jelly is an idea i had with my mine.der, a friend of he is one of the few guys, like jack dorsey andan williams, who i go on weekly walk and talks with. we might joke around and we might talk serious and we might have grand ideas. it was one of those things. years, no one has completely reimagined the way we get answers to our questions. it is a completely different landscape than 15 years ago. we are all mobile, social. it is not what it was. we designed a better way to ask a question. that is what it is. >> explained to me. >> you have heard of the six degrees of separation. they now say that is watch out -- four. jelly uses photos, location, maps, and people from all of your social networks mesh together into one big network. it goes two degrees of separation. people, they either know the answer or they can forward it to someone in their social network. >> what happened to you and evan and jack dorsey? this story has been told often. what was the conflict? >> it was not a conflict for me. if anything, i am in the middle. i meet weekly with both of these guys. be, not justem to dea

he's one of the few guys like evan williams and jack dorsey who i go on weekly walk and talks with.uestions. i mean, it's a completely different landscape than 15 years ago. we're all mobile. we're all social. it's not what it was. so we designed a better way to ask a question, and that's what jelly is, and i can get into the specifics of how it works. >> charlie: explain it to me. well, the idea is -- you know, first of all, you've heard of the six degrees of separation. >> charlie: yes, i have. they say it's now four because of social networks and mobile phones, it's just unbelievable. what gel is does is it -- jelly does is it uses photos, locations, maps and most importantly people from all your social networks measured together in one big network. it goes out not just one degree but two degrees of separation and to real people, your queries are going to real people. and those people, they either know the answer or they can forward it to someone in their social network. >> charlie: what happened to you and evan and jack dorsey? this story has been told often, but what was the co

is jack dorsey's square a takeover target?rs could be eyeing the mobile payment provider. >>> plus, two good pieces of news for facebook. one has to do with ads and the other concerns the future of coo sheryl sandberg. >>> massive security bug threatening over half the internet, and your personal information could be at risk. tumblr's head of engineers will tell you what you can do. >> what's the most important social network for teens? the answer may surprise you. that's coming up later this hour. >>> joining u.s. for the "squawk feed," john steinberg, and cnbc contributor, and along with our own jon fortt. i know you guys are fired up about the topics. >> very much. >> first up, potential big news in the mobile payment business. we'll talk about this report, that square was considered by both apple and google as a takeover target. of course, kayla's been doing great reporting about revolving credit facilities, the notion they'll be headed to the public markets instead. i'll ask you first, kayla, what did you think of the sto

. >> we had jack dorsey on here. he and sarah lacey got into this discussion about direct messaging. nobody understood what they were talking about. jack was saying, in order to direct message, you have to follow. today we understand, but we had no idea. speaking of language, i like the word friction. i kind of like the word delpa, as the mathematical expression, the most change. are there words that have entered the lexicon or you've used in your books that you think are particularly good? >> it's always open to interpretation. value is in the eye of the beholder. i do think disrupt is an important word. it's a buzzword and i think it's important because it's not an intention to set out to disrupt. it's something that happens because of true innovation. in that case, that's what silicon valley can be really good at, actually disrupting markets. to me it's aspirational and inspirational. any time i use disrupt in silicon valley. >> you get an eye roll. >> i get an eye roll. >> people are disruptive. you look at -- wha

we are beinguse hard on jack dorsey, who was being deified last fall, but because of the margin of the business. when he percent of their fees, --ch are only about 2.5% only a 10th of it goes back to square. the more volume, and the more money they lose. it is a difficult business to sustain a small business on current margins. that does not go away. you either change or marketplace or end up being acquired. >> facebook may be about to launch its own mobile ad network. the social network is offering a database of user information to market to users. facebook could reveal its new ad network at its developers conference later this month. we know facebook has been testing something like this. what would a new mobile app platform look like for advertisers? by the owner of a company that makes technology that helps target users with ads. how is this different than what already exists? >> today, you cannot currently use what facebook knows about its user base, aside from targeting all facebook owned properties. the website, the abs, and anything they control. as would allow them to create pa

