how has aol changed in that time?ow has it sort of slid into the broader verizon technology and organization? >> well you're there every day. >> but we're behind the janitor's closet, no one talks to us. >> it's gone very well. the theory behind the verizon deal was the combination of the two companies would help build essentially what was one of the largest mobile empowered media technology companies in the world. since then they did the millennial deal, the microsoft deal. we've done a significant amount of investing in video. we're about to open a studio in new york city on the street, first internet-level street studio for aol build. overall and then most importantly i think we've set out when we did the deal with verizon, we had had a set of goals and aol we were striving to as a public company. and once we did the verizon deal, we redid those goals. and those goals have been significant driver of what we've done. so i think if you went back 15 months, and said, is you know aol and verizon going to be in a positi

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we have acquired aol, a plan to acquire yahoo!. we have acquired connected vehicles. increasingly building out -- you see us increasingly building out. host: given the nature of your business, how often does federal policy play a role in business decisions that you make? policy permeates a lot of things we do. it is not just -- it is no longer just telecom policy. companyryone in the wake up every day and think about coliseum -- and think about policy? no. the cause of the scope and span of our business, there are elements of policy that touch on most everything we do. host: with the new incoming administration, what is one of the issues you will be looking at regulatory and legislative? craig: a couple of things going on. one of the top things we are .ocused on is infrastructure when you think about the world we are in today, whether it is wireless -- if you go back a couple of years, a lot of big sell tires transmitting -- cell otwers transmitting. we are building the fiber deeper and deeper into the network so that the wireless signals are traveling a shorter dista

expanded significantly into internet of things and internet video and businesses so we have acquired aol. of course we announced a plan to acquire yahoo!. over the course of the last couple of months we have acquired to telematics companies we just bought a company in the smart cities at business. so you see is increased only building out to the internet of things and on line video. >> host: given the nature of your business how often does federal policy play a role in the decisions that you make? >> guest: policy really permeates a lot of things we do. what is happening is no longer just telecom policy. we have all rounds of policy going on in washington. in fact some part of our business. does everyone a company wake wake up every day thinking about policy? no. they think about serving customers and how to do that aspect the scope and scan of our business there or elements of policies that touch everything. >> host: with a the new incoming administration a new federal medications commission what is one of the issues you really looking at regulatory and legislative leg? legislatively. >

significantly into internet of things and sort of internet video and content business, and so we've acquired aol, of course, announced a plan to acquire yahoo! over the course of the last couple month, we've acquired two companies, connected vehicles which is in the smart cities of business and many more. so you see us increasingly building to out to internet of things and online video. >> host: given the nature of your business, how often does federal policy play a role in business decisions you make? >> guest: policy permeates a lot of things we do, but what's happened is it's no longer just telecom policy. we have all realm of policy that's going out of washington like some part of our business. does everyone in the company wake up every today thinking about policy? no. they think about how to serve customers, what customers needs and how to do that best. but because of the scope and scan of our business, there are elements of policy that touch almost everything we do. >> host: well, with the new incoming administration, a new federal communications commission, what's one of the issues that y

other is to try to create some legal entity where they andd create aol -- put aol yahoo! not know what you are buying. you want to try to protect your basic company. there is a possibility of someone taking that alibaba stock and saying, we have a lien against that in case we are in trouble. ,cott: that is a great idea instead for those who own the alibaba stock. you really don't know how big the infection is because if somebody is going to do an analysis of all the major hacks, and try to correlate that the likelihood of being hacked if you had a yahoo! eagle account, and if that correlation is higher, then everyone who has been act -- hacked could go after horizon. -- could go after verizon. let's turn to you. jonathan makes a point that there is a lot of momentum behind this deal. they have wanted to do this deal for a long time. is it awfully hard to climb back down off of that horse? the initial deal with aol and that is business strategy on the video side as opposed at&t that doesn't the content deal with time warner. verizon has always been focusing on mobile/video

we want to bring in aol co-founder steve case. not only is this a personal user issue, it's a business issue. yahoo! may be left at altar by verizon who proposed to buy the business for $4.8 billion in july. is the deal off? >> hard to say if the deal is off. verizon is looking at the information and trying to figure out a way to renegotiate the price down lower. partly the size of this breach, the billion users and the timing, the fact that happened three years ago, verizon will be, maybe the attorney general as well. what did they know and when did they know it? that will be the focus in the coming days and weeks. liz: if you were running verizon, steve, enough, i got to get out of here with the shirt off my back? >> i'm not sure. i think there are strategic reasons they decided to buy yahoo! and complement the other things they now own, strategically they like to own, it they might want to pay a lower price. liz: yeah. >> they need to understand the ramifications including legal risks associated with it. my guess is they still

