you just mentioned carl icahn. he has acquired .8 are sent of ebay and is moving to of his employees to join the board. paypal shares jumped in extended trading. >> all right, we mentioned carl icahn's stake in ebay. trish regan spoke with him. and she is joining me now. >> a short time ago. he called in and we chatted about ebay. he wants to see them spin off paypal. i have to say it's not a terribly new idea. people have talked in the past about paypal being an opportunity for ebay as it goes forward. this is the first time you have the likes of carl icahn sending a letter to the board saying, i think you need to do this. the board's response has been to not spin it off. he was also critical, or slightly critical, of management there. he did say that the management at apple, tim cook is doing a great job. "i don't know if the same can be said of ebay." we can share some of this now from that interview. first of all, me asking why ebay? take a listen. >> we have done a lot of work on ebay and we believe without qu

carl icahn, calling for a spin-off. the latest from that call. >> on this ebay conference call, where ceo john donahoe, the battle lines being drawn here. talked about icahn. he welcomed icahn views and he would consider his nominees to the board. but his view, the board has a world-class board at ebay. as for the idea of spinning off paypal, donahoe, that the company plans to unlook value. but the board intends to keep ebay and paypal together. the board is unified in this view. no other competitor has achieved paypal's success. and paypal and ebay make sense together. saying that ebay accelerates the success and funds paypal's growth. >> we're seeing a fade off of the after-hour session highs in terms of ebay's pop on the icahn news. >>> airlines up 9% in 2014. meanwhile, in-flight internet provider gogo has mel. joining us is the ceo of gogo, michael small. most of the fall had to do with the distribution. let's put that aside from now. in terms of international expansion, because a lot of people are focusing on that

we begin with carl icahn. it takes a certain breed of stock market investor to thrive in queasy times, and icahn is one of that breed. he has a knack of turning someone else's loss into profit for himself. but he can also help others improve their bottom line through the so-called icahn lift, an upward bounce that often happens when he starts buying a beleaguered stock. when the financial crisis hit in 2008, many investors were tearing their hair out, but not icahn. the state of the economy changes, but icahn's investment philosophy remains the same. as he told leslie stahl in march of 2008, carl icahn looks to pounce while everyone else is losing their shirts. >> the day we visited icahn enterprises, the stock market was swinging wildly, at one point, dropping 300 points. so has this been a bad day? this is not a great day. >> tough day, tough day. >> wow, this is beautiful. look at your view. icahn works in a skyscraper suite overlooking new york's central park. >> i think i lost today. >> you did? >> yeah. >

it was also revealed that carl icahn, yes, carl icahn again, owns slightly less than 1% of the company and is nominated two directors to its board. icahn also filed a nonbinding proposal urging e-bay to split pay pal and its marketplace businesses. the stock initially surged after the close. shares ended the regular sessio slightly higher at 54.41. >>> american eagle shares falling in the after-hours trade. the struggling teen retailer said its ceo of two years, robert hansen, would leave the company effective immediately. the company named a chairman as interim ceo and stood by earnings guidance it gave earlier this month. shares ended the regular session 2% lower at $14.31. >>> united technologies saw profits plunge 29% in the fourth quarter. the maker of otis elevators and blackhawk helicopters saw profits decrease from last year. still united managed to top estimates. the company was actually helped by a delay in shipping a helicopter order because the helicopters are actually sold at a loss. also revenue came in a bit light. still shares were up slightly to 116.12. >>> totally dif

what does carl icahn, activist four/two -- for/to companies. certainly pro carl icahn there. this one a little more cynical. finally -- are guest host for the hour, nyu school of business. -- scott galloway, our guest post for the hour. do some businesses respond better to carl icahn or does he use the same strategy limited what? >> apple handled it very well. actively engaged in. the best way to silence an activist investor is to put him on your board. a great dialogue,, the board. you are supposed to be a fiduciary for shareholders. the best fiduciaries are owners. you don't want to wake up and see your logo next to carl icahn's picture. he is mean, he is smart thomas and well resourced. he is the elvis presley of the activist movement, if you will. >> are there other activist investors who are like him, or are they better off pursuing their own strategy? thinking of bill ackman and download. this will be a big team for 2014 and 2015? >> both are extraordinary successful. the most tone deaf -- when he suggested sony spinoff the motion picture

