dr. dre's beats electronics headphones struck chords in style and substance, and it's not just the listening public that cares about quality. some artists are worried about the compression of musical sound. music legend neil young has raised $6 million on kick starter to bring a better living experience criticizing the current quality of digital sound as underwater streaming, he hopes that his pono player will bring true audio files to the digital fold. vinyl may be making a modest comeback, too, but apple put most record collections into the attic for good as it changed the way we get, store and experience music. this reported multi billion dollar deal would be proof that streaming is the new thing. downloaded songs might go the way of the dodo. >> has the new world of devices and new ways to get content on to those devices changed the way you listen to music? have you dipped your toe or jumped head first into the world of music streaming? the reported purchase of beats electronics by music jo

>> the relationships that jimmy and dr. dre have in hollywood -- >> you are already calling them by their first names. >> that's how we roll. >> in the business, i understand that. >> i remember i had a story in "vibe" magazine, this young rapper snoop dogg was on the cover of the magazine. that was 22 years ago. the notion that dr. dre is on the cutting edge of hip-hop is not quite right. that said, the role the jimmy iovine has in the music industry, and the role dr. dre has in the music industry, goes far beyond their roles as musicians. they have long-term relationships in hollywood. that is something that steve jobs did a lot of damage with, and the result which saw the music industry suffer and never really recover in terms of recorded music since they struck those deals with itunes. >> thanks very much, cory johnson. jon erlichman joining us from los angeles. thanks to eric chemi of bloomberg businessweek. coming up, are outsiders muffling in on investments usually targeted by venture capital? we will look at the appetit

founded by music executive and dr. dren 2008, beats was known for the beats headphones and streaming service. it would be the biggest purchase for apple to date by far. andoke with jon erlichman the former president of rhapsody, the first subscription service to offer unlimited streaming service for a flat fee. >> i think what it means is the they are seeing the writing on the wall. the future is in streaming. it is surprising in the sense that you have apple as a company where steve jobs had very strongly suggested that people will always want to own their music. i think this is a sign of a turning of the tide. what johnen by mentioned. growth in the streaming subscription business over the last three years and a flattening. a decline in the first quarter of 14% in the sales of download. this smacks of desperation. why? what's it is concerning that apple couldn't do something like this on its own. as john pointed out it has a history of acquisitions. they are smaller ones that augment forces in play for apple. one of the

why does apple need dr. dre? he did eminem. 1998. he said here is this white guy from detroit. >> ok, yeah. let's get to the third front page. you shocked me with that. we are moving over to ukraine. pro-russian separatists are goi ng ahead with preparations for a referendum on sunday. what is surprising is that vladimir putin says the referendum should be delayed. meanwhile, russia is showing off ade, marking a par the defeat of germany in world war ii> . >> a lot of pageantry wrapped around the politics. toand putin is likely to go crimea to review the black sea sleeve. so, those are the front page stories. >> the guest host is michael holland. a great day to talk about the banking industry. richard falkenrath is with the too. the imagery i saw from london this morning of the -- >> celebration of the axis. >> does vladimir putin want a non-soviety union? ♪ he is not trying to re-create the soviet union, but he does want a sphere of influence. him, parts of ukraine are in that. >> how do you respond to what we h

that could be down to the name behind the company, dr. dre. they may be focused on the streaming service rather than headphones, but what many hope apple -- is what apple hopes to get is dre's cool. a certain cachet, whether to young folks or interested parties that make that particular brand and its offerings more appealing to apple than perhaps pandora and spotify would be. >> it paid over $3 billion to buy the company, three times as other plants -- buyouts. once all-powerful itunes software is losing ground to streaming services. that, apple has nothing. they will not be able to attract people to buy their high-priced hardware. they need to move strategically. givingppears to involve dr. dre full-time positions at apple. dr. dre will focus on his music as a priority and will work for apple when they need him. staying in the united states, the american economy took a bigger hit from harsh winter weather during the first quarter than expected. figures show the u.s. economy shrank by one percent between january and march. it is significantly s

