i'm emily chang.e will bring you the top interviews with the power players of global technology and media players that are shaping our world. american broadcasting company -- the u.s. supreme court hazard arguments. american broadcasting company versus the streaming start up aereo. these tiny -- to send signals to subscribers. users receive the services privately. dario has locations all over the united states. bloomberg's anchor betty liu was at the supreme court. i asked her what the feeling was like on the ground as both sides made their case. >> i saw an interesting dynamic layout. paul clement and david frederick came out and made their closing statements to the press. in that crowd, emily, was a man who backs aereo. i asked barry, how do you think things went in the courtroom? he said, you know what? i think things went well. he listened in on the broadcasters and walked off. a lot of people thought that there he would perhaps just slid out the side door. he just couldn't help himself, emily. >>

i am emily chang.his is "bloomberg west." us, we are joined talking about apple. cory johnson is in new york. nster and crid yu also join us. are they trying to get more everyday people in on the ground floor? .> i think that is part of it i think there is a side story were apple and google -- google change things up with the different share lasses --c la classes. apple is intensely competitive with google. in some ways, they are trying to some of the returns. i could understand why someone would say this is un-apple like. i like the fact that tim cook is being aggressive in doing something like this. >> we do know that tim cook had a meeting with carl icahn. icahn backed down. agreed with he apple's increased buyback and extremely pleased with the results. many analysts failed to understand the company. cory, i know you'll agree with the last part of the statement. do you think icahn knows more about the products that are becoming than the rest of us? to back down or stop rattling ing in thehold compa

i'm emily chang. every weekend we will bring you "the best of west," the top interviews with the power players in global technology and media companies that are reshaping our world. our lead story of the day, major news about cyber security. researchers have discovered a bug that affects open ssl software, two thirds of websites use this software, supposedly ensuring that the information stays private. with this, people who know about it can exploit the glitch to get access to private information, your passwords, your credit card information. cory johnson and i spoke with dave chronister, the founder of parameter securities. we asked them what exactly happened here and why it took so long for security researchers to find this bug. >> the first point we should make is that it was found by google researchers and some researchers from a company called codenomicon. while the bug is tremendously powerful and important, there's also a fix available to it. most large websites at this point have pushed out th

i'm emily chang. the sec is putting out a proposal that could give companies willing to pay for it a faster lane on the internet. and wearable tech design is more important than ever to the tech industry. we will get the latest trends designeiner perkins partner and former president of the rhode island school of design, who joined me as a special guest today. first, a check of headlines. investors are reacting in a big way to apple's earnings report and stock splits. shares are up about eight percent as the company sold a record number of iphones. also boosted its share buyback to $90 billion. facebook shares are up about one percent today, not showing too much of a pop-out to the social earnings. blowout facebook reported a 72% rise in revenue and said mobile is accounting for 59% of ad revenue. still, executives said spending will increase the rest of the year, but warned it will take a while for video and instagram adds to contribute to revenue. and time warner cable is doing a better job of hangin

we will talk to the ceo of vevo. ♪ i'm emily chang. loomberg west turco not our special series, wiring the world. where we look at how connected a connected world is changing independent business. dominant streaming service for music videos with 5.5 billion views worldwide. their viewership has increased by 50% from last year. how is the company keeping up that momentum echo jon erlichman is in new york with more. mtv and one of channel. in the world of vevo, it's kind of like channels everywhere. joins us now. how are people watching music videos today? >> there watching them everywhere. on apple tv on youtube, xbox and roaku. vevo is all about putting them anywhere to give people music where they want. >> let's say you are on the go and you are on your phone. how much traffic are you getting from people watching on mobile? >> it's amazing how much it has changed. today, about 50% of our total streams in the u.s., well over half a billion streams are happening on smartphones. 40% of our streams around the world are happening on smartph

i'm emily chang. every weekend we'll bring you the "best of west," the top interviews with the power players in global technology and media companies that are reshaping our world. president obama says intelligence agencies should report security roblems. bloomberg is standing by its story. i spoke with david jiminy and jordan robertson about these developments, asked, do they believe the nsa? >> the nsa denies the gevo but they stand behind the story. what this illustrates is that this is a serious issue. heartbleed is a serious issue in internet encryption. we know that the nsa has been trying many different twice compromise internet encryption. it is almost irrelevant whether this was the heart lead bug or something else. bloomberg is standing behind the story. >> i think the nsa will say what they need to. their whole purpose is to be a spy agency. their whole purpose is to really go and actively export these types of laws prevented not have to disclose whether or not they discover this previously

