our bloomberg can jupiter paul kedrosky is here -- bloomberg contributing editor paul kedrosky is heren, the story is changing by the hour every day. things are changing. what do we know, what don't we know? ryne sandberg: the upcoming -- brian: the upcoming quarterly call is going to be interesting. marissa mayer -- she will say we are going to do this revamp to make the company strong again, that will be interesting. we are looking at efficiency, things like that. how it all shakes out? he don't know. -- we don't know. that is why people aren't just -- are interested in knowing what are you going to doing, marissa? how is this going to shake out? emily: yahoo! is closer to considering selling off its core business to what happened here? paul: it reminds me of this whole oregon militia thing. it feels like a hostage-taking. you have an executive team that has control with a bunch of assets. for reasons, including perversity and ego, those include the alibaba shares, it seems clear in terms of all of those pieces the company formerly known as yahoo!, they are all going to get the outsi

paul kedrosky is still with us. i am joined by sprinkler insident carlos dominguez new york. ler helps politicians and others manage social media strategy. paul, obviously, candidates are leveraging digital platforms more than ever. donald trump has the most likes on facebook. ben carson, not far behind. they have twice as many as hillary clinton. >> yeah, it feels like kids on my front lawn. you want to shout at them, get the hell off my lawn. they are showing up, aggressively trying to run digital advertising campaigns. i was looking at some of the numbers this morning. it is remarkable. ad spending is up 20% since the 2012 election cycle in the u.s.. that is nothing like online. since 2008, it has gone up 5000% from $22 million to to $1 billion. it is surprising it is only 10% of ad spending is digital. 50% by expect it to be the 2020 cycle. it is the dominant form. emily: hillary uses snapchat. .eb bush is big on linkedin trump and carson are big on facebook. which candidate gets the best grade? >> they are all trying. a lot of it is still going through traditional media,

back with me as paul kedrosky.hey've been trying to transform the company into something different but the turnaround has been painful. how much longer is the pain going to last? paul: at current rates of change, a lot longer. the problem you alluded to already is you have two very different businesses wedded together. cloud, social, mobile and analytic side of the ibm business is growing reasonably well, and the rest of the business that most people want to ignore and pretend doesn't exist. as the transition has happened over the last three years, the company has shed something like 116 billion dollars in market capitalization as the transition happened. it's really a horrific mess terms of managing the transition across it. the things that could have been done with the equivalent amount of capital had they chosen to go the growth route rather than selling off assets. like 35% of the business is those four pieces, cloud, mobile, social, and analytics. you still have 65% of the business that is everything else that

diego, paul kedrosky, contributing editor. welcome back. jeff, i will start with you.hat is driving all this? >> it is not just about china. it is about the united states. japanese companies want to buy more assets in the united states. so do companies in europe. it is not going through the roof. it is 2%, 2.5%. it is still the largest economy in the world. still pretty good compared to the rest of the world. this is a desire to have more exposure to the united states. right now, it is chinese. a month from now, we might be talking about japanese companies buying assets in the united states. this has been going on for a couple years. emily: let's talk about what is going on in china domestically. does the domestic slowdown meeting we will see fewer of the deals down the line? >> i do not think so. i actually think we are going to see more. it is a broader phenomenon than access to the u.s. market weiss. -- marketplace. this is patriot nation of the yuan. the same phenomenon is driving up year-over-year real estate in vancouver. data last week, 26%. there with london in

story.is a sadder paul kedrosky, cory johnson, thank you both. news for the bad daily fantasy sports industry. according to "the new york times ," the company that handles a significant portion of transactions for fan duel and will quote,says it suspend all processing for payment transactions related to fantasy sports in the u.s. on february 29. acording to documents, representative says the arguments made by daily fantasy sports operators have been unsuccessful and rejected. coming up, from whether to watson, ibm's famous a.i. is another boss. plus, my exclusive conversation with the e.a. ceo. ♪ is sending aboard message to the ceo, get that share price up. as part of 2016 compensation, remedy will get 1.5 million premium price stock options in three years. this is the first time she's getting something like that since becoming ceo in 2012. ibm shares hit a low last week after posting sales that declined for a 15th straight quarter. for 2015, rometty received a $4.5 million bonus payout. staying with ibm, the company officially closing its acqui

let's bring in paul kedrosky. to those numbers. >> the alibaba numbers in general, this is an exceedingly complex company. the closest comparable and its loose is a mix of paypal and amazon. you have of merchandising business, cloud services business and the payments business all caps up under the hood of this giant company called alibaba. the merchandising came in ahead of expectations. payment stood considerably better in the cloud services side of the business, which is small, was up more than 100%. in general it was a slight beat in terms of consensus. they are a difficult company to pull together in value given the moving parts. >> do you want to weigh in? cory: as a public company is very strange. their strategy towards the public market seems to be give us your money, but we don't know what we want to do with it. to come out of the gate with his huge ipo and turner emma slater it's a the market selloff -- we want to buy back shares. that shows a confusion about what they want to be in spite of its size and

for more, let's bring in paul kedrosky. take us to the alibaba numbers first if you would. alibaba numbers general -- this is an exceedingly complex company. is kindest comparable of a mix of paypal and amazon. you have a merchandising business, a cloud servicing business, entertainment is this all mixed up under the hood of this giant company called alibaba. the merchandising side of the business came in slightly ahead of expectation. payment stood considerably better and the cloud service size of the business, which is quite a small component to be fair, was up more than 100%. in general, it was a slight beat in terms of analyst consensus, but fairly positive across the board in a very difficult company to pull together in value giving the moving carts -- parts. >> do you want to weigh in? >> alibaba as a public company is a strange thing. the strategy toward the public market seems to be give us your money, but we don't know what to do with it could to come out of the gate with this huge ipo and turn around and say, oh, the market is up, we want to buy that shares shows

david: paul kedrosky and cory johnson, thank you for being with us. -- rickhave black rock reader witht a little bit over 30 minutes away from the opening bell in new york. welcome back to "bloomberg ." stephanie: we were talking about the zika mars. i would rather talk about the markets. virus. the last time we saw a rick, it was in the snowy mountains of ,ominoes, switzerland -- davos switzerland. lisa abramowicz with us for the hour. first, let's get you some first were news. agency the u.n. health says the spread of the zika virus in south america has been explosive. the virus carried by mosquito is linked to 23 countries. donald trump standing by his position to skip tonight's presidential debate. he calls the sponsor biased. we will be live from des moines. the seven astronauts who died in the challenger disaster will be remembered today. 30 years ago on this day, the shuttle exploded just after liftoff. at --ill hold ceremonies global news 20 for hours day powered by 2400 journalists and 150 bureaus around the world. matt: futures up across the board. we just got some direc