especially snapchat.napchat is one of the most secretive companies about everything they are doing. they hate talking about deals. we have some rare insight. what is interesting is, we all knew that facebook tried to buy snapchat for $3 billion. the e-mails suggest the price was even higher than that. there was an e-mail from the sony ceo saying, is he seriously turning down $3 billion? he knew the real number, was the response. the e-mails suggest a price was higher. >> is it a headache for facebook as well? zuckerberg was none too pleased with the fact that rings were leaking about his negotiations. >> he was pretty upset. he thought this was a technique by snapchat to try and drum up interest for the nest back next investment round. he thought this was not fair play. snapchat's investors advised to apologize to zuckerberg. >> some investors were willing to do a deal anyway, right? >> right. it was a big debate about whether they should, whether the company had more room to go on. the fallout was intere

i think it made room for snapchat, which we are an investor in. because that lack of trust limits what you can do next. >> and apple? >> i think apple's only problem is android. and google. and google's willingness to be aggressive. apple should have paid anything. flat out. if you're going to pay $3 company,or a headphone $2 billion is a no-brainer. i think they should i found a way to broadcast. i have a deep respect for tony fidel. >> should apple by twitter? >> i don't know if they would know what to do with it, and that is why i would probably say no. >> twitter is one of your company's? >> yes, and i think they have one of the most amazing moats. they have the most important people in almost any field in the world remarkably committed to their own persona within the system. a venture capitalist criticized twitter, calling it , probably "aanaged lot of pot smoking going on over there." how do you respond to that? >> i think he is on a book tour, correct? i would leave it at that. once you make a statement like that about a management team tha

especially snapchat.napchat is one of the most he gripped companies about everything they are doing. one of the most secretive companies about everything they're doing. they never talk about deals. we all knew facebook tried to buy snapchat for $3 billion last year. what these e-mails seem to suggest is the price was even higher than that. there were e-mails from the sony did they seriously turn down this $3 billion? responded saying, use the real number --it seems to suggest it was higher. >> is this a facebook head ache as well? mark zuckerberg upset that details were leaking about his investigations? upset.he was pretty this isht -- you know, just not fair play, and actually snapchat's investors did apologize to zuckerberg for the leak, even if they did not want to admit blame for it. >> but some investors and snapchat were willing to do a deal anyway, right? >> it was a big debate whether they even should, whether the company had more room to go, and actually the fallout was interesting. 'elegal was i

snapchat. instagram. joining me today bill gurley.ou sounded the alarm about -- taking on an unprecedented amount of risk. >> the cause of this risk-taking is an abundant amount of capital. lately it has been a push into startups. the problem is, it is much easier to run a company that is losing money than one that is profitable. so we have a lot of companies raising money with high valuations, and they say, hey, these companies are going to make it. these are the breakout winners. i am not going to sure, just because they have not passed that test improving that they have legs over the long-term. >> which companies argue sure that? >> certain sectors are more prone to arbitrage. i think e-commerce is a dangerous one. the problem is, no one really gives up. no one says, oh, our numbers aren't working. they just keep hoping it is going to get better. they press it. >> what you most worried about? >> bad factors in the ecosystem. companies that don't have long-term economic models that perverting these rents that people pay and the cost

snapchats have also been leaked.apchat has wrapped up and a potential music label that the company was considering. tell us more. >> if you're sitting at home and saying what does snapchat have to do with sony? there's an interesting link, rather. michael linton, the ceo of sony, also sits on the board of snapchat. of course, in his e-mails, which have been leaked online, there's lots of information about sn snapchat and the ceo of snapchat is very upset and emotional and the memo that was sent to his entire company, i want to read you what he posted online. "i've been feeling like crying all morning. i am so sorry that our work has been violated and exposed. it's not fair that people who try to build us up and break us down get a glimpse of who we really are." and it's interesting that he's so emotional in this, carol, because actually what i'm hearing from the business community is they are very impressed by these e-mails that have been leaked. he's only 24 and sets out an incredible business plan in these ec-mails

