joining me live from dell world. you also had a big role at dell world as well.hat is your take on some of the numbers? >> it is impressive. it is interesting, because we are entering this area where we are seeing more and more numbers coming out about online shopping. i just saw a study today about the number of people who will spend online this year is expected to rise by a significant amount. more and more is mobile. any kind of site that provides that kind of capability is going to be a big deal. the challenge for them is how do you compete against an amazon? it is sort of like the replacement for classifieds. when you think about the role -- people have a lot of things they need to sell. it is important for them to have a place to sell those things. ebay is a place to do that. they have brought on a lot of retailers and there are people who do look for alternatives to amazon. there is also a lot of potential growth for them outside the u.s. emily: shares are up 8% in after-hours. what does ebay become without paypal? is this just an auction site? what is its

my one-on-one with michael dell. he tells us why he is never getting into mobile phones and how he feels about carl icahn. i will leave you with one stock on the move today, and that his twitter, sales fell more than 5% today. developers conference today, a billion people received tweets embedded in other sites and apps. twitter reports earnings after the bell on the 27th. holmes steppedh into the lions den tonight speaking at a wall street journal conference to defend against accusations that her startup has misrepresented its lab test. elizabeth: i read what was written in the article and we think it was this leading and faults -- misleading and false. allnteract with the agency the time. we have chosen to take a pass that is hard and i believe in it strongly because it is the right thing to do and i personally worked very hard to change the law in arizona to allow individuals the right to order lab test directly and i cannot do that without knowing that the tests offered are of the highest quality. emily: she did

i will be in austin speaking with michael dell about all of this next week at dell world.he social network -- the social network is trying to look more like the shopping network. facebook is adding a shopping section to its mobile app. facebook is looking at ways to lure users into making purchases. the company says it won't be taking a cut out of revenue generated by consumer transactions. instead, if facebook hopes to make its advertising more effective to make it better for what people are buying. they have too tested over the holidays. coming up, my exclusive interview with steve wozniacki. and what about being played by seth rogen? ♪ emily: the movie is out and one critical review is in -- aaron sorkin's "steve jobs" is in and has been well received by hollywood critics. in silicon valley, a different story. steve wozniak enjoyed the film, but not because it has anything to do with reality. i sat down with him earlier in an exclusive interview. steve: this movie was top-notch professional -- the script and how well the actors played it and the cinematography, i was no

what is dell trying to accomplish? alex: the idea is, dell is one of several large, legacy tech companies who, in many ways, their best days are behind them and they are trying to figure out what is the next step forward for us. part one of that plan was to go private and refocus on the enterprise segment to get away from what we all know dell as , from a consumer pc product company to a company that services information technology at small and medium-size businesses. the idea is to marry that with emc, a large enterprise company and whose core competency is storage rather than servers. emily: do you see them getting out of the business? jerry: pcs are declining and everyone's moving to a mobile, tablet world. would youe dell, why spend more time in a low-margin pc business to pursue the higher-margin storage business? emily: what is the amount of debt they are taking on? can they accomplish this? alex: i wish i knew the answer to that. meg whitman just put out a memo today, a sort of a memo to her own staff. take this

dell owns the rest.hey believe the fact that it will be tracking an active public equity, the fact it has a board of directors separate from dell, and that it will create more liquidity will be beneficial and therefore mean that it will trade very close in price to the common equity of vmware right now. that's the key. others say, no, it will still trade at a discount. >> i fear it will trade at a discount. i will say you're right. vmware is up 5, down 5 stock. many stocks in that industry would be up 50 cents, down 50 cents. one of the reasons why i've been historically not willing to embrace vmware, despite its high growth and prefer red hat, sales force, cloud-based, is because it's crazy. every time you get it wrong, you wake up and you're down a gigantic amount. that makes sense. david, how much of this is tax motivated? the reason why emc never spun off vmware is the tax bill will be high. >> they believe this is a nontaxable transfer. the cash you're getting for your emc share, that's taxable. we

