ebay--y being paypal or buying paypal or ebay?> obviously paypal, that is> something that could work. amazon has a payments business it has not had much traction. i think that plays the whole idea. marketplace is not as bright. we have spoken to the market president of ebay over the past year. theceo of the new ebay once spinoff happens, we do have a quote from him. a listen to what he had to say. >> for us, the priorities have been russia, matt and -- latin america. all of the emergent markets are growing rapidly. it continues to be. domestic china will certainly be in the focus over the next few years. oute ali baba does move from china around the world, we will hopefully move from around the united states into western china. it will be very interesting. ebay or paypal? a pretty challenging job. i suggest it be flat over acquisition. that might be easier than it might look. , an early member of the paypal mafia. we do not have david yet. inegust heard from devon when the future ceo of ebay. what should be the first thing on his

a paypal senior executive. we started by asking about the incredible reversal on paypal. >> i am not sure it is incredible. from the clips you just laid, -- played, most of us believe in one form or another a general feeling to get paypal its own wings in the management team direct correlated compensation to the performance. i am glad john is the one calling the shots. that preserves their relationship with ebay. david is worried about single digit percentage volume. that rings true. losing that incredible volume would be a bad thing. i think on the incredible news it seems great that john is willing to pull the trigger. remains to be seen whether the management team around the new paypal will be able to realize the full potential but very hopeful it well. >> what do you think of the american express executive now in charge? i know i have spoken to many of you guys over the last few months. some of you wanted a former paypal mafia member to be ceo and indeed that is not the case now. >> well, i do not know him

now we go back to paypal. this news it% on is spinning off paypal in 2015.very own emily chang actually spoke with the founder of paypal back in august. here is what he had to say about a potential spinoff." >> should paypal be spun off? >> there are large and synergies between paypal and ebay and maybe it is something ebay should consider at some point in the future. i think ebay was right to resist carl icahn. we do not want them to be dictating what silicon valley does. --groups, it turns out that oops. it appears that carl icahn got his way and since the stock is up 11%, he was right. >> take a brand like williams-sonoma. you see a lot of counterfeit on ebay, and that has been primaryrs and brands' concern with ebay because they do not respect brand integrity. who do they not work with to punish ebay? they don't work with paypal. within three month at this span, you will see huge retailers decide to accept paypal and their growth will celebrate. donahoe sojohn resistant to the idea of spinning off paypal? what was his argument? >> it is the reason you pr

jobs growingt paypal. but we are high -- we're going to have a massive disruption. -- little card is not as productive as my iphone 6. we use braintree, which is an ebay company. it gives me pause. ebay wants to use our data. we run a market place, we were -- ebay runs a marketplace. it doesn't mean they are not seeing her data. >> they are processing your payment. >> they process the front end. we do double payment. we pay with another series of financial instruments. the financialthat industry has gotten more complex. it makes sense. two weeks ago, paypal got whacked twice. maybe carl icahn thinks he was the reason for this. i never like financial guys trying to dictate to technology companies. to weeks ago, back to back days, twiddle -- twitter and apple went on strike. there were sitting running both, you go wait a second. i'm seeing the competitive issue. two days in one week, two days ago. deal.k that is a big >> two major players going with their competitor. it is a great point from scott. ,aybe thi

less than paypal, but it implies a value of paypal for more than -- of more than $30 billion. it is no apple, but it has done pretty darn well. 20 times. >> let's look at the numbers. versus 10% growth we have seen in ebay revenue. according to ebay, paypal facilitates one dollar in every six dollars spent online today. analysts say it is difficult to get market share numbers because there are so many vendors and so many payment options, and there are more springing up every day. another way that is interesting to look at it is versus credit card companies -- they are witnessing double the growth of amex or visa. mastercard, 13%. paypal, 26%. obviously you see bigger volume growth. >> all right. we see john donahoe having to leave his post. is the lesson here, if you are the ceo, do not stand up and speak out against carl icahn? was that a fatal mistake? now he has to leave the building. pays tove seen that it go along with carl icahn rather than go against him. if john donahoe is being forced out or if he is stepping aside saying i do not want to be part of this. >> it is pos

