it is a terrible place, though, to grow a sequoia.s part of the east bay is just too hot and too dry. >> yeah, i think it is probably a combination of all of those environments, soil. it is why when keith came to work here four years ago he wasn't surprised to learn this 130-year-old 80 foot giant sequoia was not doing well. >> it was okay. but it does have a disease. and everybody, we all knew it. >> this, of course, was not just any other tree. it was planted here by famed naturalist john mure in the 1880s. in this 1885 photograph you see the tree protected by a wooden cage planted in a prominent spot for all to see. >> he could have planted it anywhere. he planted it at the intersection of two farm roads. >> keith realized the only way to save this tree would be to clone it. but that's notoriously difficult with giant sequoias. there may be only one person in the world capable of doing it. good thing that david malrch agreed to try. ehe runs the angel tree archive in michigan dedicated to preserving old growth and historic trees. h

it is a terrible place, though, to grow a sequoia.east bay is just too hot and too dry. >> yeah, i think it's probably a combination of all those, yeah, environment, soil. >> reporter: it's why when keith paar came to work here four years ago, he wasn't surprised to learn this 130-year-old 80-foot giant sequoia, like most others in the region, was not doing well. >> it's done okay. it's made it thus far from 1880 to the present, but it does have a disease. and everybody -- we all knew it. >> reporter: but this, of course, was not just any other tree. it was planted here by famed naturalist john muir in the 1880s. in this 1885 photograph, you see the tree, protected by a wooden age, planted in a prominent spot on the property for all to see. >> he could have planted it anywhere. he planted it at the intersection of two farm roads. >> reporter: keith soon realized the only way to save this tree would be to clone it. but that's notoriously difficult with giant sequoias. in fact, there may be only one person in the world capable of doing

it is a terrible place to grow a sequoia.rt of the east bay is just too hot and too dry. >> yeah. i think it's a combination of all those environments. soil. >> reporter: it's why when keith came to work here he wasn't surprised to learn this 130 year old 80 foot giant sequoia was not doing well. >> it's done okay. it's made it thus far from 1880 to the present, but it does have a disease. and everybody, we all knew it. >> reporter: but this, of course, was not just any other tree. it was planted here by john muir in the 1880s. in this 1885 photograph you see the tree, protected by a wooden came, planted in a prominent spot on the property for all to see. >> he could have planted it anywhere. he planted it at the intersection of two farm roads. >> reporter: keith soon learned the only way to save this tree would be to clone it, but that's notoriously difficult with giant sequoias, there may be only one person capable of doing it. good thing that david agreed to try. he runs the arch angel ancient tree archive in michigan dedi

he was a partner at sequoia capital for 12 years.e left silicon valley and move to ohio where he is investing in midwest companies as a cofounder and investor. thank you for joining us. after spending 12 years at sequoia, why did you move to ohio? >> we saw the opportunities here. 25% of the u.s. research is done here in the midwest. in addition, 22% of the gdp is here in the midwest. in the past, you did not have the incubators or the technology so that people could actually stay here and utilize it. people left. marc andreessen studied at urbana-champaign. we wanted to stay in the midwest. we think it is the best place to build a company. >> i spent some time in the startup scene in detroit. you guys just raised $250 million in funding. what kind of innovations are you seeing out there that you want to put your money behind? >> there is a fundamental shift in technology. if you look at facebook, mark zuckerberg moved it to silicon valley. he needed people who understood how to do data centers, servers, network engineering. the emer

after spending 12 years at sequoia, why move to ohio?ndy partner, chris olsen, i, saw the opportunities here. there are 25% of the u.s. u.s.rch here done in the -- done in the midwest. you do not have the incubators and a lot of the technology that people could actually stay here and utilize, so people left. mark andreessen, who studied at the urbana, champaign, so we wanted to allow the best and the brightest here in the midwest, stay in the midwest. we fundamentally believe that today it is the best place in the world to build a company. >> i spent a lot of time in the startup scene of detroit were talking about the things you're bringing up. if you guys just raised $250 million in funding, specifically what kind of innovations are you seeing out there that you want to put your money behind? >> we think there is a fundamental shift in technology. if you look at facebook, when mark zuckerberg moved from boston to silicon valley, he moved from money and access to technologists. -- for money and access to technologists. of files stored wi