emily will be speaking to michael dell.here will be 350 jobs layoffs and announced for employees as early as tomorrow for espn. espn has lost customers due to court cutting. this follows disney's announcement in august that earnings for the network did not meet earlier forecasts for the company. coming up, what to look for tomorrow from ebay. we will look ahead at the company's first report since paypal. ♪ ♪ cory: i'm cory johnson in for emily chang. this is "bloomberg west." satyana nadella taking a personal hit. his compensation dropping. that is sad compared to the $84 million he made last year. only 8 million of these stock is based on 1.2 billion dollars. ebay will release its first order earnings for the first time since the split with paypal. how will the business standalone without the business arm to support it? paul sweeney from bloomberg intelligence. paul, what your thoughts about ebay now that it is back to just being ebay? paul: this is a big quarter for ebay. this is the first since the split up. this is a co

morning, dell is in talks to buy data storage product emc. dell's offer would be above $27 a share. by the way, i can't tell you how much because wron. those kind of conversations when you have them with people involved in the deal typically don't go into the greatest form of detail. however, the two companies have been talking about a deal for quite some time, and, in fact, maybe as little as a week away from inking some sort of a transaction. very importantly here, the deal that is being proposed would include dell keeping control of vm wear. right now emc owns 81% to 83%. 81% of vm wear. the deal being proposed would include dell maintaining the control. it would maintain at least 51%. it would be delivered to emc

just look at the size of dell's business. we know dell already has a ton of debt.f course, the company was taken private in large part through borrowing money. if you look at the size of dell's business, it has about $12 billion in debt, given an enterprise value of maybe $25 billion. they are trying to buy a $54 billion company. to get to those numbers, $12 billion in debt, $23 billion enterprise value, that is an estimate from bernstein. emc is a $55 billion company. how does a $23 billion company buy a $55 billion company? by borrowing loads of money. that's michael dell's play here. emily: what does this mean for the future of dell? what can we glean from michael dell's vision, if he is indeed pursuing this deal? cory: he is looking at that storage business at the heart of emc. he is expecting to have an additional portfolio of products to sell, mainly because the p.c. business is in the tank. numbers today saying that the p.c. business falling 7% year over year, one of the worst declines we have seen in that business. it suggests dell got the wrong stuff. and

dell is better added. i've not heard the answer from dell, either. did not hear much discussion about the club. that word did not come up. >> this is a big bet on the data center. that they will provide a combination of solutions that people will want. there's a lot of equipment that goes into these data centers that feeds the cloud. in that sense, it's a smart merger because it is forward-looking. we are doing so much work through the cloud in the data center. what might big take away was he loves being private. he loves being out of the glare of the public. he told emily in a very hard-hitting interview, we like this idea of being able to do our thing and get our thing done without the glare of the public markets and those pesky activists. --phanie: the data center what they are doing is in the back end where and users -- e> we've moved from a universi being proliferated with gizmos to the back end driving those gizmos. however experience isn't shaped by how fast we can access the internet, how fast we can enter -- access storage and how many apps

it does fall to dell. that is mr. dell. silver lake. any other partners they may have in there.y may get something done as soon as a week, but to john's point, once we see it in print, we'll see whether shareholders will want to go along. there will be a vote. >> we will see. >> i know we have to move on, but -- >> go ahead, john. >> how ironic -- how ironic is it to see dell private trying to get bigger at the same time we're seeing hp get small. >> thank you. we're going to get to the 16th, 17th meeting, and many were expecting rates to increase. maybe the timing was wrong. it's not a question so much of whether zero interest rate policy is out lived its usefulness. i think there's very large agreement on that. whether it was japan or germany on the soft side. granted that the u.s. is still probably doing a bit better. weave had our own issues like ism and some of the regional fed surveys. in the end what it really boils down to is i don't think we're going to see normalization. i'm pretty sure that chapter may be closed. now, of course, the october meeting is still in the com

