aol has built a good platform. the traditional 20-year-old dial-up generates cash and allows the company to make the investment. that has allowed him and his team to make some of the strategic investments. >> it's like the worst skis slope in the world. you watch a steady decline over time but it continues to support aol to try to find business i wonder in your conversations with people around the deal if they see some value from that dial-up business? >> sure. it would make sense that a company like verizon with theoretically like to acquire the dial-up. that is in a sense what verizon already does, provide internet. the few customers that use dial-up, they could convert them to dsl or fios customers. you can look at aol like you look at yahoo!, like they have a cover business. in yahoo!'s case, it was the alibaba state. tim armstrong could arguably do a better job of coming up with a new business for aol. it is suggested that aol and yahoo! come together. you have to think that investors are looking at a the same

where aol comes to the business, aol has programmatic ad technology. in other words a form were now the rhythm decides where certain advertisements are placed. sort of advertising 2.0. not relying on human beings to make ad decisions. you rely on computers to do that. you can package that with a mobile video service and all of a sudden your content stars to generate money. that is the idea for verizon. whether they get into a partnership with aol or somebody else or a straight up acquisition has yet to be seen. >> i know they have made mobile video a big part of their partnerships. there nfl partnership. they had highlights for the 49ers this year. >> great highlights. >> it has been a big part of the platform for the last two years. what is different today? >> the idea here, cory, is what verizon has not released yet and we are seeing it today in essence. a package where you can just get your tv service over your phone and you do not need to pay for cable anymore. that is what dish is rolling out today, literally an online tv service. that is what we

aol. 20 plus years ago, we were in charge of digital initiatives and we said we needed to get into the new world. we did some things in the early 90's that were exclusive to aol the only way you could read "time" was aol. it was services that were exclusive, that propel growth in the 90's. the peak in the late 1990's, over half of the internet traffic in the united states , consumer traffic was through aol. >> speaking of which the , business model for the content providers goes south when everything gets put on the web. how do you see a business model that would have or could work better for content providers? >> i think it is evolving. because -- the good news is the playing field did get leveled and everybody has a printing press everyone has the , opportunity to have their voice heard, that is the good news. the bad news is, there are a lot of voices and can be a little bit noisy. the role of cure ration -- duration -- curation is important with interested brands and journalists is imp

tim armstrong ceo of aol. what what's he doing at a consumer electronics show. >> that's fascinating. especially the candy. bring some back for the rest of us. liz claman at the consumer electronics show. all right. we're about 40 or so minutes from the closing bell. the best rally of the new year appears to be holding. but as we've seen, anything can happen in the final hour of trading. we're tracking the markets every move. stocks hitting record highs, coming up. it's what all investors want to know: what is in billionaire investor carl icheon's portfolio. we have more on what he's invested in and not invested in. charlie gasparino is on his way to the studio with the story. can't miss it. lori: thirty-five minutes to the closing bell. fantastic day for the us stock market. nice rally underway. the dow was down five of the six sessions. it's up 176 points. good economic data on jobs. the fed minutes solidifying the fact that interest rates seemed to likely remain low, getting all tongue-tied over the excitem

of a sudden everyone can come on and you geoeye go on aol. did you have trouble deciding to open that? >> no. we tried to position it will in the 1990's as the best on-ramp to the internet for most people. as well as adding some things that were unique and exclusive to aol. 20 plus years ago we did some things in the early 1990's, those were things exclusive to iowa well. -- aol. it wasn't just the access on-ramp. it was services that were exclusive. that propelled the growth particularly in the 1990's, half of internet traffic in the united states >> the business model for the content provides goes south when everything gets put on the web for free. how do you see a business model that would have or could work better for content providers? >> i think it's evolving. i think because there's now a -- the good news is the playing field did get leveled. everybody now has essentially a printing press. even has the opportunity to have their voice heard. i think it's great news, actually. the bad news is there are a lot of voices and it can be noise

aol has done a very very good job.eaders have done an amazing job of building out unique platform that's good for advertising, good for media, good for partnerships. and i think regardless of what's happening with any of the companies that you mentioned, we see where the future is going, we saw it for years ago with the first company to really invest in video distribution really for one of the first companies to invest in the programat tic platform. one of the only companies that believed in content brand. when we bought the huffington post people did not believe content brands would be big on the internet. i don't know what the other companies will do but we're working as hard as we can and we did it at the lowest cost. we're probably the only major internet company that kept head count flat last year while doing all this growth. we have an efficient use of capital, very good at operations and very good at the future of where the business is going. there's a lot of rumors floating around about our company all the time