paypal is just one method. from is payments methods china, from germany, from brazil, from russia, all competing to be the next paypal of their country. we might see much more of that growth moving goods and services online print we just have to accept that here in the world. it is getting much more complicated, not simpler. >> what can people learn about this online payments world from you? online platform for managing online transactions like a merger, or financing, or ked -- actas security -- asset-backed security. i learned some lessons, be very focused on your clients and on the technology. that is why i throughout the selection of shulman as ceo. a leave benchsuch from paypal alumni, why not look at during the band back together? bench of paypal alumni, why not look at getting the hand together?nd back even though the ceo selection has already been made, hopefully they will be reaching out and trying to get some of these talented innovators involved with the company at the board level is the public offeri

i want paypal and hope paypal gets acquired or has a currency to do something. that is not going to happen overnight? the stock is up correctly because suddenly management realizes this is a good thing. i'm not chasing it. >> you're not chasing a lot of things. >> i don't want to. >> meantime, pro democracy protesters in hong kong vowing to continue their democratic graciouses. this despite calls from the government to stop the civil disobedience immediately. susan li is on the cnbc business news line. >> if you can hear me, i'm in the midst of the protests right now. the crowds are expanding. this is the biggest protest we've seen in hong kong. there are thousands streaming into the main protest site. i'm looking at 200,000 plus. i've never seen the main thorough fair. people are being herded into the central part of the city. even with thunderstorms and lightning about an hour ago, people are not going anywhere. they are coming out in drove at this point. tomorrow is symbolic in hong kong. people are coming out in droves to voice their opinions against beijing

ebay and paypal splitting up.w tells us what the moveveinvestors. >> and a quick look at the bay bridge. back with 15 minutes of nonstop news after this break. insurance companies are spending millions of dollars trying to mislead you about the effects of proposition 46. well here's the truth: 46 will save lives. it will save money too. i'm bob pack, and i'm fighting for prop 46 because i lost my two children to preventable medical errors and i don't want anyone else to lose theirs. the three provisions in 46 will reduce medical errors and protect patients. save money and save lives. yes on 46. >>> welcome back. officials confirming it was a student shot at a high school near charlotte, north carolina. this happened in stanley county, north carolina at albemore high school. we'll bring you the latest information as soon as it comes into our newsroom. officers chasing down a fraud suspect may have caught someone much more sinister than they originally thought. bob is in palo alto where police have caught up with th

because now a liberated paypal will be coming. >> how many opportunities has paypal already missed. being captive under ebay they lost out on amazon that was attached to a competitor. apple went ahead and negotiated with hundreds of thousands of merchants and the paypal is trying to go into brick and mortar. so how much catchup do they have to play. >> they have a lot to play. to be honest i personally don't know anyone who uses paypal in brick and moorter to pay for things. that's not saying a lot because most people don't use any mobile system for that. i think there is time for them to do it. it is not like they are out of time. but they have missed numerous opportunities. they should by all rights be way out ahead leading now and, you know, there really is nobody leading. >> right. >> so it's hope. >> let's move on to your review walt. you tested out wifi on the new iphone 6. speaking of apple. focus on t-mobile for instance. wifi unleashed. what is that. >> t-mobile is the smallest carrier and trying to be very unconventional. one way to make up for a small network is to wrap t

ebay spinning off paypal.that story this morning. >> thanks, andrew. of course we've talked about the potential or what will be the split of these two businesses likely to take place in the middle of 2015. you can never fully guarantee in terms of how long the regulatory process is going to be which can be quite time consuming. also creating a capital structure for both ebay and paypal and other things that go along with it. when the split does take effect one very surprising part of this announcement is that john donahoe will not be the ceo of either company. devon winnic who runs at ebay will be the new ceo of ebay. and dan shulmanchulman will become the ceo of a newly independent paypal when that takes effect. as for donahoe, he's likely to be on the board of both companies but it's unclear what his future holds. i did ask him why that change and what he's going to be doing in the future. >> my most important responsibility going forward is having made this decision to separate over the next year to ensure