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yahoo, aol have been seen as twins separated at birth.ut certainly i think verizon cares a lot about other growth opportunities for them and this could actually open a door for them to look at other assets. cbs is one floated although they have been really clear that the 300 channel bundle isn't something they want to pursue similar to their big peer at&t and time warner. >> if it did fall apart for some reason what would happen to yahoo? >> i think they are going to have to go back to the drawing board. two years ago they started not by imagining the sale but the spin off of the asian assets of alibaba and yahoo japan. i don't think that is optimal considering they lis toon disgruntled shareholders. there is a way to create shareholder value by going the other route. we think alibaba is worth close to $30 in cash. we think yahoo japan is worth around $6 in cash. they add another $6 or $7. just doing the sum of the parts. ask any value put on core still gets you to $2 or $3 above where the stock is trading today. thank you for joining us.

we're talking 13 no flights cancelesnow aoled to check their flight status if you're flying out of or conneit ing to chicnt. >> my first flight got canceled. i had to rebook last night in wisco dein. we were at a feven ily realkod . taow i'm hoping to make the 5:1 flight. >> the latest and closures, head to tmvic.com. download the mobile app for your phone or tablet. ap n's a tt on in day break". >> playoff hopes still alive this moketing. we'll look at what the pd.okers need to do to still try to make it to the playoffs. live at day break contise es right after this. >> 5:37, a look outside, the 6 to 9 inches of snow as 's a tpeit ed across most of th area. palmyra 9.1. here in milwaukee, 7.8. a little le?. sheboygan, betweense green bay officially at 5 1/2 inches of snow. taow we have a lit e wind and windchill this morning. 8 in west bend, 6 in burlington, 12 in rapthne. this is how ipmos shaping area. we're in the mid 20s. we'll get down by 19 by a.nl and plenty of salkshine still breezy today, 10 to 15 with windchills in the teens. this is the warmest day of the weeto s please wa

. >> to get to $60, aol will have to be added. armstrong intends to do that. you need both interest rates to go down and aol to be immediately added for it to get $60. i think that's a bit of a stretch. i do continue to like verizon very much. rita in south carolina. >> caller: hello, retiree from new york. i want to know what you think of twitter, being that trump uses that to communicate with everybody. >> i think twitter stock is overvalued versus its fundamental earnings power, but undervalue when it comes to someone who should buy it given the fact that it really did help elect a president of the united states. all right. we've ignored the negatives far too long. it might be time to take a bit of a pause. maybe see what trump presidency really means. on "mad money" tonight, once-ignored bank stocks that have become go-to names. not all sectors are created equal. i'm ranking the best and taking a closer look what could be considered the greatest deals the street has seen. don't miss my take on the acquisition of broadcom. >> a company that's working with t

we have acquired aol, a plan to acquire yahoo!. we have acquired connected vehicles. ucs

council on competitiveness holds a foreign with the fedex ceo and aol founder. live coverage starts this morning at 8:30 on c-span3. "washington journal" is next. later this morning, chicago mayor rahm emanuel will be part of a conversation on the future of cities live at 10:00 a.m. eastern. this afternoon, a panel discussion on the international trinity can do to combat child trafficking live from the center for strategic and international studies at 1:00 eastern. coming up, we will talk to conservativeblogger about the incoming trump administration. with luckrsation trial college member polly baca. attempting to sway their fellow electors for casting their vote for donald trump. this week the house and senate have legislation that directs leaves of dollars to medical research ranging from cancer to mental health. we will be joined by sydney p lupkin. >> godspeed, john glenn. ♪ the man who was on board that mercury rocket back in 1962 is this morning being called an american hero, a pioneer, a public servant. the nation is mourning the death of john glenn with

and he founded a company called aol that did actually real well. this man has been the former president of the national science foundation and did a phenomenal job. everybody knows that. now the president of carnegie mellon. we have one of the top people in i.t. in history with one of the top material scientists in the world. so this is going to be a lot of fun. i want to get it started. this is a great time to be alive. it is a great time to be here with you. we're in a very unusual time. everybody remembers when the patent officer in the turn of the century, the guy that said, everything that's going to be invented has been invented. might as well close the patent office. in the '70s, what most people don't know, the guy run the patent office at that time said more will be invented in the next 100 years than in the history of mankind. now everybody says more will be invented in the next five years than in the history of mankind. we have been hearing that all day, because basically all this is caused by vision in certainly our lifetime and last fo

