will make tumblr faster.s is a big risk with potentially huge rewards to yahoo, which has not proven to be a money making website but it has captured the highly sought after demographic of 16 to 35 and it seized an astounding 900 posts remain second. mire fire ahead tumblr official, the "official announcement is in new york where tumblr is headquartered. >> gas prices going up again. you have probably noticed. the aaa survey fines the average gallon has jumped seven cents this week. the national average for unleaded is $3.65. in california it is $4.06 up two cents. in san francisco, gas is $4.14 a gallon up three cents from last week. >> airline passengers revealing what they would being to do to avoid having to pay for carry on bag. >> foreclosures are hitting another snag and we talk about yahoo from the new york stock exchange. >> good morning, big deal here today and here is how yahoo shares are reacting, down a little bit but not by much, about 23 cents trading at $26 a share. not a lot reaction, tumblr

tumblr is about -- people come to tumblr for the stuff that they love.or art and media that they enjoy where you show up on facebook, you show up on instagram, twitter, a lot of these social networks for the people that you care about. if the people you cared about weren't there, facebook would be a lot less interesting. tumblr it's actually not -- it's not so unusual but it's also not the norm to go on tumblr for the things that your friends are creating. generally you go on there for this awesome stuff. this awesome art and media and whatever genre is near and dear to you is being created by these independent creators all over the world. it's not about a personal connection so much as it is a connection to -- >> rose: it's not about their work, it's about what they create. >> that's right. so, you know, i think to talk about just the social tools for a moment, i don't know. that's not really my jam and not something i think terribly hard about. i will say it's been remarkable to watch how quickly those networks move and are changing. i think we used to

of tumblr wrote to his employees and followers that yahoo will only help tumblr get better faster. they will continue to be independently operated as a separate business and he will stay on at c.e.o. of the new york-based company. with 105 million different blogs and 900 posts a second, temperature employer holds the key to the audience that yahoo needs, 16 to 35 and the hope that this will help yahoo c.e.o. marissa mayer reshape yahoo. >> as popular as tumblr is, it is unprofitable so it remains to be seen if it will make money for yahoo. the deal will close in the second half of this year. in the newsroom for abc7 news. >> turning it over to our meteorologist, mike nicco, we have a lot sun out there but the wins are keeping the fire danger down. >> that is the thing. with the winds so mild the temperatures will drop. it does not mean a fire cannot start but it will not get out of control because we do not is the winds. good morning, everyone, coming up on 1:20 and as we hook at live doppler 7 hd you can see how dry the air is, this transition like the last couple transitions with

yahoo for the time being will leave tumblr alone. if they slap these interactive ads up on tumblr, the user s will probably abandon the property. at the same time, yahoo is going to learn from these tumblr products and try and incorporate them into yahoo's more traditional properties. at the same time yahoo can introduce tumblr to larger brands and more traditional advertisers, the pngs of the world, the mcdonalds of the world. this does have the potential to benefit both parties monetarily. >> brown: when you were referring to the possibility of users migrating or leave, apparently there's reports that already some of that is happening. that just shows how fragile this whole system is, right this osysem of companies and where users go. >> absolutely. you know, we've seen companies like yahoo stumble and lose their luster. a.o.l., my space, in periods of times that are less than a decade. it took companies like pan america airlines or ford motor companies perhaps a century to rise to ascendence and then to lose their luster. internet

, tumblr or nothing.n we come back a breakdown of today's m & a news and united ceo, jeff smisek getting the boeing back in the air. phil lebeau will tell us what that means for the air carriers. a lot more "squawk on the street" live from post 9 in just a moment. it's as simple as this. at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. i'm not quite willing to go to merger monday. i know a lot of people want to go there. we have one big deal will and a lot of little things. let's get to some of them, though, because there is a lot of activity this morning. warner chillcot is getting bought. those talks -- when you're based in ireland so we have to put out more information. it's .16 actof ais, and that is based on the closi