they're on snapchat.eil: i don't know what they're on. >> my god child is 17, her and her sister don't go near it. they are on instagram. and they don't want to be associated with facebook they think it's passe, parents and grandparentsor it. it's instagram twitter. >> they don't want to be watched. >> we've been hearing this all year long, teens aren't on facebook abandoning facebook. facebook stock continues to go higher and higher and higher and the service gets better. integrated video ads a lot new amenities, maybe facebook doesn't need the teens, achieving greatings with businesses, small businesses let the teens go snapchat or whatever. facebook is doing fine. >> they're annoying users creepy things they took out on the mobile devices you have to have a stand-alone app for texting, that is annoying. people have been isolated in the community. neil: i have no idea any of the things you just said. >> that's the stuff the millennials are sick and tired of. neil: don't act like you're hip. >> i'm not h

are other places that pop up in the social networking space every year, you think of twitter and snapchat. >> do you think they could ever become too powerful that they would stifle innovation? >> there has always been enough innovation to keep things flowing. >> does that mean that you think someday that google and amazon will not be as common it as they are? >> i think they will be dominant a while, but i don't think they will be dominant forever. >> do you see one or the other becoming dominant? >> it is always difficult to judge this, but if i had to pick one, i do tend to think of google as the one that is on an incredible arc at this point. >> why? >> they are trying to extend into other areas. >> their monopoly is exploring so many different things, robotics, google glass, self-driving cars. what kind of project are you most excited about? >> i think self-driving cars is going to change transportation. >> you compare compelling startups, should they be like cults? >> they should not be like cults, that is something that is wrong, but there is always an intense understanding that so

snapchat. .elcome my guest, bill gurley thank you, first of all, i annk risk-taking involves abundant about of capital. there is a push into startups. the problem is, it is much easier to run a company that is losing money than one that is profitable. of companies with high valuations, and they say, hey, these companies are going to make it. i am not going to sure, just because they have not passed that test improving that they have legs over the long-term. there are certain sectors that i think are more prone to arbitrage. i think e-commerce is a dangerous one. the problem is, no one really gets up. no one says, oh, our numbers aren't working. they just keep hoping it is going to get better. >> what you most worried about? >> bad factors in the ecosystem. companies that don't have long-term economic models that are out there perverting these rents that people pay and the costs that you pay for employees. the market that you may be in against a competitor. >> now i want to talk to you a little about what 1999 looked like. but first we are here. you were born and raised in texas. what

there are other places that pop up in the social networking space every year, you see a twitter or snapchat. all these companies emerge on an annual basis. >> do you think they could ever become too powerful that they would stifle innovation? >> i tend to think this has not happened a lot in the technology area, because there has been enough innovation to keep things flowing. >> do you think someday google, facebook, amazon, will not be as dominant as they are? >> i think they will be dominant for a while, but i don't think they will be dominant forever. >> do you see one or the other becoming dominant? >> it is always difficult to judge this, but if i had to pick one, i do tend to think of google as the one that is on an incredible arc at this point. >> why? >> the core search monopoly is powerful. they are trying to extend it into all these other areas. >> their monopoly is exploring so many different things, robotics, google glass, self-driving cars. what kind of project are you most excited about? >> i think self-driving cars is going to change transportation maybe as much as much as th

snapchat. instagram.

. >>> snapchat is breaking rules.ire concept of the app is to share pictures that disappear after a few seconds but tonight, snapchat will compile photos of its users celebrating new year's eve around the world and they are going to share them. it will ask user permission first. and after 24 hours those pictures will also disappear. >>> many american cities new year's eve is all about something that drops from the sky at midnight. there is the ball drop in new york's times square. in atlanta they drop fruit, in the peach state, a big giant peach. >> in the past few years this is a popular and beloved midnight drop. it's the drag queen drop in squeeze, florida. tonight sushi will descend over the streets, the name of the drag queen. organizers say this year will be just as fabulous as years past. >>> there are still 12 more ours until it's 2015 in california but it's already the new year on the other side of the world. the celebration next. >> and if you plan on bringing in the new year in oakland tonight you will have

i did not get snapchat. are valuable that are flammable. >> two years ago, facebook was the thing and now snapchat -- two years from now, what will it be? >> you are right about that. >> coming up, 2014 was the year of airlines devaluing your precious miles. we will find out how to get the best deals in the year ahead from your points guy. he knows about deals. he got a $10,000 flight for $90. how do you do it? you'll find out in a couple of minutes. ♪ >> we continue to count down to the opening bell. we are halfway through, and that means it is time for a deep dive for it airline points -- -- dies. -- deep dive. airline points -- southwest offers awards based on ticket prices. american is the only u.s. carrier that awards points on miles flown. brian kelly is with us. is a master of points arbitrage. in this inflationary environment, which miles are we to buy? what's the most are starwood preferred guest points. they are not airline miles. you can use them for hotels and cool experiences like courtside new