i think carl icahn's involvement should buoy the stock.ight to 600 on this report alone. february 28th they have their shareholder meeting. this is what i want to set up for. today when the stock was 550 i bought the january 31st, next week, march 575 call calendar and i paid $8 for that. really what i want to do is i want the stock to move towards that strike next week. if it's below 575, okay, then i own the march. 575 call for $8 and then i have a whole heck of a lot of options. 575 call for $8 and then i have a whole heck of a lot of options. a whole heck of a lot of optionsoptions. >> it's interesting because in a lot of places and options are relatively cheap on apple especially from a historical perspective. now there's a little bit of debt. i think dan is right. the law of large numbers can keep a lid on it. there's a lot of big holders and potential liquidation that can happen there. you were talking about where you could ring the register and take money out of the atm. apple is one of those stocks. you have the activist stuff kee

for carl icahn and their main --cern about retrieving tweeting your position.t is as simple as that. they will continue to monitor the program, and, again, you can see this is working for carl icahn. shares are up considerably since he began to tweet. and the stock is under pressure. from thenan joining me newsroom with the very latest on social media and activism. and i guess back, joins me. he closed seven deals on new year's eve alone. we are back in two minutes. ♪ >> my next guest made seven deals in a day, and that happened to be new year's eve. john frankl. john, great to see you. so those seven deals, millions of dollars, just like that. >> well, it was not just like that, as you can imagine. we had many investors involved, 10 law firms, over 10,000 pages of legal documents, but, yes, we closed them on new year's eve. it is amazing how a deadline works. >> actually, in my mind of work, i understand that. this is helpful. >> this saves you measuring and handing out portions. getting to your box and getting to you fresh. this is sort of the magic behind. >

up to $4 billion investments in apple, carl icahn.h huge sales numbers that were record-setting but did not meet analyst expectations. apple down $44 at 5.506. liz: good numbers with the case-shiller. we have dr earnings report, pick of he had crotty. >> d.r. horton was up nine, 10%. doing very well today. [closing bell ringing] david: bells are ringing. five days of losses. but we broke that record of losses with a very good trading day today. we didn't have a chance to talk about winners including netflix which jumped to an all-time high. real big winners. individual winners. look at various indexes. the best is taking a big beating past couple days, that is the small and mid-sized caps. russell 2000 doing very well. almost a full percentage point. as you worked up, nasdaq not quite so well but all in the green. top it off with the dow up 89 points. seeps that is where it is settling seems -- liz: that is time for the front page headlines. durable goods unexpectedly fell in december. the commerce department saying durable goods orde

some newsto tell you in carl icahn.e wrote on twitter, just shares.500 million more we are neck and neck with apple's buyback program. >> a generated $130 million. it is a lot of money. i was suggested that this is getting serious after what we saw for the earnings shortfall. >> this is a buying opportunity. he just purchase another $500 million. this now brings his stake to more than $4 billion. this should give him more muscle when he pushes for that. he was $50 billion a year. he would like the company to do it. >> do you think that apple should be concerned that he has taken such a big stake because he would just be pressing them to pay out the money or do you think that they actually have got investment opportunities at apple that they don't want to pass the money. they are saying they don't want share buybacks because they want to invest in these new products. >> i talk to him. here is what he is saying. with their huge cash, it should have absolutely no effect on the money. they can doint that both. they are inno

you heard about carl icahn buying hundreds of millions of dollars. you heard about the incredible number of it phones they're selling. is apple's stock on the verge of a breakout? what do you think? log on to facebook.com/afterthebell. your answers later this hour. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] went back to being a...shell. ge live squawks right inour trading platform with think or swim from td ameritrade. ge live squawks right inour trading platform but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyo

carl icahn -- his newest target is ebay. the activist investor has taken a stake in the company, less than 1%. he is calling for ebay to spin off paypal into a completely separate company. he joined us on bloomberg television just a couple of hours ago. let's take a listen to what he had to say. >> there's no reason they should be together at this point. in our opinion of fact, i think it would be helped by a management team that is separate and can go their own way, and i think the multiple would go up dramatically, and also the health of the company would be better. >> ebay, not surprisingly, not too happy about this idea, saying in a statement that they have thought about this in depth and concluded that the company and its shareholders are best served by the current strategic direction of the company and does not believe that breaking up the company is the best icahn icahn way to maximize shareholder value. has also --icahn has also nominated to of his own employees to ebay's board. i want to bring in cory johnson, our e

some that seems to be relating to carl icahn. is usual to get the earnings news first. >> the analysts estimates beat by a penny here, but i do want to get to the hypotenuse. there is a proposal from carl off paypal.n this is something investors talked about around the margins that ebay before. exactly what the statement says nominatedrl icahn has two of his employees to the word of directors -- a classic activist investor move -- and he is proposing for a spin off of the paypal business into a separate dump in the. companies controlled why icahn acquired shares and derivative securities gives them a stake of about eight percent in the company. this is a small share, according ahn has in theicha company, but he is requesting that ebay spin off paypal. paypal tends to be the most profitable portion of ebay's business and a good chunk of it. be passed offill to a committee to consider. all of this going on at the same time the company is announcing its five lien dollar buyback plan, -- $5 billion buyback plan. the revenue coming in