billion sequoia is taking away from this.e will consider our conversation about facebook and whatsapp. ♪ >> i'm emily chang. you are watching "bloomberg west ." day, thestory of the impact on facebook and their competitors. with me is ben thompson. he joins us from taiwan. inedict evans here with me the studio in san francisco. i'm glad to have both of you on this, because you are two of the foremost anchors on what is going on in mobile. benedict, i have to ask the question about the number. whatsapp iswhatsapp worth it? >> was instagram worth $1 billion or worth 1% of facebook at the time? the question for mark zuckerberg is around maintaining share if engagement and share of activity. it is a significant percentage of facebook. is taking a big chunk of people who should have been using facebook and they are all using facebook first. do youstion for him was, just sit and try to compete with that? they would be looking at facebook messenger or the numbers for that for the last year or two years. would you say, this is a real

hey, sequoia, sequoia's going to make 50 times their money, what does that mean?downstreak of late and some of the old guard of silicon valley are reasserting themselves after the angel networks out there really took a lot of the powder out of the game because they were getting all the upside. what does it mean? it's a once in a lifetime investment, that's what it means. they did it. they hit the jackpot. you are talking about the real power ball. i would love to be in silicon valley and hope you do reporting. everyone's heads must be exploding and the jealousy and envy is all happening now. >> the rich get richer on this one. not only do they make a home run on this, their initial investment of $60 million worth $3 billion but now they're the name on everybody's tongue, every young entrepreneur will want to talk to them. not tiger global owning a big stake of it, just sequoia, $8 million in, $51 million, it was secret that no one even knew about. they're back on the map. >> jonathan steinberg, you are a young entrepreneur, you've been working really hard, do you

[speaker not understood] the sequoia high school district in san mateo county by reporting an argument, the statistics of the composition of the counselors and the teachers in the district compared to i guess the population. i have categories. they might be white women, asian women, black women, bi-race, ethnic, colored group, whatever itses was. not women versus men and then another one women are different colors or racial groups. it's much more intelligible when you get the combination. and retaliation is important and it's the lack of provision for remedy against retaliation shows in the situation in the homeless situation in san francisco. failure to give some remedy to people who are retal indicated by being denied housing because they report what goes on. it is preventing you from knowing how to handle ending homelessness. >> thank you very much. am i cross. next speaker, please. ~ miss cross >>> thank you for this opportunity to speak before you today, supervisors. i'm going to speak to the small criteria for the lbe, specifically the public works and construction area. [speaker

and ortega-ramos were identified as suspects responsible for burglaries in august of 2013 block of sequoiathe city of san mateo. additionally charged for these crimes by smpd. kirk and ortega are currently in >> pam: >> to provide more training to the staff to assist in bullying situations. >> pam: an effort to keep all of the children safe we have parents signing up as well. >> pam: and texas a victory for gay rights activist after a judge says the state ban on same-sex marriage is unconstitutional. the court ruled in favor of two gay couples to challenge the ban. the decision is latest in a series the federal and state court's overturning laws forbidding same-sex marriage. however the judge also says, for now the ban will remain in place pending a ruling by an appeals court later this year at least one case related on appeal is currently headed to supreme court. >> pam: the first of the blue angels arrived at oakland airport today. after a year's absence. the team is planning for the return of fleet week in october. the show was canceled last year because of government budget cuts. membe

. >> the ukrainian born man came to the state and he relied on food stamps. .e reported sequoia capital put an initial -- initial state they have their feet and the fire. >> this will be a raging debate, whether it is a disrupted trade or one for the future. is the portfolio manager of -- capital. a good value? >> they are keeping their users engaged in the last few weeks and months. on facebookaged cost website. this could be a good way for them to make sure and use the service. there is growth potential for the company. >> help me through this. you pay one dollar and it gives me a billion-dollar gross revenue. >> one billion users gives me $1 billion. where is the value come from? >> i think it will be advertising and it will be a way site anding the monetizing the users for the website. , what black -- -- >> maybe we are all missing something. have a user -- they should deal with monetizing. >> we will deal with the issues after the break. stay with us. more on the agenda. >> in london, the is on the move on bloomberg television, your radio, and streaming on your phone and tablet. th

the number that really gets me this morning is the sequoia investment.at invested in this company. the irr on this deal must be eye watering. >> $60 million investment, they now have a $3 billion state, that is incredible. workme investments really out. thank you very much, hans nichols from berlin. more on this story from tech later. we will continue analyzing the numbers and what it means for the rest of the industry. shares sliding this morning, europe's largest defense company says profit will fall as much as 10% this year. after the firm secured a last-minute deal with saudi arabia on typhoon jet prices. bloomberg news defense reporter rob wall joins us now. confusing picture over the last way for hours for bae. great news out of saudi arabia. today is more symptomatically what is happening in the wider industry with defense budgets being cut. >> saudi arabia is good news and important for bae in the long term. relationship is critical. good news for them. essentially, what investors were looking for was good news and state, they are getting good ne

