emily: you then went on to the paypal mafia.alled who, how did that end up -- how did that happen? reid: i called peter, and peter said, 'oh, well, we're going to actually, probably going to sell paypal, because we don't have a business model' -- at the time -- but it would be really useful for us, because you know all this stuff. could you help us come organize the company and help sell it and everything else? and i said, 'well actually, i know all you guys, and if i would be helpful, i would be happy to step in and do that. and of course, we didn't end up selling it, we ended up taking it public -- selling it to ebay after we took it public. and so what was supposed to be a six-month tour of duty turned into a three-year tour of duty. and, well, the paypal story is long and fun. emily: and legend. when did it start being called "the mafia"? reid: i don't really know. it might have been with the "fortune" article. i am always a little hesitant about the term, because -- "mafia" implies dark rooms. extortion. these kinds of thin

i mean, ebay and paypal have had an interesting year.e other members of the paypal mafia think they are better apart. >> it was absolutely the right decision at the time. and we made it collaboratively. and part of the reason was because to really get to the right kind of level of mass of the payments transaction system, it required a much closer connection with ebay. now that it has gotten to a certain level, you can say, look, is it better inside or outside? one could make good arguments both ways. the argument with is, for example, actually, in fact, there is still a lot of density of value between ebay and paypal. on the other hand, the argument against it is to say well, actually, in fact, maybe paypal should become a bank. ebay is not a bank holding company. the natural evolution is to head there in some direction. and that's also possible with the right management team. >> it's time for another quick break. we will be right back. ♪ >> after you sold paypal, you could've retired a few times over probably. some other members of the

and, ultimately started paypal. emily: the paypal story is sort of long and legend.king back, was selling it the right thing? the right time? max: the team was very tired. probably the right call. on the emotional front, it was very difficult. on the business front, the right thing. emily: what was difficult? max: it was your baby. this gangly teenager that was growing up into being a beautiful company. emily: after you sold paypal, you could have retired. you didn't. i know it was a hard time for you. max: turns out i am much happier when i am working. when i am not working, i am kind of a bummer. i bum people out. everyone around me was like, man, don't come over. you're sad. emily: so you started to fly? max: i started a bunch of things. as i found out, not the thing i deeply cared about the product level. i was not in love with entertainment. i was ultimately was not nearly as successful. strictly because the products didn't get me out of bed. emily: you ended up selling to google, $182 million. what was it like working at a company that you didn't start? max: i

the one before paypal was almost not quite dead. emily: how did paypal get started?ax levchin: it was really hot. pretty brutal. i would go to stanford and sneak into summer lectures. i snuck into one because i recognized the name of the guy doing the guest lecture. he was doing a lecture on currency trading. it turned out to be a really small class. i just chatted him up afterwards. was definitely not there to learn about currency trading, i was there to sleep and get air-conditioning. he was a really smart guy. he said, i'm going to start a company. i said, we should have breakfast. how about tomorrow morning? and he had the red white and blue shape. we talked about companies. emily: the paypal story is sort of long and legend. looking back, was selling at the right thing? max levchin: the team was very tired. probably the right call. on the emotional front of was very difficult. on the business front, the right thing. emily: what was difficult? max levchin: it was your baby. this gamely teenager. emily: after you sold paypal you could have retired. you didn't. i k

emily: the paypal story is sort of long and legend. looking, was selling the right thing? ♪ emily: you came to silicon valley with no job, no money, no real network except that you went to the same school -- why as marcame school andreessen at one point. why did you come here? max: i started four companies on campus. every time we would fail, which we consistently did, the founding team more parts of the cofounding team would drop out and go to palo alto. it was this magical place, where even though we failed, we could succeed. emily: the promised land. this is something i didn't realize. paypal is actually your fifth company. what happened to the first four? max: varying degrees of hope-crushing failure. the one before paypal was almost not quite dead. it was still kind of dead. emily: how did paypal get started? max: it was really hot. palo alto gets really hot. san francisco is pretty moderate, but palo alto gets pretty brutal. i would go to stanford and sneak into summer lectures because they were air-conditioned. i snuck into one