tumblr and yahoo! >> you have to applaud this kid.igh school dropout -- i don't want tone doors dropping out of high school, but he had some big ideas and sold them off. it's the american dream. good for him. >> shepard: no doubt. makes 13 million in profit and sold it for 1.1 billion. is it 2004? >> yes. >> yeah, yeah, just doesn't look good from that sense but in terms of the number of users, the use of the users -- >> data mining from this thing? gold. yahoo! >> the last time we heard from jodi arias she was telling our fox station in phoenix she'd prefer the department penalty over life in prison and now everything just changed. for the woman con viced of stabbing her lawyer, shooting him and slitting his throat chev may speak out in court but have you heard? her lawyers want no part of it anymore. it's gone bonkers and the white house revealing more on which officials knew about the irs targeting groups and when it knew it. that's coming up as we approach the bottom of the hour and the top of the news. yahoo! >> shepard: this is

with some on tumblr. there's been a blocking backlash amongst some users, several posting threats of leaving the website once a deal was finalized. >> you always fight what your parents think is cool but i think yahoo and tumblr users will benefit from each other. >> reporter: the deal is expected to grow yahoo users by 50% to a billion monthly visitors. and yahoo execs are hoping this breathes new air into the fading once web pioneer. live in sunnyvale, cate caugiran, kpix 5. >> yahoo's stock after the big announcements went up. not a lot but it is a positive. it's up 11 cents today. let's check the big board on this monday. the first day of the workweek, the dow is down 7 so far. but they still have another hour of trading. >>> a man who fell through a roof at a bay to breakers watch party has died. the 28-year-old man fell from a three-story building on phelps street sunday afternoon. police say they arrested 21 people for public intoxication at the race. heavy security greeting runners in this year's

he sold tumblr to yahoo for $1.1 billion in cash. dropout just 26 years old reportedly will make more than $200 million personally from the deal. so let's be happy for him. also, gold bust, the longest in the financial crisis. jumping up 1.5%. and coming up short on "money," "star trek." it won the weekend box office but fell short of the $100 mli

tumblr directly. >> just as significant in all this, david karp chose yahoo. it's arguably mayer's biggest vote of confidence yet from a savvy techie with a lot of options. >>> and a disclosure to share with you, cnbc, which produces "nightly business report," and yahoo have an alliance to share and coproduce. >>> on capitol hill tomorrow, apple and its billions of dollars stashed overseas will be in the spotlight. ceo tim cook will be grilled by senate lay makers about that and avoiding paying u.s. taxes. today we got an early look at what apple will tell the panel about keeping funds offshore and why the whole corporate tax system needs an overhall. what do you think will be the pitch from apple's tim cook. >> reporter: i think he'll have to defend himself from a report that the senate on select committee just put out this evening. the report is pretty critical of the way apple sets up its corporate tax structure overseas. senator carl levindt[ boast their company is the highest corporate taxpayer in the u.s. but what they often leave out is the second part

. >>> what they think of yahoo's big announcement buying tumblr. >>> that was years in the making. a dramatic dropping in temperatl show you how much cool cooler it will be in your area coming up. h a show. show?! man, i was happy to see a sneezing panda clip! trevor, have you eaten today? you sound a little grumpy. [ laughter ] [ male announcer ] connect all your wi-fi-enabled devices with u-verse high speed internet. rethink possible. >>> it is good that you took political science because politics and political is desperately in needs of the minds. >> that their commencement this morning, he talked about the danger of climates change. the importance of taking action, governor brown says imaginative and bold people can make a difference. the governor itself is a berkeley graduate in 1961. >>> we'll talk about a gamble by sunnyvale yahoo. the company that's hardly makins at how this deal may change yahoo hoo's's look and its status. >> it is really nice to get on there and see what everybody is posting. >> tumblr think of twitter for blog and photos, usually brief. >> there is a lo