carl icahn getting ready for his next proxy war. bloomberg television about why shareholders should have more of a say. >> this whole business of the divorce between ownership and management, i really think it is hurting our economy greatly. it is time that shareholders should have more to say. in the big picture, not micromanaging. we have done work on ebay and we believe without question it is a no-brainer, paypal should be spun off. >> carl icahn saying his plan to spin off paypal is a note trainer. -- a no-brainer, ebay executives are betting long on paypal. bill harris, you have a different take from carl icahn. what is the case to keep paypal? >> is incredibly integrated. when you buy something on ebay, you pay for it with paypal. the paypal heart of service. obviously, paypal is moving outside of ebay. both online and off-line. this integration of the two is terrific. >> is paypal innovating enough? how has it evolved since he founded it? >> it is a larger organization, the more difficult it is to innovate the larger you get.

do you agree with carl icahn?hey do these to either give it back to investors, do a share buyback? >> i agree to the extent that there's a larger opportunity for them to buy back more shares, to accelerate that effort, and that could be a near-term catalyst for the stock. cheryl: we've got the earnings coming back, but i want to hear what you're looking at in particular. i'm assuming high on your radar's got to be iphone sales. >> if you look at the december saleses, this is their first full quarter of iphone s and 5c sales. the december quarter should be strong because of the full quarter of the iphone. i also think you have pent-up demand for ipad. in calendar '12 they had two releases of the ipad. and if you look ahead to the march quarter, they should get the benefits of their new distribution deal with china mobile. cheryl: do you worry about the ipad itself being taken away from by the ipad mini? do you ever get concerned about that relationship? >> the concern for apple from a margin standpoint is successfu

saidsistant called and carl icahn is on the phone. thought somebody was playing a joke because we were expanding. i said put them on. there was carl in his deep new york voice. hi, this is carl icahn. >> how nice of them to give you a heads up. .> he was lovely he said he thought we were doing a great job. i said, we put that in a 13 d the you are filing. he said that many people asked me that. he said let me check with my lawyers. he always uses his lawyers as an excuse. he did put it in his filing that he wanted to work with management at the time. situation, he really did believe in what you guys were doing. he went long in this position. he was there for three and a half years. it wasn't as if it was a wake in and out. carl came at a time when our stock was undervalued. -- he was used to buying companies like time warner and big position to big companies. we were a small-cap company. we were starting a fund at that time. that was our first real investment. some he had a baby and they were at whole foods and they saw our company. i

why focus on carl icahn?he stake holder who gets long and loud in an era when corporate boards are more responsive than ever to disgruntled shareholders. even on a down day like today, we must remember there are many ways to win. one is to bank on an activist like carl icahn when he swoops in either to change or to conquer. stick with cramer. >>> i like to say there is always a bull market somewhere. i promise to find it for you on "mad money." i'm jim cramer. i will see you tomorrow! hey, hey, hey. how's she run? >> she runs great when she runs. >> dude, you told me it ran. >> only way we're gonna make a deal is if you get it running. now i'm putting matt to the test. i've wanted to do a gold car for a while. why don't we try it? >> here goes. i'm gonna open the door. >> whoa-ho-ho! look at that! she might be faster than the little chevy. >> what are you talking about? >> let's drag race. >> get your big boy britches on. >> tom's gonna race a car that's worth $100,000, and that's not a concern. his concern i

very interesting comments from apple from carl icahn. talking about herbalife, it has improved through the day. it was down as much as 16%. all indices are down. we have over 1% decline in the dow. the dow has been hit harder than the s&p over the past couple weeks that trend is continuing. s&p not having a good day at all down .87%. again it was the dow that was hit hardest today. that is on par what is happening in 2014 so far. nasdaq not hit quite as hard but russell 2000, 3/4 after percentage point. very busy hour including earnings. "countdown to the closing bell" starts right you -- "after the bell" starts right now. david: we have a jam-packed hour. we're set to hear earnings from two industry leaders. tech giant microsoft, will it name a new ceo. steve ballmer is leaving and they still don't have a replacement. starbucks, how has it been hit particularly since the malls have been hit. brock and mortar are down a lot. a lot of starbucks are in the brick and mortars. we'll talk about the numbers when the company comes out. speaking