all intents and purposes ebay will be in deficient's of paypal so whether paypal spins ebay in or paypal gets spun out, ebay remains a key market or paypal but ultimately it is the faster growing of the two, so paypal must receive its full managerial. >> would you buy shares in the new public paypal? >> it depends who the management team becomes. >> who would you want to run the company -- you cannot say you. >> i'm unavailable, i'm running my own financial services company. there are a bunch of people, probably the last person to run paypal after peter departed was david who recently became available. he ran something for microsoft for a while but he definitely knows paypal from the entrepreneurial age the best. >> to twitter had revenue of 312 million, do you think a pal by itself is worth more than twitter -- paypal by itself is worth more than twitter? >> that is asking someone who has not tracked paypal financials in a long time. i imagine is at least comparable. >> say 35 million? >> i know better than to prognosticate about public markets. >> if you sold paypal under 2014 market c

he made his name founding paypal and funding facebook. he is now is backing rocket ships, dna manipulation, meat grown in labs, and a start-up island off the coast. he has paid kids to skip college and start companies instead, in hopes of building a better future, faster. and building flying cars along the way. joining me is the bold and controversial venture capitalist and now the author of a new book, "zero to one," peter thiel. >> thank you. >> "zero to one," what does that mean? >> it means doing something new. going to the first typewriter, the first word processor, the first car, the first airplane. doing something that has never been done before. if we are going to take our civilization to the next level, it will require new things. to invent new things. >> what companies have taken us from zero to one? >> facebook with social networking. google in search. >> yet, you argue for the last few decades, we have been in a tech slowdown. have facebook and apple and google not been innovative enough? >> as a society, i would argue we have

i like paypal.re in so many retailers already. >> there's a tremendous amount of m&a activity in this space. a lot of companies are trying to make it more secure for you and your kids to spend money on a credit card. that activity will bring more players in the market. right now, there's only three players. >> i like apple. i like paypal. charles: $700 billion. >> i like qualcomm. i like that people will use their mobile devices more. use it on your android and apple. i think this is huge. charles: qualcomm settled in china. an upgrade. north of a billion. it wasn't a lot of people looking at that stock as being oversold. you know, anyone worried though about, you know, the security aspect of this, i mean, to me, i mean, it's no big deal. matt: think about the security breaches of using a credit card. you have that risk already. >> but you're more safe -- how many times have you lost your wallet. a couple hundred dollars in there. people have stolen purses because they thought there was a lot of cas

in paypal? >> it would depend. >> who would you pick to run it? >> there are whole bunch of people. the last person to run it after peter departed was david sachs. he ran yammer for microsoft for a while. he knows paypal. >> in the second quarter, it had a revenue of 1.9 million. do you think paypal is worth more than twitter right now? standalone? >> i imagine it is at least a comparable level of value. >> $35 million? >> i know better than to prognosticate about public markets. >> if you had sold paypal under 2014 market conditions as opposed to two market conditions, we do have had a more successful ipo? how does look differently from the lens of the current market? >> it is an experiment you can only run once. it out today is a force to be reckoned with. an incredible juggernaut. it has one of the networks -- strongest networks possible. it is as good as brand as visa or mastercard, perhaps better. i'm very proud of what we have accomplished. >> if you look at the $1.5 billion price that you

all intents and purposes ebay will be in deficient's of paypal so whether paypal spins ebay in or paypal gets spun out, ebay remains a key market or paypal but ultimately it is the faster growing of the two, so paypal must receive its full managerial. >> would you buy shares in the new public paypal? >> it depends who the management team becomes. >> who would you want to run the company -- you cannot say you. >> i'm unavailable, i'm running my own financial services company. there are a bunch of people, probably the last person to run paypal after peter departed was david who recently became available. he ran something for microsoft for a while but he definitely knows paypal from the entrepreneurial age the best. >> to twitter had revenue of 312 million, do you think a pal by itself is worth more than twitter -- paypal by itself is worth more than twitter? >> that is asking someone who has not tracked paypal financials in a long time. i imagine is at least comparable. >> say 35 million? >> i know better than to prognosticate about public markets. >> if you sold paypal under 2014 market c

we are announcing paypal's first foray into bitcoin. we are partnering with going a and we will start --coin bay and we will start within the next couple of months to accept bitcoin the our partnership. it will be a slick experience on the consumer side. you can pay with something easily presented for consumers to pay with a highly adaptive mobile optimized experience. >> when did your first interest in bitcoin start >>? >> i have had it for a long time. in the early days of bitcoin, as paying -- i was paying close attention. around 2009 i was really following it. it was a question of when what is the right time. there was regulatory compliance, and consumer experience. a lot of those things needed to be solved. it seems like we are at the right moment where we can do this in a high-quality way. but we are still in the early days where there is a lot of growth to happen. >> what made it the right time now? >> i think it is sort of the right confluence of several factors. you have reputable providers like coin bay high-quality consumer e