perhaps aol being one of many amongst those. we have the sound bite. >> i think aol along with lots of other media companies are potential for us to do partnering with commercial basis or whatever. but to say that we're having significant acquisition discussions is really not accurate. >> shares had been up as much as 6% in the early going. >> with content king and aol being one of the leaders you can see how a partnership would make sense. although it's nothing necessarily near term that is happening. >> i think that's fair. if you want to talk to a lot of people -- >> appreciate you bringing us up to speed. >> when we come back. as we said earlier, dish network making waves with its new streaming tv service. what does the future of tv online actually look like. we'll ask the ceo of roku. "squawk alley" will be back in a minute. >>> check out shares of priceline.com. one moment. stock that's lost this week. down about 1 and a half percent. another one of these companies that trades a little more volatilely than the rest of the

>> when you look at aol their volatility is still high, around 47%.bout yahoo! doing a tie up with aol. they did a deal by selling patents to microsoft. you saw it two and a half times about the calls being traded but you would expect to see more in a deal like this. >> that is certainly not confirmed by the company. we will monitor headlines for announcements. we are back on the markets in 30 minutes. "money clip" is up next. ♪ >> welcome to "money clip". here is your run down. in tech, take your hands off the wheel. driverless cars make inroads in las vegas. the top hedge fund and we are keeping score of the hits and misses. the changing of the guard on capitol hill. a divided republican party takes control of congress. the rose weiss -- the rolls-royce cruises to a new sales record. and ro

to pursue a merger with aol to save about $1 billion in costs. aol did rise about 12% in after hours trading, trading up about 9% in frankfurt. version ryan is down about 0.9%. >>> coach is reportedly close to a deal to buy luxury shoe designer stewart whiteman. it would be a rare acquisition for coach as the leather goods retailer has largely focused on organic growth in the past. the group has struggled to keep up with fast growing rivals. coach trade, we don't have at the moment. >> facebook is buying a maker of voice recognition technology as it looks to expand further beyond pcs and smartphones. wearable devices and remember connected appliances that can understand spoken words as well as written text phrase in natural language. terms of the deal were not disclosed, which raised about $3 million in a funding round in october. this follows the acquisitions that facebook made last year of whatsapp, the messaging service for about $18 billion as well as a virtual reality software. still trying to get an understanding of how facebook and investo

, we don't cover aol. look at these companies, we don't necessarily know that the other one would help the other company. i don't know what aol would do for yahoo! and i don't know what yahoo! would do for aol. it is not like their strengths are the other costs weaknesses -- the others weaknesses. and yet you think that yahoo! will be making acquisitions, just not that kind of acquisition. >> when you think about yahoo! it is fair to assume that given the substantial proceeds to company receives from the alibaba ipo late last year that there are a lot of options at their disposal. they have shown that they are interested in an aggressive at this point with respect to acquisitions. as pointed out in the piece, they acquired tumblr in 2013, the largest a deal they have done in a decade, and we expect them to do at least one billion-dollar deal this year. we think they can look to technology, video, mobile. we are not so sure that content is the right path for them, and friendly, that is one of aol's strength

the only way you could read "time" was to be an aol subscriber. it wasn't just the access on-ramp side it was a set of services that were exclusive. that really propelled the growth, particularly in the 1990s. the peak in the late 1990s, over half of all the internet traffic in the united states consumer traffic, was through aol. >> speaking of which, the business model for the content providers goes south when everything gets put on the web for free. how do you see a business model that would have or could work better for content providers? >> i think it is evolving. and i think, because there's now -- the good news is the playing field did get leveled. everybody has essentially a printing press. everybody has the opportunity to have their voice heard. that's great news. the bad news is there are a lot of voices and it can be a little bit noisy. the real of curation is important and the role of trusted brands and journalists is important. and you're seeing that. people migrate to that. usually it's a mix of things that they choose to rely on as w