it is time to break up ebay and paypal, says activist carl icahn. what would you tell your 25 your old self? you will hear what ceos have to say about that. in davos, how to escape an ambush, if you are a billionaire. and are the billions worth it to nbc with the olympics? the good, the bad, and the ugly of chicken wing fitness. we kick it off with dominoes, the annual forum in the swiss alps. known as a place to rub elbows and make deals. when the leader of the islamic republic of iran showed up, you know he meant business. >> i am here to convey my people's message of friendship, engagement, cooperation, and peaceful coexistence. >> this is the first time and iranian president has come to davos in more than a decade. international sanctions have prohibited it from doing business with other countries, and that shrank the iranian economy by 5%. now they have a deal with the international community to curtail its nuclear program in exchange for $7 billion of sanctions relief, and that means the iranian president wants investment. >> i hereby announce

very interesting comments from apple from carl icahn.day. it was down as much as 16%. all indices are down. we have over 1% decline in the dow. the dow has been hit harder than the s&p over the past couple weeks that trend is continuing. s&p not having a good day at all down .87%. again it was the dow that was hit hardest today. that is on par what is happening in 2014 so far. nasdaq not hit quite as hard but russell 2000, 3/4 after

david: let me go back to tom and talk about carl icahn for a second.charlie gasparino's conversation with icon last week he just bought $500 million worth of the stock. according to my calculations, the stock is down now about 4.5%. that means he had about a 20 million-dollar paper loss today. how soon will it take to get that back? >> i think he has done reasonably well since he made his first investment and i'm confident the stock will do well over next 12 months and carl icahn will be more than fine. david: now you have a $650 price target on the stock. did today's unit sales numbers worry you perhaps it won't get up to that? >> again, i think when you look at sales better than expected but iphones units being weaker the question is the problem the 5c, not the 5s? if the come is the not the 5c but the 5s? the 5s will have robert marr begins. i think if they do enterprise tablet that would be great for margins standpoint. cheryl: the stock again in after-hours trade something down. about 521 and change. i had an analyst on earlier say, 520 is the swe

>> well carl icahn if you were to have the same position in ebay he has in apple, actually carl icahns right now pay pal is a standalone company could trade at 25 to 30 times earnings whereas ebay before this announcement was trading about 17 times forward earnings primarily because of the slower online commerce business which arguably you can separate the two. there are other services that can provide online payment support. pay pal does not have to be wholly owned by ebay. wroo joo would you. >> would you like to see ebay pursue this? >> i would say definitely it makes a great deal of sense. there is latent value to be realized. right now you've got on ebay's books probably about $5.50 a share in net cash. the stock underperformed the broader market averages. the company doesn't have a dividend. certainly there is cash flow to be used there which could be used to enhance shareholder value either through a dividend a buyback, or a spinoff. i think the company's board should consider all three. >> it looks as though a buyback is being considered. and what more to break the company out

>>i think the carl icahn put is in. if the stock is cheap enough he will go in and buy more stock. the stock is so cheap on a pe, they just need to come out with a new product. we've been talking about apple for years and years. the apple tv was supposed to come out at the end of last year. we haven't heard anything about it even coming out this year. we heard a rumor of the bigger screen phone coming out. that would be a game changer for me. i don't think the apple phone is that great, i like the galaxy much better logistically. but i think they need to come out with something instead of thinner, faster, lighter. show me a bigger screen. the china mobile deal should be good. the carl icahn put underneathi don't know if this stock gets under 500 all year this year. >>people are nervous about the stock market. are you? >>i got nervous on friday. i usually have been playing to the long side. for the last year and a half i've basicallly been long only and it has been paying out and i have actually had a really profitable y

carl icahn made today's news good. i think it is also worth going back and thinking about what happened way back in the day. brad and i remember -- collect that's why i asked you that's why i asked you guys. >> meg whitman decided to buy ebay decided to buy paypal, not because paypal was profitable. not because paypal was successful, but because paypal has so much control over the ebay platform. so many ebayers were using paypal as a payment method, even though paypal was losing a ton of money, that ebay recognizes someone else got their hands on paypal, it would be a threat to ebay. that is why they bought it. they had their own payment platform, and it was not taking off quite as well. you may remember covering this back in the day. >> you are bringing it all back. the big risk for ebay right now is the distraction that is created at a key strategic moment. you can tell the inflection in his voice changed. he is worried about this. the fact that shareholders are swarming around the idea creates a little bit of a self