a lot of consumers are going on snapchat. >> where will they be tomorrow?be fast that first because i cannot tell you with any precision where -- it probably does not exist. we had a meeting in l.a.. we spent half the day, half the first day talking about myspace. there, mark were zuckerberg was sitting in a dorm and inventing facebook. we had no way of knowing it was happening on the other side of the country. observe what consumers are doing constantly. when you start to secret eagle mass in any one platform, -- critical mass in any one platform, that is when -- if you try to predict it, you will spend a lot of time getting it wrong. have some principles you stick to, but move fast when you see things getting -- left wing, though. >> snapchat. -- les moonves. >> snapchat. >> les moonves, that is your next once feared -- that is the next one. cbs. dr. doing ok. >> "american idol." >> slowing down. many years itow did that, but i feel like it has been around as long as i have. >> that does not always happen, though it there are all brands that seem to have

facebook messenger is facing more competition from snapchat. 86% of snapchat users are under 37 years. messenger'sfacebook are that young. teens don't see facebook as safe or trustworthy in comparison to other social media. -- instagramay be is hotter than ever. the app which facebook bought $1 $1 million in 2012 -- billion in 2012 is now valued at $35 billion. valued at roughly the same amount as kraft foods and american airlines. instagram surpassed 300 million active users, more than twitter. coming up, the bbc releases a scathing report of poor working conditions for apple factory workers in china. how is the company handling the response? we will discuss, next on "bloomberg west." ♪ >> it is 26 minutes after the hour. let's look at where stocks are trading right now. in an upanged today week. the dow and s&p getting this the face athe company will mass consumer lawsuit relating to last year's data breach after a federal judge denied the company's bid to dismiss the suit. target is accused of failing to protect customers. not seeing much change in the stock at this point. that is

. >>> snapchat plans to show off a global view of new year's eve.nd video from users at celebrations all over the world. how cool is this? creating a documentary hfr style look at how people areri>> if you need to fill up your gas tank in pennsylvania do it today because prices will go up starting tomorrow. gas taxes will be going up nearly ten cents a gallon. diesel by 13 cents a gallon. the latest in a series of hikes to boost construction funding in pennsylvania. the next increase is in 2017. >>> colder weather settling in. many people starting their cars before they head out on the road. is that really necessary? according to car experts, it's not. older vehicles did have to let the carburetor warm up. but newer models are good to go in a minute or two. experts say letting the car get warm is more foráñ the driver's comfort. figures show if all drivers skipped it they

the founders of yikyak are telling somebody white snapchat -- why snapchat is not going to win in thee. people are back at the arbitrage of understanding what is happening now. >> what is going to give you the confluence of viewers that a television platform gives you? >> i can reach more people every day than the super bowl on hth of theor an eight cpm. do you think people are paying attention to a television commercial customer? >> they do. >> theyhave in the past. areink super bowl ads underpriced. in the past they have. everyone is dvring and netflix. everybody is grabbing their phone. >> 25% of clicks on the internet are robots. >> same thing i am talking about, banner ads. facebook in screen, people are .eeing it i cannot wait to come back here and say it is instagram, i do not care who wins. what i'm onding to disrupt, this sec if you are trying to sell a film or sneaker, there are better thearbitrages going on than traditional media is talking about. >> they do not understand any of this? >> they understand that there is laziness and other rationale. different than mine except

now, snapchat has been drawn into this.entertainment ceo michael linton is on the board of snapchat. on some technology blogs, it has been unveiled that in certain perhaps waspchat offered more than $3 billion to be bought out. also, snapchat spend $15 million on a company called virgin cloud. google glass.f snapchatk snapped up that company for $15 million. there are some more embarrassing e-mails involving evans legal -- , who has not been treating potential investors and people on his board with all that much sensitivity. more and more people are being tainted by this. every time sony entertainment has tried to bring back some sort of progress to their studios, more and more keeps getting unveiled. theyians of the peace, have really killed it when it comes to cyber attacks. it has roiled the entire of sony entertainment. >> and there may be more to come. caroline hyde with the latest on sony. >> coming up, germany's constitutional court has ruled against tax breaks that benefit small companies. they are called the backbo

up and down, along the way making his early bets on some of the hottest names -- twitter, uber, snapchatstagram. joining me today on "studio 1.0," seasoned venture capitalist bill gurley. you recently sounded the alarm about startups and fund raising in silicon valley, saying that silicon valley is taking on an excessive amount of risk, "unprent

