do you think this is tim cook trying to make his mark? i know that they were very good friends, but is this tim cook trying to put his stamp on the company? >> it's an example of tim cook failing to make a significant mark because this goes back to his legacy roots in music. sales are falling and this looks like a doubling down on music. the great concern i would have as an apple shareholder is if they are thinking with their heart, like they say in the press release, or using their mind? >> tim cook consistently thinks about risk rather than just opportunity. if you were to look at all of the streaming services out there, which has a probably profitable business? the headphone manufacturer. i'm presumably thinking like i know, but there is a probable headphone manufacturer subsidizing the digital business. headphones will be better. digital business will be better. we will fix the problem with falling ipod sales and falling digital sales. do you see that as the way apple thinks? >> if that's their calculus, it's a doomed to failure. ther

why does tim cook want it? >> dr. dre is doing ok these days. true, adeal comes pretty big transition, we estimate that beats will do less than $2 billion of revenue this year. to put that into perspective, less than one percent of apple's total revenue this year. in theelatively small grand scheme of things. a tremendous deal for the beats organization. wantat exactly would apple in beats? a lot of people are asking the same question. at the end of the day, i actually think this is largely a financial transaction in nature. apple is paying two percent of its $150 billion cash toward to buy it. 100 bits of revenue growth this year. it you think about apple, they growing seven percent this you. if they did by beats, that would add 100 basis points to that. >> they are not interested in the brand or the creative team or the fairy dust from dr. dre? >> i'm sure that is a factor. >> i think he has a lot of things, but not very dust. fairy dust. >> apple already has itunes radio. they're probably trying to bolster their effort there. that is such a s

tech world --e tim cook wants to dance with dr. dre.his is "bloomberg surveillance." it is friday, may 9. joining me is scarlet fu m and&m lover erik schatzker. erwin simon is our guest host for the hour. he does organic stuff with hole. -- what whole foods. here's her friday brief. >> some overnight data to tell you about -- chinese deflation decelerated to the lowest amount in months. economic data in the united states -- nothing to get too concerned about. at 10 a.m., we will get job openings and wholesale inventories. before the bell, hilton worldwide reports earnings. it was taken public by blackstone in a blockbuster deal and rob laurent reports this morning. >> just now across bloomberg, we have vladimir putin traveling to the crimea. there has been a hedge on the early u.s. morning and now we can say he has arrived in crimea. reviewing his is russian fleet. let's get to an incredibly busy company news. >> we start with the merger that would have created the biggest advertising agency. it is now off. they have abandoned their pla

tim cook tweeted this photo, saying, sharing a laugh with jimmy and dre. interestingly for apple here, what do you think of it? >> i think it's an interesting move. because over the sort of past 20 years apple has been very much seen as a product innovator. and this is the first time that i can think of where they've actually bought somebody who is a product innovator. in the overall scheme of things, for apple, $3 billion is not a huge sum but it is an interesting move. they're seeing they're having to make moves like this as well. >> a lot of heads being scratched about the price tag right now. if they want to get into the streaming business it's perhaps going to cost them a lot more to not be in this business at this stage or at least going forward. from that perspective it makes sense. >> absolutely. i think that's probably the major reason they're going for this. they want to get away into the streaming business. they see that as very much the future of the music. they want exposure to that. i think also the point you made about some of the talent the

it's the type of thing tim cook says.hat i think is critical because they've done this deal what they say gets scrutinized more than ever. now they can't get away with making the sales talk. people will say really? have you lost credibility because you're doing things now that you said you would never do. . >> check out this photo. this is cook with dray and the beats team. it does bring us to this morning's squawk on the tweet question. give this photo a caption. we'll get your responses later. in the meantime other speakers making news. this is soft bank ceo with some candid comments on alibaba and evaluation. >> amazon, all you know, e-bay. okay. both of them are great company. i admire them, both of them very much. if you just look at the past last year, the volume of the e commerce transaction of product sales over their platform, amazon and e-bay added together compared to alibaba alone. alibaba surpassed. okay. the combined profit by amazon and e-bay versus alibaba -- e-bay and amazon versus alibaba. alibaba again