what about dr. dre? >> he just lost a loss, he was suing trying to collect some old royalties he felt he was owed. he had about 150 million you -- $150 million. >> is there any idea of where these -- who they would displace in the billionaire ranking? >> it is hard to say. he is not the first music mogul to become a billionaire. david took that path a long time ago. he is a mere one billion guy. >> indeed aired thank you -- indeed. thank you. joining me now from los angeles is alex rosson, the chief executive of audeze, they make audio file headphones for the high-end market. could you describe four people what makes you different from almost every other headphone out there? >> thank you for having me on the show. what differentiate just from most manufacturers on the market is that we use a thin film suspended between magnetic structures. that thin film causes vibration which causes sound. it is a very accurate had phone, barry has vodafone -- very fast headphone, and the least amount of distortion on t

there's dr. dre.m lady gaga to u2, and one of the industry's earliest adopters of the new media platform. he is in talks to join apple's team in a creative role. but they aren't the only ones to stand. he and dr. dre aren't the only ones that stand to make money. carlyle group invested $500 million last year. vivendi, and universal investors. we hear it could be announced as soon as next week. in the meantime, this gives new meaning to the dr. dre lyrics "still got love for the streets." kayla, back to you. >> all right, thanks so much for that, morgan. >> let's look closer at what the deal would mean. michael wolf is the co-founder of activate, former ceo of mtv and indeed former yahoo! board member. welcome to the program. >> thank you. >> so which side of the fence do you come down here? are you on the kind of intellectual side that this is about content and this is about music streaming? or are you kind of more on the imaging side of things, that this is about hip-hop cool and this is about reinvi

apple makes a play for dr. dre. the tech giant is close to buying beats electronics in its biggest ever purchase. putin flexes his muscles. tanks rumble across red square for victory day as europe readies new sanctions. welcome to "the pulse." i am anna edwards. program,ng up on the cashing in on cosmetics. i meet the founder of space nk which sells some of the world's finest makeup and the business of botox. i sit down with an apprentice winner who runs a chain of skincare clinics. that is still to come on the program. we begin with our top story, the abandoned megamerger. but lisa's and omnicom have called off their $35 billion try to create the world's largest advertising company. one executive not surprised. bloomberg caught up with him earlier this morning. >> we were surprised by the speed with which it fell apart. call three or four weeks ago, it was predictable that it was going to fall. they sort of semi-criticized one another and both said it was better -- or it was good to be separate. >> for more on the

apple will buy dr. dre's beats by dr. e of $3 billion. 2.6 billion in cash and 400 million in equity. guess what? dr. dre will now join apple. he will be part of this company, along with jimmy iavine along with the one of the biggest in the music industry with interscope records. this is huge deal. he was a long-time friend of apple cofounder steve jobs of the two of them came together, talked about this before steve jobs died. here we have reality of it, apple buying beats by dr. dre. the interesting aspect what do they do with it? do they make the smart headphones? david: there had been this wall between los angeles, between the entertainment division and folks in silicon valley. this is a move to break down this wall of we were talking about how much cash apple has, how they will be spending some of that cash. whether they will be going into content, which of course they would love to get more into. this is perfect way for them to do that. but also to break down that wall. because sometimes they have been at loggerheads

that was the message given to dr. dre from oil tycoon t.ne pickens following news of apple's beats acquisition, it came over twitter no less. pickens, unashamedly told dre is now 1%. he was there before. the tweet was retreat the 100 times. first time he is sliding up, seidelling up to hip-hop superstars. previous tweet corrected rapper drake saying it is first billion that is hard to make. not the first million. musician had to assume that before. look how many times it retweeted. like 21,000. >> can't wrap my mind around logic of first billion is harder, i don't understand. >> really is. >> percentages. >> here is the thing. is everybody jumping the gun here? this is not a done deal between beats and apple. melissa: apparently did. re's first deal because he doesn't realize first deal and agree in prince approximately and pop the cork and you agree on terms and sign papers. he jumped gun. i think it is funny boone is tweeting. probably not him with a fantastic publicist and team. it is very funny to make him hip and relevant. >>> huge day

