even though dick costolo is out to clamp down on it, i haven't seen much of a change. john: they have to change the fundamental way you interact with twitter. that is what project lightning is going after, making it a place where you can see events that matter right now, curated by both algorithms and by editors. they have been hiring hundreds of editors over the past six months. when they roll out with lightning, they are going to create a user experience that's going to be less personal and direct and more about consuming and interacting with what is happening in real time. emily: there is a risk if you change the product too much, you alienate the people who like it the way it is. adam: that has been a core challenge for twitter from almost the beginning. they have a very passionate user base that has a megaphone, which is twitter itself, where they talk to each other about it. this is part of the reason you've seen the company go to jack dorsey. as a founder, he brings a certain amount of credibility to make bigger changes the company could need. emily: all eyes on

emily: what is the myth and reality of dick costolo? ck: i was going to say the problem is exactly that -- people create this mythology about people. but i think the reality is, everybody has one or two superpowers and then lots of remarkable flaws. emily: what is your superpower? dick: i think mine is that i am very present inside the company. and as such anybody in the company will feel like they can talk to me. there is no, "yeah, that is crazy, but don't tell dick that, he will throw a brick at the wall and yell." we really do a good job of trying to get at the truth. emily: people always ask that question, where is twitter going? what is it going to be when it grows up? nobody says that about facebook. dick: the challenge we have is the distance between awareness of twitter and engagement on twitter. and that causes people to say, well, i don't get why i would use it, so i don't get what it is for. i deeply feel that the platform is the very best way to connect in real-time to what is happening in your world. emily: twitter is the v

dick costolo has a new job. i will be sitting down with another round of heavyweights, including tim armstrong, brian grazer, and the chief creative officer for jawbone. to our lead, a vote of confidence for jack dorsey. a saudi arabian billionaire and his investment company have boosted their combined stake in twitter to more than 5%. the purchase gives the company the second-biggest stake in twitter, worth about a billion dollars. it puts him ahead of ceo dorsey, which owns about 3%. brad stone and i caught up with ev williams earlier today in his first interview. he was on the executive search committee. we started by asking him about their decision. ev: everyone knew jack was capable and he had a unique perspective on the company. there is a question of could he do the twitter job and the square job. we wanted to see what our options are. eventually, we thought the combination of what jack brings to the table and what he had already done in the last three or four months convinced us he was the best person fo

it was satya who came down, when microsoft revisited it was across from me and dick costolo. think alibaba may be interested, too. emily: you think facebook, google, alibaba, microsoft, they would all buy twitter. chris: all those companies would benefit strategically. they would all be able to explain to their shareholders why they would pay a lot of money for it. and it would fit into their companies without blowing out or competing with something. emily: what about apple? chris: i do not think apple cares. i do not think it is in their bones. i do not think they don't care enough. particularly with apple, i think they go in a different direction. they don't care as much about the human or social elements. i just want to be clear about this, though -- i don't think twitter should sell to them. there is literally unlimited potential in what twitter can build to get to 100 million more people. if they do that, the stock will be trading in the $70's, $80's, and $90's. that is why i am not campaigning privately or publicly for it to be sold. if the board stops believing that at

emily: we ran into dick costolo here a couple of hours ago. and he said when that happened, his phone started ringing off the hook. it was hbo saying we might have let a cat out of the bag. he is having fun and he feels free. brad: he looks relieved of a burden, and frankly, so does ev williams. they pursued the search with such scrutiny. jack is back permanently and there is a grace period. twitter has time to reboot a little bit. i have a big challenge ahead of them, but the scrutiny will let off a bit. emily: dick is taking some time off, we will see where he ends up next. it is not the end for him. brad: and we will all be valley.""silicon emily coming up, more of our big : interviews from the vanity fair new establishment summit. as we head to break, i want to leave you with one stock on the move today and that is gopro. shares fell to their lowest price ever after morgan stanley slashed its target price to $35. from $62. citing stanley disappointing sales of the new camera. ♪ ♪ emily: welcome back to "bloomberg west." aol chairman tim ar

alix: dick costolo has a new gig.mer standup has what a ceo needs to help out with it it shows. withet: and staying twitter leadership -- what does of williams think of jack dorsey being named the permanent ceo? ♪ scarlet: welcome back to the bloomberg market day. alix: it's time now for a business flash -- shares of yum brands being hammered today. the company is missing on third-quarter profit hurt right to lingering slump in china. yen gets more than half its revenue from china where same-store sales rose by 2%. bell and kfc taco are folk -- are coping with the fallout from the investigation and they chinese economy. the number three seller of all flash storage systems sold 25 million shares of class a stock at $17 apiece. they had offered them at 16 to $18 each. todayares began trading and are down almost 5% in their debut. alix: dick costolo has a new gig -- he's a consultant for hbo's "silicon valley per quote -- silicon valley." left the company's board. we want to focus on trading at the nasdaq. pimm fox is th

