joining me, paul sweeney in new york. it would appear that the dam has finally broken. major programmer is saying screw the cable companies. we are going directly to consumers and giving them what we want. >> yet, and they have thrown down the gauntlet here. this is a key issue for the whole media ecosystem. the big thing about these distributing cable companies satellite companies, media companies like disney. they have all lived and died the last 30, 40 years with the concept of the bundle where consumers can pay 80 dollars when hundred dollars a month for a whole suite of channels, and now the question -- is that bundle at risk? is there a market of consumers who want to pay a much lower price point for fewer channels? dish is putting out a channel lineup that interestingly does include espn and we will see the market a man. >> let's talk about that. espn and hbo are the two single properties that people pay up for and get stuck with a package or whatever. particularly with espn -- i watched a lot of espn this weekend. there was some spectacular football and also the

paul sweeney is also with me. he pieces of aol's programmatic and search business meld well with yahoo!? >> aol's programmatic platform that they have been investing in would meld with anyone that wants to be a player in online video, it particularly mobile video. yahoo! is clearly a player in online video but they have not developed a good mobile business as of yet. they are lagging in mobile by their own admission. the aol-yahoo! merger a lot of investors are skeptical about that. the real viability of that going forward and whether that would create show order value. >> is star board, with just 1% of the shares outstanding in any position to demand anything from yahoo!? >> they are in the position to demand something only as much as star board believes that most of you who's other shareholders -- yahoo!'s other shareholders feel the same way. it is hard to argue with your given they laid out. in the first letter to marissa mayer, illustrating numerically how much trapped value there was in yahoo! by virtue of th

thank you, paul sweeney.bloomberg west" ♪ will be right back. >> i'm cory johnson this is "bloomberg west." we hear about big new themes and technology. wearable technology-a small public traded company out of rochester, new york has been trying to mind is but got a big boost from intel. it's called viewsics. is that the consumer electronic show and your company has been going after this notion of wearable something or other for a long time and now oculus happened in intel makes an investment in your company, why? >> i cannot really speak to all of the intel reasons for investing in vusics. i would not say we are a leader in wearable technology. it is really here today and it's happening all over. one of the holy grails is wearable display systems. the problem is, most people don't want to look like a nerd when they are wearing their wearable display system in oculus is a prime example. even google glass has got challenges because you look odd when you are wearing it. the technology that we have been working

paul sweeney a bloomberg intelligence.pproach works in some cities like bristol, virginia or lafayette, louisiana. is this a model for the rest of the country? >> competition is good for consumers. the more competition you have, the higher prices you get. the only reason you can get 300 megs from time warner cable is you have verizon coming in with competition. there is no doubt the competition works. the problem for cable stocks is that not only is the president really pushing his agenda of competition, but at the same time he is pushing an agenda of using telephone monopoly like regulation called turtle two for net neutrality and you are going to over a more regulation, as well as more competition. we think that is going to create a lot of pressure on cable stocks and the comment you just made about raising the bar for broadband -- we are not going to consider broadband as anything sub 25 makes -- how do you say there is no competition in broadband and then allow comcast and time warner to merge? we are much more concern

sherman wrote the story and joins us along with paul sweeney. alex let's start with you.nes from verizon's ceo confirming the country is entered -- the company is interested in partnering with aol? >> they are partnering, not just with aol, they had discussions with the number of companies about getting into the ad tech game. arise and is more interested in mobile video, -- verizon is more interested in mobile video, eating able to bundle that with a month early subscription. it is similar to what at&t was talking about when it bought directv. if you heard the ceo of at&t talk about mobile video driving the transaction. they see the next wave as being the idea that everyone is watching on their devices, and we can pair content with distribution. advertising allows verizon to make money off the mobile video platform. >> the key is advertising technology, why? >> it is the way advertising is bought and sold on the internet. if you think of traditional advertisements, a salesperson came in and negotiated prices. it doesn't happen nearly as much on the internet because there'