the aol-yahoo! merger a lot of investors are skeptical about that.viability of that going forward and whether that would create show order value. >> is star board, with just 1% of the shares outstanding in any position to demand anything from yahoo!? >> they are in the position to demand something only as much as star board believes that most of you who's other shareholders -- yahoo!'s other shareholders feel the same way. it is hard to argue with your given they laid out. in the first letter to marissa mayer, illustrating numerically how much trapped value there was in yahoo! by virtue of the alibaba and yahoo! japan stakes that were either not being fully valued by the market, or the operating business for example that man and have been fully valued by the market. either way, no matter how you do the numbers, you come up with a higher number than yahoo!'s current market cap of $47 million. if that holds for most of the people had owned yahoo! shares, then star board has some power in that it is driving the dialogue forward and making it impossible

aol stock was up 12% or $50 a share in after-hours trading.omberg news reports that verizon wants to expand its mobile offerings and is interested in aol's advertising technology. >>> petco stopped selling chinese made dog and cat treats. the fda says it's investigating the treats after receiving nearly 5,000 complaints. but initial tests have not connected the treats to the illnesses. a rival firm petsmart, says it plans to stop selling the treats by march. >>> and toyota is showing off quite a bit at the consumer electronics show. the carmaker is allowing its competitors to use its hydrogen fuel cell patents for free. toyota's hydrogen fueled mariah is due to be sold in the u.s. by october. toyota hopes free use of its patents will spur the development of hydrogen refueling stations. anne-marie. >> jill wagner at the new york stock exchange. thanks a lot, jill. >>> still to come, an nfl team might be on the move. >>> and the league's top ref talks about a controversial call in sunday's playoff game between the lions and the cowboys. call in

yes, >> the expectations were so low for an aol. the aol stock that has had a nice run.imilarly in the business, right now the value is negative. >> 100% of the aol profits are from dial-up, and what they are seeing from on-line content is being offset by the cost of them produce it. >> nobody expected any top line growth out of aol. when tim armstrong delivered that, you know, it's been beneficial to the stock. same thing. core business. everybody expects it to drop off a cliff. if she shows flat to slilts single digit growth, there's some levers and tricks to play to do that. it would be a big surprise, andist not priced into the stock now. >> where don't you let it run the business, eric? you know, presumably, she may not have made the kind of acquisitions to this point that you and other shareholders have wanted to. they've got this $30 billion windfall from alibaba. she's a smart lady. don't you think? she's going to figure it out in the near-term, don't you think? >> listen, gave her the benefit of the doubt for two years. for sure this is a screwed up business she

verizon and aol. talk about them perhaps getting together, whether it is a joint venture or take over, do you expect to see more of this -- whether this happens or not in 2015? >> i think all of the companies are looking for different venues for growth. getting growth, having growth. mind you, the stock market is nervous the whole year. they will put off some of these deals. assuming the market calms down you're going here more and more deals this year. >> what verizon's primarily interested in is aol question yes advertising technology -- aol's advertising technology. >> identity from all of our research and what we're hearing from clients, digital advertising is where everyone wants to go. you guys have bloomberg do it extremely well. >> shameless plug. >> but not from me. >> launching in january is bloomberg business -- >> speaking of shameless plug's. >> a beautiful blue color. >> we're just getting started on "bloomberg surveillance." we want to bring our twitter question of the day -- >> a loade

s ceo and the board saying and urging a combination with aol.ms here with yahoo!'s value. they want other companies to outline plans to monetize their assets. they believe yahoo! could cut their costs. they say you should explore a deal with aol. back without its sherman at scarlet fu. you have been on top of this story. -- alex sherman and scarlet fu. >> verizon has now expressed interest in a partnership with aol. we think yahoo! and a well makes more sense. -- aol makes more sense. they own shares in both companies. something they have been pushing for months. >> watching the deal versus a verizon deal. >> rison is an enormous company. and well would use a small portion of its business. -- verizon is an enormous company. aol would use a small portion of its business. yahoo! made this big acquisition. this is the direction we think you should be going in rather than making willy-nilly acquisitions. >> a well-made that acquisition early on. >> who wants to would run the company? >> are number one story this morning someone who has gone from pim

he hosts the aol web series, "laugh lessons with kevin nealon."cheers and applause ] >> i know. i know. believe me, i know. i get it. i get it. thank you. good to see you, too. thank you very much. [ cheers and applause ] what a crowd. what a crowd. well, i am -- i got to tell you, i'm very excited to be here. i've had a great week. i just got an electric car. [ cheers ] sweet. it is sweet. it's in the shop now. we're having a gas engine put in it, but i love it. [ laughter ] oh, it is the best. it's so unique, you know? i just missed gassing up my car. and you know, petroleum now, gas prices are coming down so much and -- they'll go back up again. it's all confusing. and i don't get it because i was in the pharmacy a couple days ago. i saw that petroleum jelly has not gone up one cent. [ laughter ] too bad our cars can't run on petroleum jelly. that would be pretty cool. it would be hard to get it in there, though. but you'll get it in there. [ laughter ] you'll work it in there. you'll work it in. you do what you gotta do. [ laughter and applaus

