jon erlichman is with us from l.a., peter cook is in washington dc with the political angle. i will start with jon. how did this happen? >> this interest from charter, to get bigger in a world where we have a lot of options. it has to get bigger, more meaningful to people. obviously, charter had this great interest in doing this deal. time warner wanted charter to pay more money. the possibility of comcast acquiring some of the assets of time warner cable. along the lines, they ultimately decided that comcast was the better move for them. getting bigger than everybody else and having control over markets like new york, los angeles, chicago, philadelphia, the d c area. they are the biggest cable player in the united states. to gothis deal going through? peter, the regulators made it clear with at&t and t-mobile that they wanted more wireless carriers. will it be different with cable companies? >> it will be different because they are different businesses. the government is going to scrutinize this very carefully. you get number one and number two joining together, it raises a l

we will be talking to jon erlichman. but first, our lead. google has built its empire by selling ads on its search engine. chasingcompany is not driverless cars or mobile maps. homespeed internet in your leaves competitors in the dust. we are taking an in-depth look at google fiber. our internet at large is in utah. i'm so curious how much better google fiber really is. >> i have not used it yet. moore is the right number. we talked to a guy who is one of the early users, a big tech user. we asked him about his experience. check it out. the company they found was just losing it in the process. the are starting to roll this thing out over the country. it is just the right town for you. now google is rolling out new equipment. google fiber is an attempt a jump start an internet service to unprecedented speeds. your typical cable modem is 10 megabits per second. google fiber is 1000 megabits a second. gigabit google fiber threatens -- it is faster than verizon at&t.and faster than arer competitors centurylink and time warner cable. google fire

also, jon erlichman. what do you think about team's numbers and the reliant on "candy crush" products? >> we are seeing a huge audience should to mobile devices. i look at mobile now and think it is really early days. when a company like king can go over 125 million daily users, that is bigger than the super bowl every day and shows the potential for the platform to reach a page engaged audience. and they leverage the network effect to great more titles that can help them build their business? >> jon, what stand up to you having covered rovio and other gaming companies? what happened to zynga with the popularity declining, could that happen to candy crush as well? >> absolutely. the biggest mistake that zynga made as it went public was thinking that it had truly revolutionized the gaming business when at the end of the day, especially in towns like los angeles, you are only as big as your last hit. there is a new business model tied to things like gaming and relies heavily on the whales to pay for that ga

jon erlichman has more from l.a. we all know that "walking dead" phenomenon has been very real, even over the last three sundays this show has been going up against the winter olympics and doing fine. here is a show that is on cable that has been generating double-digit millions of viewers , doing incredibly well in the 18 to 49 demographic. they have a lot of runway with this program because they own it outright. the advertisers are on board. we saw 30% revenue growth in advertising over the course of the last year. >> you are only as good as your last hit. what else are they working on? a they have a few, revolutionary wardrobe is coming up. they have a spinoff from "breaking bad." they have other ones that have not gone well. you are right about that. jon erlichman there on "walking dead." we will be right back. ♪ >> welcome back. i'm emily chang. jeff bezos made headlines when he unveiled the plan to deliver packages by drones. netflix is not letting amazon have all the fun. the company released a parody video sh

jon erlichman is in los angeles, ate join me.ichman, talk to me about what some people are saying -- is this a risk? >> it is definitely a risk. you are talking about one of the biggest franchises for nbc. they have struggled in the ratings, they have new ownership in comcast, and you have the nightly news and the "tonight show close quote that are the nightly leaders. you are taking a risk in change into a new host because you highlighted the conan o'brien example. i think there is always the possibility that you are going to give up some of the big ratings that jay leno is still enjoying today as he leaves, and still is under contract as he leaves. fromad, what did we learn the jay leno, conan o'brien debacle? >> do not make the announcement five years ahead. a lot could happen in five years. the difference is jay leno does not have that much place to go. he had made some overt threats x, butld go to abc door fo i think those doors have been shot. he will be left to nbc for seven more months. >> what does jimmy fallon bring to

