>> reporter: and with that, plans for salesforce tower became public. a 61 story skyscraper to be completed in 2017. salesforce will occupy more than half of the office space at fremont and mission and it's creating 1,000 new jobs within the next year. >> from the very beginning, salesforce has prioritized growing and hiring here in san francisco. >> reporter: the software company runs nonprofits, pays for employee community service and hands out tens of millions of dollars. ♪[ music ] they celebrated their 15th anniversary with a free concert and volunteer event in march. marc benioff says other companies should do the same. >> they should realize the real happiness is giving back to others. >> reporter: it's that spirit that's helped this project move forward according to mayor lee. >> it isn't really about corporate expansion. it's about more volunteers in our education system. it's about more people that are going to contribute to the things we need to get done in our city. >> reporter: the tower is located right next to the new transbay terminal al

instead, they struck a deal with salesforce.hey will on the land outright and plan to build an arena with private i'm dancing. us ceo and co-owner joins from away. also with us, jon erlichman. not long ago you were looking at a spot not far from where i am sitting on the waterfront. uses the bay bridge. you spend 20 million on plans for it. because we control our destiny. we own it. our relationship with the city is one as an owner, not a tenet. we feel it offers us very attractive elements. the venue will be for the city, for the san francisco bay area. one of the top 25 markets that does not have a venue like this and believe it can be activated very successfully. accessible by all sides and offer strategic advantages. right in the city still. it has its own location. spend all thatl money privately. we wanted something that we actually owned. you bought the land privately out right from salesforce. i am curious how that conversation started. did he personally try to recruit you to that part of the city? him -- my partner met

>> i can talk about salesforce.e have customers from hp, customers at the local and state level, that are moving millions of transactions and we prosecute over a billion transactions. transactions. --process over a billion transactions. it is pretty powerful stuff. >> if this were a military contract -- we have seen this time and again -- where there are special helicopters, where the contractor drives the process to decide but will be in the system. was that the case with the affordable care act? government contractors deciding how they should be structured? >> you cannot blame it purely on the contractor. of course, there are issues with the contracts. this i.t. cartel culture where you continue to throw body more -- throw more bodies of the problem, that is not sustainable. and when you look at the crisis most governments face around the world where they are printing money, there is nowhere to throw good money after bad. so there is a broken system here where you have incentives around this i.t. project where you

salesforce celebrated its 15th anniversary with this free concert and volunteering event in march. the ceo marc benioff says other tech companies should do the same. >> they need to realize the real happiness they will have is from giving back to others. >> reporter: it's that spirit that has helped this project move forward according to mayor lee. >> it isn't really about corporate expansion. it's about more volunteers in our education system. it's about more people-centing to the things we need to get done in the city. >> reporter: the tower is located next to the new transbay terminal also under construction a project congresswoman nancy pelosi convinced the feds to help support. >> i can get what i get for the city is not just my being able to sell something. it's the consensus that it's here, the model to the country that san francisco has always been a public-private nonprofit partnership. >> reporter: this is one of several locations forced elsewhere in downtown san francisco. when this tower is open the company will have over 2 million square feet of office space. live in s

salesforce signed a 15 year $560 million lease.ill be named salesforce tower scheduled to be finished in 2014. salesforce ceo says the company plans to high mower than 1000 new employees this year. >>> some children battling the life long illness for disability now have an outlet for themselves. the group capes for kids makes super hero capes for children. the capes are bringing out the courage and strength for the kids. kron 4 alecia reed tells us about these children. >> reporter: and that is the exact intention of capes for heros. these shields are meant to block out hurt and pain and boost inner strength. many of these children have been fighting a number of battles. >> children that have autism or down syndrome or children that have cancer or even children that are going through a life struggle. >> seven-year-old maddox believes he no long turpitude has autism. >> i started having autism because i couldn't hear that very good and stuff were like hurting my ears. when i grew up, i don't have autism anymore, so that's because of

salesforce opportunities for advertisers. lex i want to ask about daniel graf. recently hiring away from global maps to be ahead of global product. they replaced michael sippy who left in january. could that transition have hurt the company over the quarter? >> think often times when you have a growing company like twitter you have the initial product development percent and then have someone come in like google. i do not think it slowed innovation one bit. i think it is making it easier to use. in some instances they will not solve the problem. my parents are on facebook but may never use twitter. lex >> a lot of events that cause more invention -- engagement. what do they do to get engagement up in the second quarter? >> you have the world cup. activitya lot of around the academy awards, but they consistently get a lot of tweets on sports, music, a lot of important events. they have great opportunities to modernize. >> thank you so much. senior research analyst. stay right here on bloomberg television for the interview with

they struck a deal with salesforce. the warriors will own the land outright implant to build an arena with private financing. l.a. guber joins us from and also jon erlichman joins us from new york. ago, you wereg looking at not far from where i am sitting. on the waterfront near the bay bridge. you spent $20 million for plans for it. why this new plan for mission bay? >> we control our destiny. we own it. our relationship with the city is one as an owner, not as a tenant. we feel the site offers us a very attractive elements because the venue is a venue that is going to be for the city. is one of the top 25 markets that does not have a venue like this. we believe it can be activated successfully, accessible by all four sides. the it offers some strategic advantages. yet, it has its own location. it defines itself. we are going to spend that money privately, offered to recorders of $1 million for the retail, office buildings, and the plaza sites. we want something that we actually own. >> you bought the land privately ou