if you have the opportunity to break bread with tim cook, what would you ask him?> what's the next best thing? what's the best technology that he thinks will be revolutionary? >> pete? >> i would want to know how he's going to capitalize on the streaming, why they haven't jumped in. >> why they missed the boat? >> a subscription model of some sort. >> joe? >> i would ask him in steve jobs' final days, what did he share? what did he believe the company should be? >> i would at upon that, i want to know if she shares jobs' disdain for google. he made it clear he wanted to go after gugle. if you can't ever get to this, the true feelings on carl icahn. >> those are two questions. >> yes. >> for $180,000. >> i guess you would deserve a couple questions. >> murph's got the money. he could pay double. >> i think the bottom line here is we want to know what his's going to do with the cash, what is the vision for the company? that's the driver here. what's the next catalyst for the stock here. we should note that a coffee day with cook went for more than $600,000 last year.

he just spoke with tim cook about the deal. josh. >> yeah.ity to speak to apple's tim cook and as well as beat's

tim cook and dr. dre take their romance public. somewhere ice cube is not pleased.end of the day, it is all about "money." [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. melissa: apple is feeling the beat to the tune of $3 billion. the tech giant is officially buying the headphone maker, but is there a connection behind the scenes with the big players? back now with me, jared and veronica. i mean, the things these guys are saying about each other now, til cook says it's like finding the precise grain of sand on the beach. they are rare and very hard to find. it's like deep thoughts. [laughter] give me a break. >> it kind of makes me laugh, yeah. melissa: it makes me blush. i'm embarrassed. i feel like they need to get a room. [laughter] >> they're very much enamored with each other, and the nickname, going by the first names, dre and

as soon as tim cook or in the past steve jobs dropped that mic, all the anticipation traders sold. a lot of pent up demand into the event and it came out of it. lastly in 2010, is the say thing. the way i'm thinking about it, the stock has run up about 8.5% over the last 11 or 12 trading days at almost two-year highs. right up until this week, implied volatility, the price of options was actually almost at multiyear lows. look at this pop. this is demand. people chasing this stock into the conference. so to me, i think you have potentially an opportunity that during this keynote address when tim cook is giving it, if they get toward the end of this thing and the stock is up and there is nothing and exciting i think you sell the stock. you can see 2 to 3% from the highs which it sold off for the last four years. remember people, seven for one stock split the following week, that's the thing a lot of traders are trying to game. that's going to be the ultimate sell in the news. >> you're going to it be watching this worldwide developers conference on webcast or however and as every mi

billion why apple ceo tim cook could be making the company's biggest acquisition?is make sense? >> there was a lot of cash that apple has. at the core, there is a lot of corporate cash that wants to be put to use. beats.ets hardware from they sell these headphones. ferro onsk jonathan which model he has later. it is a hardware company. apple is going to get into wearables. our glasses will soon have wearables. the years is someplace -- ears is someplace where you can have wearables that has not quite been dominated. the number of downloads for apple are down. you are seeing declining growth. people are streaming more. this is a chance for apple to get a streaming business and to get more hardware. it looks like they're going to get $3.2 billion. >> if this all goes through, it could make dr. dre the first rap billionaire. if phenomenal success story. >> it is. business, especially, there has been a steady progression toward ownership. they rap about billions all the time. typeindustry was a bootleg of industry when it started. it was entrepreneurial. they were sell

he just spoke with tim cook about the deal. josh. >> yeah. just a few minutes ago had the opportunity to speak to apple's tim cook and as well as beat's cofounders. i think we have a photo of the four. now jimmy told me he's going to be reporting to phil shiller and eddy q. this transaction expected to close in q4. cook telling me it will be creative in fiscal year 2015. cook told me in part it's about the heritage and history and the emphasis that apple has always placed on music. continuing to define itself. there is no berlin wall between apple and los angeles. he spoke about the talent as well. legendary producers and executives. jimmy knows apple very well. he talked to me about his time with steve jobs. beats electronics told me did $1.1 billion in revenue last year. you think about their place, beats does dominate that space when it comes to high end headphones. they control about 52% of the market. that's a market growing fast. jumping about 20% in q1. you're getting streaming service. beats music and cook told me he thinks they do th