listen to anythings on positive on apple today and i think the most damning thing when you come to carl icahnthe interchange about the buyback, carl, where basically there's a question about when is the company going to be buying back stock and the answer is we buy back stock all the time. that's not the answer that carl icahn wants to hear. he wants to hear, well, wait a second, we've got a real price break here and perhaps you should be buying right now. ben righteous, again, saying is this a good level? your stock's going to be trading around 500. tim cook right back, listen, if it doesn't change today whether the stock goes up or down. no, carl icahn's going to say this is when you should be in there buying. lots of missed opportunities by apple to say the right thing but, still, a question is -- maybe just all smartphones slowing down. >> yeah. well, the market for phones is growing at a multiple of apple's growth. >> right. >> 7% year over year. a bunch of questions. >> that's really out there, they are talking at, hey, listen, your mac is a dominant product and so why isn't your cell p

why focus on carl icahn? gets long and loud in an era when corporate boards are more responsive to disgruntled shareholders. even on a down day there are many ways to win. one is to bank on an activist like carl icahn when he swoops in either to change or conquer. stick with cramer. you got the bargain kind? you need a bunch of those to clean this mess. then i'll use a bunch of them. then how is that a bargain? [ sighs ] no, that's too many -- it's not gonna fit! whoa! cascade kitchen and math counselor. here's a solution. one pac of cascade complete cleans tough food better than six pacs of the bargain brand combined. so you can tackle tough messes the first time. that is more like it. how are you with taxes? [ laughs ] [ counselor ] and for even more cleaning power, try cascade platin [ laughs ] i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them on

carl icahn acts out of frustration that the company isn't doing enough to create that value. why?ow that breaking this up could be different scpuicult stock has been a disappointment over the last year. >> no doubt. but the marketplace business has had a bit of a tougher time over the last year and the multiple, therefore, i guess reflects that getting back to the frustration you talk about. >> do we get to a point where we ask how many of these plates icahn can spin at the same time? >> i think you can do a lot. >> more than he's doing right now? >> i don't know. but it may be. i'm shocked at it, but it's just amazing when you talk to him now, there's so many different things to ask him about, of course, none of which he wants to actually give you a real answer about. >> but he's the lion in summer. he's supposed to be in winter. he's got a different shakespearean thing going on there. netflix, don't forget that. and pacter will be on. there's a little fodder. >> yes. >>> there's a look at the s&p at the top of your screen and negative action at the get-go. and down at the big bo

not carl icahn. >> carl icahn owns 1%.nia state pension is with long-term management's strategy. a little bitying of attention to carl icahn. they give them a little bit more lip service than steep -- steve jobs might have. >> cory johnson, thank you so much. we have lots coming up here. >> our guest is the ceo and president of the g -- vevo. is the u.s. auto boom over? ♪ >> good morning, everyone. "bloomberg surveillance." i am tom keene. our guest host is with vevo. they are like youtube. they want to be a content company as well. when you look at this, everybody wants to do content. how was vevo going to be different? >> we're just getting started with music videos. it is not about collecting them and having them. it is about what you can do on top of them. they build a tremendous audience. showse can do is create about fashion, style, beauty in music am of food, travel, music, live concert events -- a lot of things we can do that are true to music, authentic to music. , where is the proven audience for that? you have n

carl icahn wants the stock to pop tomorrow.ceo, and carl icahn the best friend. stuart: remember what they did to j.c. penney, an outside activist who wants to run the company and that didn't work. next one is american eagle outfitters. we are seeing the charles payne principle here. the ceo leaves and the stock goes down. any comment on that one? charles: the guy was there for two years. was a $23.50 stock. stuart: let's get to obamacare. internal documents released by the administration revealed they knew how deeply flawed the law was even though warning it could potentially bankrupt the insurance companies. the administration was publicly touting how great it all was. judge andrew napolitano is here. i am reading between the lines and projecting forward and saying if these insurance companies are in some much trouble here come the bailout and i the taxpayer have got to pay and i know you don't like it. judge napolitano: you don't like it either. what about t.a.r.p.? i couldn't resist. seriously. we can't pick and choose whic

also you bring up carl icahn.discussion maybe taking herbalife private. >> that was renewed yesterday when the davidson analyst, tim rainy, probably one of the primary bulls on the stock went to join bill stiritz's firm. he is a private equity investor. he wants to buy. he said it point-blank, he would like to buy the company. whether he does or not, whether that was the motivation to hire raimi, i don't know. he is working at fairly small brokerage firm. he will go to a guy that he made a lot of money for. if bill stiritz he bought it at 30 and it is at 60 now. so he got a job. there is a lot of, markets interpret moves. doesn't mean they interpret them right. we actually broke the story about ramey going to stair rid's firm. -- stiritz's firm. this shows you how bizarre the story is. the guy that worked on the short, analyst worked on the short with bill ackman at pershing square is shane dinneen. a lot of talk that is leaving pershing square. when you go to the pr people of pershing square they won't neither co