tumblr can bring that to the table. >> larry, why do you think buying tumblr was a bad idea for yahoo >> i've been through the dot com double. you're a company that's not even profitable. you're spending a billion dollars on a company that did $13 million in revenue last year. projected to do $100 million. revenue could be much better spent in much different ways. i don't like it. i think they need to get into a content play here. i think you're going to see it in the marketplace with the stock. the market is not liking this deal. >> what about the content play? what would have it been a better deal, then? better use of their money? >> would have been a better deal if they got into a deal like hulu or even a crazy deal like zynga where you can get the content. it's about e-commerce. and it's about advertising. so the promise we saw here in the dot com bubble was there were companies with no revenue like we just saw the one here now for a billion dollars bought. where there's really nothing behind it. you need to scale advertising into the mainstream. and i don't see them being able to

rely on tumblr, making the service that sleep -- blogs like these rely on tumblr, making the service vastly popular with those under 500 -- under 25. many current users are hesitant about continuing under the direction of yahoo. -- yahoo! tens of thousands have fled the service. yahoo! is vowing that tumblr will remain an independent entity. other recent buyouts have been integrated into the corporate platform. ! yahoo --yahoo! desperately needs to reinvent itself. they hope that this will persuade bloggers to use other yahoo products. with an estimated 100 million users on tumblr, the potential is truly enormous. >> for one budget airline, 2012 was the most successful business year ever. it posted record profits of 570 million euros, up her teen percent from the previous year, even exceeding its own predictions -- up 13% from the previous year, even exceeding its own predictions to >> they say that -- predictions. >> they said that there will likely be a slowdown in growth of passenger numbers. >> the numbers help boost markets in europe. let's check out how stocks kicked off the we

tumblr is a logical choice. >> reporter: tumblr has about 300 million monthly users 120,000 new members every day. about 900 new blog postings every second. yahoo's ceo marissa mayer called the deal a game changer for yahoo. >> we couldn't be more excited. >> right now it's an 18-year- old brand that lost its mojo. by bringing in tumblr in all those users and content, it's possible for yahoo to be reimagined as a truly 21st century rather than 20th century website. >> reporter: mayer stated that yahoo promises not to screw up tumblr. she says it will be run as a separate company with its current management still calling the shots but some users have their worries. >> tumblr is a free space where we use it for pictures, videos and everything relating to the college experience so i feel like yahoo might limit that maybe take away what makes tumblr free. >> reporter: yahoo does want to better monetize tumblr. >> we use tumblr as a way to tell everybody about our story. >> reporter: one mobile app creator who uses tumblr to blog about his product hose the merger will create more users and b

and the top movie studios all advertise with tumblr. tumblr. there's a lot of brand eagerness and we noticed as we were doing due diligence in the process we kept getting these unsolicited comments and people who didn't know we were doing the acquisition. the place we're just dying to be is tumblr, what a great site, what amazing, creative content and how do we become a part of that in a way that feels really natural and i think there's a huge amount of opportunity in there. >> does it bother you when people go say marisa bought herself some cool. >> it's not what it's about. you never do an acquisition that's this large, and there are a lot of things that can happen between the companies. that said, what we did is we bought a growth opportunity and that is our job to help tumblr execute on that and we've been talking about and have been very clear that our goal is to grow, to grow with the market and eventually to grow faster than the market and tumblr's hype growth and the massiveness of the user base is amazing. so growing our audien

tumblr. tumblr, better known as cash cow. the yahoo!arissa mayer is betting a lot on the social blogging site, hoping to tap its younger and more active user base for advertising dollars and in return, she promises concerned tumblr users to, quote, not screw it up. that's a big tall order, too. we're going to get to the tumblr founder david karp and his new fortune in a moment. first, let's go over exactly what tumblr is. if you don't know yet, think of it as a big old blog and a twitter feed. you can post pretty much anything you want on it. pictures, video, and links, but what makes tumblr unique is the ability to reblog something. say you have a favorite sports team, mine, for example, the winnipeg jets, for very good reason, they are excellent. here's a tumblr devoted to all things winnipeg jets. where is my evander kane? where is he? i don't see him right there. they post the pictures, you can post anything you like. you can reblog the same content and share it on and on. my personal tumblr for all to see, there you go, you got the