here's all you need to know about tim cook. he may be right out of clint eastwood's magnum force. at his company needs to do. to reinvent the cell phone, help out his own stock. if they're not there he's gone out to get them. he has done it without complaints methodically. i wish for once we had more cooks in the kitchen. the stock market kitchen. life would be a lot easier and we would make a heck of a lot more money. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. when we arrived at our hotel in new york, the porter was so incredibly careful careless with our bags. and the room they gave us, it was beautiful. a broom closet. but the best part, / worst part, was the shower. my wife drying hersel

carl icahn is probably the smartest guy in that business and he's giving tim cook advice. dinner, i was wondering, will tim cake that advice and apparently he did. >> gene, what do you think, coincidence or not? do you think carl icahn had that kind of an impact on apple? >> i don't think so much. i think tim cook respectively took that meeting. the new cfo in his previous job has done more in terms of the financial distribution, i think that's probably driving it more. i guess it doesn't matter what is the catalyst behind it and what's important is things have changed. i think that has impacted the stock. from my perspective it's what the stock going to do going forward and the products that albeit have been mysterious in the past i think will take some form of substance in the next six to nine months and i think that will move shares higher. >> what do you think about the earnings coming down this year? we're going to see operating earnings actually declining this year for apple. what will that do to the stock? >> i don't think -- i think what matters is over the next six

. >> you know tim cook. >> i implore tim cook to think about this. >> were you thinking about this on the bridge. >> i've been thinking about this a lot. i'm upset about it. >> if you went out and got spotify, looking at beats, you're actually -- >> you broke up. why would it not make sense for april toll buy spotify? how much would it cost? do they make as much money as beats? >> no, they don't. spotify's multiple would be higher. with beats you are picking up some product design capability. at the end of the day, beats probably makes a lot more sense because they get more for it -- >> beats has products and some designs that apple just could not stomach keeping around. if you imagine apple taking the business and you justify it based on what they're making right now, i don't think you can do that. they make silly looking stuff. >> can i say they make some crappy stuff? >> we talked about that. they're plastic. >> it's a fashion accessory. that's what it is. >> but it cost $30 to make and they sell it for 400. >> that may very well be. this does not help change apple. >> no one said

i don't think pete is respecting tim cook's gangster right now. first of all it's a billion in sales and profitable. number one. number two, yes, the evaluation is up but sales have quintupled. you have a profitable company at a reasonable evaluation. look at skull candy, which is probably traded if you want to comp and this company's much better. and keep in mind they have 60% market share for headphones over $100. they basically own this market and so apple is buying entree. now, now, is jimmy iovene going to be a great for the streaming side? is dr. degrredre's endorsement to help? i have no idea but it's only gravy. >> does apple really want to be in the headphone business? this is about where the music industry is going. >> is it? >> streaming. >> >> is it because i can't believe i'm about to say this. pete makes great points. is this about the business solely or is this a toe dip into fashion apparel industry. i know that sounds crazy. people wear these as a fashion statement. i see josh brown walking around with them and the music is not ev

you think about tim cook's unlikely rise at apple. those have been relatively smooth so far.ck when jack welch left general electric. it was a game of thrones. you look at mark fields. he has taken over with ford. is he benefiting from those legendary big shoes to fill? or is that going to make it harder for him? >> one challenge i see for him is that allen mulally put together a culture change. ford has been a company of sharp elbows, internal competition. allen mulally acted like oil on the waters to smooth everything out. everybody likes him a lot he has done a lot to change that culture. can mark fields come in, a long time ford guy come in and maintain that culture change and bring the company back even more? >> let's talk about gm. it's over the ignition switch problem. bottom line, 13 people died. the company has a new ceo who will have to guide through all of this. at the same, it has a legal department making sure it has protection from any kind of liability because of its bankruptcy. gm, how much trouble is theic in addition problem going to be? it will stay in the