not exist but on either hand they can capitalize those other mass at one negative messaging gaps like aol but then holy shit the man he is following them. but i'm still pretty bullish on facebook in general. i am not negative on the company at all. that is complete bullshit. who is next? >> didn't procter and gamble decided to increase advertising but they didn't find it effective? there is a possibility other people will realize. >> i don't know the details but it is weird ad campaigns you don't normally talk about it but facebook target is not working. but if you read the book i was one of the first targeting product manager and i spent a year to turn that into money. with direct response advertising that is a marginal results. so the brain and advertisers the person who is there for relationships and then other jobs that are lit literally the legacy admissions. if anybody was looking like procter and gamble it turns out they do not buy more toothpaste of course, no fucking shit per i am not surprised. >> in the context of the book? >> when i joined they were turndown. it is nothing spe

with competition so high and bidding wars all too common it's also important not to get too emotion aol and overstretched. there's always more than one perfect home. kell? >> diana, if you do get into a bidding war any strategies people should use? >> well, i know this is going to sound dorky, but you could write a letter to the seer buying a home and a lot of sellers want to know who is going to be in the home after that, who is going to take care of it, helps if you have little kids and how great they are going to look in the yard. did i that once and it works. >> personal touch. thank you so much. our diana olick. >>> this time of year you're also probably thinking about paying for gifts and not necessarily paying your taxes, but there are some things you can and should do now to maximize your cash and minimize mark steber is chief tax officer as justin hewitt. is it too late to make smart moves? >> three weeks to go. several things you can do up to the last minute? >> there's all sort of things you can do. >> such as? >> this year being a higher tax year go to conventional wisdom, p

and he founded a company called aol that did real well. this man has been the former president of the national science foundation and did a phenomenal job. everybody knows that. now the president of carnegie mellon. we have one of the top people in i.t. in history with one of the top material scientists in the world. so this is going to be a lot of fun i want to get started. this is a great time to be alive. it is a great time to be here with you. we're in a very unusual time. everybody remembers when the patent sister everybody said everything is going to be invented. in the '70s, what most people don't know, the guy run the patent office at that time said more will be invented in the next 100 years than in the history of mankind. now everybody says more will be invented in the next five years than in the history of mankind. we have been hearing that all day. this is all caused in our lifetime of four things. the chip, software, storage, and internet. and then all day long we've got to hear about all the incredible new things, full speed

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they want to put it together with aol. they want to invest in technology across both brands. they want to build an ad stack to try to be competitive with google and facebook, which is a very lofty goal and so, ultimately, you know, you leverage this. if you look at some of the data out there, you know, if you look at the download ranks, yahoo! app bottomed out in july of '16 and had come back, so, as it was yesterday, the level was somewhere there. so clearly, this will have an impact, but i think what's interesting is you know u, a billion right and if you, the last cited number was about 225 million active mail users suggesting that a lot of this is inactive accounts. >> i hear you. let's hope it's inactive, but it to tyler's point, brand damage. what is yahoo!. talked about the keywords there, ad technoloxt message. if the deal is is b about the back end of ad technology, does u this breach? >> damage anything other than the fact we're talking about it. >> so, again, what is verizon looking to buy? yahoo! finance, sports. there's media properties. they're looking to get al

they also might look at some legal entity were they are putting aol and yahoo! in that entity to create a firewall, which would be an unbelievable amount of liability. you do not know how big the infection is here. this is pretty ugly. the program, we dig deeper into donald trump's cabinet nominees. will their business credentials translate into success in washington? ce addressestask for the risk of climate change. and the italian bank taking bold steps to put itself on surer footing. tothis is a recovery and plan to make the bank leaner and maybe meaner. >> this is bloomberg. ♪ ♪ ." this is "bloomberg best we continue our tour of the week's top business stories in italy, where a bank and rolled an aggressive plan to boost profitability -- unrolled an aggressive plan to boost profitability. they want to raise 13 billion by 2019.so cut stocks why do they need to do this? we have been tracking the italian banks quite extensively recently. >> we are seeing a large, copper has a, steve -- comprehensive, strategic plan to do risk the bank. the bank. they will also t

