ebay and paypal are separating with paypal to become an independent company next year. ebay had faced pressure from carl icahn and others who urged them to split their marketplaces and payment business. with this move, donahoe will leave once it is complete. american express executive dan shulman is c.e.o. designate of the new palpal company. is it a good idea? i have been asking various members of the paypal mafia that question. these are the paypal founders who sold the company to ebay in 2002. here are some of their opinions. >> there are still a lot of synergies between ebay and paypal. no matter what happens, whether they spin it out or keep it in, there has to be a firm commercial agreement. i think that is a priority. will paypal grow faster if it were not within ebay? maybe, maybe not. would it be valued differently by the market or have a better multiple - all that stuff? i don't really care. if it spun out and had its own stock, you could motivate the management team to do more direct -- they would be compensated purely on palpay's performance. spinning out is

developments, which you have been critical of, what has paypal missed and what risk does a separate paypal have now been might not have been edited when people were looking at the whole package earlier? >> paypal has missed the last decade in the united states. >> the growth has been fantastic. >> there has been a lot of international growth and have been very successful outside the united states. the united states there has been an incredible innovation in payments over the past decade and paypal has not participated in any of it. whether it is square or stripe, bitcoin and the derivative onsequences. paypal has been irrelevant in all of those conversations. basically the past decade it has been a big black hole. the product is worse in the united states that was 10 years ago. >> how do you respond to that? has paypal missed that much innovation over the last decade? >> i think in part it is sitting on top of an automatically growing revenue stream user base. quarter to quarter you are seeing 15% growth in the worse times. that is understandable if not forgivable. the flipside of paypal,

the on paypal's performance. on balance, i would say spinning it out is not a terrible idea. >> should paypal be spun off from ebay? >> i think there are very large synergies. maybe it is something they should consider in the future. i think ebay was right to resist carl icahn. we do not want them to be dictating what silicon valley does. >> who should be ceo? >> it is critical to have someone with a product sense and not running as a operating business. >> someone from the paypal mafia? >> i do not want to name names. obviously there are people there who would be good. >> you were instrumental in the sale of paypal in 2002. looking back, was it the right decision? ebay and paypal have had an interesting year. some other members of the paypal mafia think they are better off apart. >> it was the right decision at the time. we made it collaboratively. part of the reason was to get to the right level of the payment transaction system, it required a much closer transaction with -- connection with ebay. there is a muc

the paypal network is what i would call it.t probably started six to 12 months after the ebay acquisition. >> linkedin, tesla, youtube, yelp, yammer, and spacex. all founded by members of the paypal mafia. what was special about all of you? what did you have in common? >> paypal selected a lot of people who were young, and intense, and were entrepreneurial themselves. then they were bought by ebay. so all of these folks were like, what do i do next? some of them go to youtube, some go to spacex, some of them do yelp, i do linkedin. and yet, because we had this intense experience together, we all still have really tight networks. we are calling each other going, i'm thinking about doing this, what do you think? >> who do you call for what? >> macroeconomic bold models, i will call peter. the intersection of interesting business models or business technology, i call max. for a willingness to just think super big, with risk as not a variable, elon. >> what do they call you for? >> laughs. [laughter] >> i have heard you are funny.

what happens to ebay once paypal spins off? >> paypal was seen as the darling of ebay. as we were just saying with net flex, it's a growing segment overall, but facing competition. lots of people want to get into it. social media stocks and i think people are concerned as to how ebay can defend its market position without paypal moving forward. >>> another big tech stock, of course, is apple. it's holding an event at its headquarters today at 1:00 p.m. eastern time where it's expected to unveil new ipads and max. these images of an ipad air two and mini 3 are in apple's guide