dell is adding almost $50 billion to it that load on top of the $11 billion it's carrying for dell. it's amid the hottest product lineup in an ever more competitive environment. buyout will hopefully satisfy activist investors looking for growth. a stake inssume vmware which will remain a publicly traded company. joining me now is a partner at greylock capital who worked there for a decade and alex sherman, our m&a reporter at bloomberg. lay it all out for us. dell is one ofis several large, legacy tech companies who in many ways best days are behind them and they are trying to figure out what is the next depth forward for us. part one of that plan was to go private and refocus on the enterprise segment to get away from what we all know dell as from a consumer pc product company to a company that services information technology too small and medium-size businesses. emc is a large enterprise company and whose core competency is storage rather than -- emily: do you see them getting out of the business? jerry: pcs are declining and everyone's moving to a mobile, tablet world. why would

dell was a leverage buyout. still has an eye norm must amount of debt, $11 million on it's balance sheet. the cost of the lease to buy emc, $50 billion. there is a lot of cash there. with we are talking about them having to access the debt market for somebody near $40 billion. you might be right to ask, how can they get that done? understanding it would not be just a high-yield offering. there is a way to do hybrid investment grade high yield. this is something that comes into play when they access that capital markets. they already are having those talks with banks about that financing. i am told this deal could be as little as one week away. although, the credit markets have to come into play here even with a hybrid structure. i'm not sure how that, would. investment grade and high yield. we are talking about a huge number. they borrow enormous amounts. they buy emc. they maintain control of vmware and that is the deal at least above $27 a share. i'm told price is largely dealt with, i don't know what it is. >

tomorrow, emily chang sets down with michael dell. for watching "bloomberg west." ♪ buddy- nice place, nice car what happened? well, it all started with my free credit score from credit sesame.com. they gave me so much more than a free credit score. credit sesame's money management tools and personalized offers saved me tons of money and helped me reach my goals. i just signed up with their free app. what's my credit score? your credit score is 650. that's magic! no, that's credit sesame.com you get so much more than a free credit score so do more with your score at credit sesame.com ♪ >> from our studios in new york city, this is "charlie rose." charlie: we are in phoenix, arizona at the walter cronkite. i am pleased to have as my guest senator john mccain. he is a big proponent of strong defense and america's role around the world. he ran for president in before 2008. serving in the senate, he was a member of the house of representatives. all of us know of his courage and heroism. senator mccain, is a pleasure to

michael dell will remain ceo.e talked about their future plans this morning on "squawk box". >> we are focused on a significant reduction in the debt, which is going to come from certainly the cash flow of the combined companies, which is quite powerful. some cost synergies but importantly the revenue synergies here are about three times larger than the cost synergies. >> delevering, the process is going to be key as there's essentially a new entrant highly e leveraged, jon. a lot of people wonder today if the space can handle that. >> i think it's interesting from a strategic point. you have macro trend allowed start-ups to come in and compete with the status quo. on one hand you have companies like hewlett-packard and e-bay, this is total opposite end, consolidation, leverage. i think that's an interesting strategic question and history will sort of tell who's on the right side here. >> conference call they argued they've taken share likely from hp i'm guessing, but say they've taken share for 11 straight quarte

take us back into dell. senor dell likes to take companies private.ell is paying about $67 million for emc. it would be the largest pure tech takeover in history. vodafone was $186 billion. this would be the biggest pure tech play. vml is tracking stock in wear. $33.15al price will be per share. it is about the october 7 level. october 7 is right here. emc begin to climb. michael dell is going to pay about $67 billion. and, if youbusiness are thinking about losing, it is going to be bad for hp. david: we are going to be coming back to dell. jim, what do you have to say? jim: we are negative on this space and we have been public on hp, we have been short hp for a number of years. we were short dell when he did , if you, the take under will. we are back to decelerating revenues in pcs and services for most companies, so they are looking for growth anywhere they can find it. deflation is the keyword in this space. stephanie: deflation and going short. the only thing jim chanos is wrong is the green bay packers. [laughter] david: when we come back, we wil

