tv Bloomberg West Bloomberg May 30, 2014 6:00pm-7:01pm EDT
>> live from pier 3 in san francisco, welcome to "bloomberg west" where we cover innovation, technology, and the future of business. i am emily chang. hour, steve ballmer has reached a deal to buy the 2a. clippers for a whopping billion dollars. shargh the record for an nba team. the sterling team agreed to sell after owner, donald sterling, was banned from the nba after making racist comments. bomber has promised to keep the team in l.a. has promised to keep the team in l.a. off the capsule
saying it should be ready in two years. allow you tolegs land anywhere on earth. nintendo is hoping a partnership can help it with slumping sales. they launched their mario kart and players will be able to drive a mercedes for the first time. the mario character appears in a mercedes commercial in japan as nintendo tries to make more money. day.r lead story of the steve ballmer is going to have something new to get excited about and retired. known foricrosoft ceo his emotional speeches, jumping up and down, has reached a deal to buy the l.a. clippers for $2 billion and that shatters the record for an nba team. the previous high was %550 million. r said i lovellme
basketball and will make sure that they win big. the sterling trust moved to sell after donald sterling was banned for life for making racist remarks. the best -- the big question has ballmer overpaid? jon erlichman is in l.a.. and former president of the golden state warriors thank you for joining us. first of all, what kind of owner will he be? >> i cannot wait to see the clippers played the mavericks. is all about.his these are people who have billions of dollars to want to sit on the front row. for 2 billioncket dollars. >> he promised to keep them in l.a. do you believe him?
he lives in seattle. >> definitely. i think financially it would make no sense at all for him to even try to attempt to move the team and that has a lot to do with the financial power behind the los angeles with a tv rights deal that is expiring after the 2015-2016 season. we saw with the dodgers were acquired for a huge price tagged and they were able to turn around a cut a huge deal and a channel where there is a huge opportunity to make money and that is a you ultimately get to the $2 billion price tagged. >> larry ellison trying to buy the taint. >> he is 0-4. >> what you make of more tech people? >> i do not think it has anything to do microbe but this about macro. i totally agree. you are buying the l.a. market. this is an incredible move forward.
this is speed dating in franchise. i spoke to a bank investment and said he has never seen anything like this. donald sterling goes off the deep end in two or three weeks later it is done for $2 billion. talk about an asset appreciation. 90 100%. will steve ballmer realized -- %.erling, 9100 >> you do not think it is worth it? art. is like he is part of an exclusive club. >> can we point out the irony that donald sterling probably made more in this deal that he would've had to be scrubbed marks not been made public? it.nd he just said it happened so quickly. people have to do to their bids in quickly. that was a higher price.
i would entirely agree that he got more as a result assuming everything goes down this road if he had otherwise. not to say that steve ballmer is overpaying because, as i mentioned earlier, when this new tv rights to deal is worked out, all of a sudden we might say, hey, it is introduced -- interesting. the clips have massive cash inflow. >> db they could take on the lakers? >> i think they have already taken on the lakers. dunk dynasties start >> what you mean about verticality? >> everybody in lima my land is talk about the clippers. land isbody in la la talking about the clippers. there may be more to come.
yesterday, apple or the day before bought beats by dr. dre for $3 billion. about $2 billion for the clippers. a headphone company, 3 billion dollars. >> what our fans feeling like a day more excited than ever? db they can challenge the lakers' supremacy? >> no, they cannot. people are excited. the first question people asking was would he live here as steve suggests that he was spend more time here. to answer your point, the cuban/ballmer games are the ones to watch. >> andy dolich, former president of the golden warriors. coming up with facebook and google with back-to-back acquisitions, do any of the
>> welcome back to "bloomberg west." removeis making steps to certain links. there relieves this form to fill out with a link they want removed. they set up a committee of experts. now, a former director. he joins a year ago and has invested in over 80 companies to date. thank you for joining us. i want to ask about his right to
be forgotten that is happening in the eu. makeles about you and me up the backbone of google's business. do you think it will hurt them? >> they have always taken privacy seriously. >> you move for facebook to google which is almost the reverse of what most people do. >> i went back to google after that. >> why? >> youtube is a huge destination and at the time it was not to the site it was today. it was a huge opportunity. >> you're been a venture capitalist for a year. where are you placing your bets? >> on the consumer side. data. trends that are exciting you? >> mobile. one of the things we have seen more and more of our consumers
expecting the mobile devices to be the remote control for their life. click on anything and expect it to arrive. companies that are exciting to us is -- this is mobile commerce starting with the universities. -- i order a you can tip and go. we got our calculus class and i skip the line. i pick up my food a you are waiting. what happens the next day? you use it. it is a large campuses like santa clara, nyu. >> what happens if everybody is using it? >> on average, half of the student body uses it. increased efficiency for everyone. revenues goes up. also, the students are extremely happy with this. it is one trend we are seeing.