clearly dr. dre has the beat. why does tim cook want it? >> dr. dre is doing ok these days. true, adeal comes pretty big transition, we estimate that beats will do less than $2 billion of revenue this year. to put that into perspective, less than one percent of apple's total revenue this year. in theelatively small grand scheme of things. a tremendous deal for the beats organization. wantat exactly would apple in beats? a lot of people are asking the same question. at the end of the day, i actually think this is largely a financial transaction in nature. apple is paying two percent of its $150 billion cash toward to buy it. 100 bits of revenue growth this year. it you think about apple, they growing seven percent this you. if they did by beats, that would add 100 basis points to that. >> they are not interested in the brand or the creative team or the fairy dust from dr. dre? >> i'm sure that is a factor. >> i think he has a lot of things, but not very dust. fairy dust. >> apple already has itunes radio. they're probably trying to bolster their effort there. that is such a s

beats co-founder jimmy ivin and dr. dre, too. now, apple expects the deal to close in its fiscal fourth quarter. tim cook tweeted this photo, saying, sharing a laugh with jimmy and dre. interestingly for apple here, what do you think of it? >> i think it's an interesting move. because over the sort of past 20 years apple has been very much seen as a product innovator. and this is the first time that i can think of where they've actually bought somebody who is a product innovator. in the overall scheme of things, for apple, $3 billion is not a huge sum but it is an interesting move. they're seeing they're having to make moves like this as well. >> a lot of heads being scratched about the price tag right now. if they want to get into the streaming business it's perhaps going to cost them a lot more to not be in this business at this stage or at least going forward. from that perspective it makes sense. >> absolutely. i think that's probably the major reason they're going for this. they want to get away into the streaming business. t

>> if dr. dre keeps making those videos, there might be. >> go ahead, peter. >> they're culturally less the similar than you think. steve jobs was very much considered an artist by money. they just approach art in a different kind of way. you have the artistry that comes with technology. i think this is a really exciting deal to signify this convergence of technology meeting great content and driving great technology. >> i want to make one other point. this is seminal for apple in another way. the biggest deal before this was when they bought next and i was not only the biggest deal but apple was proud of that. they would never do a deal bigger than the next. m&a folks would say that. it marks a departure from the old orthodoxy and it shows they are now willing to take bets to complement its product and services where it's a week. >> they generated this in the time from the news it was leaked onto the was announced. the catch creation at apple is so massive this is a bump on the log. >> cory johnso

the headphones created by dr. dre who don't live in the big cities are having a hard time landing a job. >> stocks were down on wall street for much of the day, but they rose after a late afternoon rally. checking the big board the dow gained 32 points at the close of business this week. apple may soon be making a multi billion dollar acquisition. they hope to buy beast electronics started by dr. dre. he seemed to make it clear. >> the first millionaire in hip hope. >> posted to facebook last night, the deal would be worth more ma than $3 billion. we go to mike with yahoo finance. this is a big move by appleby buying something and not building it in-house. is this a new post-steve jobs directive we're seeing here? >> it certainly is new. apple made very few technology purchases in the past. it shows something about apple's phase of development. they're basically a mature company with are a tremendous amount of cash hanging around >> they already sell beat accessories in their apple stores and they have itones, the top

we'll take your dollar. >> call dr. dre, too, for some money.it it big. >> he can afford to loan it out. >>> also, percolating this morning with caffeine. the top-five coffee obsessed cities. "men's health" has ranked america's biggest coffee drinkers. the top spot goes to portland, maine, followed by manchester, new hampshire, burlington, vermont, portland, oregon, and albuquerque, new mexico. we've been asking for your morning mug photos on twitter and facebook. here's jamie from maryland. >> she looks angry. >> she hasn't drank the coffee yet. >> a bitter brew there. >> grumpy. >> and this one is from kristen. there might be vodka in there. debbie likes a very large cup when she's watching "gma." and christine starts her day with wonder woman. >> i lived for a while in portland, maine. it's cold there. you need hot coffee. >>> we have to take a break. i'm going to stop talking. we'll be right back. >> it all makes sense now. >> yeah. nope. what about funny business? no. bamboozling? what is "bamboozling"? it's like, uh, malarkey. nooo. good!