i am emily chang.oogle is adding solar powered drones to their arsenal of self driving cars. we will play what they plan to do with titan aerospace. first, a check of the top tech headlines. it is taking longer than expected for many websites infected with the heartbleed glitch to fix them. the nsa once again denied a bloomberg news report that it knew about the heartbleed bug for two years. bloomberg is standing by its reporting. mozilla has named chris beard as as interim ceo. yes been involved sincerely days of firefox and also is an executive resident at greylock partners. he replaces the ceo who resigned this month after being criticized for donating money to an anti-gay marriage group. spacex has called off a launch of the falcon nine rocket lesson two hours before launch. it was blamed on a helium leak. the capsule is tearing supplies for the international space station. first, to our lead story of the day. google's latest moonshot -- buying the drone maker titan aerospace. this is a company tha

i'm emily chang. let's get straight to the rundown. >> the nba takes unprecedented action against clippers owner donald sterling, banning him for life. we will take a look at how this impacts the bottom line. first, a check of your bloomberg top headlines. a tax charge crippled ebay earnings in the first quarter. they reported a $2.3 billion loss. the reason, ebay has decided to repatriate cash from overseas, resulting in a $3 billion tax charge. repatriation, which many are choosing not to do, may change its financial flexibility. apple and samsung made closing arguments today in the patent trial. apple accuses samsung of copying apple features. samsung accuses apple of twisting words, saying three patents accused of infringing are not used on the iphone. the apple lawyer has accused samsung of month after month of frenzied activity. telling the jury, we are counting on you. and in a memo to employees -- he writes that he does not believe he has legitimate legal claims. he cannot know for certain wha

i'm emily chang.very weekend we'll bring you the "best of west," the top interviews with the power players in global technology and media companies that are reshaping our world. president obama says intelligence agencies should reveal internet security flaws to the public, but there are exceptions for a national security of law enforcement need. this comes after bloomberg reported that the agency knew about and exploited the heartbleed security bug for two years before it was revealed, something the nsa has denied. bloomberg is standing by its story. i spoke with david kennedy and bloomberg news cyber security reporter jordan robertson about these developments. i asked do they believe the nsa? >> the nsa denies but bloomberg is standing behind the story. what this illustrates is that this is a serious issue. heartbleed is a serious issue in internet encryption. we know that the n.s.a. has been trying many different ways to compromise internet encryption. it is almost irrelevant whether this was the he

emily chang. a major security flaw could affect two thirds of all internet servers and delete sensitive data vulnerable to hackers. we will tell you what you need -- asw. and will comcast gets grilled by senators on their deal with time warner cable. but first top headlines. tech stocks are rising tonight. the selloff has caused some tech titans huge numbers to read when you added up, the top billion dollars have lost $11.5 billion in the selloff. jeff bezos, mark zuckerberg, bill gates -- they all lost more than $1 billion each in four days of trading. m.i.t. has put a professor back on the stand as it tries to win a patent infringement case against samsung. he provides evidence that he says shows consumers are less willing to buy samsung products without the features that infringe on apple patents. and website registration and dy hasg company go dad lined up bankers for its ipo. it aims to go public in the fall. story of thelead day, editor-at-large cory johnson with us. were talking about this

i'm emily chang. that flex is raising prices for new members, during to up the price even after the huge clash it faced when i prices by 60%. we will get to that in a moment, and also using 3-d and virtual reality to make her movies. find out why interactive is one of the big trend at the tribeca film festival. first, a check of your top tech headlines. samsung says the money apple wants for patent infringement is 57 times to much. in san jose federal court, a professor testified if they have to pay anything, it should be $.35 a phone because of the five patents at the center of that case are of marginal value. apple is demanding $40 per phone, or $4.2 billion. the new york attorney general, eric schneiderman ellis says more than 50% of the air bmb rentals appear to be legal under state law. iss comes as the site fighting to cough up names of users tomorrow. multiple reports say air bmb raised 450 ilion dollars in funding, giving it -- $450 million in funding, giving it a valuation of $10 billion. air