jack dorsey and evan williams. >> there was a birthday party and i forced them both to come.ng is, they are so similar. they are both quiet, soft-spoken, speak when spoken to types. and without me in the middle, it would just be like, two guys. >> who will play you guys in the tv show? [laughter] geez, i have no idea. i do not even know if that'll be a thing. who knows? it could be a cartoon. >> a cartoon about twitter sounders played by a dog. something -- well, i would never watch that. all right, it is not a cartoon but we will show you some very interesting animals, like a kangaroo, coming up. on "lunchmoney." ♪ ♪ >> available on your iphone, we are streaming live at bloomberg.com. we are all over the place. this is "lunch money." i'm matt miller in for adam johnson. today's video is the picture that is the story. investigators believe they are closing in on the malaysia airlines jet. search crews have picked up signals consistent with those emitted from the plane's black box flight recorder. australian officials heading up the search efforts and said they are optimistic

>> i go to jack dorsey. i go to dick costolo. >> what you go to them about?ch one of them is different. serving as my executive at this point. he has grown so much in the last four years. it is unbelievable. we meet every wednesday. you know, very specific questions. jelly for a year. what do you think i should do? should i offer more money? what would you do in that situation? sometimes it is specific and sometimes it is high-level. it is a walk and talk. we joke around. because anteresting, lot of the assumptions about the downing of twitter were questioned. what we are the new. is a marketingck genius. how do you respond? >> jack is a very talented marketing guy. look at square. it is amazing and it is taking off. >> what about product? >> is great product. he is an artist at heart. he thinks abstractly about product. maybe that is where the confusion lies. when he first describes square to me and i invested in it, which i'm glad about that, he talked about -- really? payments? are a form of social interaction. we do it every single day. we look at another

jack dorsey, people i know. each one of them is different.lmost been serving as my executive coach almost at this point. he has grown so much in the past four years it is unbelievable. meet every wednesday and socially in between. very specific questions like this guys has -- this guy has been at jelly for a year, should i offer him more money or this and that? what would you do in this situation? sometimes it is specific, sometimes it is very high level. sometimes we just joke around. it is interesting because this book really questioned the assumptions about the founding of twitter and what we are in a new. of things jack is not the product of genius but more marketing genius. how do you respond to that? >> jack is very talented and marketing. look at square. he is like an artist at heart. maybe that is where the confusion lies. when he first describes square to me, and i invested in it, which i am very glad about, he -- i was like really, payment? wide payments? payments? >>>> he said because payments are a form of social interaction. this

>> i go to jack dorsey and evan williams. costolo. is a must been serving as my executive coach at this point. he has grown so much in the last four years, it is unbelievable. we meet every wednesday socially. questions -- very specific questions. would do inwhat he this situation. sometimes a specific and sometimes very high-level. and talk. a walk sometimes we just joke around. nick interesting because felton spoke about twitter really questions a lot of the assumptions about the founding of twitter and what we are to .ew -- and what we already knew he is more of a marketing genius. how do you respond to that? very talented at marketing. look at square. it is just taking off. >> what about products? >> he's greater product. he is an artist at heart. aboutnks for a abstractly product. maybe that is where the , because when he first described square to me, and i invested in it, which i am very glad about, he talked about payments. why payments? payments are a form of social interaction. we do it every single day. we look another perso

and jack dorsey is also in the news today for his tech adventure. pearson is joining us with the details. good morning, hampton. >> how are you doing, ross? i almost feel like this is the perfect follow onto your discussion in the last section about bitcoin. we're going to be talking about square. the mobile payment company that makes credit card readers that plug into a smartphone or tablet. cnbc has learned that square has secured a new resolving credit line reporting in the hundreds of millions of dollars. the deal when was the eighth this weekend was led by goldman sachs, morgan stanley, jpmorgan and barclays. wall street has really taken a big interest in square since it was found by jack dorsey back in 2009. the former gull van cfo, david recently work for government. while square isn't profitable, it has raised more than 340 million from investors including sequoia capital and visa. the financial times that drop box is lined up. half a million dollars in financing following a 350 million bid earlier this year. provides dropbox to free stories