ebay decides to spin off paypal.money manager has accused the firm of atf manipulation, and hong kong prepares for a fifth day of former pimco money manager has accused the firm of etf manipulation. hong kong prepares for a fifth way of protests. i want to take a quick look at the markets. stocks paring earlier gains. the biggest drag on the market today is energy. the sector is down more than 1% with oil taking a big hit, suffering its biggest drop in over a year. crude oil

does pay paul -- does paypal testis paypal see this as a threat or a friend? ? >> it's time for bloomberg television to go "on the markets ." let's show you where the session is. most of it has been in the red for the day. the s&p 500 and the nasdaq ended in positive area. the s&p is still within one percent of its all-time record high that it hit last week. we want to take a look at the pounds today which rallied against most of its peers after a poll in the daily record newspaper put the pro uk lead in the scottish referendum. until now, it has been the best currency among developed economies. the british economy has broken out ahead of other g7 countries. >> you are watching "bloomberg west." i am emily chang. pandora has just signed a major licensing deal with bmg. the deal brings songs from the bmg catalog to pandora including songs from the on-site, -- from beyonce and bruno mars. and frank sinatra. it demonstrates that pandora and the music industry can find common ground. apple pay is ready to launch in just a few weeks. paypal will be supporting the ser

paypal purchased by ebay way back in 2002 for steal, just $1.5 billion. it would go on to make ebay a staggering amount of money. taking paypal out from under ebay was this man's idea. carl icahn announced who would lead pay pal. but the big news is the current ceo of e bay, john donahoe, is neither one of those two names. they say donahoe will stick with the company through the transition and then move to the board. he's been under criticism. donahoe gets promoted and ebay becomes two companies, ebay and paypal. >> what about the timing? why now? >> today it's before the bell. you want to get all announcements out before the bell itself. as far as why tuesday? >> yes. >> that i couldn't say. that's a tougher question. >> it's the end of the month, too. >> there you go. >> we have new details this morning on the man hunt that kept police on peninsula busy for hours yesterday. we're getting our first look at a suspect who officials say befriended a man in order to hide from police. he was eventually taken into custody but this was a bit of a process. >> re

>> paypal is big in itunes. google has google wallet but recently added paypal as a payment. of the things people don't really appreciate is while paypal functions across the ecosystem, it functions from consumer to merchant and everything in between along with being the most trusted digital wallet, it is a payment method and platform. the button you push may be itune or google play but paypal is a payment within that. it supports a number of transactions when we are we're not necessarily the wallet. we can say we accept other payments like bitcoin. we said we're going to make it seamless for merchants to accept a number of wallets and payments. the world will have more of this. >> including apple pay. you are compatible with apple pay, however, apple is encouraging people to use the official partners. right? does that mean it is risky to develop for apple pay using braintree? >> absolutely not. apple said here are some providers we recommend. but we work with any player that is out there. we strongly recommend you use somebody that has an s.d.k. for these things. we certainl

paypal will be supporting the service however, paypal is not on apple's initial list of official appletners. does this spell problems for the future of paypal? ere with us in the studio is the owner of braintree. why isn't paypal or brain tree on the official list? >> if you look at the list of targets, there are a lot of players that are not there. most notably the vast majority of major retailers are not there. walmart and best buy have said they are not doing it. it is interesting as a product. it has beenatnfc, around a decade and is not really gotten traction. are major unanswered questions about the security and who will be responsible for fraud. until those questions get answered, a lot of the merchant population will be sitting this out. we have always been an open platform and we support a variety of payment messages -- methods. we set for merchants who want to use us, we will support those transactions. we are one of the only players that is across the ecosystem from the consumer to merchants. we said we will support these transactions. until many of these questions around se