. >> one of the pioneers here of silicon beach is snapchat. it's the enormously popular app among teenagers that lets you share photographs that self destruct shortly after they arrive. they occupy a full city block right off the beach here in venice. last year, they turned down a three billion acquisition offer from facebook to try to make it here on their own. >> i think that was sort of a big turning point and since then, people are like, "oh well if snapchat can build a global brand here in los angeles, why can't we? >> three years ago i used to hear people pitching scripts in coffee shops, now they're pitching business plans and business ideas for startups. >> this is the offices of epoxy. which doesn't really look like an office, but i'm going to... hello there! >> hello. welcome to epoxy! >> epoxy tv is a social platform for online video creators. they make youtube stars go viral by leveraging every social media platform under the sun. its run by juan bruce and jason ahmad. >> so this is your home or your office? >> this is our office.

carolin and wilfred, are you big fans of snapchat? >> i'm not. >> my niece and nephew, that's all they talk about these days. >> kind of phased out? >> you have instagram, though. >> i'm a fan of instagram, fan of twitter and i love facebook. >> just to get you some news on the cloud space, rack space staged a comeback in november. take a three chart. it's almost 20% over what has been a volatile year in the industry. i spoke to the ceo with smaller players looking to go public. >> if you think b about a box or a drop box, lots of those companies are a service company. we're a service company at heart. when new tellings are coming out in the market, we get a chance to integrate those into our service. if a customer wants to use a service technology, we put it into a market and manage it for them. >> ear in europe, there's been a lot of talk about the role that tech multi nationals play in europe. the european parliament has pushed for the break-up of google. does that scare you as a multi national looking to strengthen your presence i

get this snapchat is planning to show off a global view of new year's eve.he social media app will edit together photos and videos from users, creating a documentary style look at how people are experiencing the occasion. snapchat says after 24 hours, the content like the confetti will disappear. >>> from our delaware bureau the regional girl scouts council is hoping to raise $6.5 million to build their new headquarters. the girl scouts of the chesapeake bay are moving seven miles from their long-time home near the university of delaware closer to christiana. the girl scouts council will kick off their fund-raising efforts next week. the new headquarters should be ready by december 2015. >>> the countdown to new year's fund is on. >> nbc 10 delaware bureau reporter tim furlong is live in wilmington. you're not ice skating, tim. >> not yet. i'll explain that in a second too. plenty of great stuff to do. but many cities and towns aren't going to be paying for it. i'll explain why you won't see fireworks in many parts of our area tonight. >>> as winter's cold c

see fun ones on "gma" on snapchat.ost nearly 300 pounds, transforming her body and getting her life back. abbie boudreau has our story. >> reporter: at 457 pounds, rhonda martin could barely walk. even breathing became a chore. she never imagined she could one day look like this. >> i was just existing. i wasn't -- i had no social interaction with people. >> reporter: desperate to lose weight, she tried countless fad diets, even weight loss pills. but she gained it right back. >> i knew if i didn't get the weight loss off, there was great risk of me dying soon. >> reporter: fearful for her life, she ditched her old, unhealthy eating habits and started drinking protein shakes. >> it's only two shakes a day, and the other three meals would be just regular food. so i wasn't limiting myself to the shakes. >> reporter: rhonda says she began counting calories, drinking eight glasses of water a day and using a pe come ter to track her steps. pushing herself to walk 100 more steps each day. >> by setting the tiny mini goals, i

and snapchat allows users to share pictures and video in 15 different languages.and in 3 is youtube, users like it because it are recommends what to watch based on your favorite video. >> if you have a new smart tone, download our app for free for updates on news and weather and sports with information at abc7news.com/app. >> leyla gulen has the friday morning and making the most of your holiday dud. >> did you get a gift card you don't want? the largest retailer is turning it into something you wanted to fine under the tree. >> getting a jump start before the crunch attack season and now is the time and how it will help you add extra cash to your return. >> looking ahead tomorrow on abc7 news you can watch miami and south carolina in the duck commander independence bowl live from shreveport, louisiana, tomorrow at 12:30 right here and it leads up to the national championship game on espn general 12 >>> covering novato, oakland, sunnyvale and all the bay area, this is abc7 news. >> happy now the city of san francisco is making it easy for you to go friend when you