. >> why do you say it is like tim cook succeeding tim jobs -- steve jobs?> i know alan mulally i have encountered him a number of times. i find him to be very mercurial. he's a strategist. he is very driven by execution. he knows how to get a strategy in place, a long-term strategy. he knows how to make the strategy executable. much like steve jobs in this point of view. >> mark fields has the job of tim cook to keep the train on the tracks? >> that is a good analogy. to put the train on the tracks, really know the business, and make sure the numbers come in and the supply chains work. both of these functions are extremely important. , their yum! brands biggest problem is china. how to grab the consumer's trust. what does he need to do? well-versed. i do not know them personally. they are well-versed in addressing the china problems. i think in the markets they are operating in right now, they have shown how to run the business, how to innovate, how to look at consumers, how to come up with new cook -- product concepts. critical, as we heard from the ceo of

. >> tim cook, the c.e.o., read your book. he put out this note on cnbc, e said, it fails to capture steve, apple or anyone else in the company. are you surprised? >> in the past, write about the ipad before it came out and steve jobs himself told me much of my information was incorrect. i wrote about the low-end iphone six months later and apple denied that as well and both have proven true. >> sreenivasan: but one of the concerns is, in this particular period of apple, any different than some of the challenges that steve jobs might have gone through or a pre-steve jobs passing apple might have gone through? >> i think that's a really good question and the challenges applele are going through, a lot of them are big company challenges. this is a company that has grown for really rapidly for -- in a very short amount of time and it's facing big company issues that steve jobs himself would have faced had he been around. the fact that it's going through this leadership transition makes the challenges even more difficult for apple

. >> jay, you've been quite critical of apple lately, of tim cook lately. you've questioned if he's the right job for the job. you question if he's up to the task. what do you think of this potential acquisition? >> so i think -- kind to be bo boring, i think you're all right. from josh's perspective, the deal is small, it's not that big of a deal, fine, go spend $3 billion. but the idea, tim cook has said, our thing is we want to be focused, we want to be on the best products. this is neither of those things. you know, they may be popular, but there are no critics out there who say beats headphones are the best. nobody thinks that. they are stylish, selling well, popular, but they're not considered, you know, the best. samsung phones are best, and they're selling the best. apple won't try to do that model. the streams service, which is new, has something, like, a reported 200,000 users, not very big, not well received. yeah, if they want to get in streaming, and i think there's an argument, you could understand why they want to do that with itunes hitting

as soon as tim cook or in the past steve jobs dropped that mike, all the anticipation, traders sold.ot of pent up demand into the event and then it came right out of it. lastly, 2010. the same thing. so really the way i'm thinking about it is this. the stock has run up about 8.5% over the last 11 or 12 trading days. it's at almost two-year highs here. and look at this. right up until this week implied volatility, the price of options was almosted a multiyear lows. this is demand. people were chasing the stock into the conference. so me i think you have potentially an opportunity that during this keynote address when tim cook is giving it, if they get towards the end of this thing and the stock is up and there's nothing new and exciting, i think you sell the stock. i think you could see that 2% to 3% which it's sold off basically from the highs during the conference for the last four years, but remember, people, that 7 for 1 stock split the following week, that's the thing that a lot of traders are trying to game. i don't think that's important but i think that's going to be the ultim

then we will continue the conversation with tim cook, the president of the environmental working group that has been at the forefront of policy debates about test the side, toxic chemicals, air and water pollution and ecological and economic impact of modern agriculture. we are glad you have joined us. ♪ >> and by contributions to your pbs station from viewers like you. thank you. ♪ tavis: tomorrow, vermont will become the first aid and then union that require food manufacturers label products that contain dmo's, genetically s, to nattily modified organisms. coleng us now from chester, vermont is the governor of that state, peter shumlin who will sign that groundbreaking bill tomorrow. thank you for your time. >> it's great to be with you. tavis: let me start by asking why you intend to do this tomorrow when you know the very next day i suspect you are going to be sued by more than one person. >> that wouldn't surprise me. i just feel strongly that vermonters deserve to know what is inside of there fitted. european countries are way ahead of us on this. vermont consumers have a right t

. >> i think that tim cook listed on to carl icahn, he listed on to a lot of things a lot of people wereaying and distilled it and recognized it's not just the buyback. it's the opportunistic, that's the word he uses, opportunistic buybacks. you see a lot of stupid buybacks. when there's a lot of supply, the apple buyback is in. they are not in there just kind of oh, let's do 100,000 a day. they are being positioned, they are sopping up supply. this is the kind of genius buyback that a lot of execs should pay attention to. because most of them just do this desle terrorry buying. no. think about it. cook is. >> right. they're buying more stock than has ever been bought by a company in history because they have the largest market cap and cash of any company, almost all of it, most of it overseas, they're borrowing here to actually fund the buyback. that will continue. the bigger question, what do you got for me now in terms of new products. >> there's a person who starts there today, aaron, from burberry. i want you to go to salesforce.com's website and see what arent did when at burberry.