as so many members of the paypal mafia have income you have said you think paypal was a failure.? >> it was a failure in that we did not achieve our original failure of a completely new currency system for the world. >> what about bitcoin? >> i am probably psychologically biased against it. i would be tempted to come up with reasons why nobody would succeed at it at this point. >> but you think chances of it succeeding are unlikely? >> my sense is it is still slightly too cumbersome to work at the end of the day is a new payment system. but should paypal be spun off from ebay? >> i think there are large synergies between paypal and ebay. maybe it is something ebay should incinerate some weight, but i think ebay was right to resist carl icahn. we do not want him to be did dating the way that should be done. but if it is spun off, who should be ceo? what is critical to operated not just as another business. >> someone from the paypal mafia? >> i don't want to name names, but there are people from there that could be good. >> there will be a full 30 minute interview with peter thiel

paypal is a wallet system designed in the 1990's.le pay -- the fundamental idea behind the product is you should not need a wallet or need to go somewhere else. you should be able to authenticate with your fingerprint and the transaction is done. i think it's going to be interesting to watch that play out. it is going to require that ebay and paypal -- reconsider the value proposition for end-users. >> could take braintree and stripe out of the equation in any way? >> the design of apple pay today is carefully crafted so it enables apple to provide the user experience they want or their users while still maintaining all of the other properties required any other parts of the ecosystem. these companies are selling in multiple countries, on different kinds of devices, in different channels. not all just through phones, right? these companies need to have a commerce infrastructure they build on top of. it would be an enormous undertaking for apple to build all of that themselves. it's a more obvious strategy to work with the most succes

it is a way to monetize paypal. and that is where all the social media companies are really coming in. can they monetize paypal like products so let's get it out there. i think it's a good idea. >> i'm moving up. i you can hit the curve. >> all right. >> good to see you. coming up ebay and paypal are splitting which is exactly what carl icon was hoping. >> there should be a separation sooner or later. i think the question is not if but one. >> the when is now. and also in news today. dan loeb's involvement. then what will oracle look like without larry ellisson. we hear from mark hurd and what the traders debate. how to play rn under the new regi regime. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and

as so many of the paypal mafia have been, you yourself think that paypal was a failure. why? >> it was a failure in that we did not achieve our vision of a completely new currency system for the world. >> what about bitcoin? doesn't that get closer to what you imagine? >> i am probably psychologically biased against it. if we could not succeed at a bell, i am probably tempted to think of reasons no one can succeed. -- if we could not succeed at paypal. i think it is probably too cumbersome. >> should paypal be spun off? >> are our synergies. it may be something ebay should consider in the future, but i think ebay was right to resist carl icahn. >> if it was spun off, who should be ceo? >> it is critical to have someone with the cents, not just someone running an operating business. >> one of the paypal mafia? >> i do not want to name any names, but obviously someone there would be good. >> my interview with paypal cofounder peter thiel. there will be a full airing of my interview on studio 1.0 coming up in a few weeks. turning now to alibaba. couldinese commerce giant po

on the paypal side, i love mobile payments and waiting for years and paypal can be a player there if they can get ahead of the curve and management is behind and they need to catch up. if paypal does the right things i think ultimately they have a brighter future than ebay and ebay could make move this is's attractive, as well. this is a better separate company than put together as one. >> to david, implying that there could be -- maybe i misread what you said but, you know, with alibaba coming online here, they have a huge war chest, could they go after paypal at some point? would you think that would make sense for jack ma to look at paypal at this point, ross? >> absolutely. depending on the structure of the ownership after the spinoff, if i'm alibaba, i would look at ebay or paypal and considering the success of ali-pay and how important to separate that from the alibaba shareholders, i would think it's smart for them to buy ebay. >> do you agree, david? which would you rather have? >> in terms of looking at the two, i'll take paypal. as well as also having alibaba coming in more