we had a merger of aol where some agreements s of carriage e made. in the turner and time warner merger we had conditions which also were followed without incident. so our record is without -- there is no instance in which we did not comply with any conditions we had in our various mergers. >> all right. and, of course, i'm not talking about your companies in particular but your companies in particular are the ones that want to become one company right now and you can understand why some people would express this concern when you do own some news entities and there are other news entities that have expressed concerns that they might be blocked out for one reason or another, either through pricing models or as a result of where you locate them, what number they are assigned. what channel they're assigned, whether it's putts in the same grouping as other news outlets or otherwise. do you understand why people might have that concern? >> yes, sir, i do and i don't think those are terribly unique to other concerns people have expressed in past mergers th

we had a merger of aol where some agreements of carriage were made. and they were followed with no incident. in the turner and time warner merger we had conditions which also were followed without incident. so our record is without -- there is no instance in which we did not comply with any conditions we had in our various mergers. >> all right. and, of course, i'm not talking about your companies in particular but your companies in particular are the ones that want to become one company right now and you can understand why some people would express this concern when you do own some news entities and there are other news entities that have expressed concerns that they might be blocked out for one reason or another, either through pricing models or as a result of where you locate them, what number they are assigned. what channel they're assigned, whether it's put in the same grouping as other news outlets or otherwise. do you understand why people might have that concern? >> yes, sir, i do and i don't think those are terribly unique to other concerns p

the other thing is to create some sort of legal entity where they can put aol and yahoo! into that entity to try create a firewall around an unbelievable amount of liability. you don't know how big the infection is here. this is pretty ugly. vonnie: later in the program, we dig deeper into donald trump's cabinet nominees. will their business credentials translate to success in washington? plus, a new task force addresses the financial risk of climate change. up next, more of the weeks top -- of the week's top business news with an italian bank taking bold steps to put itself on sounder footing. >> this is a comprehensive plan to make the bank leaner and maybe meaner. >> this is bloomberg. ♪ >> this is "bloomberg best". i am vonnie quinn. let's continue our global tour of the week's top business stories in italy, where a major bank unveiled a plan to boost profitability. >> italy's biggest bank has announced plans to raise 13 billion euros in a rights offer and cut jobs by 2019. why does the bank need to do this? we have been tracking the woes of the italian banking sector

the aol ceo under the verizon -- said he was cautiously optimistic recently that the deal would stillrough. what does this mean for the deal now? jordan: big, open question because it's not just about user accounts. the central question we have learned yahoo! has been looking at internally, they stole user accounts, what intellectual property from the company did they also steal, if any? that will be a central question for verizon. if you have lost all your user's accounts, and corporate ip, what are you paying close to $500 billion for? verizon has said they believe the breach would be material and that gives them license to potentially negotiate downward or walk away. emily: yahoo! has said, they're telling you just to change your password, they are on the issue, but it's three years later. what can be done? jordan: the damage is done, especially if this has been trafficked in cybercrime circles for 3 years. that means users have been using information to send spam and commit identity theft. emily: jordan robertson, our bloomberg cyber security reporter, thank you for that update. w

aol maybe, but yahoo. well, a mistrial in the murder for hire case of dalia dippolito.orney joins us live. also this holiday travel season is on track to break records. we have the numbers next. a nose in need deserves puffs, indeed. >> about that time of year for you to pack for your christmas vacation and you better pack your patience, triple a estimates, get this, 103 million people will travel sometime between christmas and new years setting a new record. it would mark the eighth straight travel year of holiday travel growth, aaa, lower gas prices and higher consumer confidence are fueling all of those folks. >> all she had to do is divorce me. what was i going to do, cry. i mean, she already stole money from me. if she filed for divorce, he would fight for half of what i had and in the end nobody would have gotten in trouble and she wouldn't be doing, this is endless, this is seven -- i want to say eight years but i think it's seven years now and we are still do i think this. this is crazy. jenna: ex-husband of dalia dippolito. second trial in the murder for hire t

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join us next week where we are speaking with aol ceo tim armstrong.ned by the feet .ut -- the fitbit ceo we get his reaction on the apple app store chart. and we bring you all the latest intact throughout the week. tune in every day. remember, all episodes of bloomberg technology are now live streaming from twitter. check us out at bloomberg tv workdays. this is bloomberg. ♪ >> the following is a paid advertisement for time life's video collection. ♪ >> hi, dean. >> hi there. [laughter] >> bob. announcer: from the battlefield to the white house, from hollywood to the heartlands, america's entertainer was bob hope. bob: oh, this room is so dull and depressing tonight.