dick costolo's the parter is in the cards. twitter has been in that midst of a high-profile ceo search. bloomberg news reported that they reached out to many leaders, but none took the ceo job. ellen teaches corporate governance in berkeley. and bryan womack, working the story. this -- i don't know if this should be a shocker that the guy sitting in the chair is still sitting in the chair and will stay in the chair. >> this is according to recode. if this does happen, it's not something you see every day. two major companies being led by the same person. definitely raising a lot of eyebrows. on another level, we have seen it going on for a few months here. some people like what they see. some mixed thoughts on this right now. >> let me get to joellen on this. when i was a money manager back in the day, the job of the ceo, the competence of that cfo, were so important in deciding whether a company was worth investing in. the notion that you could have a part-time ceo and a company going through some of change, what do we know a

dick costolo has a new job. i will be sitting down with

that when former chief dick costolo left the company.sey will also remain the head of square, a payments startup he co-founded. twitter shares up about 7% on the news. they closed the day at 28.15. >>> spark therapeutics announced a successful stage 3 gene therapy trial that treats night blindness. the company plans to file for approval from the food and drug administration next year for what could become the first gene therapy treatment in the united states. shares of the biotech firm soaring today 50%. they finished at 53.02. and the health technology company illumina warned investors of lower than expected revenue for the third and fourth quarters. the firm blaming disappointing sales in europe and weakness in asia and the pacific region. that sent shares tumbling in initial after-hours trading as you see it fall off the cliff there. during the regular session the stock was off just a fraction at $163.17. >>> activist investors starboard value increasing its stake in the security company brinks. starboard is already the company's larg

he faces many of the same questions that dodged dick costolo. and revenue.rdlyer base growing. victor: he may add 3 million this quarter. betty: that is barely anything. here?s going on victor: it is management execution. they have a strong chairman. bain have dorsey and adam in the management team. they have a google relationship and place. i think moments can help increase time spent aligned. there is also the google double-click. advertisingp with measurement and attribution. multiple tools are in place. it is now about it -- about execution. so that they kenexa execute. do any of those partnerships and products you are talking about, do you think they are really going to expand the user base from what it is right now, which is really people who go to twitter to get a newsfeed and celebrities and others who use it to spit -- to spread their word? victor: there are two things about twitter. it is really engagement. you're getting the existing users to use the platform a lot more, almost on a daily basis, yet the to spend a lot more time on the platform. ch

dick costolo -- will he leave the board? dorothy should continue as ceo of square? of two big companies? will that remain? so far, optimism is there. but have a look at the share reaction. that drove 5% higher. we will see how he can beef up the amount of people that use twitter. jonathan: thank you very much. we will break down moves after the short break. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. jonathan: good morning and welcome back to "on the move." i and live in the city of london. let's get straight to your top stories. china's official factory gauge stabilized around the three-year low. the official index climbed to 39.8 in september

same thing then happened to evan williams, the other cofounder of twitter, and then, .f course, dick costolominds me of what steve jobs did when he came back to apple in the late-19 90's. he basically change the entire board. he will want a lot of people that are seasoned and could give him the executive coaching that he really needs. david: finally, we were talking about the problems twitter faces -- the mom phenomenon, someone gets on twitter and gets all fast. when you look at what he has done from google, are there analogs to correct problems like that? emily: it is interesting. omid kordestani is not necessarily a product guy. we have been speaking to sources about him. he does not necessarily bring consumer product chops, but he brings deep business expertise. he can help jack dorsey, and help coach him into a grown-up ceo. jack dorsey, as he says, has a lot to learn. david: emily, thank you much. that is emily chang of "bloomberg west, which you can watch later today. elman.e josh ♪ that he: it is 3:00 p.m. in new 8:00 eight :00 p.m. in -- hong kong. welcome to the bloomberg market da