i talked to peter keele about the future of paypal which he -- peter he'll about the future of paypal and bitcoin and what it takes to be a successful on to her. first, to our lead story -- closer toipos inching becoming the biggest ipo in history. the company just used it by from --$266 -- from $66 $268 a share. they could raise money $1.8 billion just shy of the global record, which is the agricultural bank of china's $22 billion ipo in 2010. meanwhile, the alibaba roadshow ,et with investors in hong kong reportedly saying he will not look for a valuation that is too high. joining me now is jack green and leslie hecker who covers ipos for bloomberg news. i will start with leslie -- what's the latest as far as we know and what is the thinking behind this new price? >> you might be thinking to yourself it moved up a couple of dollars, what's the purpose when they can price above the range? with who aree sources working on the deal say the way -- the reason they did it was to give investors a better sense of where they will price the ipo. it would be unlikely it's priced above the $68

i don't remember ever seeing these paypal commercials. they're everywhere now. maybe buy paypal. i do believe it will be bought out in the next two years. >> we can talk about faith and trust on this show don't you remember ebay said they would never sell off their spin off. it's at the cost of the ceo's job. >> he deserves to lose his job after that. >> they said time and time again they would not sell it off. >> that shows the value of him. >> activists investors many people consider them vultures that come in, but i believe they do create and cause value in the market. >> charles: they do a good job making value for themselves, but do the activism -- i see them as a hit-and-run artists. i'm not knocking them. they're the only guys in the hedge fund making money. let's talk about these guys. now, these guys are doing well. they got the women in their cells and everybody is sort of what's next. what's next. whole foods was reacting great today. i do think something is going on there. what's the next big play? mcdonald's surged into the close what's next? >> i think timewarner. a

you can pay for paypal at home depot, for instance, but the move allows paypal to flex its muscles. this is the new battleground, your wall etd, the next hot thing, like social networking a few years ago. paypal will hire an executive from american express to run the company and the split should come early next year. >>> the oakland raiders could reveal today who the team's next head coach will be. dennis allen was reportedly fired over the phone this morning after the raiders lost to miami. the raiders have ten straight losses and started this season with an 0-4 record. there is speculation that tony sparano, the team's offensive line coach, could take over, though nbc sports reports that's not true. other news outlets are reporting the raiders are seriously thinking about bringing back jon gruden, who was the head coach of the raiders from 1998 to 2001. here's some good news for all football fans. the commission voted to do away with the nfl's long standing blackout rule, which was put into place to make sure fans went to games instead of watching them at home, but that is no more

speaking of the apple, paypal going on the offensive. the company taking out a full page ad in the "new york times" slammi inming apple's security record. we want our money safer than our selfies. i guess where apple is weakest right now. >> one thing for paypal executives to say they are not worried about apple but when you take out an ad that goes for the jugular of a company that has rolled out a new launch that does effect part of your business model, i think that speaks highly for how paypal feels about apple even if it is not directly saying that. >> i've employed this tactic. the criticizing up tactic, you never want to criticize someone you feel is below you in terms of market competition. you want to go up. that is what they are doing here. not unlike apple in 1984 when they criticized ibm. >> all of a sudden paypal has to be scrappy in a business they helped invent? >> i know. >> paypal isn't in the same business really that apple pay is trying to get into. i think that is kind of the problem here. yes this is kind of clever. >

i talked to peter keele about the future of paypal which he -- peter he'll about the future of paypal and bitcoin and what it takes to be a successful on to her. first, to our lead story -- closer toipos inching becoming the biggest ipo in history. the company just used it by from --$266 -- from $66 $268 a share. they could raise money $1.8 billion just shy of the global record, which is the agricultural bank of china's $22 billion ipo in 2010. meanwhile, the alibaba roadshow ,et with investors in hong kong reportedly saying he will not look for a valuation that is too high. joining me now is jack green and leslie hecker who covers ipos for bloomberg news.