rely on tumblr, making the service that sleep -- blogs like these rely on tumblr, making the service vastly popular with those under 500 -- under 25. many current users are hesitant about continuing under the direction of yahoo. -- yahoo! tens of thousands have fled the service. yahoo! is vowing that tumblr will remain an independent entity. other recent buyouts have been integrated into the corporate platform. ! yahoo --yahoo! desperately needs to reinvent itself. they hope that this will persuade bloggers to use other yahoo products. with an estimated 100 million users on tumblr, the potential is truly enormous. >> for one budget airline, 2012 was the most successful business year ever. it posted record profits of 570 million euros, up her teen percent from the previous year, even exceeding its own predictions -- up 13% from the previous year, even exceeding its own predictions to >> they say that -- predictions. >> they said that there will likely be a slowdown in growth of passenger numbers. >> the numbers help boost markets in europe. let's check out how stocks kicked off the we

but tumblr, and yahoo! very much in the the news.nd look at shah gilani is here and silver is at 21 and silvgol- a whopping selloff, why? >> and i think this morning, a huge seller in the asian market. stuart: was that a central bank or-- >> no, individuals and individual investors and about 3000 contracts. and it's a very thin market and move down. the same thing in april, we saw the overnight selling and moving down in the futures markets and the buyers come in and say there's nobody really there, they start to sell and there's no position to take because they're afraid there's more overhead selling going on. so, it's really a function of almost a manipulation of the trading in weak markets and so, i don't trust the down trend. i think there's maybe more to go. but gold down here is a great buy and 1200, 1100 all day long. >> very interesting. now, shah has brought with him a stock that he wants to recommend and i was intrigued to find this particular stock is home loan servicing solutions. it's got a 10% yield, 10% dividend yield

tumblr is in the center of the pack.when it was strategically essential. google paid $1.65 billion for youtube. three years later, people will still say google overpaid. no one would say that today. sometimes the bets take a while to play out. >> before you go, i can see the success of youtube and say that was hard to replicate. when i think of tumblr i think of geo cities. that's something yahoo! bought. allowed you to make web pages. similar in scope. a little bit different but similar. is it fair to compare those two? >>> i think for folks like you and me who aren't deep users, users deeply log in and follow a number of blogs. it's providing a different kind of social data, social read for brands for different concepts. if yahoo! can tap in, they might be able to get ahead and what products they should be building. >> do we consider this to myspace? i'm a little skeptical. >> no. i think it's definitely a tough road to capitalize on this growth. figure out what's going to make tumblr grow in this era. apply it to othe

tumblr is incredibly special and has a great name going.ple. i asked how the facebook phone was selling. when facebook was cool a couple years ago, they would have sold these phones. dagen: to change the subject slightly, jolene said ad spam and babies. don't you hate facebook. [ laughter ] connell: that is what it has come to. dagen: i find twitter very useful. connell: i have never used tumbler in my life. moving on to these terrible tornadoes in the middle of the country. oklahoma really getting slammed. the latest is just ahead on that. dagen: we have the latest forecast for you coming up. ♪ it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with o visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - ile. and with responsive, dedicated support, we help you shine every day of the week. ...amelia... neil and buzz: for teaching us that you can't create the future... by cli

the bottom line is journalists love tumblr, too. they don't want to see it get messed up with advertising. >> we'll keep an eye on it. mario, katy, thanks for joining us. >>> several news outlets reporting that yahoo! is also making a bid for the tv streaming website hulu. next we finally get our hands on the hottest gadget around. google glass. is this how we'll all be getting our news? as he goes back to taking tylenol. that was okay, but after lunch my knee started to hurt again, and now i gotta take more pills. ♪ yup another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] this may, buy aleve and help those in need. right now, you can get adt installed in your home starting at just $49 -- a savings of $250. plus save 15% on any accessories. sale ends soon. don't wait. call right now or visit adt.com. this is a fire that didn't destroy a home. this is a break-in that didn't devastate a family. this is the reason why. adt. you can't predict when bad things will happen, but you can help p