the nonsellers that were announced, evan williams and jack dorsey, they control 4% of the company. the key venture capitalist 5.4%. let's add these together. 20.2% of the stock. 20.2. you also have to believe that these four shareholders are powerful enough to intimidate other holders into not selling. that means the short position in twitter is now way too big for the float on any good news. like acceleration sales maybe or something that's a distinct possibilities. the way the stock traded lead lots of people to believe we were experiencing a twitter-lead rally. a new leader that was the biggest decliner and down 30% for the year and suddenly enough is enough. i think we saw enough of this enough is enough rallies just the past week. so i can't be saying it here even after today's bullish action. however, yesterday's move felt like it had a bit of news associated with it's leader and the possibility that interest rates might have troughed. let's go back to the 1:02:00 p.m. bott 1:02:00 p.m. bottom in the market. they were just banking down. someone sell, sell, sell, sell that end

what miley cyrus, kobe bryant and jack dorsey have in common.is the latest diet fad but is it healthy? ♪ (dad) well, we've been thinking about it and we're just not sure. (agent) i understand. (dad) we've never sold a house before. (agent) i'll walk you guys through every step. (dad) so if we sell, do you think we can swing it? (agent) i have the numbers right here and based on the comps that i've found, the timing is perfect. ...there's a lot of buyers for a house like yours. (dad) that's good to know. (mom) i'm so excited. melissa: if betty white and bill clinton and keisha ever get stuck next to each other at aily will have their diets to talk about. all three national treasures are reportedly vegetarians saying no to meat and vegetables. according to a new study that choice could set them up for a serious health risk. we have dr. manny a la stress of fox news medical a-team. are you eating your vegetables? >> don't pick on my veggie friends. listen, the study that you're alluding to is basically a survey, it was a very small survey of people

reports say apple and google have considered making acquisition offers for jack dorsey's startup.essing transactions, there's also a lot of innovation going on when it comes to paying your bills. menlo ventures says the firm is investing in a company called check. download app and you're reminded when the bills are due which you can pay instantly so no stamps, envelopes or checks. the company has already raised $50 million from investors and finally there's apple. recent comments from tim cook indicated that apple could launch a mobile payments platform of its own. the move would make sense, say analysts for ale, given the huge amount of commerce that already goes to its ios devices. back to you. >> josh lipton, very good stuff. appreciate it. >> up next, one of the most unlikely guests in "street signs'" illustrious history, kiss and paul stanley suddenly promoting his new book on television right now. we're back after this. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long

twitter, you're upset to learn that twitter's doing a town hall meeting with president obama and jack dorseyd twitter to be government neutral, why was that important to you? >> i spent five years working there. i have this general fiphilosoph that it's really all about people, not technology. you know, i believe in the triumph of humanity with a little help from technology. whenever things happen around the world and twitter gets mentioned along with it i always try to make sure that the look, it's people that are doing this stuff. when the ber wilin wall came do at&t wasn't saying they used phones, phoned helped. i said, look, it's about the people and they'll use whatever they use. let's not use this -- any of this stuff as like an ad. >> that's not entirely genuine. you're proud of the fact that twitter is part of the revolutions out there, part of empowerment of the people. >> yeah, i'm certainly an advocate for the power that free speech gives everyone, especially when you lower the barrier to it so extremely low. getting back to the question, we spent just a lot of effort trying to --

david: mobile payments startups square, launched by twitter, cofounder jack dorsey may be putting itself up for sale. "wall street journal" reporting google, apple, and ebay all discuss ad possible acquisition. liz: at&t says it will roll out its superfast internet service in as many as 100 additional cities and 25 metropolitan areas. one gigabyte per second feed. 100 times faster than what broadband customers usually get. they like that. "after the bell" starts right now. david: breaking down today's market actioion, we have petete lang, lang capital president, who says we are in secular bear market. chris retzler, needham growth cofund manager, investors should watch for opportunities to put cash to work. lincoln ellis, green square capital from the pits of the cme where all the action is. hold on a second guys. we have netflix earnings. adam, go ahead. >> that's. they were reporting 83 cents. reporting 86 cents from revenue 2.7 billion. we ended q1 with 48 million global members and we had higher domestic net additions than in q1 2013. growing international success and a big hit with

