tom giles joins me. it does not look good. do you see something i don't? tom: there are signs of hope, evidence the transformation is happening. it is just not happening quickly enough. ; she wants to focus on cloud, analytics, and security. but revenue in those areas is up, but it is not growing as quickly as it did in the last quarter. tom: when you are the management of ibm, you have to look for the silver lining somewhere. the double-digit growth is a positive sign. the problem -- the conversion is not happening quickly now. when it does happen these are , potentially some of the lower margins kind of businesses, so profitability will continue to be a challenge. but these are valuable , businesses, this is the wave of the future. this is the way people will want their software delivered. they want the analytics that ibm is investing in, but it is just a big ship. and as you know turning a big , ship takes a lot of time. this is a multiyear turnaround effort. emily: what about in the broader tech landscape? we have seen ibm unloading things. could we see

tom giles, ray to have you back here in san francisco. another stock we are watching, shares surging in after-hours trading on news that the chipmaker is an advanced talks to sell itself to western digital. last week, we reported that sandisk had spoken to western digital and micron technology about a deal. adding to the funding it has available for deals. startup facingng growing scrutiny over the accuracy of its technology. investorith an early -- theness t --hera ranos. i asked him if he still stands by the company. >> we want them to succeed. we do not have the answers to the questions swirling around right now. can i give you an answer to the questions you are asking? i remember meeting her when she was still a student. elizabeth holmes. as a teenager, she started the passion.ith great i remove or my partner saying, she is like steve jobs. this is long before she was wearing that black turtlenecks. it was fascinating. she had that mesmerizing zeal to revolutionize. needles.inds of chapter,he very first $100,000 check. she has been so

tom giles in new york. thank you. it couldad, first data become the biggest you -- biggest u.s. ipo this year. we will tell you why investors think they're worth over $17 billion. ♪ emily: first data seeking to thee 3.2 alien dollars in biggest u.s. ipo of the year. according to regulatory filings, first data selling 160 million shares priced at $18 to $20 apiece, meaning it could be worth as much as $17.6 billion. first data was taken private eight years ago. they handle debit transactions, security technology for apple pay. set the stage for us here. why is first data so important? why is it worth so much? biggest equitys bet ever. it was taken private in that era of big ldo's. they replaced the ceo several times. person who has a been in control since 2013. kkr is looking to make money back on their investment. right now, as of the price range they came out this morning at the high end of the range, their stake is looking to be $5.3 billion. on the surface, it looks like they are winning on this one, but that is the stage here for krw big of a bet this is for k r and how much

tom giles in new york. thanks so much, tom. still ahead, first data could become the biggest u.s.po this year. we will tell you why investors -- why the payment processor could be worth over $17 billion. ♪ emily: first data seeking to raise as much as $3.2 billion in what is poised to be biggest u.s. ipo of the year. according to regulatory filings, first data selling 160 million shares priced at $18 to $20 apiece, meaning it could be worth as much as $17.6 billion. first data was taken private eight years ago. u.s.handle 45% for all credit and debit card transactions for companies like coals and panera bread -- kohl's and panera bread. they handle debit transactions, security technology for apple pay. alex, set the stage for us here. why is first data so important? why is it worth so much? alex: for a few reasons. this is kkr's biggest equity bet ever. was taken private back in 2007 in that area of big ipo's. they struggled through the recession, they were placed to the ceo several times. they finally got this guy, "mr. fix it" on wall street, and he has been in control since 201

emily: tom giles, our executive editor of bloomberg news, thank you for joining us. know you will be all over those earnings tomorrow. i do want to talk about oracle. larry ellison speaking at oracle open world saying the company will continue to push into cloud computing. according to the chairman, leadership in the industry is up for grabs, but there are certain companies he's not worried about. >> our two biggest competitors, the two companies we watch most closely over the last two decades have been ibm and sap, and we no longer pay any attention to either one of them. [laughter] emily: larry ellison always has to throw a few punches at oracle. he says biggest competitors are microsoft and amazon. tim, do you think oracle is too late to the cloud here? >> in some ways i do, and it's not just a matter of being late. it is a matter of how they got -- have they got the right business model? they fundamentally have the same business model. they do not have the same business model as amazon or microsoft is crafting. emily: maybe it's better? >> i think ultimately the

erik.orning, tom giles is with us from bloomberg news.eak down some dell, delmon. -- gentleman. >> they now have scale. -- everybody has scale in the business. one of the interesting things that remains to be seen is going private a better way to provide a solution. that i have not heard from hp. dell is better added. i've not heard the answer from dell, either. david: i did not hear much discussion about the club. that word did not come up. >> this is a big bet on the data center. that they will provide a combination of solutions that people will want. there's a lot of equipment that goes into these data centers that feeds the cloud. in that sense, it's a smart merger because it is forward-looking. we are doing so much work through the cloud in the data center. what might big take away was he loves being private. he loves being out of the glare of the public. he told emily in a very hard-hitting interview, we like this idea of being able to do our thing and get our thing done without the glare of the public markets and those pesky activi

and bloomberg editor for tech, tom giles. >> dow has agreed to buy emc in the biggest tech takeover ever stay --t obama plans to russia has unexpectedly become a major player in the fighting. and the committee investigating u.s. in benghazi has shifted the focus. the focus has shifted to hillary clinton's use of an e-mail -- private e-mail server. here is matt miller. look first off at futures. digging to some individual companies. most of that is already priced into the stock. we get confirmation that dell is aboutto buy emc corp. for $.15 per share. eli lilly moving in markets today. it is down 10% because it has canceled the production, or the trial of a drug that is supposed -- merck is running about $600 million a year in revenue. fiat chrysler, it's big hit is the ipo attting out $48 to $52 per share. own a fiat share, you get a ferrari share for free. moste, one of the interesting and exciting stories, $9.2 billion is the evaluation. this is going to pop when it starts trading. stephanie: get a ferrari for free, you heard it from matt miller. >> we have peter orszag year. we can a