our senior west coast correspondent, jon erlichman.on musk is talking on the tesla earnings call it that is happening right now. let's listen in. >> roughly 25 on the year, and a pretty good step up from i think some of the previous guidance. could you help shed some light on what is getting there, and is that pretty much where you would be maxing out? >> we are constructing a new line in the factory. many pieces that go into making a model s. production constraint for some, others are not. thousand the sort of plus production rate, we do need sort of a new final assembly line, which we are in the and we of constructing, will transition final assembly to that, and that will be in the third quarter thereabouts. separatelyis sort of a body construction line, which is where you create the assembly , and that is also taking place. that is not needed to achieve the production rate but will help with production efficiency. be where the model is. it will be sort of a next-generation for the x and then the s. so i am not sure -- it is quite of

i spoke with our senior west coast correspondent, jon erlichman, chief washington correspondent peter cook, as well as bloomberg news reporter, alex sherman, about the deal and started by asking jon how it all came together. >> charter had this great interest in doing this deal with time warner cable. time warner cable wanted them to pay more money. charter was talking to comcast about the possibility of comcast acquiring some of the assets of time warner cable and along the lines they decided comcast, it's a better move to get bigger than everybody else and have control over marks like new york and los angeles and chicago, philadelphia, the d.c. area. they truly are the biggest player in the cable business in the united states. >> right. but is this deal going to go through, peter? the regulators made it clear with at&t and t-mobile they wanted four wireless carriers. is it going to be any different with cable companies? >> well, it is because they are different businesses. yes, the government is going to scrutinize this very carefully. you get number one and number two joining toget

i cannot wait to share it with the world. >> jon erlichman with the president of amc. another top story this week, apple is set to introduce another tv set as soon as april. they are also in negotiations with time warner cable and other potential partners to add video content. i spoke with bloomberg's peter burrows. >> we're hearing it could be announced around april and ready in time for christmas. you're right. we're hearing talk of a new interface that would make it easier to use for people, but also the content i think is going to be key. >> would this be vastly different from the apple tv that we already know? >> we don't know. it is not apple's -- they don't often come without something radically different on itunes. it is probably -- again, content is really what they have been missing. it is still a hobby relative to the size of apple. they have referred to it as a hobbiesque product. if they can get it, so they have all time warner cable content on there, suddenly it is a place where it can become kind of a primary viewing vehicle for people rather than just f

jon erlichman has been trying to figure out who is behind this. you are getting clues?hecked the filming permits for this wastion and what came back a company called absolute productions which is tied to a couple well-known comics. tim and eric have ties to comedy central programming. a lot of people online have been buzzing about if they are ultimately behind this. we continue to make calls and sniff around. just an art installation. if they are not charging for the coffee that is not that great. people are lining up for hours and hours. new tonightre a show premiering tonight? would this be a great thing for jimmy fallon? be a bad way to go, right? he is social media savvy. we have asked a lot of people why are you coming here? why am i here? media people, the users of social media -- i heard about it through twitter or facebook and some people, the local media has been covering this. people have a certain curiosity. when you look at these events that take place, people like to be a part of it. cameras thatthe have been here, the people taking pictures on their phones

for more on the season, jon erlichman and phil mattingly join us.spoilers, please. >> i only got one episode in. i got that first episode in. it is great. i'm pretty psyched to spend a long weekend watching the rest of it. >> how much do people in d.c. love this show? is there really a huge fan club? >> it is crazy. you mentioned the snowstorm when everyone started clamoring for netflix to release it. they decided not to. it is huge. netflix really involved everyone in this. they got lawmakers to come in and help them out with the process. people really love watching something that is so intriguing. we took a camera up to capitol hill and asked senators their thoughts on the series. >> the only unrealistic thing about the show is that a democrat could represent south carolina. that would never happen. >> i think kevin spacey makes it look a lot more exciting than it actually is and a lot more devious. >> probably a composite. none of us are quite that interesting. >> i'm one of the few americans that haven't watched it, but i will. >> is this differ

jon erlichman joins me now on this news. $16 billion. wow. that has been the universal reaction. >> i think now that this news is out, the road towards this deal looks obvious. we did not know it was coming. if you think about what facebook has positioned itself to be at this premier mobile communication platform, all of that time and energy spent in bringing facebook from your pc to your phone and the lead-up to the initial public offering, the purchase of instagram, and for them to be watching what is happening in this fast growth area of messaging-based apps, which a lot of them, because of the fees, frustrating paying those texting fees and choosing to use a service like whatsapp. not to suggest that facebook wasn't trying to do some of the stuff on its own with facebook messenger. not able to gain as much traction as they hoped for. they tried to buy snapchat. whatsapp comes into the picture. >> right. google reportedly also tried to buy whatsapp, but facebook snatched it away. the founders have been famous for hating advertising. we wan