paypal was the right in between. not as successful as some other companies by better for the experience of starting new businesses. >> is creating a successful new business prose or poetry? >> it is more poetry than prose. it is not a science. there is no formula. the way i described in my book is the next bill gates will not start an operating system and arry page will not start search engine and if you copy down, you are not learning. a sense that every great moment happens only once. >> when you say that, there is this -- there is apple and samsung. they are both in the hardware business and operating systems. two very successful copy is creating similar products. apple is moreue successful than samsung. market gaphe largest in of the world. >> people are willing to pay a lot more. is avertheless, samsung very successful company. >> you can have more than one company do the same thing. in most of these sectors i would argue you end up with one company that comes out of way ahead. >> because of the technology they

>> yes. >> what are people using paypal for? holding it under scanners. >> buying things with paypal? >> do it with apple and 500 million people can who have credit carded on file, with a.m., why would they also get the paypal app? >> they probably wouldn't, but my point is it's not taking the business they have away. it's creating a great new opportunity for apple. i don't think it's taking paypal business. >> two-thirds of the peep at this point go with the bear. that's where we end it. bear case wins, 6-32. >> good job. >> still friend all the way around. >> of course. >> i'm kicking him under the table. >>> if you're looking for a trade on wearable technology beyond apple, you might be interested in this product that's outperforming the s&p when we come back. ok, if you're up there, i could use some help. smart sarah. seeking guidance. just like with your investments. that sets you apart. it does? it does. you're type e*. and seeking another perspective is what type e*s do. oh, and your next handhold... is there. you don't h

he believes in paypal.f you believe his transactions on higher margins in the future. >> what is your trade? >> purchased the stock right now for paypal and then sell in october for the month 52-50 call, taking 52%. >> hopefully we will see you again. we appreciate your talking to us about ebay. ♪ >> welcome to "money clip." here's the rundown today. uple's ceo tim cook opening about the new iphone. he offers us a little back on how he joined the company in the first lace. some group members of the gm -- grim numbers with the gm ignition switch recall. london fashion week begins with

he copounded paypal and the data mining company pallent year. he was the first outsider investor in facebook, and continues to invest through his venture capital firm. computer science 183 is a course he taught at stanford. a student named blake masters began posting his note on his blog making his lectures an online sensation. they teamed up to write a book, "zero to one: notes on startups, or how to build the future." i'm pleased to have peter thiel back at this table. welcome. >> charlie, thanks for having me on the show. >> rose: this is roger parled of, fortune magazine, september 4, 2014: what do you think of that? >> that's incredibly flattering. i'm always embarrassed when i hear something like that because it's so hard to live up to. my goal is really to get people to-- when you start a company, great companies cothings that are unique. they want to answer questions, what great business is nobody building. the intellectual question you want to answer is what truth do you believe that nobody agrees with you on? and part of what i tried t

stuart: is paypal just catching up with apple? >> apple is just catching up with paypal. this is a market by 2017 will be a trillion dollars. this paypal app 159 people in one month have downloaded it. if and when they get into this market, there you have it. we will all be doing it. stuart: even i? >> you always say you are so good and up to speed and innovations, you roll with the times. stuart: it was good. that was a good report. i have some exciting action during the nfl kickoff weekend. all the talk will be about this. ray rice and his fiancÉe an end elevator. later in the show, some other stories that we have for you. delays on any action of immigration. a pure political play, we say. the tech world focusing on apple. steve jobs vision and the state left apple? we have those stories for you. ♪ [ breathing eeply ] [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male annocer ] and made the decision to quit selling cigarettes in our cvs pharmacies. now we invite smokers to quit, too, with our c