i'm emily chang. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. amazon spending sprees shows no sign of slowing down. they have the new features as they report their highest revenue ever for a nonholiday quarter. the cloud is turning to into one of the microsoft pillars of strength as the new ceo puts his mark on the company. a check of the top headlines. google, apple, intel and adobe have agreed to settle an antitrust lawsuit over hiring practices. terms were not disclosed. more than 61,000 contractors -- the settlement comes weeks before a trial was set to begin. fcc chairman tom wheeler says proposed rules tweaking net neutrality will not in the internet fairness policy as we know it. able tos would be charge companies like netflix and google more for access to internet fast lanes. in a blog post, wheeler said that would be measures in place to protect consumers like for bidding isps from blocking content. the executive in charge of google pl

i'm emily chang. mark zuckerberg wants you to try apps without fear. we will tell you why zuckerberg ofs that facebook's days moving fast and breaking things are over. and my interview with the twitter ceo. while facebook and google are busy buying growing companies, the outlook for twitter and why there is a disconnect between twitter and wall street with shares hitting their lowest level since the ipo. first, the top tech headlines. john leger is said to be the leading candidate to become ceo of the combined company if sprint takes over t-mobile. that is according to a person with knowledge of the matter. sprint has been meeting with banks to make debt arrangements for a bit and is expected in june or july. more on this coming up. there is currently a ground stop at los angeles international airport due to computer issues. no word on what the issues are. arriving flights can still land, but all departures are being held on the ground. the lax twitter accounts as there is no estimate of when this will be fixed. fcc chairman tom wheeler said he has pro

i'm emily chang. i am here with cory johnson. lots of big stories. you are looking at for profit colleges. >> we took a long look at technology and the way it is innovating education. we have an example of billions of dollars online. the education results have been disastrous. we will talk to the attorney general's investigating this crisis. >> is stone will be right here. he will talk about his new book. he is a great, thoughtful guy. he launched a bunch of great companies. i cannot wait to hear what he has to say. we will take a quick look at the headlines. dianne feinstein says that she now supports a proposed requirement that u.s. phone companies hold records for use by the nsa. finding support is keys and she is the head of the senate intelligence committee. legislation to curb nsa powers may occur. president obama help teacher views on the issue. a tv guide company lost a patent case against amazon. they ruled it amazon did not infringe on their patents related to interactive programming guides.

i'm emily chang. a pair of tech ipos today and companies were not deterred by the recent volatility in tech stocks. shares of travelocity and parent sabre were up about three percent. shares of way ball -- weibo, i spoke with the chairman of weibo in the chairman and ceo about going public during such a volatile stock market. >> i think it has the intense market aspect for the entire u.s. market. we are lucky that we can price today and have very good trading results and am very happy about that. >> you mentioned the selloff, why go public now? why not wait a little while? >> when we started the process, it was back in december. at that time, the market was great. we did have some rough times in the last couple of week, but i think the timing is important. i think we are really here for the long term and we are very confident we can do well and increase shareholder value over the longer term. it really doesn't matter when we are getting here. >> you did price at the low end of the range. you opened lo

i'm emily chang. the nsa may have known about the heartbleed bug for two years. we will look at whether the selloff will give some company second thoughts about going public. first, a check of your top headlines. salesforce will leave half of the office space under construction here in san francisco. the 61 story skyscraper is scheduled to be completed in 2017 and will be the tallest building in san francisco. chinese e-commerce giant alibaba is expanding, the takeover valued at $1.5 billion. it allows them to expand into another internet area as it tries to broaden its customer base. sony is telling consumers to stop using the new viofit laptop. the battery may overheat. >> first to our lead story, the nsa may have known about the heart bleed security bug for two years according to people familiar with the matter. this is one of our bloomberg reports we are standing by even though the nsa has denied this. >> it is shocking. despite the risk of hacking, they made the decision to keep it a secret. >> i

i'm emily chang. user data from prying eyes of government surveillance and other possible snoopers. in a blog post, the traffic moving between yahoo! data centers is now fully encrypted. yahoo! also made yahoo! mail the homepage and search more secure by making https encryption the default. tv will haveomberg an exclusive interview with defense secretary chuck hagel. you can catch the full interview at 6:00 a.m. eastern. in today's new hollywood, discovery communications is partnering with hollywood producers ron howard and brian grazer to form a new studio that will make short videos for online viewers. the venture is called new form. ceo davido discovery stanislav and producer ron howard in a bloomberg exclusive. why now was the right time to push into the digital game. >> our core mission is to tell great stories. the way we have been doing it is through our channels. we have been growing market share. and we have had a hell of a ron. it is not just on the tv set. journey.d on this we launched 90 y