apple ceo tim cook says : the deal grabs beats popular headphones and streaming music service. the report of the deal leaked early with dr. dre pre-maturely claiming victory as the next billionaire-- which some say may have hampered negotaitons. beats is owned by rapper dr. dre and music mogul jimmy iovine. apple will pay $3 billion for beats. slightly less than the $3.2 billion orginally reported by the financial times. still it makes dre, one rich and happy rapper as he and lovine go to work for apple. m&a action is picking up as more companies have plenty of cash to spend- chuck coppola joins us me with more. hello chuck.. angie, corporations are seeing green! as the s&p hits new highs, corporate cash balance sheets are on the rise. usa today reports nine s&p 500 companies had cash piles that grew by 10% in the first quarter. among those on the list: adt, gilead sciences, intuit, marriott international, paychex , altria, citrix systems, intuitive surgical and facebook. these companies could become magnets for investors seeking stocks "perhaps' ready to issue dividends. mc-ch

with tim cook at the helm of this apple, forgetting steve jobs in the past, does this make sense? of questions about it, because, you know, when you think about the practical aspects of how you would integrate beats, it's a company that is cool, but it's cool in a completely different way than apple is. i mean, it's known for its loud in your face and bold design. apple is more about understated elegance, and -- and so -- so just take the question of, you know, how is apple going to continue to design beats products? is it going to be the chief industrial designer? >> i think there's some good questions here. >> same questions that you're asking. >> same questions that i'm asking. >> they have an army of engineers out there, and this is a very low-tech product in the end, and are you telling me that they couldn't design something like this? this is not about buying -- >> you know how branding works. >> this is not about buying the cool. >> exactly. >> you're buying dr. dre and jimmy iozzine. >> apple in the past did some times when apple is voting people from the music industry to

also another to review this morning from tim cook who is the ceo of apple on this memorial day we are taking your thoughts as morning on what it means to you. we have a fourth line for veterans, we want to hear from you. of the "washington post" this morning. we open with this picture and caption. a thundering tribute on memorial day. staff sergeant tim chambers, to the right, of oregon, and bring corporal sean adams of gainesville, florida. 90-year-old veteran of the 1942 little rate came to accept a congressional gold medal on the raiders the half. that in there will "washington post" this morning. honoring the dead and the living shouldn't and when the day does. we americans don't memorialize the way we used to. we should, but i hope we never again have to this editorial from the "washington post" goes on to say this. today we are no longer so democratic and have not been since the last world conflict. so, that from the editorial this morning in the "washington post." as we heard from the first caller talking about the health care system at the veterans affairs department, that was

that's what tim cook does. >> that was the whole concern when the book about tim cook came out.ation where steve jobs' work will never be recreated and this is the new normal? >> tim cook hanging in there for now. ceo pay making headlines. for the first time ever the median pay of ceos topped $10 million, and some are saying pay for performance is working. companies are making more money, stock prices are higher, but not everyone agrees. we'll have that coming up. plus, home prices higher, but not a lot higher in march. is that a red flag for the housing market, or will these falling interest rates help to spark a resurgence? diana olick will break it down for all of us. for all of us. (vo) watching. waiting. for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. >>> welcome back. ceo pa

. >> word is mentioned tim cook from apple, which has about 150, $170 billion overseas. they're not going to tax this, but they're going to spend over their purse is just the beginning, does you? >> absolutely. the fact is that it is easier by the day to do business wherever. and operate internationally. and this includes like jim did 50 years ago when you had to have access to the rivers and transportation is in things like that. it's easier for pfizer and apple to do business anywhere. i can't wait until it easier for us to do business anywhere in the world and we would probably move as well is. >> we had dozens of corporations is serious. >> get back to the media. i think andrew cuomo has not why but it's like a propaganda campaign about how new york state is lowering taxes for business when it's really not doing much at all. we don't see any worries in "the new york times" or the major newspapers here about how new york is still economically a basket case because of our tax structure and also because they won't crack. >> also because we won't see the exodus of this.