jon erlichman joins me now on this news. $16 billion. wow. that has been the universal reaction. >> i think now that this news is out, the road towards this deal looks obvious. we did not know it was coming. if you think about what facebook has positioned itself to be at this premier mobile communication platform, all of that time and energy spent in bringing facebook from your pc to your phone and the lead-up to the initial public offering, the purchase of instagram, and for them to be watching what is happening in this fast growth area of messaging-based apps, which a lot of them, because of the fees, frustrating paying those texting fees and choosing to use a service like whatsapp. not to suggest that facebook wasn't trying to do some of the stuff on its own with facebook messenger. not able to gain as much traction as they hoped for. they tried to buy snapchat. whatsapp comes into the picture. >> right. google reportedly also tried to buy whatsapp, but facebook snatched it away. the founders have been famous for hating advertising. we wan

jon erlichman, great interview today with disney ceo bob iger, cory johnson.ou for watching this edition of "bloomberg west." we will see you back here tomorrow. ♪ . . . >> our o most

jon erlichman is with us from l.a. as phil mattingly in washington, who did stay up late to watch it or it as the president would say, no spoilers, please. >> i will keep them away. i only got one episode in. i was up at 4:00 a.m. and got that first episode in. it's great. i'm psyched to spend the rest of the long weekend watching it. >> how much do people in d.c. love this? you mentioned the snowstorm on tuesday, where everybody started clamoring for netflix to release it. they decided not to. netflix is really involved everyone in this. they got lawmakers to come in and help them with the process. people just like watching something that is so intriguing. we took a camera up to capitol hill and asked senators their thought on the series. unrealistic thing on the show is that a democrat can represent south carolina. think kevin spacey makes it look a lot more exciting than it actually is and a lot more devious. none of us are quite the interesting. >> i'm one of the few living americans who has not watched it, but i w

jon erlichman caught up with levie at digital entertainment world expo. asked him about the company's plans to go public. and how they might be using box before it is released. >> there was a somewhat popular new release of a new album that happened by surprise recently, and one of the reasons why it was kept in secret so well is because box was the platform for managing that content. they were able to decide to reveal the information in the news at a time when they wanted to, and they could keep all of the security and controls in one place in the meantime. this is allowing content owners to actually do more with their information and have more security around it than if it hadn't gone to the -- to the cloud. >> beyonce? >> maybe, maybe not. speaking of secrets, it has been reported that you guys are planning to go public. anything you can shed on that subject? >> probably not. that is two subjects in a row that we can't talk about. we're trying to build an independent and long-term company. that is path that we're on to staying independent. >> you guys f

and jon erlichman. what do you think of the king numbers and the reliance on candy crushed saga. >> we are seeing a huge shift to mobile devices. i look at mobile now and think it is early days. when a company like king can't get over 125 million daily users, that is bigger than the super bowl every day. it shows the potential for the platform to reach a very big engaged audience. can they leverage the network effect to create more titles that help them build that business over the longer term? >> what stands out to you, jon, having covered gaming companies? could what happened to zynga f wherearmville declined, can that happen to candy crush as well? >> absolutely, the biggest mistake that zynga ultimately made as it went public was thinking it had truly revolutionized the gaming business. like l.a.,in towns you're only as big as your last hit. it is true there is this new business model tied to things like damning and relying heavily on the wales to pay for the game and the revenue and profitability o

was paul kedrosky, a former microsoft office president, cory johnson, and jon erlichman.isney ceo bob iger joins us next. we get the latest on disney's business. >> welcome back to the best of west we focus on technology and business's -- and business. jon erlichman sat down with disney ceo bob iger on the disney lot in burbank california . john started by asking him what kind of counterprogramming will appear on abc. >> i think it ends up being a good opportunity for us. abc's lineup on thursday nights is pretty strong, particularly with "gray's anatomy" and "scandal." i don't know what it will be next season, it has not been determined yet. the abc primetime audience tends to skew more female than male. it is a great opportunity moving the cbs entertainment shows out. they have success on the night really early with the big bang theory. moving that out so it does not compete with our shows. to that will probably help us in some form. i don't know, it is too early to speculate whether there is going to be tremendous counterprogramming. abc's strategy is what it is, regar