let's hear from one of paypal's cofounders. >> should paypal be spun off from ebay? >> i think there are very large synergies between paypal and ebay. maybe it is something that paypal should consider in the future. i think ebay was right to resist carl icahn. >> i guess we know who got the last laugh on that one. carl icahn owns about 2.5% of shares. why are ford shares taking the biggest tumble in three years? we will explain today in voters. -- motors. and in global, the chief equity strategist talks about what he sees ahead for the markets. as we go to break, microsoft ceo satya nadella wants to offer more cloud-based services in india. >> it is a technological shift we are going through right now. it is a pretty major one. i described this as the shift to a mobile first, cloud first world. when i talk about mobile first, it is not about one device and its applications. it is really the mobility of the human being across the entirety of their life. ♪ >> this is "money clip" on bloomberg television. and we are streaming live everywhere. on your phone, on your tabl

let's start with the paypal break off from ebay. you founded paypal. what did you think when they announced that? >> well, it's -- the company is in a very different place from when bay acquired paypal in 2002. in 2002, 75% of the payment volume, the paypal process was on ebay. that went down to 50% by '08. it's down to about 25% today. so the companies have gradually diverged over the past 12 years. so i do think it makes sense to have it be a stand-alone company once again circumstances that because we're actually at a moment when apple just announced apple pay where you think we're really going to start to move towards that different payment system, which i think you anticipated early on with paypal, correct? >> well, there was a lot of innovation around internet payments in the late '90s when we started paypal. and i think there is a second wave of innovation happening around the mobile internet today in the last four or five years. and so i think it is going to be critical for paypal to be very focused on a lot of these product questions in the ye

tonight, online retail giant ebay says it will spin off paypal service and you will likely notice the change soon. scott. >> well paypal originally started as a mobile payment service and has since become a leader in the mobile space, as a lot of us are reaching to our phone to buy things. >> after 12 years of marriage ebay and paypal are planning a lucrative split. both pull in millions of dollars in revenue but with companies like apple letting you pay with your mobile phone, an independent paypal makes sense. >> it is moving us to a place where mobile payments are going to be at the root of how we handle a lot of our transactions and it adds a new level of convenience. >> hubs millions of us will buyg

scott. >> well paypal originally started as a mobile payment service and has since become a leader in the mobile space, as a lot of us are reaching to our phone to buy things. >> after 12 years of marriage ebay and paypal are planning a lucrative split. both pull in millions of dollars in revenue but with companies like apple letting you pay with your mobile phone, an independent paypal makes sense. >> it is moving us to a place where mobile payments are going to be at the root of how we handle a lot of our transactions and it adds a new level of convenience. >> hubs millions of us will buyg wz our phone and mobile services like this will be at the center of it all. >> i think both the apple announcement and the separation of ebay and paypal, i think the key to it being successful is the adoption on the part of the consumer. >> the mobile payment market is expected to triple over the next couple years, paypal is the fastest growing way to pay and you can expect it to grow even faster as an independent company. >> paypal declined our invitation to comment on today's news but wall stree

what is paypal's future? is paypal going to be out there buying companies like square for example?se paypal has really been criticized for not invovating. you hope they don't buy square? >> i'm neutral but what i hope they do first and foremost is wake up and say, we have not been friendly to a new type of a participant in silicon valley and that is a startup developer. there are lots of little companies saying i want to plug into the infrastructure that is the payment system. and one of the misses of paypal -- in part because i'm an investor -- is stripe. they've made their business on being extraordinarily developer friendly, and paypal deserves to be a participant instead of being stuck in the 1990's when it comes to that. >> what is ebay left with? >> they have a good business. i think e commerce is changing. if you look at offline to offline, offline is still well north of 95%. >> there's a lot of people saying i ought to open a -- an online store finally. ebay should be a platform for that. there's tons of innovation just making e-commerce retail a better easier thing to do o