supervisor wiener also introduced a landmark designation nomination for a tree, a giant sequoia at 3066 market street and this will be considered by the urban forest council. that's my summary for the boards activities unless there are any questions? >> no, thank you. >> thank you. >> the board of appeals of appeals did not meet last night. >> commissioners, that will place you under general public comment not to exceed a period of 15 minutes. at this time the members of the public may address the commission within subject matters of the commission except agenda items. with respect to agenda items. each member may address the public commission for 3 minutes. i have no speaker cards. >> any general public comment? >> good afternoon, commissioners. my name is jordan angle. i'm here as a representative of a group of concerned business owners and property owners on the broadway corridor. a few of which appeared in late january. we are concerned about the proposed liquor license moratorium on broadway that covers 5 blocks on montgomery. this frightens business owners. we already have four va

for sequoia, it may have been making an investment in germany.inside a start-up company, the maker of a popular to-do app. >> match making for millionaires. we're going to speak to an elite dating agency about helping the mega rich find love. you think you would be a small demographic, millionaire who is can't find love, but it turns out there are a few out there. be ♪ >> welcome back. let's look at the current a markets. this is what we're seeing this morning. we had a series of data releases. euro dollar, so we touched 137 earlier on. there are plenty of banks out there with targets on this one, despite the data today being a little better than expected, certainly not doing enough to degrade the output gap for the unemployment story that we have here in europe. let's take a look at cable. this is the peculiarity we find ourselves with at the moment when it comes to the british pound. it is once again on the move. we have construction data earlier on for december that was fairly strong. i suspect that's going to be the last clean number we see f

sequoia capital is the only venture captain investor.uoia's stake could be worth $3 billion. now, in a post on facebook, ceo mark zuckerberg explained the rationale to the deal saying, quote, our mission is to make the world more open and connected. we do this by building services that let people share any type of content with any group of people they want. whatsapp will help us do this by continue to go develop a service that people around the world love to use every day. later on the conference call, zuckerberg revealed a proposed the deal just about ten days ago. you may remember zuckerberg proposed a deal to buy instagram in 2012. some may say the valuation is lofty. they believe this is a good strategic deal for facebook. checking facebook, shares in frankfurt down about 2.8%. now, blackberry shares rose in after hours trade by around 6% on speculation that it could spin off its messaging service. .right now, we're seeing shares up by around 6%. carolin. >> seema, thank you so much for that. joining us now is neal campling. neal, te

and a final winner we want to mention, sequoia capital, jim, the investors in whatsapp. put about 8 million to work in whatsapp fwlak 2011. back to you. >> josh, brian actin turned down for a job at facebook. like michael jordan not making his high school basketball team. wouldn't you say? >> right, right. went on to big around better. >> it's interesting, though, because this company had a very unique ethos, john, especially with roots in yahoo!. branched out, left yahoo!. started this company. some scratching their head why they chose to sell their company at this stage. what's behind this? >> stayed at yahoo! a long time. it's interesting. this isn't the drop out and start your own company story. jan dropped out of college to work harder for david phyllo over at yahoo! and so the timing of this, interesting. they had been very anti-advertising and facebook is the emerging advertising player, personalization, lots of information about you. that's exactly what whatsapp itself was trying to avoid by charring an annual fee. >> interesting when you see mark zuckerberg maki

one of the first initial investments came from sequoia.en translated into $3 billion in stake right now. how much each employee is worth million per employee. it is a remarkable story and it is a story of growth. can they continue to grow? zuckerberg says that he wants to keep its subscription-based. waynel see how much free -- rain he gives to us. >> well put. hans nichols visit our international correspondent in berlin. last night, policymakers edged and from their commitment unemployment hit a 6.5% threshold. we have more on the fed minutes. >> bernanke's farewell. not quite. no consensus here. in some conversations i have been looking at, there are initial things. investors are on autopilot. a couple of officials who want to formalize that and make it a clear presumption that it will be 10 billion every month. is, doesf the moment the bad data change the game? >> of course, this was the meeting at the end of january. we had three weeks of data that missed since that meeting. >> we have had a press conference. >> yeah. >> the data is nu