jon erlichman sat down with chairman and ceo bob eiger. ey talked about the quarter and he joins us now. jon. >> emily, you compare this story to twitter, investors are disappointed, one of the reasons they were pleased with disney is that element of surprise coming from the box office. specifically with the film animation,der disney which is having a bit of a turnaround. now that it is entering china and japan, we asked bob biker if it could generate a billion dollars at the box office. >> we are thrilled with frozen, of course. you hit the nail on the head when you talked about the pixar acquisition in 2006. it would still designed not only to a neighbor pixar to continue to prosper, but to turn disney animation around, and i think this film proves that has been accomplished, although we never rested on our laurels. million in $870 global box office. it just opened in china. it did extremely well in south korea. i think the biggest animated film there. that bodes well for those territories. although they are not the same. i think the poss

jon erlichman, what does that mean? think about film festivals, they are a great place to talk about film and different ways of film making, but also a great place to explore new ways of filmmaking with things like technology. vine competition last year. john patrick, the president and chief operating officer of tribeca enterprises, which is the parent company of a festival. you announced about a music video competition you are going to have this year. using some cool technology. what are you enabling filmmakers to do? >> we have partnered up with a company called interlude, which has interactive filmmaking technology. we are going to allow anyone around the country to create an interactive music film. they can use songs from great recording stars. they will create short films using this new interactive filmmaking technology. >> we had a segment earlier about cool 3-d animation tools. you think about go pro and the fun technology through something like that, or shutterstock, being able to use stock photos easily. how is

jon erlichman is with us from los angeles.in talks with time warner cable and other partners about content. what exactly would a partnership look like? >> when you think about the people who use cable today and the box they get with it, you pay for that box. if you are in a position to use apple tv and still have a cable deal, are you able to do away with some of those costs? i think on the actual hardware, apple has to stay competitive. they have to stay competitive with roku. we just heard some on the google story. the chromecast they put out at a very low price got a lot of people's attention quickly. that is part of the story. apple has to continue to come out with new devices. >> the pressure has been on apple to come out with something new. it does not sound like the big new tv that people have been talking about. >> you have to keep microsoft in mind, too. the xbox1 has some of these capabilities. what do you hear about apple? they were trying to get involved in these negotiations with the carriers and with cable operat

jon erlichman joins us now from los angeles. abouts a little bit more the new chief executive of microsoft in some of his challenges. >> there are challenges. he does a lot to the table. he understands the world of microsoft. they ultimately went with a candidate from inside a company who has spent more than two decades with mike are soft. he talked about this idea of wanting to be able to cut enough red tape so that they can push ahead in new areas. at least as the strategy of having both hardware and services and those being important to microsoft going forward, the cloud services part of the business that he has been focused on has been growing. i think a lot of people are pointing to that and thinking about how microsoft can sort of retool itself to be focus for a more flexible, convenient way. there is so much competition in -- and new ways of doing business. to get that sense of his -- and that being his focus area. >> what role will bill gates play at the company? >> the news obviously that we had been first to report was

the legal movie, jon erlichman joins us now from l.a.. is everyone talking about this?ave all been created in our lives. i'm sure you made some awesome legal stuff growing up. i am curious about it. dan lynn has made some good lego projects as well. he wanted to get this made as a movie. dan, thanks for joining us. what was the one thing that pushed this movie i had? >> i love lego. as a parent, i was making big action movies. my kids could not watch them. i wanted to make a movie that my kids and i could watch together. as i became a parent, we would play blago together -- lego together. when can we make a movie that the whole family can go to? >> what is the biggest difference between making a movie about lego versus making a sherlock holmes film? >> this is my first animated movie. i only made live-action movies before that. it is a much slower process. it took five years from start to finish. it is a long, painstaking process. it is gratifying at the end. you were aroducer, bridge between late of the legony as warner bros., -- the company as warner bros., who maybe