dr. dre was making an album.m or sell $3 head phones, what are you going to do. >> more about apple's possible deal. >> t. boone pickens said congratulations, dr. dre, welcome to the 1%. >> .01%. >> you built that. >> so many things to unpackage in that. >> peter tweeted beats just sold apple's today's pet rock. >> and lou says here's why apple beats is smart. integrate it into head phone that incorporate apple ecosystem and lots of beats people are samsung. >> pet rock, is that fair? i don't have teenage kids. >> you've seen them everywhere, i'm sure. >> how do you value something like this? >> it makes me a little nervous. would i buy this? >> i would not. >> would i buy the stock? i haven't bought a. regret it had sometimes, but i just don't buy stuff that has a bigger pe than i can count, but just think about it. this guy is -- he's 49, so he will become a billionaire. if he invests that, and in a diversified portfolio. he will become a billion air, and that just couldn't have happened even 20 years ago. to s

dr. dre and carlyle group, dr. e first billionaire rapper when the carlyle group paid 50% of the company. if the it goes through, carlisle will make one billion in profit. apple end the day lower. liz: we have breaking news on herbalife, hlf. here is the news. according to sources telling fox business, that the firm, meaning herbalife, has found, quote, listening devices at its headquarters, meaning bugs. we don't know anything about who planted them but basically the firm has been searching around and doing investigation within its own buildings and has found listening devices at its l.a. headquarters. herbalife of course, it is health sheikh company at the center of this huge battle between billionaire bill ackman who absolutely believes it's a total pyramid scheme and he has been shorting the stock at a till, he is not winning this price, and carl icahn the billionaire who believes it's a long for this bet. and he likes the company. once again apparently according to sources talking to fox business there may have

dr. dre and jimmy iovine will be joining apple. in a statement announcing the deal, tim cook said music is such an important part of all of our lives and hold a special place in our hearts apple. that is why we have kept investing in music and we bring together these extraordinary teams to continue to create the most innovative music products in the world. how will the beats deal improve apple's business? joining me now, editor-at-large cory johnson, west coast correspondent jon erlichman and senior analyst with jmp security. thank you for joining us. who wins here -- apple or beats? >> i don't think the shareholders do. if there's something under the surface, this is backward looking to where it came from versus where it needs to go and it's something they should have been able to do internally. we are wondering where the innovation and imagination will come from to take it to the next level. >> to what degree do the contracts walk with beats? can they now take all of the streaming rights they had acquired in the negotiation with

. >>> plus, a multibillion dollar deal for apple and dr. dre's beats and who is the most admired first lady. it is friday, may 9th. "early today" starts right now. >>> good morning, everyone. happy friday to you. i'm betty nguyen. secretary of veterans affairs eric shinseki has been called to testify before congress. it stems from allegations of mistreatment at va hospital in phoenix where as many as 40 veterans reportedly died while waiting for medical treatment. and now a house committee has vetted to subpoena all e-mail and correspondents related to that va hospital and a possible cover-up. let's bring in tracie potts from washington. good morning to you. what happens if the subpoenas come up empty? >> reporter: they're probably going to dig deeper. lawmakers believe the answer is in there somewhere. what may be thousands of pages of documents they want to look through every democrat, every republican voted in favor of this subpoena. they want to get to the bottom of who made it difficult for these vets to see a doctor quickly. >> i'm now goin

david: dr. dreple's bid to buy beats electronics, the company he co-founded by picking up the tom brady's 40 or $50 l.a. mansion. liz: apparently cheryl casone confirms it and has the prize. >> we confirmed it this afternoon. he will be paying $40 million. he and his wife nicole young, buying it. full-time residence. we found this out earlier in fox residence. earlier reports that it would be $50 million for the home. you know this area. this is brentwood country estates. our affiliate in los angeles, kttv, was kind enough to get me pictures of aerials. this is this morning. this is the estate as of today, brentwood country estates. if has fived about reams, nine bathrooms. 18,000 square feet. the house is 4,000 square feet. there are two homes on the property. legally i can't show you interior pictures. but i saw them myself. they spared no expense. they bought the land in 2008, the bradies did. david: for 11 million, right? >> they bought the land for 11 million and spent 32 to build the home. dav

dr. dre, i listened to that guy's music when i was growing up.became a huge producer, and now he's getting into hardware and consumer goods and making it there. he's pretty much had the trifecta in the industry, so yeah, maybe it's hard to contain the excitement. >>> before we move to the second topic, in today's yahoo's topic, we asked, is this a right move in. 51% say no, it should focus on its own products. all right. moving on. new memoir, timothy geithner said he considered stepping down back in 2010 and suggested hillary clinton as a possible successor. he's got a book coming up, a great title "stress test." robert frank, what do we know about geithner and this recommendation to the president? >> what's interesting to read andrew sorkin's article in the times, and excerpts from the book, he tried to resign so many times, he was just trying to find anyone around him who the president might accept as a replacement. at some point heside jack lew, and then what about hillary? he was just throwing names in there. i don't know whether to believe