david: you talked about the debt that dell is taking on. talk about the timing of that, why this is perhaps a good time for that. >> this is getting ahead of any interest rates height -- interest rate hikes that could be coming later this year. jamie dimon said that the financing is there. banks will syndicate the loans. it is a concentrated deal, but we can get it done. david: jeff mccracken, head of global m&a, thank you. for more on the deal, we are joined by abhey lamba, analyst with mizuho securities. i read that this would create an enterprise solutions powerhouse. do you agree with that? >> it will be interesting to see how it pans out. if you look at what ibm and hp are doing, they are going the other way, creating more double organizations. have everything from pcs to storage, so they are going in the opposite direction. who will be right? only time will tell. at the same time, dell will have the portfolio that others would not have. about howk complementary these companies are. emc historically works with larger enterprises. is th

and now michael dell will take over.ne of the big things was that emc had not laid out a succession plan for tucci. successor, ain a very famous and wealthy man in michael dell. angie: is there any chance that somebody else may bid for emc? alex: it is possible, but unlikely. hp almost hammered out a deal with them last year. sources i have spoken with this morning and even before tell me it is very unlikely that hp will bid. meg whitman put out an internal memo and a public statement sort of trashing the deal, saying that dell will have to pay back billions of dollars in interest each year. &d,could put that money to r getting into the cloud, and new initiatives, which makes hp better positioned. another name that we should watch is cisco. they are big enough that they could potentially put together another bit. at this stage, we have no information that they are looking to do so. but it is one to watch. angie: $67 billion. it is not even dollars that dell even has. seems like a lot. bondholders be nervous here? alex: y

we call it tell dell.res at the highest levels ever in the 15 years we've been doing this. when you line up the investments we are making in innovation and r&d with our leadership and ownership and they are and there aregned no disgruntled activist shareholder selling the company what to do, it's extremely popular. we are growing and investing. emily: what do you think of the carl icahns of the world? michael: there is a role to play for activists in investing. canhing taken to an extreme be a bad thing. i don't have a particular fondness for mr. icahn. emily: michael dell not mincing words about carl icahn. you don't want to end up like carly fiorina who was known for making the worst tech deal in history. we will have to see -- i followed that up with the conversation of michael dell and the ceo of microsoft. you will see much more of that coming up on bloomberg west. we will dive into a lot of the trans-we've been talking about. seein talkinge been about. when: my favorite part was you asked him about t

of dell and emc will be located in hawkenton and will come with a good amount of deal. deal will by emc for $67 million, the deal is expected to close by the second or third quarter of dell's fiscal year in february of 2016. still inside emc shareholder approval. they did lay off 1500 workers year, laid off 1,000 people in 2014 this morning michael dell would not comment on any potential lay offs moving forward. in the studios, wbz news, catherine, back to you. >>> susie thank you very much for that. >>> today marks columbus day, schools are off, businesses are closed. and the top 10-k is racing through the streets of boston's back bay, this is a live look as runners make their way through the city and across the bridge. luckily they've got some spectacular weather going for them don't they? it has been such a nice stretch. pamela gardner is here, i would think this is fall perfection. >>> we've had a consistent warm up these last few days and wow, what a beautiful afternoon here, temperatures have warmed into the 70s and 60s, 71 degrees, boston, 72 nor wood, still 68 d

dell acquiring emc. deal $65 billion. if this deal is struck, it is going to be the largest technology deal on record. emc shares rather nearly 7% this morning. that's going to be one to watch including the sector with speculation that more deals continue. nonetheless, showing plat performance at this hour. weakness of opening after six days of gain in the u.s. mix bag for the most part. we have weakness in london. the dax index is up about 23 points higher. ceo looking to stop the expansion of social media giant to better take on increase instagram and snapshot. los angeles dodgers, second-base man appealing suspension. controversial slide into second base that broke leg of shortstop rubÉn tejada. quarterback eli manning hit with 21 seconds to go in the game. wide receiver beck -- becham got hurt when he was doing a dance. being forced by host steve to defend america's position as leader of the free world. >> he's challenging your leadership, mr. president. he's challenging your leadership. >> steve, i have to tell you t