jon erlichman found out. >> to be saw transformers dark of the moon of you might result -- remember af exploding cars. you can see this is not cgi. you have blue cars and red cars flipping, even school buses. the device that makes it happen is the pneumatic are flipper, helped to dream it up for michael bay when they were shooting armageddon. ite is how it works -- looks like a floor jack, the difference being that it is noted with high-pressure nitrogen. that pushes into a piston that then lets a car as far as to defy the -- as 25 feet. >> as much air as fast as you can, that makes it work. 3, 2, 1. that's how you flip a car. the car flipper, the industry tool of choice with a canon. now they can flip this for about $100 a day. >> to install a cannon and a car, that is going to cost you or 30 finds that by 25 cars, that it's expensive. but if you want to get fancy with the flipper -- take the cable and wrap it around the car. on that high-speed accelerator, along with the car flipper commented will pull the car over. >> what do you do with the car after you flip it? >> these will all

withat was the tivo ceo jon erlichman.now for the bwest byte, one number that tells a whole lot. our bloomberg news tech editor has the bite for us today. were, the number of cities google is in talks to bring its high-speed fiber service, currently in three cities, bring it to others with speeds up to 100 times faster. already in austin and utah. i have been looking at reviews of google fiber and people are using it. also see some people cannot really maximize the potential of it. class you think about, i have -- comcast and at&t here. people complain about speeds a little bit but getting 100 times is probably more than you need. a couple hundred times woods -- would be a start. ♪ >> i am mark crumpton and this is "bottom line." the fed released its minutes from its late january meeting, the last under ben bernanke. then, deadly violence in ukraine raises fears of a civil war. insident obama arrives mexico to attend a north american summit. to our viewers in the united states and those of you joining us from around the wo

confidentially i want to bring in jon erlichman. it is interesting with a question like go pro.have become so successful in the camera business. where today go from here? >> you hear a lot in los angeles about go pro trying to be more of a media company. nick has said that. on the road to the ipo, you will hear a lot of that. investors are curious about that next page or chapter. the reason they can point to that is obviously they are a big hit on youtube. people like their videos. they are packaging these videos for others. there is next chapter that they are still figuring out. will there be go pro-branded content? facebook and twitter are kind of like the new cable company. you find all of the different videos there. these guys may be like the new cable network. >> we will continue to follow the road to the ipo when it comes to go pro. thank you. still ahead, the world's second-largest toy company is heading to hollywood. we will speak about the new lego phone. >> 1, 2, 3. i am so pumped up. ♪ >> welcome back to bloomberg west. i'm emily chang. print by brick, lego has built

jon erlichman phil mattingly, thank you for bringing us the story today.ing out, will the faa start cracking down on the use of illegal drones? we will discuss that next on "bloomberg west." ♪ >> this is "bloomberg west," where our focus is on technology and the future of business. i'm emily chang with your bloomberg top headlines. is raising funds and putting evaluation at roughly $3 billion. is raising funds and putting evaluation at roughly $3 billion. products.kes rakuten buys chat app viber. it will help expand their user base outside of japan. and smartphone growth is slowing in china. shipments fell in the fourth quarter. the first drop since 2011. several factors may be behind the drop due to the popularity the fact that they did not start selling the iphone until the end of the quarter. businesses are not waiting for drone rules to be issued by the faa. f drone usage is in the tens of thousands. this drone boom is overwhelming the faa. airborne. >> drones have gone mainstream. >> they are making a movie without me. real estate is one area where re

i am joined by jon erlichman, who helped break this news from l.a..ell us in the final hour how this decision officially came together. important inoad is the context of this whole story. this was a company looking at other internal candidates. it were looking at ceos from other shops be in at the end of whoday they picked somebody knows bill gates, knows steve ballmer, has been there for over two decades. he says he is going to be ruthless about allowing this company take on the next chapter of what microsoft will be. thisill gates role come a is still a tough one to figure out exactly what ultimately he will be doing. presumably have a chance to be a bit more hands-on on a variety of things that satya nadella is pushing forward with. they have a good enough relationship that that is not seen as a conflict or challenge on either side. ella thatds like the sounds like the della -- sounds has asked bill gates -- >> surely he wants the support of the board and to say things to the board that will support him in his job there. it was always going to be t

