts with big real estate companies, i'm saying that the extended social media companies which is what zillow was, which is what yelp is, they are going to be coveted by aol. >> it's all stock. yahoo!'s not issuing stock. >> but look, the yahoo! right now is the yahoo! you're

the one i'm watching is ali baba, because that's backed by a lot of real demand and 1.3 billion consumers. u.s. social media, not so much, but i'm very intrigued by what's happening here. i think it's being driven by hope right now and expectation. neither of those come down to earnings and i want to see the earnings. >> steven, i want to go back to the backdrop of the credit boom we were discussing and how this is going to play out in the next couple of months. i think it was credit suisse who while being under pressure in some parts of its business lately was saying it sees structured finance, leveraged loans as a source of growth or that it's going to put more investment into. again, what is that going to mean here? does that just mean that if you're any company out there who wants to raise money, you can? and i'm thinking through the m&a boom we're seeing in relation to this as well. >> without question. it's a really easy time for companies to raise capital. everybody's looking to put money to work. what's important is to see what those companies are doing with that capital. you talk

some of these big high-profile companies, can't ignore the fact that soon we're going to get an ali baba there's google doing stuff on the payments front, apple may be doing more mobile payments going forward. that's obviously going -- we have to watch and see how it all shakes out. >> exactly. and of course, paypal. we are sort of joking, but a little bit of seriousness in this also. if ebay changes its name to paypal, would that actually improve the valuation of that company? and the answer is, you know what, probably yes, because that is where the growth is right now. >> yeah. all right, we've got to take a break. we'll leave the mash-up there for now. it's the talk of the town. thanks, everybody. and it's burning up the web. rupert murdoch's attempt to buy time warner. the story had big traction on the website today. up next, we'll see if it can crack the cnbc.com hot list. and carl icahn live from delivering alpha is straight ahead. you never know what he is going to say. stay tuned. >>> welcome back. one of the most successful hedge fund players of all time, leon cooperman, came up

back on him saying i'm going to take google down and partnering up with a chinese internet giant ali baba. i need to deep search function there. >> makes me think about the deep internet from "house of cards." >> i'm with you. >> carlos watson, thank you. >> happy friday, carlos. >> happy friday. >>> next up for us on "new day," john walsh from "america's most wanted" is back at it, hunting down criminals around the country. we will have a preview of his new show on cnn. it is great, "the hunt." stay with us. hey pal? you ready? can you pick me up at 6:30? ah... (boy) i'm here! i'm here! (cop) too late. i was gone for five minutes! ugh! move it. you're killing me. you know what, dad? i'm good. (dad) it may be quite a while before he's ready, but our subaru legacy will be waiting for him. (vo) the longest-lasting midsize sedan in its class. introducing the all-new subaru legacy. it's not just a sedan. it's a subaru. >>> i'll always be the parent of a murdered child. i still have the heart ache. i still have the rage. i waited years for justice. i know what it's like to be there waiting for