dell he broke the story on dell acquiring emc. alix: a convention on how to fix washington is taking place in new hampshire. are there, their plan to break the gridlock in d.c., next. scarlet: glencore is digging for cash. minedering selling two s. will it restore confidence ? alix: malaysian airlines is rebuilding its image. is it too little, too late? ♪ alix: welcome back to the bloomberg "market day." i am alix steel. scarlet: i am scarlet fu. its: ab inbev has raised bid for sab miller, offering $104 billion. sab miller has refused to negotiate and says ab inbev is undervaluing the company. with matte will check campbell shortly mercedes-benz is the top-selling luxury car brand for the third month in a row. deliveries for september rising twice as fast as audi and bmw pits sales climbed 16% last month, driven by demand for suvs. alix: opec counting on stronger demand for oil next year. the cartel came out with its forecast, disclosing last month it pumped the most in three years. opec is predicting production by nonmembers wil

rate and britney good dell. our coach said that one day and it just kind of clicked. brady and good dell for you just like kidding around with me it's just like the quarterback commissioner counterparts is a rivalry here. these enemies play the same position. >> were kind of like back and forth at each other. >> but get this according to the coach there might be a deflated gate seeking well here. i don't know what it is we going to gave all the rest are always think you have something. dell assume no responsibility. reverse. >> she's a troublemaker. i don't really check those things that make sure my coach takes care of that. it's game time these two put all that kind of talk to side find that they were on to the fellowship rams because of the end of the day brady or the dell says winning on the back of their jerseys. >> these goals are winning so isn't brady so that's what we like about you. >> coming up next on today in new england and alarming situation in lowell f-18 receives troubling text in the racially c

dell doesn't want them? >> yeah, so ultimately they would be buying emc for the storage and then eventually probably spin off the vmware piece. >> they don't have $50 billion. >> it would be a 1-2 punch in terms of some sort of debt financing and they'd have to communicate this to investors but this is a disaster situation for emc shareholders in our opinion. they have been a horse and buggy in the right lane and now you have dell looking to merger emc. >> but there's two structures on the table. one is with them effectively buying emc, if you will. the other is dell going public through emc. >> yeah. so i think it's more them. i think the one that seems most likely is that sort of merger and then they spin off. >> dell becomes a publicly traded company that effectively controls where it goes. >> exactly. that's how we see this and and both have storage and move from a consumer to an enterprise company and this is given the options from an emc perspective. elliott has put a lot of pressure in for them and th

. >> a deal for dell. rumors swirl the pc giant is in talks to buy ecm in what could be the largest tech deal ever. >> hillary clinton takes on u.s. president barrack obama saying she does not support his transpacific partnership pact as she outlines her campaign to take on wall street if she becomes the democratic candidate. >> not so fast. the japanese retailer misses profit forecasts on impairment losses. >> a poll tile session yesterday but on this thursday morning looks like the dow is kicking off today on a four day winning streak so we'll see if the streak and the run continues. fair value is telling us it should be up to 13 points and the dow jones pricing in triple digit losses so we're 115 points below fair value. the nasdaq should be seeing losses of 32 and change but today the story in europe is all about the banks. european banks paired back some of their losses after some steeper declines to kick off this thursday morning and this stems back from deutsche bank. they're going to issue official

it suggests dell got the wrong stuff. joe tucci, a strong leader who has been looking to retire, postponing that for a while so they can figure out what to do with emc. that is propelling emc in this. emily: cory johnson, i know you will be continuing to watch the story. we will bring you developments as they happen. i want to talk about tesla, falling to its lowest price in six weeks after barclays downgraded the stock. tesla shares have declined every day this week after three analysts slashed ratings. he lowered his price target. on wednesday, been callow downgraded to neutral. today, barclays trimmed his 12-month target price and rated the chairs the mesh shares underway. analysts have been skeptical since the model s unveiling last week. dan, despite the negative sentiment, you are saying by. why? >> as far as i am concerned, all of the negative data points have not been confirmed by management. downgrades and data points. if you think about tesla, you have to think about the long-term story. they are building a new