the cofounder of paypal will be joining us. i want to get to editor-at-large cory johnson with the top headlines. >> a lot of news today. ebola patient thomas eric duncan has died from the virus at a dallas area hospital. he visited liberia and contracted the disease there. his girlfriend and her family are being quarantined, but so far have not shown symptoms of the ebola virus. protestsf the massive in hong kong are threatening to pull out of talks as the government ignores demand for democracy. students are also bringing back giant crowds of protesters that paralyzed central hong kong. talks are scheduled for thursday. thus far, the different sides cannot agree on where to meet. nfl owners have approved the sale of the buffalo bills to ula.y peg he also owns the buffalo sabres any says he wants to keep the bills -- and he says he wants to keep the bills in buffalo. $18 million to settle what they say are bogus charges. consumers affected can apply for refunds. t-mobile overd some other allegations in july. apple sent out inv

what happens to paypal within that?s a product of the merger you did with x.com, of course. >> uh-huh. >> does it need to merge, need to partner? >> i think mergers only make sense when there are real synergies when things -- it's not obvious what the synergy between paypal and the other business would be at this point. i think it makes sense it for it to be stand-alone company. >> you were about to say something about apple pay. >> we're headed towards a lot more payment systems on mobile phones. the mobile internet is starting to happen and we're going to see more innovation and change in the payment space around that. >> importantly, a lot of these payment systems, apple payments rely on having a credit card in the stream and commission that somebody is paying. when you talk and i've been reading about east africa which pushes payments by just standing mobile phones not even smartphones between people will the environment make a lot of the payment systems we have redundant moving forward? >> there are these ways you

paypal is online and apple pay is off-line. >> isn't paypal shifting into that business as well?ntly received my debit card in the mail. i find myself using paypal at home depot when i am standing in line. >> yes. when they get into the debit card or credit card business, they are doing the same thing any other distributor of the credit card us or whomever. revenuegreat ancillary service for them, but they do not bring anything special to the party. where there are special is online. >> apple pay, you think, will then pick up steam. do notlike right now i need any more of these online pay systems. and what fan of apple they have done with apple pay. it is well designed and well engineered. but it will take a long time for this to have a serious impact. we are not talking about the online world. we're talking about physical commerce. the first thing we have to do is repopulate the terminals across the country. that will take years. >> when it is done, won't it be possible to use m -- almost any payment system? i am thinking about your website, where you can control your investment

paypal obviously has done quite a bit in payments. i don't want to spend too much time talking about one particular company other than to say a lot on my commerce figuring out who people are can be important. i think if there's an analogy i as easy as it is for paypal to pay online, a laudable we are looking for are the creation of firms like that you can use for login. >> a company like paypal, it has to have high security. they are protecting a lot of information. >> i say you should ask paypal while they have been participating. i think the reaction we have gotten almost unanimously is that this is something no one company can solve on their own. they can try to. they have fraud solutions. they have different identity projects. there is no framework to use them interoperable he. interoperably. their customers through a burden some process time for drives consumers away. over half of customers will basically abandoned the site if they are asked to create another user name or password. so, a lot of what we're looking to do is how to

paypal, ebay acquired paypal 2002, 75% of the payment volume on ebay. going down to 50% by '08.to 25% today. the companies have diverged. it makes sense to spin it out again and for paypal to be able to focus 100% on building good payment system. >> it may be apple pay launches this within. we thought two, three weeks' time. it's getting to be a competitive environment. what happens to paypal within that? i mean, it is a product of the merger you did. does it need to merge, partner? >> i think mergers only make sense when there are real synergies when things -- it's not obvious what the synergy between paypal and any other business would be at this point. i think it makes sense to be a standalone company for years to come. >> you were about to say something about apple pay and i interrupted you. >> we're headed towards more payment systems on mobile phones. . mobile internet starting to happen and we'll see more innovation around that. >> importantly, a lot of the payment systems, apple pay, rely on having a credit card within the stream and commission that somebody's paying. wh