. >> it seems like this is bad news for ebay which owns paypal and paypal owns braintree which is yourtor. raintree says they will support apple pie so how is that different from what you have set up with them? >> appleworks with a fairly small list of partners. it's available on their website. there are some large payment processors owned by banks and because we work with so many of the fastest-growing apps, i don't know about ebay or braintree or what their plan may be but there is an interesting strategic misalignment at a macro level between paypal and apple. the paypal strategy is fundamentally predicated on owning the consumer relationship. paypal is a wallace system designed in the 1990's. idea pay, the fundamental is that you should not need another wallace. you should -- another wallace --wqllet. --wallet. it will be interesting to watch that play out and it will require that ebay and paypal reconsider their value proposition. could apple take braintree and stripe out of the equation? >> the design of apple pay today is quite carefully crafted so it enables apple to provide th

do the best possible thing with paypal and a fit with google wallet makes sense. find the right dance partner, if they hadn't been in talks, they probably should be. >> i love talking about potential deal activity. that would be speculative on the hunch that it's taken over. >> and that's the only thing that could save this thing. >> are you saying that as a technical analyst? >> september to now, s&p up 40%? it's a dud. it's a gambling chip. people are speculating. look elsewhere, i would say. >> dan? >> i would say not look elsewhere. tell you why. no one was thinking about paypal as partnered up with google, who is all over the web. you think about google wallet, has the potential to be massive, but don't have the traction. you put the units together. not even an outright merger. but the infusion of cash where investors feel good bout this thing unlocking value. >> revenues have increased by 30% and eps up 50%. >> you like it by itself, e bay. >> the market does not like it. if they were good, which they are -- >> carl likes it. >> he's not moving it. >> someti

the president of paypal will be dan schulman. what's interesting is john don mon, of course, the ceo right now will no longer have an executive place he will serve on one or both of the boards going forward, but carol ikeon definitely celebrating this. he's calling for the next step. he's encouraged by what's happened. now, he wants to see paypal make some more acquisitions to unify or perhaps merge with another company. so ebay doing very well on the news. stock is popping. about 8 percent. we're watching that. i want to bring you some ratings. moody is on review for possible down grades. of course, paypal is the company that jirnts the most money for ebay. it's certainly the crown jewel of the company presplit and they're also citing a weaker credit profile. it could be a multinotch downgrade for ebay. we're also watching s&p they placed an a credit rating on ebay and they said there could be negative implications there. very interesting on both sides. i have a feeling this is just the beginning. >> liz: it's interesting that c

you have a lot of experience working with fraud from paypal.d is it you are the guy the backend? a is difficult to make consumer friendly product. deliberating fraud isn't that difficult. you can make an airport privately secure, just incredibly inconvenient. the same thing is true with payments. thatu want something people can easily and frequently use, it is very difficult to make that secure at the same time. there's a trade-off. >> is a fingerprint convenient enough? >> i think it is. it's a feature that people actually relish. i can't use my ipad anymore, because it doesn't have a fingerprint sensor. i'm used to unlocking the device with a thinker print censor. >> it is called apple pay. is apple more or less secure than other companies? >> i think they are attracting the right talent and taking hard about the problem. it's not an exercise that is simple by any means. when you have the top talent working on a problem, i think if anyone has a chance, these types of companies do. that it is a big uphill battle. >> what are the chances that a

they have to make sure that doing the best possible thing with paypal. management is being sensible and trying to find the right dance partner if they hadn't been considering it or been in talks they should be. >> i love potential deal activity but that would be very speculative to put a trade on on the hunch that it's going to be taken over to inner the of the charts. >> that's the only thing that could do it. >> september of 2012 to september now unchanged s&p up 40%. this has been a dud. it's stuck here. it's a gambling chip. i would say just look elsewhere. >> wow, dan. >> i would not say look elsewhere and i'm going to tell you why here, no one was thinking about paypal and partnered up with google who was all over the web. so you think about google wallet has the potential to be massive but they don't have the traction right now. put these two units together or not even an outright merger or if there's a jv where there's an infusion of cash and investors can feel good about this thing -- >> it's not just a deal you could look at though. they've see