dell set to buy emc for about $65 billion.ment expected as early as this morning. >>> turbulence for southwest airlines. huge lines and long delays as hundreds of flights are hit by a technology glitch and now the airline is warning that the trouble isn't over just yet. it's monday, october 12th, 2015, and "squawk box" begins right now. ♪ ♪ >>> live from new york where business never sleeps, this is "squawk box." >>> good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. it is october and that means major league playoffs. game three is tonight. looks like dodgers second baseman chase utley will not be playing. this is the play. yeah. he's suspended for two games as a result of an illegal slide on saturday night. he broke reuben tejada's leg. utley has appealed the suspension. they will hear before tonight's scheduled first hit. check it out, it's the front page of the new york post. you can see about how

>> we just announced a deal with dell.tty much any agency that you can count is a nutanix customer. i think it will be pretty good where we are as a company. capital,ficient with something that can be for the long haul. emily: i will be watching for them on the ipo circuit. the nutanix ceo there from dell world. -- allgoogle, microsoft the big cubbies profit from the fact that we are all assessed with our phones. . according to a consulting firm, people in the u.s. spend more than half the waking day in front of a screen or consuming media. all of this attention to screens is damaging our ability to hold a conversation and even feel empathy. at least that is a take away from an m.i.t. professor and digital culture skeptic. i asked her how she sees this cultural shift playing out. >> people are starting to see that this is not good. i think there is really going to be a consumer movement like there was a consumer movement about better food, about safer cars. technology companies will need to respond to this movement by crea

>> we just announced a deal with dell.tty much any agency that you can count is a nutanix customer. i think it will be pretty good where we are as a company. pretty efficient with capital, something that can be for the long haul. emily: i will be watching for them on the ipo circuit. the nutanix ceo there from dell world. apple, google, microsoft -- all the big cubbies profit from the fact that we are all assessed with our phones. according to a consulting firm, people in the u.s. spend more than half the waking day in front of a screen or consuming media. all of this attention to screens is damaging our ability to hold a conversation and even feel empathy. at least that is a take away from an m.i.t. professor and digital culture skeptic. i asked her how she sees this cultural shift playing out. >> people are starting to see that this is not good. i think there is really going to be a consumer movement like there was a consumer movement about better food, about safer cars. technology companies will need to respond to this

the good news for intel is dell is a friend to intel. to the extent that they have some success and better scale through this, that should be a net positive. right now, the positive for intel is that as the cloud build s out to support all of these fortune 500s shifting to the cloud, investors have to asked themselves, what happenssk two years down the road with a don't need to spend more. cory: imagine this massive amounts of debt for dell, and in the face of these weak pc numbers coming out of intel, helped by price. who is, in their right mind thinking, i want to underwrite this new dell offering. emily: cory, you said a lot of time with intel executives, how optimistic are you, about his leadership and what he has done so far. cory: that is a great question. i am impressed with the management team at intel. i think they recognize their future -- the writing is in their face. they have seen it for a while. the growth of their other businesses, their internet of things business, part of that is re-qualifying businesses. it is a meaning

the deal makes strategic sense for dell. combination with emc could strengthen its market share in a number of areas. one would be in the enterprise storage business. that's a $36 billion market according to idc where the big players include companies like hp and net app. a merger would also give dell access to emc's security business where it would go head to head with giants like intel and cisco. finally, reports suggest is that a merger would include a controlling stake in emc's software company vm ware. its technology allows data centers to run more efficiently. so what's the benefit to emc such 'deal could put an end to its ongoing bat well activist investor elliott management which has been demanding the company boost its stock price. analysts say emc needs to act. >> elliott in our view could do a proxy battle if emc doesn't act. they need to make a move in the next few weeks, and that's where our time is ticking for them to make a strategic move one way or another. >> reporter: there is no shortage of doubt about whe