i'm emily chang. apple and samsung are putting their final witnesses on the stand as they try to sway the jury in their trial. another court may have thrown a wrench into the case. space dax is going to sue the air force over contracts as success with new rocket technology. we'll get to those stories in a moment. first a check of the headlines. some users are reporting programs with the camera on the smartphone. samsung tells "bloomberg west," samsung is committed to committing the best experience for customers. we know there is an issue that causes camera failure, pop-up error messages. customers are urged to visit their carrier or call samsung if they have this issue. the official deal was completed today. seven months after the purchase was announced, the final prize was slightly higher after adjustments. 30,000 employees are transferring to microsoft as part of the deal. and netflix has signed deals with three small pay tv companies to offer netflix. the deals are with r.c.n., telecom, atlantic br

i'm emily chang.mazon is creating original content, green lighting six new series. one of those shows is "the after him co-written and directed by chris carter, the creator of the "x-files." jon erlichman and i asked him why he decided to comeback to do something for amazon. >> i had written something two years ago that i was excited about. it took me two years to ring it to the screen. amazon was the first person who read it and loved it. that is why i am in business. >> did you shop it to the networks, cable, netflix? >> you give it to your agents and they put it out there. amazon responded to it immediately. the process has been a lengthy one. >> chris, its jon erlichman. let's talk about this idea of having highlights. amazon is in very public. they are saying they're putting a few shows out there for people to watch. they are very public about the feedback. as a creator, at a time when you have players like netflix that are willing to do these very big deals, should we assume that the approach of

i'm emily chang. we have the latest numbers from google. and one of the hippest offices in new york city. the high the scenes of yahoo!'s recent acquisition, tumbler. we have some breaking news, yahoo! has just nominated three new board members, and one of them is the yahoo! co founder. another is the chairman and director of the charles schwab corporation. shareholders will be voting on the nominees at the company's annual meeting june 25. we will have more on this later this hour. first, the top technology headlines -- ibm has posted an eighth straight quarter of declining sales. sales fell almost four percent in the first quarter while profit tumbled 21%. the hardware and consulting spots, butits were cloud revenue was up more than 63%. new york attorney general eric snyderman has sent subpoenas to six high-frequency trading firms. he is seeking information on their trading strategies and the arrangements firms have with the exchanges. he says he is concerned some trading platforms may sell service

i'm emily chang.adiumone ceo gurbaksh chahal said that he was fired by the network after accepting a plea deal on domestic violence charges. he was charged with 45 felonies of domestic violence, but all of them have been dropped, and he accepted a misdemeanor plea deal and a fine instead. bill lonergan, the ceo of the company, will take over the company, which was in the stages of an ipo. cory johnson is with me as well as ari levy. you were speaking with chahal over the weekend. what did he have to say? >> he was shocked. it had been 10 days. he pled guilty to the charges, charges happened about six months ago he pleaded guilty, paid the fine. the board waited until april 26 to do anything about it. he had many more to meeting since then, so i think >> he is surprised. according to chahal, it was not the charges itself, but the criticism of it. >> obviously a dramatic story. this had been going on for two years since the original charges were filed. >> if you think about his position, 45 felony accou

i am emily chang. huffington came out with a new book called thrive, calling for a new metric for success outside of money and power. one of the things she suggest we do to thrive is disconnect from technology, from our devices, from time to time. it is possible to truly disconnect in a 24-hour news cycle. take a listen. >> there's always somebody on. we have e-mail policies. after hours, unless you're on the night shift of the weekend shift, you're not expected to answer a company e-mail. if we need you, we will find you. that gives people the opportunity to really recharge. if you think of it, you don't pay people for their stamina, you pay them for the judgment. we have so many examples of impaired judgment when people are exhausted. bill clinton is quoted in my book saying the worst mistakes i made are those i made when i was exhausted. the point is, we can all say that. i can say that about my life. >> i saw one headline about your book -- less leaning, more sleeping, obviously playing off of sher