. >> jack dorsey should call a friend at facebook.say that facebook thinking of buying it. >> what about twitter? you say this is an interesting acquisition. company toan outside analyze data. >> they opened up a twitter firehose. all the partners started to make a lot of money. then twitter decided to buy one of the partners. couldn't they have just done themselves from the beginning? they allowed access to all of the twitter stream of all people of all time. they open up to companies who pay them and sell the data to other people. that is clearly a very valuable business and a lot of people want access. there is a lot you can get out of it. about $70 million that they got from this kind of stuff. that is not a ton. there is an open area for them to say look what else we can do. there is a lot of conversation inside twitter about the business story ahead. one story is how you keep people engaged. if you're not a celebrity or a journalist, once someone starts an account, how do you keep them there all the time? that way the advertiser

dorsey,e here from jack to the creator of youtube and the creator of skype, and over the last three yearshese guys from china and russia magicalpe spend three days in dublin, going from pub crawls to dinner. >> in the last few years the conference has gotten crowded, every magazine and start up has wanted to do this. what risk do you run that you are over relying on this? >> there is a german this amount of conferences, in 2010 when we bankers andad the the side event, that anyone could buy a ticket to. 400 people showed up to hear from the guy behind twitter, jack dorsey, and three years later that had grown to 10,500 flew awayst of whom from -- flew in from 97 countries around the world. i don't know, if this is getting a bit frothy. >> do you think that this is? >> i hope not. i think hardware and software are disrupting the world at a pace we have never seen before, so 20 years ago when people went to a technology conference, that conference focused on the computer and the terminal sitting inside an office. now my grandmother is on her third ipad, 87 years of age, and technology is af

jack dorsey heads the company. payment is not technically a very lucrative area. lex the bottom line, it is not working. it is not working. on the secondary market, a valuation of 5.2 million. incredible. b&b worth $2 billion. what does it mean when we say someone is worth $6 billion? >> it means there are investors willing to take the other side of the ua should and. .> whatsapp what does it mean that someone is willing to pay 19 billion? >> david kirkpatrick runs through this in the facebook effect. up number.ossed gross himim-- >> ashore along. in at least three killed ukraine. diplomats provide this diplomacy -- diplomacy. richer falcon that formal white house adviser and security. he assesses the value of increased sanctions against russia. also joining us is stephen whiting. .onderful to have easier vice president biden lands in kiev. would call think i it the civil war yet. facing a presidential election in about a month. i think the big gain these days is to keep the country stable enough so it can have elections. without elections you have no one to talk

you filed the ak that says you have no plan to sell your shares, jack dorsey, ed williams, who else isn board with that pact? >> benchmark announced one of our early investors announced they have no plans to sell and frankly after speaking with most of our major investors that were with the company since prior to the ipo, many of those investors have declared that they have no intention to sell. so we feel great about that. it's frankly one of the reasons, probably the primary reason, we have decided and announced we wouldn't -- we have no current plans to have a secondary offering. you've seen most of the other companies in our space have those fairly quickly on the heels of the ipo. we have had no plans to do that because most of our major shareholders have no desire for immediate lickety. >> is there a timeline on the promise, the selling of the shares or the secondary? >> there's no current plans. i would say vis-a-vis the timeline of selling specifically, when i do, when jack does, those will be in a accordance with a 10 b 51 plan and even under filing that there's another 90 days