the ceo of harmon, and tim harmon the ceo of aol. , don't miss our special coverage right here on bloombergision. that does it for this edition of "bloomberg technology." "studio 1.0" with emily chang is next. catch our exclusive conversation with susan widget ski tells us about her plans to take original programming to the next level on the video streaming site. this is bloomberg. ♪ greg i'm angie lau with an update of the top stories. china says it intends to further relax foreign investment curves with mining. the vice-chairman of the national development and reform commission making the announcement during a briefing in beijing. he said beijing wants to encourage foreign companies to list an issue stocks in china. always says it will overhaul its global uncertainty set to mount in 2017. and shenzhenstaff that expects revenue to have risen 32% of the last 12 months. now reaching almost $75 billion, thanks to strong performance across the business platform. italy's bailout has won the green light for brussels. the european commission has approved the request to use public money for the re

the ceo apartment, the ceo of aol. miss our special coverage right here on bloomberg television. that does it for this edition of "bloomberg technology." "studio 1.0" with emily chang is next. susan widget ski tells us about her plans to take original programming to the next level on the video streaming site. this is bloomberg. ♪ has imposede u.s. sanctions on russian intelligence officials and agencies in retaliation for cyber attacks during the presidential campaign. will bean operatives expelled from the u.s. russia says the sanctions are humiliated and to the u.s. and plans to announce countermeasures tomorrow. dr. -- government troops say a cease-fire with aleppo started an hour ago. russia and turkey both backed the deal. has reopened its investigation into accusations against former president roasting a fernandez, accused -- christina fernandez, accused of covering up involvement in a 1994 bombing of a jewish community center. 85 died, hundreds others wounded. the accuser was also found dead. early this week, a

i talked to tim armstrong, who runs the former aol business at verizon and will run the yahoo!, he is proud of the the deal.ays for he thinks they got a deal for some in the users. they think it was a valuable acquisition. there are very few properties across the internet that can have such a big audience, so i think there was a deal at the current price. they would like to pay less, and they may do so for the benefit, so this may give them an excuse to negotiate price. my suspicion is they are glad with what they have got. you.e: cory johnson, thank still ahead, we head to washington to talk about how the president-elect is now doing business experience of a government experience. this is bloomberg. ♪ live from london to new york. i am mark barton. vonnie: i am vonnie quinn. this is "bloomberg markets." donald trump is building a cabinet in his own image, some say. many nominees have ties to wall street and corporate america. share hisuest will business experience. joining us is chairman of the fair lodging movement and former adviser to president and george h.w. bush. fred, i

connell al well, a lot of things would have been inconceivable before the aol/time warner merger.re right, maybe long term that is what happens. but the model, investment wise do you invest in these types of companies whether it be netflix or similar technologies? and if so, which is your favorite just to -- forget consumers for a moment in terms of as an investor. >> well, as an investor, i think you've got a slightly different equation. you've got to look for sustainability, you've got to look for innovation, and you've got to look for profits all at once. so it's not just a matter of finding the next best thing. you've got to find the next, most profitable thing. and that's a very different equation. so if i'm looking at this situation, what i'm doing is looking at netflix and saying how do they compare versus other horses i could bet on. i'd rather bet on other horses that i think have the longer term perspective necessary to go the distance than i would at netflix right now. connell: okay. your favorite horse is, what? you didn't mention others. >> i'd go amazon for video. co

make sure you join us next week where we are speaking with aol , ceo tim armstrong.by the bit ceo, james park. we get his reaction on the apple app store chart. and we bring you all the latest intact throughout the week. tune in every day. remember, all episodes of bloomberg technology are now live streaming on twitter. check us out at bloombergtechtv weekdays. this is bloomberg. ♪ ♪ carol: welcome to "bloomberg businessweek". i am carol massar. am oliver renick. another disappointing sign in a disputed south china sea. oliver: all that is ahead on "bloomberg businessweek". ♪ carol: we are with the editor in chief macon murphy of business week. china,

make sure you join us next week, where we are speaking with aol ceo tim armstrong.d by the fitbit ceo, james park. we get his reaction on the apple app store chart. and we bring you all the latest intact throughout the week. tune in every day. remember, all episodes of bloomberg technology are now live streaming on twitter. check us out at bloombergtechtv weekdays. this is bloomberg. ♪ help to $1 million investment to discuss whether the strategies this year can be replicated elsewhere. and even though he won't be a member of president-elect trump's cabinet he gave his take on where president-elect trump can affect real change.