aol up by 7.5%. shares of ford rose up after the auto maker hiked quarterly dividend by 40%. the payout 15 cents a share and payable at the end of the month. lifted the shares up 2 pbt.5% to $15.42. >>> the attack on charlie hebdo came after years and the fire bombing of the office. although the assault was unusual in deadly brutality, it's not uncommon for businesses large and small to be the target of threat or intimidation. hack the sony hacking story is another recent example. what can businesses do in the face of intimidation? toranzano. nice to see you. i think of the two recent incidents, one deadly and one highly disruptive. what units them they were perpetrated by individuals or countries that had a beef against those specific company. these were clear threats of intimidation. do you expect to see more of this happening around the world and even here in the united states? >> well we don't -- no one really knows but you have to speculate and give it your best. i think that's what a lot of companies are doing. we've had more calls in the last few weeks in the sony atta

bloomberg reports that verizon approached aol about a potential deal. much higher are the shares. >> a zero well up 3.1%. 47.88. significant acquisitions. more likely to partner with media companies on video rather than acquisitions. maybe they will partner with aol on this. online advertising. mobile video. it gives them a pop. you may remember star board. it was encouraging yahoo! to consider a strategic conversation. >> thank you very much indeed. i could ask judge napolitano for his opinion. >> that is the perfect answer. >> i will give you a weather report with a british accent. frigid temperatures. arctic air gripping one third of the nation. expected to last the rest of the week. jeff flock is braving the cold in chicago. he will show us just how cold it is. living in the states for 30 years. says america is a drift. >> my deepest sorrow is this country is squandering its great heritage. more importantly, freedom of conscience is under threat. stuart: the man is right. how we are actually giving up our personal freedoms. a growing list of cities.

. >>> verizon very interested in a deal with aol. approached an aol executive about a possible buyout. verizon wants to expand its mobile video offering with aol. but they add verizon has not made a former -- nearly half of all were on mobile devices. that is up from 16% last year. >>> time is 6:22. the debate over how you will bring down candle stick park. the plan that neighbor os pose and who will make the ultimate decision on what happens to that old stadium. ♪i can show you the world♪ ♪shining, shimmering, splendid♪ ♪tell me, princess, now when did♪ ♪you last let your heart decide♪ ♪a whole new world♪ welcome to aulani, travel and leisure winner for top family hotel in the u.s. for special offers visit disneyaulani.com or call your travel agent. >>> welcome back to the morning news. strong currents in the java sea forcing the crews to expand the search area for the air asia flight that crashed. so far 37 of the 162 bodies have been recovered so far. the plane's black box is still missing. u.s. navy helicopter helped transport so

he says the options are the wrong choice and buying aol is the right one.should be considering a combination with aol. they argue a deal could save $1.5 billion. it would give yahoo a leg up in mobile and video advertising. >> they had a string of big victory. and they are being vocal in hedge fund and they don't hesitate to fight. >> reporter: for the ceo any move to the contrary could jeopardize her job. should you proceed down a separate path it would say there is a new lead. the letter could be a way to line its own pocket. >>> the dow rose 323 points. 2%. nasdaq added 85 points. oil prices stabilize and erase recent losses. >>> san jose police officer on administrative leave because of controversial tweets. one said threaten me or my family and i will use my god given and law appointed right and duty to kill you. what the district attorney is saying about whether those tweets are a crime. >> some are calling him a miracle baby and the decision his mother made before he was born. >> i would say that it was quite a crimprognosis. >> the second opinion an

. >>> takeover buzz sent shares of aol and verizon higher tonight. that's where we begin the market focus. verizon exploring potential with aol to expand online video offerings. verizon squashed the rumor saying it's not planning any major acquisitions. closed higher verizon rose 1%. >>> a done deal for coach and stewart wheitzman. the privately held shoe company for half a billion dollars, an effort by coach to expand high end offerings and compete with fast growing rivals like michael kors. fell to $36.30. >>> walgreens reaping the benefits of a bad flu season. the drugstore operator with a better than expected jump in september thanks to higher sales of flu meds and flu shots. prescription sales also rose. shares were a fraction higher to $74.69. >>> steelers latest oil prices with bad news. it will idle plants in ohio and texas and lay off more than 700 workers. the company is one of the first biggest industrial casualties of the recent collapse in global oil prices. used for oil and gas exploration. the shares of the company down 3% to $24.58. >