. >>> one of the dr. dre's songs is been there, done that. that might be the ultimate proof that the apple/beats deal is actually happening. . >>> each of us picked a stock that stood out to us. my pick was whole food, getting the breakfast lunch and dinner absolutely eaten. the company is making money, yeah it's growing, but there was something that the co-ceo said on the call that spooked people. for a long time whole foods had the field to ourselves. that was nice, but we don't anylonger. a lot of people are jumping on this kale bandwagon. sprouts raised its guidance, and the field is getting crowded. >> mine is electronics arts s apparently the video game business is not dead. >> it is not. google and amazon are in a big old battle to dominate same-day deliveries. our very own courtney reagan sat at home all day and put them to the test. >> i put the shopping express and amazon same-day deliver withy to a test run. i had to start early to get my orders in before the cutoff time before amazon and before the delivery slots ran out for googl

. >>> dr. dre's beats and who are the most admired first ladies? >>> hello. thanks for joining us today. i'm betty nguyen. >>> secretary of state of veterans affairs has been called to testify before congress. it stems from allegations of mistreatment at a v.a. hospital in phoenix whereas many as 40 veterans reportedly died while waiting for medical treatment. a house committee has voted to subpoena all records and correspondence. tracie potts from washington. good morning to you. the question really is what happens if these subpoenas come up empty? >> if the subpoenas come up empty, the lawmakers on capitol hill aren't buying that. there's been discussions between their staff and va staff about e-mail that is they believe the va is holding on to. every single democrat and republican on this house committee voted in favor of this subpoena. they're hoping to get more information about why some vets had to wait so long to see a doctor. >> i'm now going to sign a subpoena for production of e-mails. >> reporter: lawmakers are giving the va until may 19th to turn

that's the company behind the popular beats by dr. dre headphones. the financial times says a final deal is close and could be announced as soon as next week. >>> vladimir putin is using today's victory day celebrations to further incite tensions over ukraine. he spoke at an event honoring the 69th anniversary of the end of world war ii in his first visit since russia annexed it in march, he held crime mia's incorporation into the state he said there are difficulties but 2014 will be remembered as the year all people decided to be together with russia. >>> intelligence authorities are arriving in nigeria to assist in the search for hundreds of kidnapped schoolgirls there. craig boswell says parents of the teenagers are increasingly frustrated with their own government's response. >> reporter: nigerians are marching daily to press their government to do more to find at least 276 kidnapped schoolgirls. they have been missing for nearly a month. the islamic terrorist group boko haram has claimed responsibility for the kidnappings. this person has negoti

founded by rapper dr. dre and the record producer jimmy ivine, apple investors not taking a shine to the news sending apple shares nearly half a percent lower today and that is raising questions about what apple is really after in this acquisition? is it the high end headphones or the digital downloads with itunes flattening out a bit. maybe it is beat's new streaming, or maybe joining forces with a hip-hop mogul and a record producer, morgan brennan has more on what apple may really be after. >> dr. dre may be most famous for his music but it is his beats by dre headphone that is could make him the richest man, that is because apple may buy it for as much as $3.2 billion. if the deal goes through it will be the most apple ever paid to acquire the company. so what is beats? the company makes high end headphones that already retail at apple stores for billions. in january they launched a streaming service that competes with apple's itunes radio. it may be more about the talent. namely dr. dre's co-founder, jimm