>> this is paypal's first foray into bitcoin.aintree, we are looking at this, and ebay also said he is interested in bitcoin. paypal is our first move to really embrace bitcoin via braintree. >> does this mean some of your bigger partners are going to start accepting transactions in bitcoin, like airbnb? >> we don't have any specific merchants now, but we will announce them over the next couple of months. we do expect a lot of heavy interest. we are hearing already that they had interest. both the one touch mobile payments that we announced as well as bitcoin is going to be high interest to a lot of merchants. >> great. thank you so much. >> thank you. [applause] >> how many of you have gadgets? how many people have one with them right now? do you guys hear me? i know you can. chances are, this guy was involved with the creation of that gadget. he is hugely important to the ecosystem of hardware. so please welcome liam casey. [applause] >> no one can hear anything. there we go. how many of you know this is? nobody? how many of yo

>> so this will be paypal's first foray into bit-coin.t is via the braintree platform which is the primary platform within pay poll. so it is not just a braintree move, it is paypal looking at this and john donahoe, ceo of e-bay is very interested in bit-coin and watching it closely and so for paypal our first move to really embrace bit-coin. but it is via the braintree platform. >> does this mean bigger partners like air b and b will start handling transactions in bit-coin. >> we don't have any specific merchants we are starting to announce yet that will come in the coming months but most of the interesting merchants will be heavily interested and this came together that we are hearing that from them already that they had interest in this that we think the one-touch mobile payments that we announced as well as bit-coin is going to be high interest to a lot of merchants in the coming months. >> great. well thank you so much for appearing on stage with me. >> excellent. thanks, kim. >> all righty, how many of you have gadgets, from the sea

now that we have access to the paypal network in 159 plus paypal users we have made it so it's an evenience where there is a fast switch to let you pay in a single touch. >> can we roll the video? ♪ ♪ ♪ >> yeah, so it is one of those things you look at it in a book's really slick and simple. why hasn't always been this way and a mobile device? its years in the making because it's really really difficult. >> this'll work for all paypal users? >> as of today is generally available. anyone with a paypal mobile apple have access to this. very exciting news. like i said, have the opportunity to make us a couple years from now this will be the default way to buy on a mobile device. >> the other theater announced is your now allowing merchants to accept a coin. >> one of the things we've always done is given really easy access to payments under the premise of braintree from the beginning. that started with one touch payments mobile payments and one of the more interesting games in place now is sub six -- it is a protocol to address a lot of that. today we are announcing paypal's first foray i

jpmorgan has been around for 200 years, what will happen to paypal? at this point it is safe to say it will be around for a while. >> you regret the price? >> i try hard to minimize regret. >> you only had 2.6% when it went public. small number. >> it took a lot of money to build it out. >> there is been a lot of talk about the bubble, i think there has been a rise in asset prices that has been somewhat scary, do you see it crashing? >> hard to tell about the public markets because they are so beholden to global forces outside the valley, so any attempt to predict our tempest is silly. at a macro level we live in uncertain times, at any given time's there are three major macroeconomics affecting conflicts -- russia, ukraine israel-gaza, syria-isis. >> will you see a correction in the price of companies in the next 12 months? >> selectively, yes. there are a bunch of companies that are solving big deal problems where the venture capital market pricing them at the very least, optimistically but correctly around the kind of impact it might have. there ar

take a listen. >> the paypal engine was long, as you know. -- the paypal story is long, as you know.elling at the right decision? >> there was no alternative. it is clearly successful today. it is impossible to argue that the stale -- the sale to ebay was not a step in that direction. could we have been bigger and farther along and less bureaucratic and more nimble as a standalone company? maybe. would we have been more challenging our ability to expand and have taken longer to bring the product to more people? it is hard to tell. the team was very tired and still blocked in a brutal battle with ebay because they had their own payment service that they were not about to give up on. so, probably the right call. on the emotional front, it was very difficult. on the business front, probably the right thing. >> what was difficult about it? >> it is your baby. it is this family teenager that was growing up and to be -- growing up to be a beautiful company. >> the full interview with andrew left it -- with max luncheonlevchin tonight. etsy merchants express their outrage and blogs -- in bl