ebay is spinning off paypal, sending paypal solo into very competitive waters where lots of companies want you to shop with your mobile phone. it's the billion dollar split silicon valley has been waiting for, retail giant ebay spinning off it's paypal payment service. >> they complimented each other for the first 12 years. but it's very clear that they kind of have outgrown each other. >> reporter: paypal has already established itself as a leader in mobile payments, letting you buy things online and with your phone. with others like apple and square and loop peg getting into the act, it is likely more of us will pay for things by holding up our smartphones. >> i think because people have migrated their lives on to their phones, now payments start moving to the phones, too, i think it's easy to make that transition from photos and music to actually making payments with their phones. >> we have become more comfortable, paying for things online through the years, thanks, largely to paypal. now, for example, with websites like eat with.com, you can set up an entire meal for a group of p

, i'm curious to get your e-rhee action from ebay and paypal whether it was the right move and puts paypalthe best position for some sort of acquisition to be acquired by somebody else? >> to answer your last point, hope not. i think this is the kind of thing that gives the company, successful company like paypal, a real second chance, a new lease on life to say, as we saw today with hp, footnote, the former ceo of ebay and current ceo of ebay meg and john, deciding to split the company because each has gotten too big to innovate, so the opportunity to do something big, ambitious, crazy is real. so setting it up for an acquisition would seem like a lost opportunity. >> but it sounds like you believe this was the right move at the right time given it may have happened a little quicker than many expected? >> i'm certainly not close enough to know what happened but i know john very well and he's a thoughtful manager. he had -- a great steward to the company that peter and elon and i co-founded long ago. the fact he decided this was the right time to pull the trigger i'm confident he did the r

when we were discussing paypal and ebay, wouldn't paypal hustle harder, be a little more focused if they didn't have that ebay pressure on them. i think ultimately that is what we are seeing happening now. the big companies are becoming silicon valley startups. >> you can make that argument. it's a cogent one that says you're going to have a more incentive work force when they know they're working for their stock price and not to deal with some stumble that's taking place in pcs or the fact that consumers no longer buy them. that being said i thought it was interesting earlier we interviewed tony sack nagy who seemed to be at pains to understand the full strategic rationale for it. one thing to hear meg whitman describing why they believe this will succeed although the question as to why now, why not having been a year ago or a year from now, although i think few would argue that this was going to happen some time. >> i think that's a fir point but to take the bernstein analyst, the bernstein analyst doesn't see the rationality. when you run a company and see how hard it is to focus on o

paypal has been criticized for not innovating over the last decade. >> i hope the first thing paypal am impartial or neutral on the buy or not buy square thing. but what i hope they do first and foremost is wake up and say, you know what, we have not been a new type of participant in silicon valley. there are a lot of little companies that are saying, i want to plug into the infrastructure that is the payment system. mrs. is striped. they made their business on being extraordinarily developer from a. paypal deserves the system instead of being stuck with a knife when it comes to that. ebay has got a good business. they have $3 billion worth of market caps. i think he commerce is changing. offline is still well north of 90 prime -- 95% of retail sales in america. a lot of people are saying, i ought to open an online store finally. ebay should be a platform for that. there are tons of renovations to make e-commerce retailing better thing to do online. i ought to open an online store finally. ebay should be a platform for that. >> i do not disagree. need to have many adjustments. when y

ebay makes up 30% of paypal's volume. the move was praised, and wants paypal to do a merger or acquire other companies as the payment industry consolidates. ebay - i think i misspoke - it closed 8% higher. >> next - there are 2300 billion airs, worth more than 7 trillion. these guys make membership in the 1% look like a joke. i will paint you a picture of those americans - actually you'll have to stick around for a while for that, that will be tomorrow. but i'll paint a good picture for you. >> it's a chilling and draconian sentence... it simply cannot stand. >> this trial was a sham... >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live. >> we have an exclusive story tonight, and we go live... >> five weeks u