. >> verizon has approached aol about a joint venture.t is according to people with knowledge of the matter. the u.s. wireless provider primarily interested in the a a well programmatic advertising -- in the aol programmatic advertising technology. sony's chief executive describe the recent cyber attacks against the company. he described the hackers as criminals. >> they were unfortunately the victims of one of the most vicious and malicious cyber attacks we have known in recent history, but i have to say that i am very proud of all of the employees and certainly the partners we worked with as well who stood up against the extortionists experts of the criminals. >> samsung's shares in the electronic giant fell 4%. all of its products will be connected in five years. >> as the consumer electronics show hits las vegas, wearables take center stage why she thinks 2015 will be the year of wearables. thank you for coming in. do you think -- in the world of wearables, will it be i wear that is the dominant -- eyewear that is the dominant feature

aol up 4 hnt.76%. apple is up almost 3%. app store revenues came in at record highs and things like that as well. google is the only one that's flat that really keeps going back and forth between positive and negative. because the sentiment the idea that growth is tapped out. stack flat for a year. search not growing like it used to is really the outlier. and gopro is down close to 4% that. could be because of the ces and we're seeing so much competition the idea they are going to be commodified by players. that is the story today i think. >> do you think there is real competition for goep? >> i think you said it earlier today. tremendous kmodification going on right now. and anything doing anything related to the piece of hardware wear other than apple the sentiment is turning against right. >> now over the last few dares the s&p is almost exactly flat. >> it's oscillation between, you know, being terrified and thinking things are noib not as terrifying as they used to again. request absolutely. >> google, that is a good ex

they have a great engineering team, and she runs aol, she runs aol. it's the same problem. you have to have someone that's just an amazing visionary to take this platform and turn it into something new. >> there's been talk of yahoo! buying something somewhere, even cnn i heard at one point. >> could be but hard to see -- >> 100% agree. >> that's the problem. >> she's got a group of shareholders who want cash back. they don't want to spend it. >> more hires. >> i think her move for maneuver is gone. i think she missed her chance. i think right now might be too late. >> there was a window with alibaba cash but whatever she is, 12th or 18th ceo, i can't keep track. it's hard to do the hail mary very hard. put yahoo!'s chances? >> would you put her in charge of twitter? >> absolutely absolutely right, this is a case where you've got the momentum got the users, got the right trends. the product's baffling. so much room to grow. >> i mentioned maybe an uber ipo. what would uber do from money from an ipo? it has almost no costs. it's an app, fundamentally. >> uber is interesting,

to buy aol.of both companies shot up after a key shareholder urged marissa meier to purchase aol. jeff smith said he's increasingly concerneded with yahoo!'s acquisition of cable companies. and they should focus on acquiring aol instead. he estimates a merger would save the company $1 billion to $1.5 billion. >>> the santa rosa climber facing challenges on the granite cliff. his hand injuries are so severe, he's fallen off the section he's trying to scale eight times over the past two days. >> i taped two of those three fingers, which definitely makes it hard to feel what you're hanging on to. i feel like it's only appropriate that it will be a little bit of a battle. >> he's now three sections behind his climbing partner, tommy caldwell. they had hoped to finish their climb by tomorrow. now the pair's videographer said if jorgerson does not finish in a few days, his partner will continue on up. that is quite a task. >> certainly is. >>> be glad you're in california. coming up, the bitter blast o

aol and delphi are the first to do it. i remember it vividly because suddenly we could go on to aol and then happened open gate to go onto the internet. it was called the endless september because from then on all these people started glomming onto the internet but it is a really good thing. it allows the internet to get back to the theme of the book to become something the rest of us can use. >> you match that up to the cultural transition that holocaust almost where we are going through with all the turmoil in the united states and the complete of people of social norms and campus unrest in the idea that information was really going to be free. everyone needed to be a part of that and this marriage of on line computing. >> it happens right here. this is the epicenter. this is the g spot. a better locus term for it and it really begins in the 70s and all the way through. this is a long section in my book which i crowdsource. i've put these passages on line and people like stewart brand and many other liza loop who i've ne