dell is privately held. but is there a big risk to doing a big deal like this one, and which companies might be next? josh lipton has our report tonight. >> reporter: dell founder and chief executive michael dell will lead the combined company as chairman and chief executive. he says this deal creates an enterprise powerhouse. >> we started back in about 2002, and for about a decade worked together. at one point the relationship was about a $2 billion annual run rate. and this is really all about bringing fogt together complementary technologies and helping the customers address challenges and opportunities that this drijt digital future is creating. >> reporter: analysts say the i.t. hardware market which includes companies selling storage and servers still generates a lot of cash but the stock prices have come under pressure because of the threat from newer technologies like cloud computing. and that means this is a market ripe for consolidation. >> being bigger, being able to protect cash flows, reinvest

dell is private. joe tucci, they have been looking for a successor for a while, they have been getting a lot of pressure from activist investor elliott and this is a way out for him. he does not have to spin off part of the company and he gets a well-known, well respected successor in michael dell. at least well respected at times. [laughter] alex: his reputation does tend to go up and down. betty: as with the market. hang on. dan, alex has broad stroked the benefits. these areves are that two aging companies. make oneing companies formidable competitor? dan: emc has been a disaster the last couple years. elliott was the one that put the back against the wall. i view this as a one plus one equals 1.5 situation overall. these companies are way behind the game in cloud, big data. betty: they had to do it. dan: they had to do it. their back was against the wall. holders, it is the best of a bad situation. this is really going to have ramifications across tech, given the $70 billion acquisition. why: why

do they have the right makers for dell?ory: we have this massive storage company that he has built. just in a time when the world is going away. this is the stuff you put in your back office for your company. it is house, on premises hardware. the software to go with it right and services to help it make all work. 16.5 billion in revenue in last years calendar year alone. that business is growing at a much slower pace than it has been because the world, you may have heard is going to the cloud. this is the polar opposite to what amazon is doing. more companies are moving all of their physical infrastructure into the cloud where the do not have to own it and operate it. dow list saying we will be your on premises answer for all of the things you want in your factory and at your business. the problem's businesses are saying we do not want this at all. we are going to use the cloud. dallas taking a big bet that they're going to be the leader in on premises hardware and software and i.t. solutions. they have created a brand-new

michael dell says it's been a good thing for his company, dell.uld other companies take a page out of dell's playbook? that is still ahead. to feel well rested.thost aleve pm. the only one to combine a sleep aid... plus the 12 hour pain relieving strength of aleve. be a morning person again with aleve pm. so wi got a job!ews? i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition! big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their lates

bloomberg news reports dell will announce the acquisition of emc, dell trying to borrow $40 billion inthe deal would combine storage with servers. -- ab inbevnd of considering whether to boost its offer. -- beer makers west agree the beer makers must agree to a deal by wednesday. glencore making moves to cut its $30 billion debt load by a third. the mining and trading firm plans to sell compromise in australia and chile. the slump in commodity prices is hurting glencore. its shares have lost half their values this year. back to you in london. tom: thank you. the deal of the day is michael dell with this idea of a private company acquiring emc. is withg intelligence us. you followed this for a year. i know there is a back story. tell me this. >> we like this deal for a host of reasons, given the troubles that large cap, particularly on the hardware side, is going through. we like this because of the transformation that emc needs to undergo. it is major surgery that is better done in private than in public markets. tom: with the major server a, fold in the cloud. backlk about emc and we