you mention ebay and paypal.ing to be splitting up, a lot of people have talked about potential acquisitions. them.unster is one of not the case, is but it does make them more attractive. we believe separating the companies makes them more attractive as potential takeover candidates. one would think that paypal would be the more attractive. >> oh, yeah. [laughter] from a google 2-wooto and alibaba coming in. are you awaiting that spinoff? >> it's highlighting were apple is today with its new apple pay. this apple pay thing is enormous. whether apple chooses to buy paypal -- they may or may not. the four of us can walk in and go, here's my finger, about. -- i'm out. google knows -- i think paypal is something that won't be a year or two from now. >> he is up on all the latest st. he will stay with me to talk more about what's going on in china. protesters there are filling the streets of hong kong for a sixth day. with the demonstrations have done to markets over there. ♪ >> hong kong's chief executive was geared

finally they announced they're going to spin off paypal. today they got hit with a slew of analyst downgrades. they're looking so bright with so many other companies rolling out mobile and online payments of their own. ebay is not that strong either. spinning off paypal would have been great a year or two ago. now with apple pay, they're just acting desperate. according to a story with bank innovation, they apparently made a really poorly timed deal with samsung that infuriated apple. the partnership was forced on by the ceo. the former president of paypal left and joined facebook over the summer. i'm starting to wonder ifthey have caused problems for themselves at ebay. but now, apple has surrourounde nearly everyone in the industry that matters, including visa and masterca mastercard. these partnerships are everything. even apple didn't try and go it alone. they teamed up with with the best chip makers and merchants. paypal is their own mobile payments app to let you buy things in the store but only at participating retailers and they're

intertwined closely with paypal. it is a little less clear at this stage how the ebay platform does benefit, but clearly this is a transaction that probably had to happen. >> paul, great to see you. paul feeney at bloomberg intelligence. we will talk a lot more about advertising and all the headlines in tech and media because aol chairman and ceo tim armstrong will be joining me later in this hour. back to the world news that ebola -- the world health says nigeria and senegal are now ebola free. but it still affects people mainly in west african countries. many drug manufacturers are jockeying meeting -- are for a pharmaceutical position. what is the latest update on the drugs that could treat people with ebola. >> there are two different categories. drugs that could treat people and then vaccines. as far as drugs go, there are three main drugs that have beginning a lot of buzz. , and one by tekmira. the three i mentioned earlier are a big deal. of those three, two are drugs that doctors say are a big deal. doctors c

ebay makes up 30% of paypal's volume. the move was praised, and wants paypal to do a merger or acquire other companies as the payment industry consolidates. ebay - i think i misspoke - it closed 8% higher. >> next - there are 2300 billion airs, worth more than 7 trillion. these guys make membership in the 1% look like a joke. i will paint you a picture of those americans - actually you'll have to stick around for a while for that, that will be tomorrow. but i'll paint a good picture for you. stay with us. >> this is another significant development... >> we have an exclusive story tonight, and we go live... >> five weeks until the midterm >>> leaks, and the senate hangs in the balance. attention in iraq and syria is overshadowing pocketbook issues right now, and john boehner said that he intends to make jobs a major factor in the home stretch. i hope they get to it sometime soon. and though the unemployment rate has fallen sharply in the president's tenure, his rating is below -- which may be a boost for republicans. mike

ebay and paypal are separating with paypal to become an independent company next year.d faced pressure from carl icahn and others who urged them to split their marketplaces

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you will see a company like paypal -- it would not surprise me in three years if paypal is then againerged with someone else. if you are running a portfolio of businesses with to characteristics and different pe rates, growth rates, you have to focus on, does it make sense to split them up? an activist can play a reason for role -- a useful role. you talked about one case where they get involved in how to run the company. that is not their expertise. they do much better when a focus on capital allocation -- they focus on capital allocation. when they bureau away from that, it's unproductive. -- when they've you're away from that, it's unproductive. veer away from that, it's unproductive. >> what would you do about yahoo!? the unrealized value of yahoos investment. in the stock price, that is. >> what i'm sure when on in the board meeting and should have gone on in the board meeting and probably did is an analysis of paypal. the new advances by apple and others. throughg to think whether the company would be better served if it wasn't run by the current management. it's a hard one for