they struck a deal with salesforce to purchase a 12-acre site further south, but still in the city. warriors will own the land outright and plan to build an arena with private financing. warriors co-owner peter guber joins us from l.a. also with us, jon erlichman from new york. peter, not long ago, you were looking at a spot not far from where i am sitting. on the waterfront, views of the bay bridge. you spent like $20 million on plans for it. why this new site in mission bay? why now? >> because we control our destiny. we own it. our relationship with the city is one as an owner, not as a tenant. we feel the site offers us some very attractive elements because the venue is a venue that is going to be for the city, for the bay area. it is one of the top 25 markets that does not have a venue like this. we believe it can be activated successfully, accessible by all four sides. it offers some strategic advantages. yet, it has its own location. it defines itself. we are going to spend all that money privately, upwards of three quarters of $1 billion for the retail, office buildings, and

is helping us do. >> when the tower is complete in 2017 salesforce will occupy the first 30 floors as well as the top floor. >> that will be a phenomenal view even with or without fog. >> that's going to be incredible. probably i going to charge people to go up to the top and get those kind of views. i did want to show you this photo captured from our audio operator behind the helm of this show, gill, working right here at nbc bay area. he was able to capture what we call virga. what you'll notice are these areas of clouds that we did see and then these trails of moisture coming out of the clouds. that trail of moisture is the virga. it's basically moisture in the mid-levels that evaporates before it hits the ground. if it were to touch the ground it would be rainfall, but since it evaporated, we call it virga. that cloud cover got all sparked off from this low pressure. that's not going to provide any problems for this weekend. it's just going to continue to head off toward the east. it is cloudy out here and unfortunately, not our classic san francisco views. pretty gloomy there thr

on 3rd street at 16th.a site called mission bay.after purchasing that 12 acre chunk of land from salesforce-dot-com reporter:apparently just too many obstacles to the previously proposed site near at&t park at piers 30 and 32. a lot of fanfare when they announced those plans along the embarcadero. >> reporter:.that arena would have had spectacular bay bridge views and an open air walkway along the waterfront. still.one thing is now clear.the warriors will be leaving oakland.likely in time for the 2018 season. >> reporter: kevin durrant down by 4 ... it goes in! guy >> reporter:we go to overtime 107-105 >> reporter:phil jackson made his first move as the new york knicks head honcho. firing head coach mike woodson and his entire coaching staff >> reporter:not that it was unexpected. the knicks failed to make the playoffs this year and jackson wants to bring in his guys moving forward. and one of his guys is steve kerr.who calls games for tnt.kerr on the left with the pink tie. >> reporter:kerr used to play for jackson when he coached the bulls.and is believed to be the front- runner to replace woodso

rex we are looking at salesforce. >> our enterprise software cautions salesforce as when he likes.that's exactly what we are talking about. >> thank you so much. we are on the market again in 30 minutes. "lunch money" is up next. >> welcome to "lunch money." we tie together the best stories, news, and interviews. we have a special tax a pregame here, including how not to pay uncle sam. in sports, make that two green jackets. bubba watson is up there with arnold palmer. an herbalife is getting another follower. and the starbucks ceo talks about minimum wage and their partnership with oprah. and william shots

people talked about us in the same way at salesforce when we went public. >> what about when a companynot ready? how do you incentivize the employee? is it about a secondary offering? sometimes they can incentivize them in the wrong way, maybe in the short but not the long. >> we have to incent people to be builders. that is not a long-term solution. i would work on trying to get people fired up about the mission of the company. make sure that we talk about how ready we are or are not and they are connected and they have more options now, at a lower price. there are things you can do. if you get in the situation where they need some liquidity, there are secondary markets that exist but did not used to exist. it does take longer to go public. >> how do you keep employees from leaving? once they cash out, why not move on? >> you have options over a long period of time. if i got a grant today, i do not get all of the benefit until 4 years. hopefully next year i get another grant. you can lay out additional protections. you cannot keep people based on money. you have to speak to their hear