-- dell and pc are together. it is a big deal because it is a bet on the old world of -- every company would have to set up their own data center. they would have to have their own storage. they would have to have their own computing systems. the new model is very different. intel stands to benefit from both. the new model is all about the cloud. it is all about amazon. you can look at that met -- merger as anti-amazon. intel is in a position to benefit from both. and legal our guest yesterday said he was not optimistic about the prospect of dell anc taking share from eight of u.s.. alex: nor would we be. the good news for intel is dell is a friend to intel. to the extent that they have some success and better scale through this, that should be a net positive. right now, the positive for intel is that as the cloud build out to support all of these fortune 500s shifting to the cloud, investors have to asked -- themselves, what happensask two years down the road with a don't need to spend more. cory: imagine this m

dell acquiring emc. deal $65 billion.o be the largest technology deal on record. emc shares rather nearly 7% this morning. that's going to be one to watch including the sector with speculation that more deals continue. nonetheless, showing plat performance at this hour. weakness of opening after six days of gain in the u.s. mix bag for the most part.

dell, for example. microsoft and dell are both making pcs, dropbox, ibm.t is interesting that a "new york times" headline called it a "crazy like a fox" strategy. take a listen at what he had to say. >> we will look at any opportunity that fits what we do. what is it that we can uniquely do? i ask myself each day, i don't want to be in every part of the industry. i want to be in things that are addressable markets where microsoft has a unique contribution to make. i think that sense of purpose and identity is what makes companies successful, not just doing everything. emily: michael what is your , response to that? michael: in some sandboxes, they are fighting with people. and a lot of others, they are playing. it may look like they are trying to compete but that is really at the margin. a big part of dell's businesses are big servers that run on microsoft products. google other companies are hard , to partner with. it is hard to partner with apple and google. microsoft is opening the doors. their partnerships with dell and dropbox and others, all they are

dell is planning to pay at least $33 per share for emc.hyde is at the touchscreen with more. caroline: it could be forming a corporate computing giant. it could come as soon as today -- $33 per share -- put that in perspective. that is 18% higher than emc's current share price. but in the nitty-gritty, there are interesting angles. cashs going to be paid in but there is an eight dollar tracking stock, a so-called fromr, a way of protecting big fluctuations in the stock price. this is a cloud software company that the emc controls and has a majority stakeholder in. it is a new security being formed, tied to the value of vmware. elliott management is already pushing emc to break themselves up, and this is in line with their thinking, being driven towards a buyout. let's have a look at what's in it for dell -- two years ago they took themselves private, the founder buying it up. the sale could actually help scale this company with the faster growing storage business. dell already has the pc market going for it, servers, this is about adding s

if you remember when dell had a shot on its own transaction, carl icahn showed up and forced dell to -- >> pay more money. >> about $350 million i think was the total number. >> why did this go to 65 billion? i thought it was 50 billion? >> i believe it's 50 billion with debt. >> it's 53 is where it closed on friday. 53 billion. >> adding in debt? shouldn't do that. we will look for this to cross the table. andy dalton looked better than tom brady. the defense looked like the steel curtain. how is this happening? >> because you're not a fan. >> i've got to take off a year. >> can't go back. >> can't come back. >> that would ruin it. >>> in other corporate news ferrari is setting up the ipo range saying it expects the u.s. listing to be priced between 48 and $52 a share. that would value the company at 9.8 billion. parent company fiat chrysler will sell up to 10% of ferrari. ford announcing it will invest 1.8 billion in the next few years to expand r and d in china. and general motors says its china auto sales dropped nearly 4% year over year. they're selling 2.9 million vehicles in c

emily: dell goes on a $40 billion shopping spree. emc, thatto buy would create a computing colossus. this is "bloomberg west." i'm emily chang. amazon aims to pull the rug out under etsy with a lot of handmade. pandora is getting into a ticket business. i will speak with pandora's father. congress asks that fcc to take a look at two fantasy sports unicorns. will draft kings and fan dual survive the scrutiny? to our lead. dell in talks to buy the enterprise storage system company, emc. a deal may be completed as soon as next week. but it would be pricey, complicated. dell is speaking to banks about raising $40 billion to finance the purchase. it would involve taking emc private and taking over the controlling stake in vm ware. why do it? a deal would ignite you -- would unite two companies coping with slumping demand. our special guest host has a long history of experience and opinions in silicon valley. now founder and ceo of social capital. great to have you on the show. you made a lot of noise about diversity in d.c. first, i want