spinoffter announcing a of paypal, ebay reported third-quarter earnings for the combined company.ales up 12% in the quarter to $4.4 billion. profits fell 2% to $673 million. with a number of lingering issues, including fallout from the big data breach in the spring as well as a decline in traffic. joining us from new york is mia saini. what did you hear? >> the first lingering issue is that consumer, where are the customers? that is what john donahoe was focused on on the conference call. they have been impacted by the stronger dollar, but also the consumer along more wary after the cyber security breaches you just alluded to. the ceo said that the majority of users have gone through password resets, although they have had to do it multiple times because of glitches. that slowed the user returning to their site. they have increased their customer service representatives . increasing their marketing efforts to get more individuals to their site organically after there was a change in algorithm through google, and they're looking to reduce the volatility as a look to index more vola

there's a lot of pessimism around paypal. it is sort of recorded -- >> especially after this report much it's the exciting growth engine. >> optimism about pay signal. >> about paypal. people that are aren't company feel it is being squeezed. apple, google, amazon are the button that's people are going to use to buy things in the future. they feel like developors are not going to use paypal in the future to be the reason how you do the mechanics of buying something. they feel that is going to be stripe. then they feel like credit cards are fine. people don't want to replace. that they feel that paypal is a squeezed business. then i get the impression that management will is very messy. one of the things that people are really excited about is this app called venmo. it is sharing money, things like that. >> apparent lit founder have venmo and left ebay. i don't know if that is reported yet. management sounds messy. >> if paypal is the play we just saw posting bert nubdz, ebay as the marketplace a little bit of a disappointment

what happens to ebay once paypal spins off? >> paypal was seen as the darling of ebay. as we were just saying with net flex, it's a growing segment overall, but facing competition. lots of people want to get into it. social media stocks and i think people are concerned as to how ebay can defend its market position without paypal moving forward. >>> another big tech stock, of course, is apple. it's holding an event at its headquarters today at 1:00 p.m. eastern time where it's expected to unveil new ipads and max. these images of an ipad air two and mini 3 are in apple's guide to ios 8 and they were spotted by a blog site on wednesday. it shows both tablets will now include the touch id fingerprint sensor. apple pay is expected to get some stage time today. apple shares trading up a little bit, almost 1% in frank first today and up around 7.5% over the last three months. >>> nestle is trading lower after sales growth slowed in the first nine months of the year. the food and beverage group is blaming decelerating in asia. however, nestle's ceo says the company is in track

. >> we saw ebay spinning off paypal, planning to spin off paypal in the coming year. another big tech companies splitting in two. dell says they will continue to provide an end-to-end decision. they said is a complex decision, and appears to benefit shareholders rather than customers, which is ultimately the wrong priority. is dell in a better position than hp? >> perhaps. meg whitman says the company has been stronger because of these two businesses together. i don't know what stronger remains. revenues are less. profits are less. they have 50,000 fewer employees. tens of thousands more people are going to lose their job. i don't know that statement means when you look at the numbers. it doesn't look stronger to me. when you look to what they are doing, i think the model is not the recent example of ebay/paypal. rather it's the model that took place in palo alto. when hp said we are going to cut the company in two, and spin off this separate company, which they did right there in 1999, in one of the biggest ipos ever. it kept hewlett-packard focus on pcs. we can look

paypal does not make hardware. this is a classic example of apple using it hardware and combination. >> hacking has become a big issue in this most populous state in the nation. does that affect your sales calls? >> that is something a lot of retailers struggled with. it will be put to the acid test on monday when people start giving this a try, trying to hack it. but from a technology standpoint apple should be a in a great place. >> maybe we buried the lede not talking about the ipads itself. is there enough to accelerate sales, to get sales growth back? >> probably not. ultimately there are structural things going on with the ipad. when you had the bigger screen iphones, and they had so much traction so early when they came out, it kind of saturated some of that base. it's critical. apple updated 30% of the revenue today, so this was important, but in terms of really moving the needle it will not change general plays. >> they will keep the older ipads on the market at lower prices. they are getting a lot closer