rapper dr. dre co-founded the company. the beats business which sells snazzy high quality headphones that are populr with teens and young adults. apple shareholders made some noise friday by selling the stock, which closed down 2 dollars at 585 dollars. "i really don't think there is an actionable trade set-up that is going to come off of this news. you know, we didn't see anything unusual in th options market in apple on friday, you know, so i really think the action was muted." buying beats would be the largest purchase to date for cash rich apple. but tech analyst rob enderle believes the tech giant is better -- off beat. "apple really doesn't need another premium sound brand. they already have two in both apple and itunes. and its hard to picture what they are going to do with beats and dr. dre." if the deal does happen.. dr. dre becomes the world's richest rapper. apple's next big release will likely be the iphone 6. reports predict that launch could happen in august. the wage debate will continue to be a hot topic th

dr. dre was seen in internet -- an internet video boasting that he was hip-hop's first internet billionaire. second editor re: leavy is with us in the -- our tech with usri levy is here in the studio. the beads founder was very close beats founder was actually very close with steve jobs? >> he was one of the people who strategized with steve jobs as could be part of the music industry. >> they would not have launched itunes if these he bled not come up to be with steve jobs -- you may have been listening in the same audience, too. two less fanfare. is there the sense that hollywood in the music industry is still mad at apple about the deconstruction that came out of itunes? >> there is a sense that we have evolved since then because apple's dominance in the music industry has become so commonplace. remember, this came after a time in which music downloads were not even business for it. it was recently stealing. apple created a market for something that previously was viewed as theft. industry

however, dr. dreosted this video just last night. >> the first billionaire in hip-hop. >> reporter: dr. dre, up from the rough streets of compton, conquering the hip-hop world. six grammys under his belt, but this could be his biggest hit yet. again, that number, $3.2 billion. this is the largest acquisition in the history of apple. it's eight times more than they've ever paid for a company. >> somebody ought to be really happy tonight. thank you, paula. and happy mother's day to you. >>> coming up next, confessions from the car lot to the makeup counter. the secret ways salespeople get you to spend more than you planned. >> the minute they sat in the chair, the amount of money they spent went up double, if not more. >> how to stay alert when they want you to spend more. due to menopausal changes. the problem isn't likely to go away... ...on its own. so it's time we do something about it. and there's help. premarin vaginal cream. a prescription that does what no over-the-counter product was designed t

dr. dre and the $3 billion foul whyh rant -- that might be we have not heard anything about apple and dr. dre's beat. stay "in the loop." we're just getting started on this tuesday. ♪ >> well, it has been weeks since we heard apple might i -- by -- beats, but could it be dr. dre's fault? it all has to do with his video in which they say dr. dre will become the first hip-hop planet. -- billionaire. >> the forbes list just change. they need to update. >> the first billionaire right here from the -- west coast. >> joining me for more is leo hindery, managing partner of intermedia partners, and also the top executive at the yankees yes network. great to see you. >> happy holidays, belatedly. >> luckily i got to get a little bit of son this weekend. >> you look great. you look great. >> so do you care what you think about this vehicle -- video? do you think that is why we did not hear anything? >> apple is a company that is so proud of its image, and there are two extraordinary things going on. it

it has been less than a week since apple's reported bid to buy dr. dre'sonics for $3.2 billion but dr. is putting his ddre's hard-earned dollars. he has bought sources confirm, tom brady and gisele's bundchen's mansion. >> he may have gotten a good deal. show you the property thanks to kttv in los angeles, we have aerial shots of the property which is in the hands of dr. dre and his wife nicole young. $40 million a spokesman confirms to fox business but the actual listing price in the beginning was $50 million. a few things about this property. let's go through this, what do you get? 14,000 square feet of home. there is more than 11,000 square feet. there are two buildings, structures on property. this is brentwood country estates. you have obviously the pool, the gym. it is in a gated community. this is super, super high-end part of the los angeles. gerri: what is the kitchen like? >> huh? gerri: what is the kitchen like? >> i've seen the kitchen. it is beautiful. it is family style dining because of legal reasons i can't show interior shots. i have seen

the report of the deal leaked early with dr. dre pre-maturely claiming victory as the next billionaire-- which some say may have hampered negotaitons. beats is owned by rapper dr. dre and music mogul jimmy iovine. apple will pay $3 billion for beats. slightly less than the $3.2 billion orginally reported by the financial times. still it makes dre, one rich and happy rapper as he and lovine go to work for apple. m&a action is picking up as more companies have plenty of cash to spend- chuck coppola joins us me with more. hello chuck.. angie, corporations are seeing green! as the s&p hits new highs, corporate cash balance sheets are on the rise. usa today reports nine s&p 500 companies had cash piles that grew by 10% in the first quarter. among those on the list: adt, gilead sciences, intuit, marriott international, paychex , altria, citrix systems, intuitive surgical and facebook. these companies could become magnets for investors seeking stocks "perhaps' ready to issue dividends. mc-changes are happening under the golden arches... bu