he is the fellow behind tumblr, bought by yahoo! for $1.1 billion and he never finished high school. and no more mr. nice guy presuming that he once was. this is steven cohen. he says he is no longer going to cooperate with a federal investigation into him and his company. sue? we got that story covered. >> we start with a new club member in the record high club today. year to date, it's up almost 18%. since the march 2009 bottom, it is up almost 200%. if you bought in near the lows in 2009 you were up a whopping 135%. >> that is a picture of david carp. he just sold tumblr for $1.1 million. his share is about 200 million of that. that will be okay. we certainly don't share in the winnings to this. >> we don't get a part of the tumblr fortune. >> tell us a little about how we know him. what we need to know about him and how he did what he did without finishing high school. >> david carp was just one of these kids with a great idea. let's have a blogging service that is super easy. you can do super short posts and that is very social

he sold tumblr to yahoo for $1.1 billion in cash.igh school dropout just 26 years old reportedly will make more than $200 million personally from the deal. so let's be happy for him. also, gold bust, t longest in the financial crisis. jumping up 1.5%. and coming up short on "money," "startrek." it won the weekend box office t fell short of the $100 m

billion dollar deal for tumblr .le miles from their cital one venture card to fly home for the big family reunion. you must be garth's fher? hello. mother. mother! traveling is easy with the venture card because yu can fly airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use, you never miss the fun. brd growing conte and go! ♪ win! what's in your wallet? ...amelia... neil and buzz: for teaching us that you can't create the future... by cnging to the past. and th that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences lo.. to the finest comfor above. we're not simply saluting history... we're making it. >> yahoo! will for you. it mines money. never mine tumblr is yesterday to land on that cash making concept on its own. she must see something, yahoo! is paying $1.1 billion in cash for a blogging site more than 6 years old. and david car

and tumblr are doing now?ll, we do have people on the ground covering the story, and we also have people who are uploading photos and sharing their experience of what it's like to be there. >> it really does create that community. okay, so let's talk about the deal right here. we saw you make that promise not to screw this up. i mean, yahoo! has famously in the past paid a lot of money for new sites, and it hasn't worked out. what's your plan to avoid that kind of failure this time? >> well, i think one of the things that's so special, tumblr is a community of users, community of creators. and we want to make sure that they recognize that tumblr is going to be independent. it's going to have the product road map and vision it's always had, needs to stay true to that user promise. and we're setting up tumblr to do exactly that. >> you made that promise to your users on tumblr. and said you won't turn purple, which means going yahoo! in the past you've said the whole idea of advertising turns your stomach. so, h

they're setting up blogs for free on tumblr. tumblr users will go on about their business. yahoo!e. i don't think there is lot of money to be made. if you ramp up number of ads i don't think you make much money on each ad. when you put up a billion dollars and yet to show any meaningful revenue, boy that are is big risk for yahoo! shareholders. ashley: it really is. let's talk about the much bigger deal in the pharmaceutical sector. actavis, purchasing warner in chilton, a irish company. >> this you don't have to look far at all to see the upside. this company has good revenues and profits, reasonably price. actavis their stock is up huge. spending cash to buy the company, not paying cash, spending essentially inflated stock price which is shrewd move. right in way you reincorporate a island. bring the tax rate from 28% down to 17%. ashley: not bad. >> only loser i see is uncle sam missing out on federal revenues chasing another corporation overseas with high tax rates. ashley: actavis puts out generic drugs once the drugs lost their patents, right? >> right. they want to get more