dre and accessible to tim cook? it 24/7, ibmn get press. >> what does it mean for apple? >> it is a massive win. jimmy has a relationship with apple. he is the godfather of the music business. there is no more consummate insider. they will have a complete understanding of a nebulous industry. understands young cultural zeitgeist like no other. they get a huge win from that. >> that's a huge amount of money potentially. >> they are in a good mood. >> thank you for joining us. much appreciated. -- de coke.com coming up, harvey fierstein marches to his own drummer. meet the stars bringing casa valentina to life. >> last year the broadway box office raked in a billion dollars in ticket sales arcing six consecutive years of growth. these are impressive numbers when you consider that the internet is going to put it all to bed. one player looking to make a dent in the box office is casa valentina written by harvey fierstein. it is nominated for four tony awards. join me now.ress thank you for being here. let's people understand about this production. >> he has written a play abo

ofl they have the same kind influence on apple that tim cook had for different reasons?i think the story that we watch from this point on is going to be the really interesting one. these are two people who, long ago, said people do not want to pay for music anymore. it is clear they would rather rip it off the internet. even before they launched this is production -- the subscription program, they said that is where we are likely to be. you can market big names with less money. you start to think about how -- some of the ways apple is going to be marketing music through the different streaming options they have going forward. and then the unknown. they were thinking about the listening experience in your living room. we spoke to an apple executive who thinks there is something alreadyh are working on that we don't know about, which maybe will give us an a-ha in a few months. it is hard to say. apple has so much cash, this is a bet they can afford to make. >> i'm sure dr. dre and jimmy will be throwing a fantastic celebratory party. you need to get yourself invited to it.

we talked a lot about where apple is going, where it's going under the leadership of tim cook, afterteve jobs, is that brand fading at all? all you can say at that point is what eric said, which is that the beats brand is a hot one and apple would be foolish to throw it in the garbage. ourn addition to being bloomberg west editor-at-large, you are also a musician. is there a feeling from the side of a producer of music that perhaps aligning yourself with beats, with people from the music business makes dealing with apple a lot more palatable? the relationships that jimmy and dr. dre have in hollywood -- >> you are already calling them by their first names. >> that's how we roll. >> in the business, i understand that. i remember i had a story in "vibe" magazine, this young rapper snoop dogg was on the cover of the magazine. that was 22 years ago. on notion that dr. dre is the cutting edge of hip-hop is not quite right. that said, the role the jimmy iovine has in the music industry , and the role dr. dre has in the music industry, goes far beyond their roles as musicians. they have lon

tim cook posted a photo of him sharing a laugh with iovine and dr. dre. brad stone and cory johnson as well as the ceo of mine at digital media ventures, i started by asking if it could really be bigger than the ipod, the iphone, and the ipad. take a listen. >> you know, apple is famous for their spin and the reality distortion field. we will believe it when we see it. >> could you just see the eyes roll? >> despite the spin, it comes from a position. not of strength but of weakness. music is core to the apple franchise. over the past couple of years, the hot services and music are pandora, spotify, youtube. apple has squandered that franchise. they get the credibility of its founders and they get the hardware and the beats music subscription service. >> music is what brought apple back. the ipod is what brought apple back. the ipod on windows is when the growth accelerated on apple. this really does show apple trying to fix a problem they have with their old business, not developing new business. the comments about the product pipeline, what will they co

. >> they like tim cooking and apple they don't want blackberry. but this executive was that burberry for a few years. she doubled sales and tripled the stock price. that is exactly what apple needs. she has a tough job cut out for her. she will probably do a good job. neil: also with the case of burberry i am showing my ignorance but they do ties and scarves then they branched out to cologne? so obviously she is a genius so she could leverage that. does she deserve that pay? >> whenever the company chooses to pay her. washington only attacks those that don't feel politically aligned. if they feel they're not make their allies look good. >> that is a very good point. whether she is a woman or a man there may not be the same reaction. >> or financial-services as well. if that j.p. morgan you hear about this. here is the thing. i believe she is underpaid because of the conditions given to her. she will not get $68 million upfront. neil: but more than half is stipulated just for her to stay there not to be the numbers but just breathing. >> it is not