the idea that dr. dre it's of their biggest acquisition is mind blowing. >> thanks for coming on. >> thanks, david. >> after a huge loss the postal service is pleading with congress to pass a reform bill. it lost $2 billion in the first three months of this year and that was despite efforts to cut costs and a small rise in its operating revenue. netflix is asking for more for its streaming content. starting today new subscribers will pay $9 a month. existing customers will pay $8 until 2016. pro russian separatists will go on with a vote. we'll look at the referendum and allegations that the voting will be rig: it turns out a lot of people in georgia are unhappy with the state's loose new gun laws. >> you followed their journey across the border >> it was heart wrenching... >> now see how it changed the lives of the people involved. >> i didn't go back to the person that i was before i left... >> an emotional borderland reunion >> this trip was personal to me... this is real... >> long held beliefs >>...il

it was founded by dr. dre and jenny eirby.difying its plan to close as many as 1,100 stores. the current agreements keep it from closing any more than 200 stores without lender approval. the company has a total of 4,300 locations. >>> and hilton worldwide beating estimates and raising its forecast for the year. hilton results were driven by 6.6% jump in revenue and 17% gain in management and franchise fees. >> let the delivery wars begin. retailers are competing on speed as well as price these days with same-day delivery becoming more prominent. >> google shopping express launched a pilot in manhattan and los angeles offering same-day delivery. amazon also offers same-day delivery in new york and other cities. i put both to the test. we have to start early to get the orders in before the cut-off time for amazon and before the delivery slots ran out for google. here's what i found. well, it's the morning. but it's time to go shopping. welcome to google shopping express. i need toothpaste. shampoo. google express is going to pic

jimmy iovine and dr. dre can write a deal that they could not. do you think they have those deals with them? but that's an unknown. what we do not know is the scale of the beats business model at present. what kind of numbers should they be penciling in? you can make a case if you are apple based on your number of credit cardillion numbers on file. you can make it work in pencil it in. it comes back to, again, at what kind of return will this entail for shareholders? >> jon erlichman nla,-- in l.a., without about the berlin wall and wanting to bridge the differences between apple in the music industry. what do you make of that? is beats really the solution? it could be. following what alex said, we heard today from george blankenship, an apple executive who played a big role in the retail strategy who told us he does think that there's something we are not talking about yet which will come to light in the months after this deal which will make it a little more sensible. you see how people are consuming music today, emily. it is changing from when

dr. dre the club. >> right here from the [bleep] west coast. >> tyrese is super duper excited. >> tyrese is like my best friend dr. dre. he's oprah now. >> that means tyrese is gale! >> cara delevingne posted some videos on instagram. she was in the elevator with zooey deschanel, reese witherspoon and who do you make

dr. dre ready to cash in big. what you need to know about the rapper an entrepreneur on his way to be the first billionaire in hip-hop. take that p. diddy. ♪ can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. does it end after you've expanded your business? after your company's gone public? and the capital's been invested? or wn your compan's bought another? is it over after you' given back? you never stop achieving. that's why, at barclays, our ambition is to always realize yours. melissa: call it the single ladies effect. fewer women are settling down and tying the knot with the u.s. marriage rate falling 60% in last 40 years. shifting economic realities mi

jimmy and dr. dre bring that to apple. they have a ton of credibility with media companies and artists. >> you think there will be a culture class? -- clash? >> they're culturally less dissimilar than you might think. let's not forget the fact that steve jobs was considered by many to be an artist. you have content and then you have the marriage of artistry and technology. i think this is a really exciting deal to signify this convergence of technology meeting great content. content drives great technology. otherant to make this point. the biggest deal before this was when they bought next for $400 million. that was not only the biggest deal, but apple was proud of that. they would never do a deal that was bigger than the next deal. m and eight folks would say that -- m&a folks would say that. tole is willing to take bets complement its products and services in areas where it is weak. it is an important step for the company. generated cash from the time that the news leaked. is so massive that it is a bump in the log for t