. >> i want to bring in jon erlichman. as well as edmund lee, who covers media for bloomberg news in new york. let us talk a bit about the set-top box wars. if amazon comes out with this, what does this mean for apple and apple tv? what does this mean for netflix? >> i think it means competition. amazon has been serious, especially in this town, about the originals. they are paying top dollar to make these programs, the same way that netflix is willing to spend top dollar to do our original programs. amazon has clearly learned a lot from the amazon prime video offering that they have. that is available on all sorts of devices, like rogue who -- ro9ku. maybe there is a discussion they make that a standalone service. you were talking about whether amazon prime prices go up. they could say, here is the standalone video offering. you pay a little bit more. you could ultimately get everything tied to prime. it is hard to know exactly how it will play out. >> tom rutledge said today on the earnings call that if they did the deal

fallon.r >> jon erlichman, thank you.so wrapped up in twitter being down, twitter is not having a good day either. view,m the 30,000 foot the big issue with pandora continues to be content cost. 343 million dollars in content cost for a company that brought in $600 million in revenue. they are spending so much money to pay for the music that they are playing that it's a and they areng continuing to find ways to lower costs. >> how does that differ from spotify? >> we really have not seen their numbers although some of them have leaked. will they face pressure from ih eartradio? paid,ace the right to get ascap, they control the music rights so we spoke to the president ahead of the 100th anniversary. i started out by asking a little bit about the history of the organization. check out what he had to say. collect, we license and royalties on the music of almost 5000 members. 40 years ago. i'm writing a book right now, gratitude and trust. i'm grateful for the life i've had and i trust in the future largely because of ascap

>jon erlichman had some fun with it. >> if you saw "transformers: dark of the moon," you might recalloding cars. this is not cgi. and even ars school bus flipping. the device that makes it happen is the pneumatic car flipper. he helped brew it up for michael bay when he was shooting "armageddon." a car is placed on top. it looks like a floor jack. it is littered with high-pressure nitrogen. it pushes into a piston and throws the car as far as 25 feet. >> you want to get the air in the cylinder as fast and as much as you can. that's what makes it work. 3, 2, 1. that is how you flip a car. >> before car flipper is, the tool of choice was a canon. to filmmakershem around the globe for a couple of hundred dollars a day. >> to install a canon in a car will cost one to $500. that gets expensive. >> if you want to get fancy with the flipper? >> take a cable and wrap it around the car. you pull on the high-speed accelerator along with the car flipper, and it will pull the car. >> when you pull the car and it is in rough shape, what do you do with the car? >> they will go to a record -- wrecke

jon erlichman is with us from los angeles.ber johnny carson and now i just feel old. >> really? good on you. when you look at the numbers behind the tonight show, it's amazing how big of a risk this is because that program is one of the few nbc had was number one and by a mile. it generates a huge amount of revenue and the reason they are doing it at this point when jay leno is still under contract, which is a little awkward, they have the olympics coming up. they want to make this transition to jimmy fallon so they can get that younger demographic. why not do it when a lot of people are watching nbc? >> you spoke to bob eiger about how they are preparing for the switch. any color there that you can share? >> jimmy kimmel is part of the catalyst for this happening. they decided they wanted to move him to be more head-to-head with the tonight show and in some ways it may have forced the hand or forced it earlier. we asked him about the marketing strategy and here's what he had to say. >> it creates a need for us to aggressively

jon erlichman is with us from l.a. peter cook is in washington, d.c. with the regular tear angle. understand new york alex sherman joining us. john, i'm going to start with you, how did this happen? >> we know that there has been reported a lot on this. this enter from chart tore get bigger. in a world where people have a lot of options outside traditional cable. facebook, any big platform where they can spend their time these days, the cable industry feels like it needs to get bigger so it can spread the cost around, the cost of making the service better and the technology that goes into that. charter had this great interest in doing this deal with time warner cable. time warner cable wanted them to pay more money. they wering about the possibility of comcast acquiring some of the assets of time warner cable and along the lines they decided comcast, it's a better move to get bigger than everybody else and have control over marks like new york and los angeles and chicago, philadelphia, the d.c. area. they truly are the biggest player in the cable business in the united states. >>