the ebay investment did not work out post paypal. know herbalife is up because of the analyst report. the guy is saying $100 stock. liz: the annual high for that was 83 and it's 52 right now. are you looking at the dow industrials. look at this move. >> look at that. liz: up 213 points for the dow. the breaking news is we are at pretty much session highs, a major rally going on. >> hate to say this, not one ebola headline. give it time, charlie, give it time. as we wait for the closing bell 29 minutes away with yahoo! earnings after the bell. the big question we are going to answer, is marissa mayer, the ceo as good as she was cracked up to be when she took the chair at yahoo!? >>> smartphone, smart homes, smart cities just to the time when cities feel they could be under attack. what we are showing you on the screen could change all of that. it could nab gunmen, bioterrorists, all kinds of issues and warn of earthquake's come. it's technology that can make your city safer by providing video surveillance. hugh martin here in a fox bu

he got his way ultimately when it came to paypal and ebay, ebay spinning off paypal, taking a little longer than he thought. in his letter that he likes what apple is doing, but he just wants them to do this thing with his -- with their shares. of car all make icons sticking his nose out here in silicon valley once again? this really signifies the difference between the east and west coast. nominees coast, you have companies well used to activist on the westnd coast, this is new for us and also a sign of the company's maturation. i think it signifies that an east coast investor, without running pressure -- without putting pressure, would not get the reaction he wanted, and i think he is running on the heels of what he did with ebay and hoping he can apply the same to apple. >> how can ceo's take to someone who does not know the ins and outs of the company and does not have any experience? steve jobs would not have knocking atl icahn his door. >> any experience ceo is going to pay attention, but they will not get distracted from running their day to day business -- any .xperienced ceo

. >> host: how does the paypal company work into this? >> guest: paypal we have been working with. they have been interested, as have a lot of other companies from the start have. paypal has done a lot in payment and i don't want to talk about too one company too much other to say that they are figure out who people are as that is important with the payments. i think if there is an analogyi would draw is paypal made itedey to pay online and we are looking for the creation of companies like that you can use for log pin. >> host: a company like paypal has to have high security because they are protecting valuable information. what is the need for a national strategy for trusted identity in cyber space? >> guest: i would probably say you should ask paypal why they are participating but the reaction we have gotten is this is something no one company can solve on their own. they can try to. they have fraud solutions and have different identity problems out there but there is no framework to use them together. so rather it is paypal or one of the other dozen companies week throw out ther

you were struck by the hp announcement, and paypal. tallk about those aouncents and wt it means for average investors. >> hp andymantec were splitting into essentially a consumer and enterprise division. -- you seenouncement the technology on the consumer side of things is being adopted at faster rate. further on technologyhan enterprise. firms are no longer able to dress both partrts at the same time as ththe same firm. >> we cannot take them all on this week, but which of these strike you as a good idea? >> you look atat paypal, a the key thing is, they e trying t hone in andefine what they are providing thmarket. in a digital economy, these platforms become paramount to success and competing in this global enomy.. if you can define how you offer it, you have a better chance of cocompeting. that is what you see these companies trying to do -- succeed in a comtitive environment, f focusn what they are offering. .> thanks we will be right back. >> that's all for this week >> t this week on "government matters." >> it will be hard for t