that may be the new name for dr. dre. for beats electronics.he company makes high end head phones and operates a streaming service. the rapper and producer may join apple in a senior role. they say it may help apple score deals with record labels and may help apple attract younger customers. >>> bay area stores are helping sons and daughters. the goal, to make mom feel like a clean tomorrow. business is booming for flower stores like this one in san leandro. workers saw a steady flow of customer orders for mother's day. >> i think the economy has gotten a lot better. it is very busy in here. we have people in and out all day, all day long. >> roses and littleries the most popular flowers for customers. for tomorrow. >> what are diane's favorite flowers? >> the children are asleep. tulips. tulips are my personal favorite. but sort of out of season right now. spring hits and then they're done. >> where can we get some tulips this time of night? >> the home of all the tulips on the west coast. >> amazing. there may be time to fly them down. they'r

jimmy iovine and dr. drework for apple, who is paying $3 billion before beats and their streaming music service. targetser says shareholders should vote, saying the directors did not do enough to prevent the hack attack during the holidays. target has hired a new chief information officer. another milestone four bitcoin, subscribers will be able to pay bills in decline. -- bills in bitcoin. >> i will believe it when i see it. some wonderful photos. >> we will start with our number three photo of the day. if you think your commute is bad. a line to enter the subway station in beijing. increased security following a terrorist attack. help for a mass trial people who were suspected guilty, they found 55 guilty. look at that. >> richard haass, i thought of the butterfly effect when i saw this. here it is. >> it is a reminder of two things -- china has an enormous denominator. anything you say about china, you have to think about 1.3 billion people. when chinese leaders wake up in the morning, they do not take the

become apple will employees and it will make dr. dre a billionaire. >> she gave the world of unflinching look into america's racially divided self. ou, who rose from poverty and segregation to become one of the great civil rights activists died on wednesday. she was 86 years old. we look into the life of a woman that u.s. president barack obama called truly phenomenal. >> one thing they cannot prohibit, the strongman, coming on. the strongman getting stronger. >> she strived in every artistic medium, a force on the stage and screen and the printed page and she has died at the age of 86. with a career that spanned decades, she rose from a childhood of poverty in arkansas, she was raped by her mother's boyfriend at the age of seven but turned her suffering into verse. line is so fine between genius and madness. >> she went on to write 30 books, becoming one of the most celebrated women of the 20 century, and the u.s. president rewarded her in 2010 with the medal of freedom, the highest civilian award of its kind. she not only leaves behin

we have to listen to that byte from dr. dre again.e a listen to what he posted online overnight. >> the forbes list just change. it came out like two weeks ago. they need to update the forbes list. >> the first billionaire in have popped right here from the west coast. . >> that video has since been taken down. it makes it sound like a done deal. it is not as far as we know. >> widow know exactly what he is talking about. let's remember there could be a lot of explanations for apple by maybeo beats licensing the technology the same way that hp did. they might be trying to get to understand exactly what beats is doing a get to know the technology so we will have to see if this actually goes through and if the billions being talked about are the right number. it seems there is a it of a culture mismatch between apple and beats but apple has some issues right now with the branding, with fading itunes momentum and it needs to do something to reinvigorate the business model. >> what about a potential culture mismatch? ,> talking about the

moving and shaking this hour, hip-hop mogul dr. dre. advanced talks to technology, a company dr. dre founded with music man jimmy iovine. they started the company in 2008, marketing the headphones as high-tech, stylish accessories. musicats has a streaming service that might be just as attractive to apple. they might make a killing on a deal like that. borgota was the first casino in new jersey to offer online gaming. will the best payoff? the ceo joins me. we are back in two the woman it's. ♪ -- we are back in two w old minutes. ♪ >> atlantic city's borgota hotel and spa was the first casino to offer online gambling. slower than off many expected. i sat down with las vegas sands billionaire sheldon adelson who had this to say about online gaming. >> let me say this, there is no reason, nor any compelling reason to put a casino in everyone's pocket. college, of age, students that go plenty of money, unfortunate people, working class people, middle-class people that will be andly exploited by and -- easily incentivize to go on the intern