. >> you bought the land up privately outright from salesforce. i am curious how that happened.y to recruit you to that part of the city? >> yes, mark benioff called and we met with them. we met with him. together, we fashioned an arrangement. we looked at all of the variables. it was expensive, obviously. this was the place to make the move. it offered us a certainty, a timeline that was effective, and the accoutrements that we were hard-pressed to get other places. >> when you talk about getting privately funded, how where does the money come from? >> have you ever heard of a rotator cuff injury where you get your money out of your own pocket? it is all privately financed by the ownership and the partners involved with the enterprise. without looking at public funds, we are going to be an active participant in the city. we will be a good listener to the marketplace and good for the neighborhood. we will be responsive. we are a private citizen building a private venue for the benefit of all citizens of the bay area. it gives us the opportunity to control our destiny. >> what wi

salesforce will leave half of the office space under construction here in san francisco. the 61 story skyscraper is scheduled to be completed in 2017 and will be the tallest building in san francisco. chinese e-commerce giant alibaba is expanding, the takeover valued at $1.5 billion. it allows them to expand into another internet area as it tries to broaden its customer base. sony is telling consumers to stop using the new viofit laptop. the battery may overheat. >> first to our lead story, the nsa may have known about the heart bleed security bug for two years according to people familiar with the matter. this is one of our bloomberg reports we are standing by even though the nsa has denied this. >> it is shocking. despite the risk of hacking, they made the decision to keep it a secret. >> i do have their statement. the nsa was not aware of the vulnerability. the so-called heart bleed vulnerability. reports that they otherwise are wrong. >> it is government policy to not do this. there is no way to know. joining us now to talk about this, who looks at these things, what

been about a six- week process to get to a purchase agreement which we signed saturday night with salesforceah, a lot of work, a lot of long hours, but we're really thinking for the city it's really a tremendous outcome. >> private property, private funding, no condos, no retail, or? just the stadium itself? >> we are 100% focused on the getting the arena itself built. the 12 acres that we bought is entitled for office and some retail, as well. so we would envision the project being the arena, some limited office and some retail mostly restaurants that will support the people going to the arena for whatever event they are going to. >> undisclosed amount. no taxpayer money, correct? >> it's truly in the last 25 years of professional sports unprecedented so this is private property and 100% privately financed arena. it's really -- it really hasn't been done in decades but we think it's such a special place, the city is so special, we can justify the investment. >> what happened to piers 30 and 32? >> it was a combination of things. we have been preparing to go to the ballot in november to ask

salesforce or box. find out what kind of equipment they're buying, what kind of wifi is being put in place across the country. you'll find the next wave of winners. i don't think it will be yelp coming back and doubling again. rather than the companies that have worked or this old tech. >> herb, i guess the point you are making is take gilead, for example, one of the stocks that's been in the news as of late. it's getting a pop today, but your suggestion is that it's nothing more than short covering that is lifting a stock like that, so therefore it doesn't have any backbone behind it, if you will, to keep a stock like that from rising, and lead you to believe that a bottom, so to speak, is in? >> well, scott, that's an interpretation, and that's something you can assume, but we don't really know. that's the point here. >> but it's no different, herb, than maybe some of the way some people would look at a market day where you get a bounce and it's just short covering. it doesn't have the backup to it, t

he says they interrogate -- gate -=-e -- enter intergrate with the salesforce.his is the flat organizational structure. there is no middle management. >> show more companies do it that way? the drug companies are moving in that direction. they have cut a lots jobs in layers over the last several years. mostnt has been the direct. reputationtheir among doctors? they do not have a huge r&d budget. three and a million dollars is not going to get one drug to market. and you talk to oncologists physicians that are treating patients with fibromyalgia they lead mostly at the big names. those are drugs in the pipeline that are valuable. you likeoctor, do hearing mike pierson say it is not our business to develop new drugs. we are happy to take something in phase three and bring it to market but we would rather have universities and other less financially disciplined drug companies to the hardware. >> it is interesting. i think more and more there will be a role for this. it is hard to take an idea of a new drug and bring it through r&d to phase one and phase two trials

industry where you have an enormous advantage in your operating strategy, your productivity in your salesforceyou could afford to pay what looks to the seller like a big price relative to what they are earning in that asset. i made an analogy yesterday, the 3-d -- three g. int they have accomplished the brewery industry and burger king, the reason they could buy burger king at a premium and the public market transaction in the company owned by private equity, they have a more efficient way of running a business. they built a business model much more efficient than the entire industry. they could pay a very good price to shareholders, but it is still an attractive return because they could run the if -- the business more efficiently. that is a competitive advantage for the company. potentially dollar industry in terms of the public and private companies and industry who are potential acquisition targets, that is a very powerful combination. qwest yesterday, the investment bank it's -- bankers who cover ou, are they out of business? >> no, they say business. no problem there. we have been focusi

. >> yes, alexian, bioagain, and salesforce also in negative territory. >> all right. >>> we get moreters in the market following yesterday's fed minutes. sarah eisen is in d.c. as the world bank fed meeting. you have yet another special guest, so we'll let you take it away. >> yeah, i've got the world bank president here, dr. jim yong kim. great to see you again. >> great to see you. >> you have a great handle on the emerging markets with your mission on poverty at the world bank. i want to ask you about china. overnight, disappointing data on exports, on imports. are you concerned about that slowdown not being manageable? >> you know, if you listen to what premier chong said, he said on the one hand, they'll implement policies that will try to purr growth. but they won't go back to stimulus measures, which is really important. what the chinese have said in terms of reform is they'll move away a focus on investment and imports and more toward consumption -- >> so you're expecting the slowdown along with the rebalancing, but the import slide was unexpected. >> it was. what we're now w