deirdre: twitter stock telling the story of change and volatility in june, then ceo dick costolo resignednstated in the top spot at the same time that he runs payment start-up square. we have an early investor in the company, numerous other, he is with me now, glad to have you back with us. >> thanks for inviting me. deirdre: you are an early investor in twitter, you guided dorsey's initial run as ceo in 2008. what did you see in the company then as an early believer and recall investor that applies to what the company must do now to be competitive? >> yeah, i mean we really were inspired by the work that jack and his co-founders evan williams were doing in 2006 and 2007 and invested when there were few hundred thousand users on the platform. we were taken with the vision, and jack was running the company as ceo, and it's great to see him back in the ceo job. i think dick did a tremendous job as ceo. building the company, building the business model and taking the company public, and at this time, i feel really excited that jack's running the company it's the right person at the right tim

will dorsey be getting credit something dick costolo did not have time to roll out?have been concerned about is the slow rate of innovation at twitter when you compare it to google or facebook where it seems like they are innovating, iterating the product every day. every time you go on linkedin there is some new bell or whistle. tom: you are not talking about revenue, you are talking about the machinery. saying thetors are product is kind of stale. you need to iterate the product. you need to drive to things if you are any business, the size of your audience and the engagement of their audience. how much time do they spend on your platform? that is what you sell to advertisers. jobs's model, get fired, come back and be the savior of the company. what evidence do we have that he can do that other than the vision thing? paul: we do not. that is one of the issues for the stock. is this something that can be fixed or have they already lost the momentum in silicon valley. if you have lost that, it is almost impossible to get back, product or not. -- apparentlys there is

twitter has been battered this year after its cut in forecast on the departure of the former ceo dick costolon the late for a permanent ceo to be appointed. jobs, itit is cutting was like the market is happening. reports of this happening yesterday. a note this morning saying this could be a positive impart because if you look at twitter its costs peers, structure do not look very competitive. look at the bloomberg terminal. we're looking at twitter's revenue versus google and facebook. revenue.ch lower its stock-based compensation as one percentage of sales is also much higher. the cost structure is much higher in part because of the theer of employees versus amount of revenue it has to do if it is cutting employees, the numbers should in theory improve. other numbers we are watching is that hasing company preliminary third-quarter results below analysts had been anticipating. the company had lower-than-expected earnings growth in its management solutions business. that told down the overall numbers. the latest cultural industry to support members, cutting full-year earnings forecast, to cut

will dick costolo leave the board? remain the chief executive of square, the mobile payment company he also helped found? could he really be ceo of two major tech companies? challenges that already faced the company. they are unveiling new products overall. we have seen e-commerce being kicked off by twitter. political donations. all of this is being ramped out. over 140ports of characters. we might see longer tweets. they are trying to build up the user base. million -- 316 million users compared to facebook's 1.4 billion users. jonathan: caroline, thank you. tom keene, i'm reminiscing about our time in new york together. no one else really knows how to use it. is that the fundamental problem still? tom: i have seen a lot of good research showing that twitter has a lot of impact, but it is subtle and different than facebook. we had a good interview with , who waszer yesterday very optimistic about how twitter can fit in with digital media. the number one thing i would focus on is the idea that facebook is always tweak

i was glad the board was looking for a new ceo with the resignation of dick costolo. faith they could have the right guy come in as ceo. iterated,y have not they have not changed and modify their product like facebook has. challengert of the and opportunity for them? >> if they were doing everything perfectly, not sure it would have been a good buy. everybody was trying to comedic it with the world tells you whether twitter handle it is. every news show. it's an incredible asset. the fact that maybe they were not doing is good job really points to the opportunity as opposed to sitting there saying that something is not perfect and the company. they have a chance to make great improvements which is where i think shareholder value can get created as an investor. do you want to be on the board? >> i don't have a board personality. yourself: do you see in any way as a friendly activist? you see the problems of the company and they can improve. are you going to have conversations about the problems you see them having and what they should do? >> that's a fair thing to do,

dick costolo? matt: off the board.d someone -- they telegraphed this pretty well, they wanted someone who was just the twitter ceo. jack dorsey will run both. those two offices share a parking lot. we will get into twitter over the next hour and a half. but first, we have to go back to nelson helps -- nelson peltz. they have just taken a stake in ge. what do you make of this? brendan: it looks like an equity move. is not a grand strategic vision, it is hunkering down. said, we invested because it is undervalued and underappreciated in the market, it will be a transformation that will allow the business to drive attractive shareholder returns. >> this is what struck me. why did it take so long to do this? there has been grumbling about ge stock price for years. >> ge has underperformed for years. reasons, it set of has been a struggle for ge. to be able tong buy big shares if you put the stock out cheap unless you are in a position like nelson helps -- nelson peltz. stephanie: is it too, located a company to take an act