icahn's-term-ism, carl kitchen table.u learn as you moved out what to private -- as you moved public to private? what did you learn about activists? >> some are more unique than others. in terms of revenues, dell was the largest company ever to go private. certainly, there were people that objective. we had a long process, bloomberg cover it -- covered in. all swell that ends well. ask you alet me question about an article in bloomberg businessweek. apple executives said they are not going to come down in price. in five years, will that be the correct decision for apple? to distance themselves from the cutthroat -- >> steve jobs came up with the idea of being the bmw of the computer business. apple's market share is growing bigger than many expected. michael and i used to talk about how he wanted to license the mac os. i would like to know your opinion, do you think apple remains the high-priced competitor, is that a given? >> you are seeing the ac phenomenon of 20 years or 30 years ago play out again. if you look at smar

is carl icahn an agent of change for apple?think apple is a much better shape than anyone gives it credit for. i was on this show last april when apple stock fell below $400 and i said, he pulled don't understand how strong this company is. then it went up to $550. i think it will go right back up again. the situation they have now, they are just beginning the rollout and china. only 16 cities in china with lte be 400 by theill end of the year. i think apple is being way overreacted to buy investors and it is a positive that carl icahn just went out and bought more stock. >> how does it get to the $500 rice level? does it move beyond focusing on a few key products and look outside its comfort zone for acquisitions to beef up its product line? does it return cash to shareholders? will work its way back up again just on the performance of the business. tim cook said they will have big announcements this year. if i was going to bet on something, i would bet on mobile payments. mobile payments could turn out to be one of the hottes

they probably should spin off. >> let's listen to carl icahn. he spoke with bloomberg television. >> there is no reason they should be together at this point. i think it would be helped by a management team that is separate and can go their own way, and i think the multiples would go up dramatically and also the health of the company would be better. be thats argument would they play off of each other, that ebay needs paypal as much as paypal needs ebay. and some of ebay's business does help paypal brother account. paypal grow their account. >> nothing would stop ebay from entering into a long-term agreement with paypal. >> that's right. these companies can continue working with each other, right? ebay shareholders would benefit from paypal spinoff. it is not like they aren't allowed to work together. obviously, every time you use ebay paypal makes her transition -- transaction user. >> bob, do you use paypal? >> yes. >> would it matter to you if it was separate from ebay? >> not in the least. you wouldn't even notice. if they separated 5 years

we understand how to use our capital better than carl icahn does. >> thank you so much.update. he watching bloomberg tv. we will have carl icahn himself on in just an hour when he joins "street smart." ♪ ♪ quest good afternoon. we are live from bloomberg headquarters. >> thank you for joining us today. it is not snowing. >> think god. it is still cold out. easy getting around with all the/. >> as our guest will say.

they're going to be embroiled with carl icahn.rst enemy, but that will happen. netflix looks unstoppable, invulnerable. am i right about that? they get pr, earns, you can get them on your own tv. they're unstoppable. >> certainly it had a monster run, larry. as we mentioned triple digits. some investors might have taken some profit off the table, but you had a monster move with those numbers after the bell today. switching gears quickly. i was on the conference call, drawing the baselines very -- telling an analyst, listen, he spoke with carl icahn last week, respected the views, but the two just disagree. we just. >> great stuff. many, many thanks, josh limiten. will the fed taper and tight enfaster than stock markets think? let's welcome carol roast and dan agreehouse. all right, carol, what's your take right now? >> we've got good news coming out, bad news coming out. this will be a year of sluggish growth, so i think it's a time for investor toss rebalance. some of the names, quiter discretionary that did we are now getting be

carl icahn is back in the mix?he just tweeted out that he bought 500 million more apple shares -- $500 million more apple shares. he has been agitating and pressing the ceo tim cook on increasing the company's buyback program. this tweet said that my buying seems to be going neck and neck with apple's buyback program, but hope that they win that race. in terms of share price reaction, not much of one. shares are still down on the day. the company reported sales of iphones of 51 million in the quarter yesterday that missed analyst estimates. the sales outlook was also a little bit lighter than what had been anticipated. carl icahn, who has been pushing apple to buy back shares, has purchased another $500 million of apple shares. >> thank you. we will have more on that throughout the hour. everybody loves it when carl icahn is tweeting. though i do not think it is carl himself. that is just my personal view. one we come back, the lineup is also for the super bowl. but the team lineup, we are talking about the adverti