. >> director of research paul sweeney and market makers co-anchor erik schatzker.xt he took on amazon but ultimately selling to the e-commerce giant. now mark is back trying to remake the wholesale club business. look up posco, look up samsung we are going to hear from him next. ♪ >> this is bloomberg west. founder mark lori started a company called jets.com. he sold the business can see for diapers.com to amazon in 2010. he insists his new company is not an amazon competitor. he spoke to lori about his wholesale business model. >> any company at any time can decrease prices paid the business model we have put together at scale is suited to bring low prices. it is not amazon or walmart. they have already set the prices that give them profit margins that make sense to them at scale. we are able to bring low prices because we don't make a profit and we have this innovative technology. >> does that mean your margins are quite small? how do you protect those margins? >> similar to cosco bj, sam's club, they make all their money through a membership. you can still build

i want to bring in paul sweeney of bloomberg intelligent -- intelligence, and my guest host susan lyne the former ceo of martha stewart on the media, and guilt group. set the stage. the jeff bezos get his hand slapped and now he has learned his lesson to put earnings in a report? >> i do not expect that he has changed his strategy -- big investment for the long-term. it is not just his distribution centers. i think investments will continue. he will also make big investments on the media side of the business. i do not expect that to change. however, we got a very rare eps beat, and i think that is what the stock is reacting to. >> what do you think that is about? is bezos listening to shareholders? >> the stock has underperformed in the last two or three quarters. we have seen this is the magnitude that we have -- >> like in the third quarter. >> exactly. we might see a little bit of that. they are probably more sensitive to shareholders, but i do not expect jeff to change his course strategy. >> our job is to tell people what happened at amazon last year. susan and paul, let's bring u

joining us is alex sherman and paul sweeney. alex, what is it about this deal that makes sense for verizon? >> rice and to get into mobile video. it is something -- verizon once to get into mobile video. it is something they have discussed. everything that dish network is doing, trying to get into the mobile wireless service. the name for the game for these companies is to try to come up with a mobile video package and bundle it in with your wireless distribution service that you are buying from rison. -- verizon. they bought intel online tv service. they put three different executives in charge of mobile video. where aol comes in is they have pilgrim at it at technology. they have a platform where an algorithm decides where certain advertisements are placed. this is like advertising 2.0 in a way. instead of relying on human beings, you rely on computers. you can package that with a mobile video service and your content starts to generate money. that's the idea for verizon. whether they get a partnership with a company like aol

paul sweeney is here as well. brendan, is the revaluation of alibaba below that first day pop justified given what we have seen from the past two earnings reports? >> the company had a fantastic quarter from the business perspective. the business had a great quarter. going from revenue to net income, we had a large stock compensation expense which brought them net income. >> can you break that down wartime? -- one more time? >> the company grew gross merchandise value to $126 billion. they grew revenue 40%. about $4 billion u.s.. getting from revenue to net income, a 4 billion rmb which is about -- this is a net income miss. the business is very solid. you have an overhang, the state administration of industry and commerce had a report. this was last july. counterfeit goods, the company defending itself. they are calling out the actual individual government official who took a minute sample size of goods sold. this is almost a year old. white is coming out now, -- why it is coming out now, we think it is overblown

paul sweeney is with us to discuss this. greg rayburn is my guest host for this hour. want to show you this picture of good joe clayton, the dish network ceo, yesterday. he is the head of the marching band drumming up excitement over sling tv. will it live up to the hype? >> i think it's a pretty big deal. one of the issues for media investors is the fact that the tv bundle that the cable companies have relied upon for decades is starting to fray on the edges. we saw hbo a month or so ago decide to go direct to consumers with the internet and cbs the same day made a similar announcement and now we've got this -- dish coming up with a skinny tv package. it's 20 channels at a lower price point. they are targeting millenial's that say don't already subscribed to pay tv service. this suggests that it is not a cannibalization issue. many investors are concerned. >> it's really about espn, that's a big deal. >> you have to have something to anchor this product. you have to have a big channel and they have espn. will there be demand for this skinny pay tv package? if so, who

scott kessler, senior director and head of tech research at s&p iq and our own paul sweeney of bloomberg intelligence. >> coming up, waiting on the fed -- four hours from now we will hear if policymakers are becoming less patient. >> us, building suspense -- we can only show you eight seconds of this companies super bowl ad. they spent so much go on it they do not want to let the good stuff out early. stay with us. ♪ >> first. bloomberg. >> welcome back to "market makers." i am stephanie ruhle with phil mattingly. it is fed day. economists are not expecting janet yellen to drop more hints about the first rate hike in eight years but they do still think it is coming as soon as june. for a look at how the markets could react, i want to bring in jena martin-adams, and equity strategist and our own strategist, carl. what are you expecting today carl? >> subtle tweaks to the statement acknowledging growth and the ongoing mending of the labor market. the thing to watch for is inflation commentary. said members are concerned about low inflation, core inflation decelerating the last 12 months. w