you can tell it's been awhile since anyone was interested in aol because at first the ceo was like --r voice ] welcome. [ laughter ] sorry. welcome. come on it. come on in. welcome. come on, have a seat. [ laughter ] that's right, verizon has approached aol to discuss a a possible take over. unfortunately the deal abruptly ended when someone picked up the phone. mom, hang up! i'm in the middle of a merger, mom. [ modem noise ] >> steve: welcome. you've got mail. >> jimmy: that's the redo? >> steve: that's it. >> jimmy: it was so much better before. >> steve: i know, but they changed it. >> jimmy: let me try it again. let me log on. [ modem noise ] >> steve: welcome, you've got mail! >> jimmy: nah, i don't like that. it's a little bit too -- let's try something else. [ modem noise ] >> steve: welcome. you've got mail. >> jimmy: no, too scary. >> steve: quit talking and start chalking. >> jimmy: what? [ laughter ] this is very interesting, i read that this is actually the busiest time of the year for online dating websites. yeah. which is good news for guys, because after last night at

. >> pop for aol, up 3%. tim? >> we talked about media and content plays.s is what aol is thought of, the backdrop, verizon might be making an acquisition here, verizon said we're not, we could be doing it with them and many other people, but that's why aol was rallying. >> drop for goldman sachs down 2%. >> financials have really been taking some pain. goldman sachs, one leading the charge. broke through 190, some support. i think 184 is also a level you can see some support. late in the day, jpmorgan, who goldman sachs talked about earlier should split up or consider that idea, huge option buying the upside in there. >> unless it's unusual activity here, pete's taking a look at an apparel maker, retailer. >> guess is another name that's been slaughtered, hit to the downside, trading right on the 52 weeks or close to the 52-week lows, but today, very active buyers. january 20 calls, january 22 calls, well over the open interest, looking for that stock to maybe start bouncing and moving to the upside. >> you in this trade? >> i am. i look at the fundamental

. >> aol. ahead of a certain trend -- god ahead of a certain trend programmatic advertising and that a lot of students in you growth quarter over that allowed us to continue growth quarter after -- and that is what allowed us to continue growth quarter over quarter. >> for a company that does not have a strong global strategy such as yahoo!, they are playing catch-up. >> what about twitter. >> twitter is a huge mobile play. yahoo! is playing catchup and they have been punished. >> but in the last report their mobile ad revenue increased quite a bit, over 20%. >> it did. marissa mayer is playing catchup, but they did make some inroads trying to catch up to the facebooks and googles of the world. >> thank you, paul sweeney of bloomberg intelligence. susan lyne stays with me through the hour. much more ahead. so much for a boys club -- a series of new startups could give tech and makeover -- could give tech a makeover with women. that is exactly what susan is talking about. we will talk about that

verizon is considering buying aol. >> aol for verizon will be a small acquisition. $3.5 billion on aion enterprise. it would be small. there was an argument they would be looking at the ad tech part of aol. that is like saying to have a cable network you need to own nielsen. i do not know the logic. >> thank you. let's do a four x report. oil-based, front and center. another hour of surveillance. stay with us. ♪ >> goldman sachs suggests markets turned upside down by lower for longer crude. big banks cut cost. millions march in france. and good morning, everyone. this is "bloomberg surveillance." i am tom keene. joining me, olivia sterns. let's get to our top headlines. >> trading slightly over $47 a barrel. brent crude dipping below $49 a barrel. gas prices fall and $.27 a gallon. the average is $2.20. it has fallen below two dollars a gallon in 16 states. divers had recovered a key piece of evidence from the ocean floor. one of the black box recorders that may tell what happened before the plane crash. >> it is composed of two parts. the flight data recorder and the caught that voi