square was founded by twitter pro creator jack dorsey in 2009.ts dropped after the u.s. internal revenue service tightened rules it felt were being abused to shift profits. a u.s. unit owns its technology licenses. it minimizes tax bills by leasing rights the a tax-exempt partnership if in luxembourg. there wasn't anything illegal here. they were taking advantage of tax laws the way they are written. >> we have to similar phi this thing. it's a game that everybody plays. it does mean loss of revenues. you have to fix the complexity of the season. >> they have to revise the entire tax code. things have gotten way too complicated. it leaves loopholes for people who have accountants to find different ways around them. >> coming up, what could move the markets in the week ahead. a lot going on. we'll look at gold, currencies and equities. all of that coming up next. >>> get a leg up to the trading day with the morning squawk newsletter. go to squawk.cnbc.com. morning squawk is a snapshot of the day's top stories, guests and fun water cooler stories.

. >> jack dorsey and williams say they have no plans to sell their shares.h unless you believe they're trying to get in front of weak metrics for the quarter. >> it could. i won't try to read the tea leaves on any of these except to say the tea leaves from gartner is stronger than expected and could bode well for intel. we have to see not only revenue growth but on the back half for investors to feel extra good. >> i like the management signaling. i like sheryl sandburg saying, i'm not definitively not leaving and the managers saying i'm not selling stock. the growth numbers and the lock-up. they have taken one of the issues off the table. put up a good growth number. revenues and earnings were good last time and it's important they win. >> the ft says facebook is entering the world of financial services closing in on approval in ireland for letting people store money on the social network. you can use this e money to pay and exchange fwith others. and facebook not commenting on that report. what do you make of it? >> the most important thing we don't know a

this after the "wall street journal" reported that square whose ceo is jack dorsey has discussed theale of companies including to google. cnet reporting that nike will exit the wearable market and concentrate instead on software. and we do have a content sharing partnership. a lot of tech news today. the square stuff, obviously, has been getting notice because they did raise -- they got a credit facility a couple of weeks ago. the general thinking at the time, eat when the food is passed not when you're hungry. >> right. it is available. take it when you can. >> makes it sound like they are burning cash and will use that money by the end of the year. >> yeah, in terms of -- we've got a lot of different reports of various potential deals that aren't going to happen. taking this to an entirely different place, quickly. the one that i think is true this morning is the journal story about barrack and newmont from this weekend, there are significant synergies there. you can't rule out the idea, at least, those two gold mining giants would come together. as for technology, i will pass that

evan williams owns 9.4%, he's not selling, jack dorsey 4%, benchmark, 5.4%, do you know that 40% of the flow is short here betting obviously there would be a huge secondary and everybody could cover. if there is no huge secondary you have the possibility with a better quarter. >> but the key is better quarter. >> right. >> you have to show significant revenue growth, some way overcoming this concern about user growth. and the so-called scaffolding around the business they've talked it about makes it difficult for people to want to adopt it. they have to show that, those who hold their shares -- >> it had been a free fire zone short. it was like rolling operation rolling thunder against this darn thing. >> because it went to 70 on air. >> individuals who love the product. those people have all been blown out. if the numbers are good, this stock is going to go dramatically higher because of the short interest, 40%. not enough float. >> we're going to be watching twitter. a lot of technology names that did have at least a bit of a turnaround. the opening bell just a few minutes away. "squa

and women are doing extraordinary things in their 20s and 30s, whether it's mark zuckerberg or jack dorsey we live and work in ways that are really quite extraordinary. so lots and lots of leaders who are changing the landscape at a much younger age than certainly my generation did. >> right. of course, you have to end here by telling me the benefit of us being older, right? there's got to be baby fit to that. meg, thank you so much, and again congratulations on being on our 25. >> interesting, david, to hear her talk about her skills as a communicator and how that's made her a better ceo, no doubt she's one of the more vocalist ceos. as you say, we hear from her almost every quarter, but employees appreciate that, a way to imprint strategy, morale, and make sure the companies of various cross roads you are vocal. >> without a doubt. and earlier, tyler, we had the piece on jack welsh and one of his strengths being enthusiastic, being a communicator, i think might not have come easily to meg whitman, and she pointed out the run for governor helped in that regard. you're talking about an org