some 300 million visit tumblr every month. another bold move from yahoo's ceo who has made several of them. today it's startup ak rarts, a billion dollars buzz as founders saw one of their own get bought for big money. >> it's hard work, a lot of money and most startups don't make anything. you know seeing something like that definitely helps pick up the pace. >> back when you started a year ago no one really understood what we were talking about. so now especially with the acquisition i think there is a lot more buzz in the field. >> as you might imagine there were also tumblr users upset with the big company take over idea. they started a tumblr about it. both sides that really win. they were good at attracts user, but not at making money. yahoo continues its transformation under meyer. >> one billion bucks for tumblr. still ahead at 5:00. turning the tables on your doctor. the new proposal to make sure your doctor is isn't under the innunes while he or she is on the clock. >> bay area professional agent looets are speaking

announced it is buying tumblr.lex savidge is live with more reaction to this. >> reporter: one tech analyst i talked to here in san francisco told me today the goal of this deal is to try to make yahoo!cool again. it's a play for younger users. marissa mayer announced this $is .5 billion deal to -- $1.5 billion deal to buy tumblr. most of the visitors are in their teens and 20s. the company will be operated independently. it won't be moving west. tumblr's headquarters will remain in new york. they are trying to breathe new life into this. a cnn analyst states there's a lot riding on this deal from mayer who came over from google a little less than a year ago. >> this is an acquisition to acquire user. that's a big bet, i mean, to spend over a billion dollars for a new ceo at a brand of yahoo!that's been around forever but struggling will rewrite her la legacy. >> reporter: this roof could change the fact that there's not many ads seen. they will work with tumblr to create ads that are tasteful and seamless. but the

we have to get back to tumblr. reminds me of when all these companies were buying up new startups, fascinating, high school dropout from manhattan just sold it for $1.1 billion to yahoo. if you're just looking at me like this is a complete time eating monster? are looking at relatively sometimes creative stuff that repeats itself over again, allowing users to post text, images and videos often featuring political parody. some of you may have seen this where they have the pictures and they are kind of funny, helping the site gain some serious traffic several months ago, but what can tumblr do for yahoo future? and was it worth $1.1 billion cost? we have a couple opposing opinions here. president and author of hungry startup strategy, just a bad deal, and the managing director says yahoo is a good buy. first of all, welcome to you both. it reminds me of back in the day when yahoo bought things like broadcast.com, some other big names at the time but you have a visceral negative reaction to this, why? >> if you want t

laurie siegel sat down with tumblr ceo david carp.ting, he didn't even finish high school, and now he's negotiating with marissa mayer, what was her role in all of this in. >> look, marissa mayer has for some reason this charm in the tech industry. you see all of these young entrepreneurs going to yahoo now, and they weren't able to get a lot of the younger start-ups to get involved. it wasn't cool to be acquired by yahoo, and i will say this, david carp really defined cool. he's a new york-based entrepreneur, he used to drive a vespa around the streets, has a beautiful girlfriend. >> listen to what he said to me, christine. >> not only is she a genius of the she is something that i really value. she's one of the most uniquely happy and productive people i've ever met certainly in this industry. that's something that i -- we just strive for in the sense of eternal optimism and purpose. she brings that in a profound way sglp so interesting. i think people think you made $250,000 of his own money. here is a kid, born and raised in manha

tumblr's hundreds of millions of younger users to yahoo!nd means more advertising on tumblr and more con at the present time on yahoo!. according to yahoo! ceo, tumblr is going to be able to make good use of yahoo!'s advertising technology. that's expected to bring a lot of people to yahoo! as the internet pioneer tries to get its groove back. >> look back ten, 15 years ago, yahoo! was one of the kings of the internet. the new ceo is making moves putting them on people's radar again. >> the changes could be made as early as this year. stockholders are excited about the news. shares of yahoo! stock went up slightly today. >>> how much was your wedding? shaun parker, who started napster is planning a $10 million wedding, june 1st, in big sir, but not everyone's happy about it. parker, who has a bad boy reputation, is paying for the construction of faux ruins, waterfalls, and a gated cottage, but because he doesn't have permits, he's under investigation. >>> back in a moment with sports. stay with us. ♪ benjaminmoore.com/bayarea. ♪ ♪ all aroun