tim cook posted this photo of him sharing a laugh with eddie and jimmy iovino and dr. dre. johnson via cory skype. i started by asking brad what he comments. could the products coming up really the better than the iphone, the ifad and the ipod -- the ipad, and the ipod? it when webelieve see it. >> could you see the eyes rolling when you saw the tape rolling? >> it comes from position not of strength but of weakness. music is core to the apple franchise. really, over the past couple of years, the hot services in music are pandora, spotify and youtube. apple has squandered that franchise. by buying beats they get the credibility of its founders and they get the hardware and the beats music subscription service. look, music is what brought apple back. the ipod is what brought apple back. the ipod on windows is when the growth accelerated on apple. appleeally does show trying to fix a problem they have got with their old is this not developing new business. the comments about the product , what did they invent anywhere near an ipod or the imac, which was the first steve jobs p

i was speaking to a formal apple executive today who said tim cook is a smart person a does not have to pay $3 billion to slap an apple logo on beats accessories. they are making money through that partnership already. that opens the door to what could come next. we talked about apple and its placement in the living room, the future of television, how it will play in that world. what if there are things they are working on we don't know about that would help to make this merger of hardware and software and entertainment make more sense? you certainly get the sense from people that while there are bits of the story that seem obvious why they might go after beats, there is a lot we don't necessarily know and that's the way apple goes with these deals. >> hang on, i want to bring in apple and john irwin, the former president of rhapsody which was the first subtraction service to offer unlimited streaming service for a flat they. what does it mean for you guys? is this more competition? apple,s a signal that not surprisingly in some sense, has seen the writing on the wall that the future

i heard of tim cook. listen, i don't trust, when stock of apple goes up because of developing new product. we have no idea if people will buy it. we don't know how good it is if it will work. i worry about this company in terms of innovation. they don't strike me as the most innovative company right now. melissa: i think your crankiness represents half of our audience out there. resistance to technology. that is why we have you out here. people in the audience are shaking their fist on the front lawn. >> i don't wear women's clothing not that there is anything wrong with that. melissa: he is denying it so much. go ahead. >> buying beats they couldn't invent it inside the company. last few times under jobs they invented stuff in the company. it was amazing. you don't know you wanted it then you know you did and lousy headphones. >> i didn't know about beats until i came on the show. melissa: flying by southwest of the airline has been hit with a $200,000 fine for advertising cheap fares that weren't actual

tim cook posted this photo of himself sharing a laugh with eddie cue and iovine and dr. dre. thank you so much for joining us. better than the ipod, the iphone, and the ipad? do you believe him? you don't hear executive saying anything like this. >> look, apple is famous for the reality distortion field. let's discard those comments. we will believe it when we see it. >> i can see the eyes rolling. >> despite the spin coming consummate position of strength for it that got the cash but it's a is a weakness. using his course of the apple franchise target over the past couple of years, the hot services in music are pandora, spotify, and youtube. apple has squandered that franchise. by buyingbeats they get the credibility of the founders and the hardware and the beats musics of scripts and service. >> music is what brought apple back. the ipod is what brought back apple and the ipod on windows is when the growth accelerated. this really shows apple trying to fix a problem they've got with their old business, not develop a new business. the comments about the product pipeline whic

so it shows you the risks that tim cook of apple face that other ceos don't face when they're expected things. mark zuckerberg goes out and spends $19 million on an app that no one knows how it will fit into the business. it did cause a flap but nothing like the uproar. that's why maybe apple has been gun shy. in fairness of the critics apple itself said what they want to do is be leaders in every market segment they're in, and they would like to have a single brand approach and do it organically from their own research rather than buy it. but clearly times change and they have $150 billion in cash to put somewhere. >> if we look at beat alone. in manhattan or across the country you're likely to see someone wearing beat especially on airports and airplanes, but they're not superior to other brands on the market. is it just about the marketing that they put together that made this company so viable? >> seemingly. seemingly there was this image, the coolness factor among younger consumers who can afford the $300 headphones, i guess. but it does says something about how fast you can build