it's a lot of the same sort of math we did at paypal to figure out who is the good guy and bad guy. >> so the algorithm, how do people understand how it works? they don't know what you're looking at and they may not feel that it's fair. how do they know that it's recent or if you're wrong? >> they are not required to take it so they can always go back to the credit card or whatever form of payment they have available to them and make a comparison because we will disclose the interest rate and the charges they will see very transparently. the way we figure out who they are and how they are is a bunch of interesting ways. the most important thing that is true is the millennial generation does social security number has been replaced with their mobile number. that is kind of the key index to a bunch of interesting public databases so anything from social media to your phone bill is a good way of figuring out who you are what sort of income you have what sort of death you are likely to take on and service and that income ratio is one of the best that exists that we can use to figure out h

we see that in paypal opentable and any other company. francine: thank you so much. and mycheck cofounder and ceo. plenty more from greece. plenty more coming your way from the u.s. we talk about currencies and yanis varoufakis and wolfgang schaeuble. coming up next on "the pulse." ♪ >> in the history of the european union nothing good has ever come out of ultimatum. >> the general feeling is that the best way forward would be for greek authorities to seek an extension of the program. >> it is not a bluff. it is the only option we have. there's no plan b. >> we cannot extend something the country does not want. francine: the war of words from europe finance ministers. the ministers meet again this afternoon in brussels at around 3:00 p.m. when you look at the talk from greece germany, and others someone will have to back down. our twitter question of the day. greece versus germany, who should back down? the german financed minister said nein. one viewer said "we are not facing a war, we are facing a weak eu." a lot of commentators were talking about the trojan horse.

>> the paypal story is long and legend.ng back, was selling at the right thing, the right time? >> it's the kind of experiment that you can only run once. there is no alternative. it is clearly extraordinarily successful today. it is impossible to argue the sale to ebay is not a step in that success. so clearly the true arc is correlated. could we have been bigger in farther along and less bureaucratic, more nimble as a standalone company? maybe, would it have been more challenging than our ability to expand would have taken longer to bring it to more people? possibly as well. it is impossible to tell. the team was very tired. we were in a battle with ebay because they had their own limits service they were not about to give up on, so probably the right call, but on an emotional front it was very difficult. on the business front, probably the right thing. >> what was difficult about it? >> it's your baby. it was this gangly teenager that growth into a beautiful company. >> do not miss the full interview with max levchin. et

my fear, though, is if i wire money to wiki leaks or use paypal, i will end up on a government was somewhere. or even worse, if at some point wiki leaks is formally decreed to be a terrorist organization i could be subjected to liability, criminal liability for materially supporting a terrorist group. these are not people prone to weird conspiracies that you hear from occasionally. these are very sober, rational americans. the reason i found that striking is because these were american citizens who were petrified of exercising their core first amendment constitutional right, which is what donating money to an organization or political causes. they were petrified they would be punished if they exercised those rights. what made it more remarkable is wiki leaks was an organization, is still an organization that has never been charged with little loan convicted of any crime. yet here we are with all kinds of people voluntarily relinquishing their own rights at all fear the government would abuse its power and punish them for exercising the right the constitution guaranteed. the reason i found th

. >>> when we come back online and mobile payment service stripe looking to take on paypal.stripe explains the early investors. and later gdp data that can move the market. plus we have kat cole. she turned sinnabun into a billion-dollar business. she will talk about her new role at focus brands. and cramer's look. "squawk box" will be right back. the future of the market is never clear. but at t. rowe price we can help guide your retirement savings. our experience is one reason 100% of our retirement funds beat their 10-year lipper averages. so wherever your long-term goals take you we can help you feel confident. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence. i love my shows, but i can't just sit around all day. that's why i have xfinity. their cloud based dvr lets me take everything i recorded, anywhere i go. which is perfect for me, [whispering] because i have responsibilities. ...i mean that's really interesti