listen to what he told me. >> yahoo needs tumblr to work.riticism i have for the deal is i think they sold for too little. blogging platforms have huge, huge potential. they have fantastic engagements, as well. i am interested to see what will happen. >> what does it look like down the road? this whole movement, is it worth billions of dollars in the future? >> unquestionably. >> and the idea behind that is you pour your heart and soul into these blogging platforms. this is your own stuff. you own it and that can be worth quite a bit someday. >> it is a fascinating interview. he would hold out for more than $1.1 billion. thank you for everyone who wants to see more head to cnnmoney.com. >>> we are going to take you back to oklahoma and we are going to talk to doctors about how does a town heal after something as devastating as this. it's the number one ge recommended probiotic c" that helps maintain digestive balance. ♪ stay in the groove with align. ♪ need help keeping your digestive balance in sync? try align. it's a probiotic that fortifi

he sold tumblr to yahoo for $1.1 billion in cash. high school dropout just 26 years old reportedly will make more than $200 million personally from the deal. so let's be happy for him. also, gold bust, t longest in the financial crisis. jumping up 1.5%. and coming up short on "money," "startrek." it won the weekend box office t fell short of the $100 million. they do not have enough fan boys to get them to theaters. even when they say it is not, it is always about "money." ♪ dennis: our top story, apple ceo tim code is heading to d.c. to testify before congress tomorrow expected to faceough questions on why apple has $100 billion of foreign profits outside the u.s. but he will argu our current tax code forces companies to hold oveeas profits ofhore rather than bring it home. so while lawmakers listen to what coke has to say and revamp the tax code? here with more our heritage foundation analysis and liz cdonald.d to the testimony, what is cook going to say tomorrow? >> he is going to push ba to his critics in the media which have sai

it is widely used. >> tumblr made $14 million last year.erts say the ceo appears to be paying 10 times too much but tumblr may be different. >> user generated content. people spend time on the site. gives them an opportunity to become cooler. >> reporter: adding advertising will hurt tumblr. >> reporter: yahoo says it will complete the deal in the fall but will keep it a separate company. reporting live in san francisco, john fowler, ktvu channel 2 news. >> yahoo's announcement didn't have too much of an effect today. closing at $26.58. on wall street today, the dow is down 19 to 15,335. the nasdaq is down 2 at 3,496. the s&p is down 1 to 1,666. >>> all she was doing was watching television. how a 10-year-old was killed while at home with her parents and what we learned about the investigation and how it relates to her brothers. >> and coffee could be good for your health, the disease that coffee helps prevent. you kids should count yourselves lucky. we didn't have u-verse back in my day. you couldn't just... guys... there you are. you know

if you put too many ads on tumblr, who knows how the users are going to react.he biggest social network of all, which is facebook. they may do the same thing with tumblr, it's not a guarantee this is going to work. >> mark, what would be in your opinion some of the other names everybody ought to be looking for. when you look at the numbers, it's amazing. $1 billion. they produce what $13 million or something like that. so when you're looking around, what would be maybe a better fit for them right now in the near term rather than this long shot longer term look? >> well, you know, you've got -- they've partly got some -- they may have limited choices here. look, there's great assets out there, but you try to buy twitter, you're not going to find any sellers of twitter. pinterest may be too big now to afford. you've got kind of the sweet spot here, like $1 billion minus acquisitions that you can take. take a shot at that can develop over 3 to 5 years. i don't think they could buy some more of the more interesting assets. twitter and pinterest. >> they seem to be t

now it hopes that the buying tumblr will change that. pagesa mayer use her own to unveil the $1.1 billion vale -- deal. she assured users there was nothing to panic about. we promise not to screw it up, she said. david karp promised the site would not turn purple, yahoo's cover or leave its new york base. distinctlyff with a on managerial language. marissa mayer recruited from google to shake things up and yahoo, our hope is that the amblr deal will send out signal. corexit is new and trendy. it is sophisticated and interesting. i think it's a little piece of all of those things. it puts yahoo back on the map. this kind of technology takeover has a mixed record. google's purchase of youtube appears to be paying off. but news corp. never managed to make a success of myspace and aol lost a fortune after paying bebose be boast -- social network. >> culturally and geographically it is a risk. i think those risks are worth taking. this is what the company has to do if they want to resurrect themselves. >> some users are already complaining an