how does a ceo navigate when you have people as vocal as carl icahn?y got to understand what are the priorities of the activist investors. at the end of the day, is there prior need to add shareholder value or to look to themselves at the expense of everyone else? parties are key, that will drive their behavior, how they will shape strategy and help or hurt ceos. >> what usually takes place on the board in a dialogue with ceo's when you see somebody like carl icahn take a significant stake? >> i think the advice that often them,in is negotiate with give what they are asking for, they can cause a lot of trouble. that is not the route aol took. we believed our ceo had the right strategy and was losing -- was moving the company forward, that turned out to be accurate. what do you say to a ceo or to a board when someone comes in, do you say give them the board seat? >> they have got back to -- they have got to step back and important, the most thing for shareholder value is the stakeholders involved. if it makes sense, let's step back and discussed that. i

trish regan has just spoken with carl icahn. i know that apple has been trading down today.that as an opportunity? >> he sure did. he bought another $500 million worth of stock, bringing his stake up to more than $4 billion and buy some of my calculations, one of the largest shareholders in apple right now. there has been a lot of criticism about his plan. he has been outspoken. -- dinnerh dinner with tim cook and has pushed for this buyback. he would like to see $50 billion a year in a buyback plan. it is something that has come under criticism with a lot of people saying that is too much. there are better things to be doing with the money right now, including buying new companies, investing in people and in tech knowledge he. i asked him about it -- in technology. i asked him about it. he said that criticism is ridiculous. with the amount of money flowing with the cash towards, $50 billion should have no affect on the money available for new products. are in mind, new products incredibly important to this company. everybody has talked about the potential for an apple watch

investors are excited about a proposal from the billionaire shareholder carl icahn, who wants ebay tosiness into something else, into a separate company. ebay says it won't do that. paypal is ebay's biggest growing operation. >> yeah, paypal literally cranks money for them, so i hope they can spin that off any time soon. >>> coming up at the top of the hour, george zimmerman painting again and making the work available for public sale. this time, it's an image of the special prosecutor who tried him for shooting and killing trayvon martin. it says "i have this much respect for the american judicial system" and shows her pinching her fingers together. his brother tweeted out the image overnight, saying it would be up for sale today. the last painting, an american flag, sold on ebay for more than $100,000. this one a little bit more controversial, i think. 41 minutes after the hour. >>> coming up, deadly riots filling the streets of a huge city as a key nation descends into chaos this morning. we're live right after the break. passenger: road trip buddy. let's put some music on. woman:

carl icahn says he is ready for a proxy fight over ebay.cts the company to resist his proposal that he spin off the paypal unit. our next guest is an original member of the paypal mafia and thinks the proposal may make a lot of sense. in studio. here what do you think of this idea? >> this is an idea we have been talking about for years. you can see wall street having the same conversation. i think this is driven by reality. ebay,e sold paypal to ebay transactions were two thirds or more of paypal. today they are one third or less of paypal's volume. and decreasing rapidly. the non-ebay portion is growing much, much faster than the ebay portion. question ofis not a if but when. its trendlinesat keep going the way they're will, ebay transactions eventually be a single digit percentage of volume. it is always hard to specify the benefits of focus, but all of the companies in silicon valley i think are seeing the benefits of focus. there is a fundamental difference between a company that is trying to sell retail and merchandising. ebay is tryi

he was effectively calling him carl icahn to be his white night. ous.is you want carl to step in. he said, carl icahn, take notice and interest. >> it is so dumb. carl icahn the activist is the knight for ralph nader. >> other people have come out and said that the offer is too low. >> they are not as vocal as carl. >> that is true. >> they are saying that this stock traded well over four dollars a share. we had a bad quarter the last quarter. >> you know what is funny, -- they arearter paying 22 times cash flow for sirius radio. that is three times what they are paying. it is apples to oranges, but you know. it is a much better growth story. >> that have to do with the car business. serious is used in cars. it is being built right into the auto. >> this is ralph nader we are talking about. we are not really used to having him china and on matters such as this. onis protecting -- chimed in matters such as this. he is protecting the little guy. >> goto twitter or facebook. everyone has an opinion. move over zombies, a pirate vision is upon us. sale -