plus a paypal spinoff could be sooner than expected. we'll tell you why. and the first ever game for the apple watch. all about arm wrestling. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. bulldog: save up to $300 on sealy posturepedic and serta mattress sets. even get 24 months interest-free financing on every tempur-pedic. but don't drop the ball. mattress discounters fall kickoff sale is ending soon. ♪ mattress discounters >>> -- for refusing that hand over data to the tsa. many documents related are still classified but yahoo says it is pushing the court to make them public. interesting the general council posted yesterday we had to fight every step of the way and they eventually lost. >> well, you know, it was the previous administration. j

>> i think paypal will come to its own destiny.hink this is a great step forward for mobile payments. i do think it is a company like square a chance to restart itself and the part of sale system as amazon web services for small businesses. they have an opportunity -- things start to get interesting for them. now google wallet starts to get a big boost from it. >> om malik and gene munster, thank you both. coming up, security issues. can we trust apple with all of this information? ♪ ♪ >> you are looking at a live shot at that no-longer-mysterious white building. we will have more on apple in a minute. here are other stories making headlines. settling a lawsuit with the former stanford classmate who claimed part ownership of the company. they admit that reggie brown came up with the idea and collaborated with them to develop the app during its early days. terms of the settlement are confidential. snapchat has been raising money that values the company at 10 -- $10 billion. finally the fcc will vote on whether to do away with them a

i don't know of a lot of people using paypal.t's been active to try and add payment services to the phone and they have their own add-on device and so on. i don't know it's really caught on. i don't know it's really caught on or other things like square caught on as strongly as some other people thought as well. i think it's apple will bring its juggernaut name and mobile platform into the game and people may take with it. we'll see. >> i mean, honestly, one of the reasons maybe it hasn't caught on, nobody's dying for a mobile wallet. they like the idea of it but i don't think people are saying, gee, i really wish everything i could funnel through my phone, with apple the inkem bent a default, won't have to download a paypal app. seen people with store-specific stuff? paying with your phone. right? >> yeah. >> square valued, $6 billion. bezos trying to jump into the game. is it crowded or not? >> humongous opportunity one that absolutely everybody sees. that's the issue. >> apple will not take over this market, though. remember,

paypal cofounder peter teal. he's an icon after investing in facebook, linkedin and tesla and he's sharing his insights in a ground breaking new book titled zero to one. peter is our guest this morning. thank you so much for being here. >> thanks for having me on the show. >> in your book you argue that right now we're in a time of technological stagnation. that sounds incredibly strange when i think about where you've come from and what you've invested in. what do you mean? >> i think it's been a two track story in technology. we had a lot of progress in the worlds of bit, computer, internet, mobile internet. that's continuing to accelerate and as far as the eye can see into the future. but outside of that there's been a lot less progress in the world of atom energy, transportation, bio medical. bio tech. they've seen much less progress in the last 40 years and we need to try to get back to much broader based progress across the board. >> how do we do that? is that a role for the government or something that com

with amazon and paypal. why important to u.s. -- the u.s.?ell, it's basically because you might end up with a piece of this company inside your investment fund, and you don't know it. >> but my big question, though, you talk about here in the u.s., have you purchased something from alibaba? >> absolutely not. >> you? >> nope. >> you are smart shoppers. i tried to do t. it was chinese to me, literally, the site is not translated in english, and you get to the one in english, it's difficult to buy something. not that greats. >> jack, it's a name we can say. >> you have to trust jack. investors are going to. >> excellent. radio shack, are they getting radio whacked? burning through cash, burning through cash, actively seeking a financial lifeline. bankruptcy filing could be in the future. losses more than doubled in the latest quarter, stock fell below $1 a share. paul, 78 years ago. even ceo can't figure out how radio shack is still in business. that was 2007. are they doomed to remain a punch line? >> sadly, i think so. >> you got one. >> joke