[applause] >> next, a conversation with aol founder steve case and live at 7:00 a.m., your calls and comments from washington journal. on newsmakers, representative elect ken buck elected by his fellow freshman republicans as class president talks about joining congress and how he expects congress will operate. here is a portion of his remarks. >> i think we have to make substantial progress on alan's and the budget and if we do that -- on balancing the budget and if we do that i will vote on increasing the debt limit but if we do that -- i don't believe that the consequences of failing to raise the debt limit are what the president and some others in the united states congress have said -- i think we have a lot of room to cut our spending and if we do that we will in fact avoid the catastrophic consequences that others talk about. >> do you support the boehner rule? dollar for dollar cuts? >> i think that is a minimum threshold -- real cuts, not cuts that happen in 10 years or 15 years from now where another congress will inevitably change those cuts -- i think we have to have cuts

but there's not really anything specific going on with aol. i'm looking at the notes here.g out of work on video. we've been speaking to everyone. the notes i have say it was an irrelevant story. the way it was referred to. we'll hear more from mr. mcadam will be speaking. >> aol is the king of video online. i understood the logic behind it. it's always good -- as i e-mailed you when we were talking beforehand i said david always does this thing. don't ever let the facts get in the way of a good story. this was said to me when i was a homicide reporter. the facts indicate this is not a good deal. >> i don't think so. we know verizon is looking at any number of things. when it comes to that company, something i was referring to earlier would seem to be foremost in investors' minds. how much money have they spent at these auctions? in answer to a question about that i believe mcadam, they say it was from the ceo. wouldn't talk about it. they can't except to say we love to talk about it because there is a lot of speculation we look forward to clearing up. there are some who sa

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to merge with aol. or you think that's a good idea. >> again, i was just reporting what shareholderses are lobbying for. and right now, mayor is effectively negotiating with shareholders will what's going to happen with this giant stake in alibaba. >> i noticed you tweeted out last night when there was this report out that she would want to buy some of the media property if that were to happen. my sources say that deal may not happen. >> that verizon deal? right. >> maybe there's a joint venture or some kind of business relationship. >> it's murky to the point it's all over this. >> do you have a take on that? >> she loves tech crunch. here is the problem. i talked about this the last two years where she got a chance to get everything in order. the plan was at the end of the two years, if yahoo! looked great, she was going to get this money from selling alibaba stock. but the fact is that now, two years afterwards, the company is not in super great shape. >> how much is the alibaba deal worth now? sglie

>> that is aol like, amazon. >> you're right. >> no problem. like aol back then, yahoo!tock is at a near 52-week high, near a multiyear high. they have all that cash from alibaba. so they're sitting on quite some cash. they made number of acquisition. the stock has done very well and they're trying to push boundaries more of along a lines of netflix distribution model. original content and cable channels could easily be a part of that. jo ling: all this cable content is evergreen like the food network. not like the content expires. so generating ad revenue it is really strong potential play here. scott, do you think marissa mayer is able to though turn this inevitability of this direction where yahoo! has been going around? >> i it is tough to say. you know why? alibaba, that whole deal that they had worked out pretty well, right? they got about five billion in cash. they're in this aa period, the after alibaba phase like jonathan said. believe it or not, even though the street doesn't seem to like inries is a mayor as a ceo jo ling, when she took over in july of 2012 th

they're trying to push her to buy aol. i think that's a terrible idea. i can't think of a company that will change things for them. dierdre: there was one proportion that i read about this idea that silver lake basically comes in dismantles most parts and sells it off. >> the two part break off, spinning off the asian operations, their us, but, again, silver lake. i wouldn't bet against it. dierdre: or alibaba buying it to have an official us presence. >> they have a lot of cash to spend. i think they will spend it. matt made a point on hail mary. i think she will throw it. >> i didn't think it was the right choice. i didn't enforc enendorse it. dierdre: 2014, the biggest year for ipos since the dot come bubble burst. 2015 could be even bigger. uber. airbnb, spotify. smash burger. dropbox. a lot of companies. (?) clint, just out of curiosity, you know what it's like to build a business and then sell it. there are a lot of private investors, listen, i don't need to go public. so much vc money swirling around. even fidelity willing to invest directly, what

i saw the aol profiles and away messages. i really loved that expression, that identity. the idea this could be a place to create something that represented you. >> you dropped out of high school when you were how old? >> after my freshman year, when i was 15. >> you were homeschooled. >> computer science education in new york city really did not exist. it was not in high schools. now it is there in a huge way. kids are learning to code in grade school. if you have that stuff at your disposal, hang out and spend time with teachers who are proficient and can help you get started. that is something i did not have. >> i spoke to many founders who dropped out and made a lot of money. they don't recommend anybody do what they did. >> if i had access to a computer science education when i was in high school, i would have stuck around. if you can find it there, stick around. >> you went to tokyo when you are 17. why? >> i had my heart broken and needed to get out of here. i was excited because i thought it was a future city, a place with remarkable technology and engineers. i lo