tumblr hasn't had much in the way of advertising and if yahoo wants to make money off tumblr, it willrobably have to get more advertising on the site. tumblr only made $13 million in revenue last year. obviously well off of what a $1 billion purchase would indicate. yahoo's shares are down about a .5%. that tends to be the case when a company makes a big purchase. this will take time before we see how successful this will be for yahoo. stock market coming off another record-breaker on friday when the dow and s&p closed at record highs. the dow is only 100 points away from tying its biggest year ago point increase in one year in 1999. today dow down 27. nasdaq down 2. s&p down 1. back to you. >> thank you. >>> time now for a look at what's coming up later on "cbs this morning." >> charlie rose on a monday joins us live in new york with more on that. good morning. >> reporter: good morning, frank and michelle. ahead, anna werner has been chasing down the storm in oklahoma and will show us the damage. will your next flight have only one pilot in the cockpit? the airline industry is explo

if you haven't already heard, yahoo is buying a popular blogging site, tumblr, for $1.1 billion. >> tumblr is a fe no, -- phenomenal company, and we could n't be more excited. their road map, their vision, all of that stays on track. that said, they bring an incredible number of strengths to the yahoo portfolio. >> the deal should help yahoo tap into tumblr's younger user base. the blog site gets 300 million visitors a month. >>> back in the day, she was one of the most famous dancers in the bay area, but dorothy toy had a deep, dark secret. >> in a story you'll only see on kpix 5 she tells linda yee how a jealous rival sabotaged her dreams by revealing she wasn't who she said she was. >> they were known as the chinese fred astair and ginger rogers. paul wing and dorothy toy, one of the top all-chinese dancing acts in the 1930s and 40s. today at age 95, toy still has the moves. >> oh, i love it. i enjoy doing it, and 95 is nothing. >> toy and wing met at an early age forming a trio dancing act at first with her yournger sister. they got small gigs in los angeles until hollywood called. a t

yahoo is using cash to acquire tumblr. and management says it promises not to screw it up. >> a bay area university you may never have heard of. >> we cast a wide net. >> next a university >>> there is an elite university in silicon valley the best and brightest are fighting to get into. >> yes. it isn't an accredited university but many believe it will be the birth place of few you're innovations. >> robot that's can take your place at meetings, leather grown in a lab. these are all ideas created by students at singularity university. >> this school is the brain child of google executive ray kurtswhile and peter deamandis. >> a level of competition is taking place unlike any place else in the world. >> our brains he solved thousands of years ago, things were linearer. so people -- it's govern bid a linear expectation there is a pro found difference. it's 40 steps that is a trillion. >> the university was created in 2009 based on the theory of they can logical sing layer tismt he believes emerging technologies will massive

news of yahoo buying tumblr failed to boost the markets today. lower. here are the final numbers.dow fell 19 points to close at 15,335. the nasdaq fell 2 points. and the s-and-p 500 fell one point. with our tech reporter. facebook, or at-gabeslate on twitter. you can also send him an e- mail, at slate-at-kron-4- >> we will be right backdot- com. look at 'em. living on cloud nine with that u-verse wireless receiver. you see in my day, when my mom was repainting the house, you couldn't just set up a tv in the basement. i mean, come on! nope. we could only watch tv in the rooms that had a tv outlet. yeah if we wanted to watch tv someplace else, we'd have to go to my aunt sally's. have you ever sat on a plastic covered couch? [ kids cheering ] you're missing a good game over here. those kids wouldn't have lasted one day in our shoes. [ male announcer ] add a wireless receiver. call to get u-verse tv for just $19 a month with qualifying bundles. rethink possible. where reporting people behaving badly >> we're looking at a live shot of the golden gate bridge. >> much cooler air coming t