his biggest claim to fame is the founder of paypal.ung peter teal sending money from one palm pilot to another, the very first transaction on paypal. the company figures out nobody wants to do that and they moved to a different model. at the same time, there was another guy working on the same thing, a south african kid. so they combined forces and together they made paypal. do you know that guy's name? >> i don't but i have a feeling you're going to tell us. >> elon musk. >> ah! >> bay area representatives will attend a hearing on ebola. they'll hear what public health experts and emergency management leaders have to say about controlling a serious outbreak. >> and it is a big weekend across the bay area. president obama landing at sfo for a fund-raiser at the "w" hotel. tickets range from $500 to $32,000. >> by now you probably know the blue angels are back this weekend for fleet week. last year they were suspended across the country. their shows were because of federal budget cuts. >> and the weather is going to be perfect. >> the w

google and paypal already he similar systems.little bit of the reluct we have is our counter spac limited and google wallet a apple pay require a device tap onto, which paypal does not." joe vazquez, kpix5 and apple stock is soaring tonight, after the company it sold a record 39 million i-phones quarter. monica lewinsky joined twitr today, as part of her campan against cyber- bullying. anu could say it backfired. her first tweet --- hashtag, here we go. the 41-year old immediately collected 30- thousand followers. but mos them had nasty things to sa her about her checkered pas at the age of 22, lewinsky s involved in an infamous sex scandal with president clin brian does weather brian do weather brian wraps with anchors this pleasanton teacher has special connection to the giants... she lets us in on few secrets.. next. all eyes will be on the gias all eyes will be on the gias as,,,,,,,, tomorrow. juliette goodrich says: for one pleasanton teacher's a family affair. * insert* 11p_giants nlcs e 3 nats of baseball game for giants s

it grew 6%, not as strong as the paypal unit, but they are seeing an increase in the users, 3.4 millionn buyers so far. >> when they talk about the search engine optimization, that is an interesting thing. we heard about amazon and google comparing themselves as competitors. ebay spent a lot of money getting people to go to ebay. that has cost them a lot. >> that is going to cost them a lot. their guidance is something that will always be on their balance sheets. they mention the competitive landscape. they talked about how amazon is really trying to build their own platform, third-party platform, and how google is looking to do a lot with her google express platforms as well. they did not comment on where they believe they will be positioned in the future, but they did say they are not looking to refrain from spending when it comes to the seo part. >> you look at the operating margins there, you can see down 150 basis points year-over-year. think what that means for every company that has got a website, every company thinking about technology, let alone great tech companies like ebay,

but i want to ask you about ebay and paypal. you are very public, clearly, in your desire for those two to split. they now have made the announcement that they will. even to your surprise that it happened as soon as perhaps it did. marc andreessen is on the board. you guys had a little thing going on twitter and otherwise critical of one another. he took a big shot at you yesterday on this very network. he criticized you personally. he criticized your method of activi activism. do you want to respond right here and now? >> yeah you mentioned that to me last night and i went home and i watched what he said and you know, i'm no fan of andreesen and i tried to listen to him but he talks in that high squeaky voice. and you know only a dog can really hear him and really wheal get what he's saying. but i sort of picked it up. but, you know, when it comes to andreesen, i sort of inherited a sense of outrage from my father and getting a sense of guys like andreesen who take this holier than thou attitude. but while they are doing this t

i spoke with andreessen and we talked about the future of ebay without paypal and vice versa. i want you to listen to what he said. i asked him specifically is innovation dead, is this a sign that innovation at ebay has -- died. >> it's a sign of change. the industry is changing. it's a sign that the technology is changing. it's a sign that there is the opportunity to do more and better if you're smaller and more nimble. >> they probably wouldn't like the indication that they're following icahn's advice but they made this decision, according to andreesen. independently this was the best decision for ebay to spin off paypal. >> mark andresen is on the board , ebay, someard, companies that have struggled but yet seen as a visionary in , silicon valley. we know icahn bought shares of ebay and bought shares in it because we wanted to make more money. the things he brought up are interesting because the voices of silicon valley don't often say there's a conflict there. listen to what he said when carl icahn talked to us about andresen and the problems of having him on this board. >