. >> the ceos of fedex, gallup and aol will make remarks at the 2016 national competitiveness national competitiveness form on the chaining u.s. economy. will take you to that live at 8:30 a.m. eastern on c-span three and on c-span radio. >> on friday, chicago marriott talked about the future of cities and political engagement. he'll be joined by a member of the british parliament at the brookings institute. by starting at 10:00 a.m. eastern on c-span. >> every weekend, book tv brings you 48 hours of nonfiction books and authors, here are some of our programs this weekend. >> saturday at 7:45 p.m. eastern journalist explores the question of what the term better off it means to americans today in her book, the new better off. reinventing the american dream. >> it doesn't matter how much money is in your bank account. you can fly to the cayman islands and lived there but if you care about america it doesn't matter what your bank account is. you're vulnerable to this government and the way governance just like every other person in every other socioeconomic bracket. so i think wealth pool

stay with cnbc. >>> also moments from now we'll be speaking with aol cofounder steve case.on "squawk alley" with the s&p 500 up .3 of a%. stay with us. >>> u.s. prosecutors have charged platinum prosecutor ceo and six other executives with security fraud. the alleged fraud totaling about a billion dollars. others charged includes the firms co. cio david levy and the signature fund. robert capers will be holding a news conference at 11:30 eastern to give further details. we'll watch for that in the next half hour or so, mike, but here we go. and this is a big one. >> it actually is. u.s. prosecutors, criminal charges. it's a wider ranging potential set of charges, it seems like, than maybe we thought. >> flashbacks, bernie madoff. >> many flashbacks to bernie madoff. >>> all right, is a tax cut for million flairs ahead? well, most voted for hillary, more than two-thirds are looking forward to investing in the market. robert, good morning. >> good morning, sarah. millionaire investors were evenly split in the election, but nearly two-thirds say donald trump will be good for t

a lot of our businesses are with aol, whether it's yahoo!whether it's our investment in tv or comp lex media. those are all about really saying we think this is where the puck is going and will skate to where we think the puck is going as opposed to the current distribution and content creation model. >> host: what is going 90? >> guest: it's an apt that serves up short form professional produce content on advertising-based model. so it's not a subscription model. you get the content for free. it supported by advertising and it's really designed for the way, particularly mulligans are consuming content on the go, mobile first, short form following different shows, different stores things like that and available for download. i can help you put on your device. >> host: if that's the future as you say, what happens to your fios home package? >> guest: that continues to be a great business. fios also includes broadband which is underpinning all of this here that fios broadband continues to be a great business, when we continue to invest in. we

they want to combine with aol, they want the digital ad space, they want to take on google and facebook. the stock is down 250 a share, if they dropped this price a billion bucks, this is what the analysts are saying, not me, this is a 65, 70 cent impact on this deal. sum of the parts is what it comes down to. if you're talking about tax, whatever. >> synergies. >> if you're talking about tax amnesty, sorry, i was getting a little worked up there, karen was in my drill. this is one of the companies that has the most to gain. it's sum of the parts. even without the core, this thing is interesting. >> on the flip side, though, is there some price where they say, you know what, we're not selling at that price. >> i don't think she can. i agree verizon is the only player at the table right now. and i don't think either side wants to walk away. >> i expand it out to more of an m&a discussion. if you look at time warner, everybody is looking at all these different players, wireless service, home phone, cable. >> but the merging of pipes and content. >> you look at time warner, everybody was b

i saw with aol. we did shift from offense to playing defense. you can't do that. figuring out how to continue to be nimble and flexible and more acknowledge i'll in a world that's being up, figure out how to execute will be one of the big challenges in the third wave. and the answer is back to partnerships. companies that do partnerships will will success. the ones that go alone will be left behind. >> they make up 95% of the new jobs need to partner. is that what you're saying to that extent? >> yes. >> the 90s are gone. you just up and sell. >> i know you ran that play a bunch of times. >> it worked out for both of us. >> take health care, for example, if you want to revolutionize health care, of course technology software will be part of it. it is not like dropping an app in the app store. you have to work with doctors. that will require a partnership. if you want to do something around rethinking learning you have to work with teachers, professors or or carnegie mellon. it is all about the software. it has to move into this world where it is about integrating