the new deal there will be a joint venture with china broadband capital and sequoia capital china.aling with chinese censorship but said the company will be transparent and protect the data tnd rights of its members. scott, certainly a huge opportunity there for linkedin. >> julia, thanks. we've talked about this space every day because of the breakout that facebook has been having. let's look at facebook. we could talk about that relative to linkedin. who do you like best? >> oddly enough i've liked linkedin over the last couple of years. i like facebook better here. >> momentum. >> you have to think about the inventory of sellers that are in linkedin. had the run up up to 250. a lot of people now as i'd trades 210 makes a move back to 220, 225. a lot of inventory of sellers wanting to get out. facebook, grab the momentum surprisingly to me. it holds on to it. >> facebook or linkedin? >> facebook. they're just showing that they can really execute. much bigger user base. i think the acquisition is gra a. great acquisition that they just made. >> facebook. i own facebook. >> throw t

sequoia capital is the big winner. it invested $8 million in whatsapp back in 2011. that is so crazy. estimatedworth an $3.5 billion. are being made instant billionaires several times over. talk about valentines. >> apparently, they signed the deal on the wall of the place where he used to get food stamps. that is what our producer told me. he used to get food stamps and now he can buy a sizable chunk of walmart. >> indeed he could. we will have more "market makers " in just a few. did notruce in ukraine last long. we're the 20 people killed in kiev overnight. -- more than 20 people till then kiev overnight. i he has gone from coming and were company to creating an internet shaving start up. we will speak with jeffrey rader. ♪ >> the situation in ukraine is getting worse by the hour. deadly clashes ended a short-lived truce between the government and opposition leaders. the associated press reports that government snipers were seen shooting at protesters. the death toll stands above 50. director of dragon capital joins us on the phone from kiev. and the chairman and

. >> let me point to the number here, the trade of the century, tom, sequoia capital took a 15% stake in whatsapp that cost $8 million a couple years ago. they got $3.5 billion. >> that is like you and your super bowl betting. >> at is your front page, these two big deals, situations rather. >> we need to talk to somebody smart on whatsapp. david kirkpatrick is a bloomberg conserving editor, author of the wonderful "facebook affect," and i thought really on a twitter feed, you got a lot of play last night. with your perspective here. what is the key distinction of mr. transaction for ou zuckerberg. pre-k's i have it here on my iphone. i'm surprised you do not have it because that is when people start using this, when they are outside the u.s. for americans. what was the question again? >> i know you're tired. what is the distinction for mr. zuckerberg on this? what is the why? >> the most interesting thing i have not heard talk about yet is the sheer aggressiveness that he continues to show. as a leader, as a determined leader to keep the service in front at all costs with a long- ter

capitalequoia, sequoia were the only venture capital backers in this deal.they are doing what we call in the bid a 300 geithner on this thing. it is based on main -- it is a stunning return. that is unprecedented. >> paul, they did not have any other venture capital bankers. whatsapp i am sure could have raised money from other venture capital firms. i am wondering if you find that weird and if that is statement about the company's e those and how it wants to remain in control because -- the company's ethos and how it wants to remain in control because of they sold more they would have less control? engineers,g like 30 30 four employees total, they have not spent a dime on marketing. further, the founders had made significant money at yahoo!, which they then turn around and put into the company themselves, so basically did not want the money in wanted the control. they end up with it and walking away with what like a $60 million investment turning, they hope, into $19 billion. thank you so much, paul kedrosky, bloomberg contributor editor, and deals reporter

another big winner in this deal, jim getts of sequoia capital. could be worth an estimated $3 billion. and for a group of guys that built a messaging app, we can tell you it's hard to track them down. guys, back to you. >> all right, josh. thank you very much. so imagine this. you're watching "shark tank." it's "shark tank" tuesday on cnbc. the whatsapp deal happens on "shark tank." the guys come in, make their presentation. instead of mark cuban, it's mark zuckerberg sitting next to kevin o'leary and zuckerberg offers $16 billion to the whatsapp founder. what do you think kevin would say? >> well, we don't have to wonder. he's joining us now. investor on "shark tank." kevin, great to see you again. what would you say about this deal? >> well, i think it brings up four big issues. i'm trying to be pragmatic about it as an institutional investor. first of all, i do not own any facebook stock, and i never would because i never own dual-class voting shares. here's exactly why i don't. the last time i looked at this deal -- and first of all, i want t