i am emily chang.rianna huffington came out with >> is jon erlichman. let's talk about the having pilots. we are putting these shows out there for people to watch. they are very public about saying we got this feedback from our viewers, now we are going to go ahead. as a creator, you have players like netflix, you need very big deals. should we assume that the approach of amazon is picking quite differently from netflix? >> is the first time i've experienced a gladiator approach. we are putting it out to the audience. they give it a thumbs up or thumbs down. but i like the approach. highlight that while you are very much going down the amazon road, it is not the only road you are on right now. you're working with a and c as well. the primary difference from working with amazon and working with one of the better-known cable channels or broadcast networks that we know? >> it's not really different at all. the approach is always the same, to do something original, to do something smart. that's how i appro

i am emily chang. it is a case that could change the future of television as we know it -- aereo against the major broadcasters. arguments have been happening all day long at the supreme court. the golden state warriors purchase land for a new arena in san francisco's mission bay. we will talk to warriors co-owner peter guber. a top hedge fund manager says there's a clear consensus that we are in a tech bubble. in his letter to clients, david einhorn says companies he is betting against may fall at least 90% if and when the market applies traditional valuation. he writes certain cool kid companies and analysts are pretending that compensation paid in equity isn't an expense because it is non-cash. at&t's profit dropped slightly in the first quarter. revenue was up 4% thanks to a growing wireless business. the company added 625,000 monthly subscribers, up from 296,000 from a year ago. at&t's "next" program which allows customers to make monthly payments on phones rather than signing contracts allows the

i'm emily chang.s is "the best of bloomberg west." hollywood heavyweight jerry bruckheimer is betting big on sequels. the producer recently teamed up with paramount pictures is working on new films "top gun" and "beverly hills cop" franchises. our senior west coast correspondent caught up with him, and they started talking about design in film. >> in the book there is a conversation around design with companies like apple, we know where they are going with design. what about design for you in your films, and television, what does jerry bruckheimer design? >> you know what it is? it is not radio. it is film. you look at it. it has to look good. we puyt -- put a lot into making things look interesting. we try to put a little special, a little different into everything we do. that is a little different and unusual for us. >> you have this new first look deal with paramount. you have talked about disney is focused on its movies and where your focus on your movies, disney is doing a lot of superhero movies

i am emily chang. shares of the twitter of china are gaining. we are live with the chairman. and willie brown is here to talk about the raging debate over income inequality. first, a check of the top headlines. sap has reported small gains. the failed to offset slowdown in older software products. hurterman company was also i a strong europe. twitter announced new mobile app products. they will allow users to sell their apps in there at exchange. they have been successful for facebook. sold morethey have than 7 million playstation consoles since launching in november. they're having trouble keeping up with demand. that is 3 million more than the xbox one. in addition, they say they have sold more than 20 million copies of ps4 games. first, the ipo is off to a fairly strong start for weibo. are at the low end of the range, $285 million. they are controlled by a chinese online compnaany. joining me, their chairman and ceo. how are you feeling? >> great. it has been a tough market. nasdaq and the entire u

i am emily chang. to get your lead story the day, tech companies and the fight for original content. we took you inside microsoft santa monica studios, and we're back now with more from l.a. and a peschel interview. >> went your item microsoft a year-and-a-half ago, the tv team existed of one. -- consisted of one. keep team focusing on the hollywood story in the santa monica offices, that is where we ought up with nancy. i asked her about how broad the different tv originals xbox is focusing on will be. here is what she said. >> we're dealing with the series, we're dealing with limited series, or what i used to call miniseries. thature lenght projects, live sports, because all jobless -- across all genres. throughu can find it is xbox live. we are still trying to figure out from a strategic standpoint where it fits. it is something that is really unique to our platform, and it will be under the banner of xbox originals. quick should be think about these shows being produced start to finish by microsoft

i am emily chang.he golden state warriors have abandoned plans to build a new arena on san francisco's waterfront. instead, they struck a deal with salesforce. they will on the land outright and plan to build an arena with private i'm dancing. us ceo and co-owner joins from away. also with us, jon erlichman. not long ago you were looking at a spot not far from where i am sitting on the waterfront. uses the bay bridge. you spend 20 million on plans for it. because we control our destiny. we own it. our relationship with the city is one as an owner, not a tenet. we feel it offers us very attractive elements. the venue will be for the city, for the san francisco bay area. one of the top 25 markets that does not have a venue like this and believe it can be activated very successfully. accessible by all sides and offer strategic advantages. right in the city still. it has its own location. spend all thatl money privately. we wanted something that we actually owned. you bought the land privately out right fr