i want to bring in serena fido from new york as well as jon erlichman nla -- in l.a.elephone we know about the interest from google and -- tell us what we know about the interest from google and microsoft. >> there was not really a formal process to sell whatsapp, but the company through the years as it publicized how much users it was gaining, that got approached by other companies. we learned that google and microsoft tried to buy the company and did not succeed, where facebook it. the price of facebook paid is probably unbeatable, and i don't know that for sure, but another concern that whatsapp founders might have had is the fact that google and microsoft have their own operating system and maybe would have closed the app that can run on every smartphone. and facebook is like that too. the price is like unbeatable. >> $19 billion, that is hard to beat. what do we know about how this deal actually got done? on the face of it seems like mark zuckerberg shaking hands, not asking advice from anyone else. is that what happens? >>-- happened? >> clearly there is more in

jon erlichman is at dumpster box in l.a. or it what you have?er is one, i finally got my dumb starbucks coffee. you guys have been talking about online you can buy all sorts of dumb starbucks merchandise. that forbucks tweeted now, the only official visa merchandise is this fancy coffee cup. at least they got your name right. they are not that dumb. >> thank you, yes. they are not advising people to drink this coffee which is ok and take the vomit, but they could do that, you might have some competition. they have put out the most frequently asked dumb questions. that is going for $75 on ebay. >> that is dumb. >> they have run out of photocopies or. >> we are the dumb people talking about it. will this end up on the tonight show? who is behind this? >> you just blew my mind. you go, we introduce a new angle on where the back story comes from there . i will say this is tonight show related. >> thank you both and thank you all for watching this edition of "bloomberg west." >> we are all a little dumber for that. >> we will be back tomorrow. ♪ >> f

jon erlichman joins us now from l.a.ell us what this is. >> i had never heard of it myself. tools are created on film sets on the fly and they always think of ways they have to dream up these new things. this one had staying power because it generally works within a film's budget. this is the back story -- if you saw paramount's "transformers" you might recall a sea of exploding cars. you can say that this is not cgi. you've got all color cars flipping and even school buses. the device that makes it happen is the pneumatic car flipper. oscar-winner john fraser helped dream it up or michael bay when he was shooting "armageddon." >> this is michael bay's favorite toy. >> a car is placed on top and it looks like a car jack but it is loaded with high pressure nitrogen which pushes into a piston which throws the car as far as 25 feet. >> you want to get as much of that air in that cylinder as much and as fast as you can. that's what makes it work. . 3, 2, 1 that's how you flip a car. >> before car flipper scum of the industry

jon erlichman and cory johnson, thank you all. as we head to break, be sure to turn into tomorrow when disney's ceo will be joining us live from disney studios. we will talk about the company's earnings. we will have more on microsoft's next. ♪ >> welcome back to "bloomberg west." we are discussing the big news of the day. microsoft officially naming its new ceo, satya nadella, to replace steve ballmer. they've released a series of videos. take a listen to what don thompson had to say. >> after reviewing all of the candidates, satya nadella was our first and unanimous choice. he has the technical expertise, the product experience, and the leadership attributes we were looking for. >> former ceo steve ballmer also had something to say. take a listen. >> i am so excited today to be part of announcing satya nadella as our new ceo. he is a microsoft veteran, 22 years he and i have had a chance to work together. i know satya nadella will lead this company into the future and that future is going to be right with innovation, with growth

our editor at large cory johnson and jon erlichman join these microsoft experts. i began by asking this roundtable just who is satya nadella. >> i spent a lot of time working with satya over the years. he is a rare combination of strong technologist as someone who has a strong vision and focus and is in his focus. i wouldn't think of him as somebody who just focuses on technology. it is all about how we bring technology to market and how we actually transform the business as a result. if you look at what he has worked on, i think he has a great track record and he has done a lot for the company and there is a lot more he can give. >> how did he get the job, kurt? >> i am not sure i'm the person to ask. i think he is probably the right person for the role. i read what you read in the press. there is a discussion of whether they wanted somebody in terminally or if they wanted a strong candidate externally. knows the business super well. he knows where to go. he has a very strong relationship with the other leaders in the organization. yet he is not shy about challen