anybody holding ebay to get that paypal split? no. what do you think about ebay?my system. the sales are anemic. better stocks. i would pass. charles: i think so too. what do you think about zebra, i own it. up about 20%. hope you bought it from the show. we're up too. i'm holding on to this thing. love the company and the business. i think it goes higher. what about you, chris? >> i think the stock is doing well. expanding its product. play on the internet of things. all places. as we continue to collect data. they're right there at the point of collecting things. matt: i love the stock. takeover $3.2 billion deals. moat roll aenterprise, expanding their bottom line. earnings per share growing. can't go wrong. >> i think the deal is expensive. the stock is expensive. i think it's really stretched. it's a sell to the next top. i'm sorry, man. charles: golly. that's good. that's good. what about that it's sort of a proxy for the overall economy? no? >> ge is a proxy of the economy too. charles: i hear you. being a first-time investor, what kind of stocks would you

he has played a role in some of tech's biggest successes, from paypal to yahoo! to yelp.you can find him in his innovation lab, tackling issues like fertility, health care, and banking. but many years ago, le

they can fake a name that says paypal but they can't fake an e-mail address it would be from a bank if they have any issue it's not going to be over an e-mail. >> stay away from e-mail all the same can be said on networking sites. the user should make sure they know the person before clicking on the requests >> some of tracking software they can get argue bank account information some are more hamper full we'll get pop ups and i want to avoid those. there are many levels of protect your i s public works usually has a security looking for things you should have a updated advisor software. there are a lot of anti virus programs the number one free viruses program is microsoft security and microsoft has an invested interest for people to make sure their computers are safe purify you don't want to use easy to guess passwords and mix things up. you want to have a capital letter or a special characteristic like american people exclamation point and change our pass wood frequently every 6 months or so. be aware that anything on the public community someone else can be looking over our shoulde

but he took his first job out of school at apple, then later joined the now legendary paypal mafia.ow a partner at greylock, hoffman sits on seven boards. he is the author of "the start-up of you," and now a new book, "the alliance."

and they took paypal. >> how did you go from journalist/drone enthusiast to drone company ceo? >> after i started the community and it takes off. people started talking about doing things together. designing drones. the software, the hardware, etc. initially, i started putting parts into cardboard pizza boxes with my children. that was the manufacturing line. that did not work well. it was clear it had to be like a real company. making real stuff, was someone doing it full-time. i invited the smartest guy on the site and said, you want to start a company with me? and he said sure. initially, he was 19. in tijuana, mexico, he just graduated from high school. by the time we started the company, he was maybe 20 or 21. by 2012, he had been doing it for a couple of years. the company was doing like $5 million in revenues. i realized he had built a real company with his friends, many of them from tijuana. i was like, it is amazing. it is ready to go to the next stage. we raised venture capital round, i quit my job and took over the ceo role. and here we are. >> how likely is it drone

he made his name founding paypal and funding facebook. now is backing rocket ships, dna manipulation, meat grown in labs, and a start-up island off the coast. he has paid kids to skip college and start companies instead, in hopes of building a better future, faster. and building flying cars along

which, of course, was the former parent of paypal. back to you. >> all right., back at headquarters, thanks so much. when we come back, amazon pilot season is over so which of the 13 potential new shows actually made the cut? the answer in a moment. but first, rick santelli, what are you watching today? >> well, i think we're going to be watching 10-year, 30-yaer, 5-year note yields as they toy with settlement yields of last year. what does it mean? how did we get up here? and why were we so low on january 30th? because all those reasons are important. if the fed actually embarks on tightening in 2015. we're going to talk about that after the break. in my world, wall isn't a street. return on investment isn't the only return i'm looking forward to. for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as fifty doll

several ceos from visa bank of america, paypal and apple will also be there. >>> helping to curb suicide. president obama signed a bipartisan bill yesterday. this new law is named for a marine who committed suicide in 2011 after serving in iraq and afghanistan. the law provides added support for veterans struggling with post-traumatic stress disorder and other illness. >>> frigid temperatures. they feel colder with that gusty wind. look at the flags on top of the aramark building in center city. the winds in the area have been gusting to 41 miles an hour. right now it's 11 degrees at 4:27. jillian mele is in the first-alert weather center and traffic center. >>> good morning. this is a live look at 95 near girard avenue. our camera just froze, but 95 is looking good in philadelphia. coming up i'll take you to 95 in delaware. >>> plus new at 4:30 a local bar brawl turns into a much bigger crime. what police say happened after this caught on camera fight. >>> put an extra layer on or two. friday is off to a frigid start with the gusty winds making it feel below zero in much of the area. wh