a famous investor, carl icahn. >> although carl icahn knows his way around the tech world, he's already bought big chunks of yahoo and apple today. today he announced a stake in ebay and hinted ebay should split itself into two separate companies. he is suggesting a spin off from bay pal bought by ebay in 2002. netflix and the love story as investors continue. netflix reporting strong earnings. tonight, investors love that and they bid shares by 18%, that's nearly $60 a share higher after hours. netflix stock hitting at an all-time high. the money doesn't stop there, but this money comes from a silicon valley billionaire and going into a bay area community that could really use the help. >> reporter: it's the talk of silicon valley, a celebration of a new health center coming to east palatao. it's from mark zuckerberg and his wife and how did the ceo find out about the gift? a mobile phone, of course. >> i was out in the garden on monday on martin luther king holiday weeding in my garden and i'm like all -- got my masks on and all this stuff and i get this phone call. i didn't know the

we start with carl icahn, who has increased the size of his stake in apple.other half a billion dollars of apple's shares in the last two weeks. investors pass the 3 billion- dollar mark. icon says we will hear more from him soon in an in-depth letter. will nothis board markedly increase a stock buyback. another blow to sears. we learned the struggling retailer plans to close its money using name sake location in chicago. it is been closing stores and cutting costs. loss may hit $360 million. that stoppedorm northeast has moved on to canada. storms left more than one foot of snow and hundreds of flights and millions of school kids with a day or two off. temperatures expected to say at record lows. new york is expected to drop at seven degrees not counting wind chill. we have breaking news. growingrnment protests violent. you are looking at pictures there. at least three people are dead after a aired night of street violence. authorities say they were shot with live ammunition. been going on for months, ever since the new ukrainian government decided to turn d

you need some courage and activists coming in and carl icahn.on't know why we pay so much attention to carl icahn, he only at those 1%. the mouse that roared. >> absolutely when you think about investing in technology sector, we offer edf related research and frankly you look at a variety of ways to think about that. you can look at the? queue, the nasdaq 100, that is only 60% of technology and the x l k which is the tech sector spider but that is only 85% to 90% exposure, the vanguard product is 100% exposure so why do we focus on carl icahn? people will look at what he and others are saying as indications about things that could go on at those companies and think about what is going on and apple and the tremendous value people see could it be finally unlocked by someone of his stature? what about ebay? another company he has been getting increasingly involved in. the reason people pay attention to him is his track record and possibility to impact decisions and prices. dennis: some value will go up from here. thanks for being with us today. che

postpone -- under carl icahn's postal?t on $50 billion? is asking $50 billion return but they are pushing back on it. much -- they want to take out $50? that is why we love having you. >> i think what is going to happen is you will see some kind of distribution. >> brian, your price target assumes a multiple. analystwith the average on the street, that assumes a multiple of 12.6 times. why will people be prepared to pay more for apple? >> is apple an average company? >> we could have been asking the question the past two years. >> i think the fears of them being squeezed out by competitors is over, and the return of cash argument is over because it started down that path. take something like 50 times revenues for twitter. apple is a cheap stock compared to what they are capable of doing. rose is great, but a real company is something that matters, and apple is the most reliable profit generator in tech. great point. if you only grow the free cash flow two percent a year into the future, the stock is worth our price target.

and that didn't stop carl icahn from doubling down on his apple bet. tweeted that he bought another $500 million of the stock today. >> i don't know how many people are listening to carl on this one. and the company was involved in a capital buyback and redistribution program before carl got involved. the things i care about. i look at the stock. it held at 200. the sloppy trading in after-hours yesterday, we tested around 500. but the stock has held. when you look at what came out of yesterday's call, colin gillis did a great job with this yesterday. one of the things that tim cook reiterated and the same thing we heard from samsung and highnex last night, the fiscal first quarter for apple was great on some level. but you actually didn't see a huge blowout in the iphone sales. and the next quarter, fiscal two, the coming quarter, is something that's clearly going to miss. that tells me that smartphones are mature. people need apple to create a new product. there's nothing wrong with this company. nothing wrong with this valuation. i think you can own

started to learn about these tweets and they were confirmed after that, $3 billion of investments for carl icahn over that amount in apples so now with that we watched the stocks this morning moving to the upside and here is, 1.3%. if you look at an intraday chart around 1040 one to be specific, there was a big spike in volume and we saw the stock pot. it the lowest debt that it was $5.47. and investors, share buybacks, this is the big plan, apple is doing a great disservice to the shareholders by refusing to sharply increase the buyback program. i never heard that before. tweet along with us. we will be back to nicole petallides in a moment. we head to don bose as well. the world's wealthiest for the wealthiest americans are getting hit with higher taxes for 2013 and new top tax rate of 40% for this tax year along with the medicare taxes to pay for obamacare, joined by boston to talk about this by fred wayne and vice chairman of investment banking at raymond james who rejoins us today so you have this new top tax rate bringing up a conversation about the effect of all that. what do you think? w