is a ,mall deal for you, $4 billion it is strategic, has a lot about you in the context of verizon aolred a well -- this is not a material deal for verizon. you want to assume a material level of risk and liability. i think verizon is absolutely going to sit down with yahoo! and say we need to get a handle on what is the future risk and liability with your security or lack of security around your user base. for a real opportunity verizon to walk away or maybe even to renegotiate the terms of the deal. david: the media landscape has changed fundamentally since this deal was first announced. particularly in the form of at&t time warner which has put the much larger content plays up forward. they're been rumors already that verizon might be interested in taking the tires with cbs. i think it's really possible here. you mentioned the at&t deal, that is a major, major bet on video and content. take a look at verizon and look at their strategy of a well -- aol and got who, that pales in comparison to at&t and 20% three andand sky -- 21st century fox. we might need to think about a bigger dea

and then time warner, aol time warner, turner, then separated again, and i'm somewhat skeptical of mediaonsolidation and i kind of flinch when i hear the word synergy. you got a great ceo in les moonves, smart, funny, cares about product, doesn't want to dilute his stock and you don't want him waking up every morning about what decision he might make at cbs, how that's going to affect paramount studios or mtv. i think you want flexibility in this new media environment, and consolidation sometimes hurts your flexibility. >> david, what do you make of the fact cbs shares are down 2%, because if as you reported, potentially they were unwilling to pay a big premium for the company, you would think investors would have been happy with that. >> yeah, it's a bit of a surprise, although again, there was a contingent of shareholders of both companies that believe the benefits of the deal, and to use that word, synergy, as well, would be significant cost savings and, therefore, both companies would have benefited, both stocks would have benefited from a deal at a particular price, but it may have

is tim armstrong of aol, now verizon, is he using this, to your earlier point, as a negotiating tacticr are they seriously saying is this a compromised company. >> i mean, there are certainly dangers here lurking that you can only imagine. first of all, just the legal danger, if companies, if individuals end up suing you because they can show that some negligence on yahoo!'s part ended up causing real monetary harm to them. you sort of step into that as verizon buying this, not knowing what might come up a year, two, three from now. >> i'll ask brian this because you're a lawyer -- >> i have a law degree. do not practice. which makes me extremely dangerous. >> put on that hat for a second because you had 150,000 reportedly government employees, everyone from white house officials to intelligence officials. could this become a federal inquiry? could there be any sort of federal charges that could belie yahoo? >> i think there has to be wrongdoing for there to be any kind of a charge so, was it just negligence? i think people would be interested -- now, whether you could go forward with

aol ceo tim armstrong said he was cautiously optimistic the deal would go through.es this mean for the deal now? jordan: big, open question. because it is not just about user accounts. that is the thing yahoo! has to disclose publicly, but internally, they stole user accounts, what intellectual property from the company did they also steal, if any? that is a question for verizon, because if you lost all of your user accounts and potentially significant corporate intellectual property, what are you paying close to $5 billion for? verizon has said they believed the breach is material, giving them license to potentially negotiate downward or walk away. emily: john: and quickly, yahoo! has said users should change their passwords, but now it is three years later. what can be done? isn't the damage done? jordan: the damage has been done. this has been trafficked in cybercrime circles for three years. that means the hackers have been using yahoo! users accounts to send spam. they have been using it for identity theft. telling people to change passwords now is a good pract

more and morendm shower activity maybe sleete s north and west.h an it will be colds enough to get aol couple ice pellets fallinglg down but it shouldn't ben'te anyt any major road concerns orr anything like that. by the time we get to the eaherl ty eimvening and middle r of the evening hours, there wee go, 6 o'clock tonight there's te some heavier rain.n. warm air will mover in.r it will be i nothing but rainfall but it could be heavy e at times. we still need the rain.ai we're still in a drought situation.io 55 degrees your high.55 degreesu clouds out there right now.r hie by the time rewe get to the to afternoon we'll be sunny andl uy bright once again.gain quick look at your fox5 f accuweather 7-day forecastay fot tuesday is wet only 45 as well l 55 for wednesday.ne weekend brings the cold. only 40 for a lie on fridayn and it will be windy and chilly and breezy 39 for a39 high on saturday. satday. that's a check of your forecast. erin como has the roads on rds o this busy monday morning.or. >> yeah, mike you can said ityod busy. bu traffic is parked on the the southbound side of 95