another local commerce we are excited about is -- a search company. it starts with the search. women's fashion. where did you get it. pinterest photos from and facebook and instagram and put those photos on. outfitre can i find this -- and where can i find this outfit? khosla.ow he is famous for his investments theory. he likes to invest in companies that have a high chance of selling. what is your philosophy? >> would like to invest in copies that have good initial traction and great success. that is generally our theme. andaving worked at google facebook, you are trying to find companies that can disrupt the
big companies. is there anything that can disrupt facebook at this time? more abouttion is innovation generally. when you look at innovation, it comes from where you least expect. we are looking at companies that are solving a real problem for consumers and solving it well. will years from now, facebook and google be as dominant as they are now? >> you will see just like microsoft was dominant. google is dominant. facebook is dominant. you have seen new goliaths. >> where do you think they will, from? who is an up-and-coming goliath? >> square. >> square has been facing a lot of challenges a lately. >> that they doing well from a product standpoint. getting consumers adoption with rewriting.
>> how dominant you think they will be? >> time will tell. thank you so much for joining us. we'll be watching for those goliaths. the natural that brought us "mad men" is bringing us the rise of the pc era. and remember you can watch us , streaming on your tablet, phone, bloomberg.com, apple tv, and amazon fire. ♪
astronauts. elon musk showed off the capsule saying it will be able to carry seven people and up to four times of cargo and will have legs to allow it to land anywhere on earth. here he is in the cockpit. for them for something interfaces and overall aesthetics, something very clean and simple. musksque said spain -- said space x will deliver after not for less than $20 million. as 76currently as high million dollars a piece. amc has had a string of hits like "breaking bad" now their latest drama is banking on the pc era. pc year after ibm corner the
market in the early 1980's. you probably see many commercials for "halt and catch fire." jon erlichman spoke with the creators in asking where the idea came from. moved ourer, who family from chicago to dallas, an opportunity in computers. he started working and system software in the early 1980's. i watched his career evolved from systems software to application software to the internet and then finally to security software and about two weeks after he retired in the mid 2000, i had graduated from college. his company was acquired by ibm. ibm was his presence and his career life and also our personal lives where it is always nipping on the hills of what everybody else was doing. >> writers looking to do.
worked we were working together in social media at disney. we were getting interested in technology and our lives whether it pushes us further apart or brings us together. we got to the genesis of the story was 1983 and the rise of the personal computer. and we saw an opportunity to tell people the story they did not know. any time you can do that as a for us.hat is a plus >> we talk so much about silicon valley and silicon alley and silicon beach. you are focused on silicon prairie. tell us about what was happening at that time. >> silicon prairie deals with the swath of area but when he dallas and houston and austin. company to the first reverse engineering in the pc. they were out of texas.
michael dell was building room.ers in his dorm we also have texas instruments. civilizationch technology that synchronization technology. you have people like charles, who was a letter maker at first, and then a quite ready osha act and build his own ibm-compatible machine -- advent acquired and then his own -- and acquired and built his own ibm-compatible machine. it be traditional hubs like new york and came for their second chance, their last chance. in a lot of ways, that is what you are looking for. people taking redemption to do right. he gave us a modern western. >> in recent years, there've been so many tech themed stories. movies about sark -- mark
zuckerberg. the modern day silicon valley. how do you think the thinks compared to the themes in the show? are think the themes similar across the board because it is about humanity's relation with technology. when chris and i came up with the idea, we wanted to tell the story of how do we get to where we are now? there is no going back. what does that mean? what does that symbiosis look like? as we look back through history, personal computing scene but a watershed moment where we can explore that relationship. the flavor is different from another show or another movie, but the parable seems to be the same which is, humanity created the technology, but technology is a reflection of humanity in
all of its imperfections. >> we are becoming increasingly aware of the individuals who make these things and put to personal imprint into the machine. i think we see the great creativity of steve jobs. and the social network show you how mark zuckerberg put some of -- and his demons and his brilliance into the facebook product. in the same way, we wanted to makere how our heroes, their problems into the machines they are building even in 1983. >> it sounds like you have gotten approval for people who work in the business at that time. you have been showing your dayram to the modern players as silicon valley. some of the feedback i have heard from people is they are impressed will cite is that feedback from the people who are the imports and the world of technology, is that important to you?
>> i think so. i really love that people are responding in that way. people working in technology now and are familiar with the history are looking at it and feeling like it is plausible, feeling like it israel. and that way, they can appreciate the drama and enjoy the story. -- feeling like it is real. >> the work itself has changed, but the dilemma is of the same. can you have a work/life balance? can you iterate something fast enough to get something on the market before something eclipse it? the challenges on a personal level are kind of timeless. i think we are finding modern audiences can connect. >> chris cantwell and chris rogers, creator of "halt and with our jon erlichman with the massive growth of chinese -- jon
erlichman. -- with the massive growth a chinese social media, will he end anytime soon? you can watch us streaming on your tablet, phone, bloomberg.com, apple tv, and amazon fire tv. ♪ >> bloomberg is on the markets. finished the day. a new world record. a universal record for the s&p. a gain. spendingugh consumers' men's wearhousef ande joseph a banks are closer to combiningll. . -- men's wearhouse and joseph a banks are closer to combining. has finished their
>> you are watching "bloomberg west" where we focus on technology and the future of business. i am emily chang. a check of your top headlines. it's a players a cast -- it appears a class action lawsuit will go to trial to determine damages. apple had challenge a decision that in the case, class action status had rejected that. apple is still appealing last said --olling which is which a judge that they violated. has ar engineering head stepped down and will move to an advisory role. replaced isill be
the latest executive to leave anlowing the departure of engineer. he has made no secret he wants to speed up innovation. ceo mark zuckerberg and his wife make another major donation to schools. 0he couple is pledging $12 million to help low income schools in the bay area including east palo aloto. a princely donated $100 million. -- they previously donated $100 million. as chinese internet companies go global, how fundamental has the internet but, to chinese citizens and how much a threat is it to the communist party? joins us. he is the author of the book, halt and catch fire. -- age of ambition.
you saw many of these changes firsthand. what is interesting about this ask, you talk about china contradictions. it is a confusing story and often does not make sense. the government has fostered the internet and at the same time censored it. how has the internet changed chinese society? >> if we inc. the internet has changed our lives in america, it is that more transformative in china. for somebody living on the hillside, they do not have the technology to feel connected. you have half of the population. 4 has gone up 60% in the last years. people change the way they think about themselves politically. how do you get married? >> they cannot see the whole internet. they cannot see facebook or twitter. it's censorship something you think will end in our lifetime?
is to goal of this book put these things face to face. chinese is growing enormously fast but censorship is a fundamental fact. the chinese communist party believed they needed to limit information if they are going to count on political survival. i feel we they mess around with the edges and allow certain topics like pollution to the, a become ao this -- to subject to discuss more freely. i do not expect they will relinquish. >> do you think the internet can challenge the communist hardy in the longer term? can it bring democracy to china? much to probably too think it will be a force against the chinese political party. the truth is it has exerted pressure on the government and forced them to respond in a way to public pressure they do not have to. they go online every day and use
it as a facility to understand what people care about and the issues. i think in the end, the communist party will relies the internet is a former it. they see it as a threat. they will keep it under close watch. >> what about facebook and twitter? you are visiting those companies while you were here. do you think they will get unblocked in china? what path do they have? >> they do not need advice from me. the recognize that in future for facebook and twitter is a long game, not a short again. they have been over there a lot. they realized there is a potential for them to get more chinese businesses advertising. that might be the beginning of a long-term relationship. the chinese government does not see any incentive to change their band. >> the chinese counterpart,, weibo, they are getting bigger
and bigger. are they true equivalents of what we have in the united states? >> they are not. they are a composite different products. have elements of facebook in its product. it has been successful. offer from far away, we misjudge how -- there is something about is the enormously successful. they are chinese products and responsive to the chinese government. for the foreign internet company, it will be a challenge, it is better to boost and allow domestic competitor than a foreigner. >> do chinese people care? do young people care? what i learned was many students did not care about politics. do they care about censorship? >> they do. that has been evolution that people have grown up in an
environment in which they can go online and complain about the fact they cannot get a job or complain about local political issues. they realize it is hard that i cannot complain about the central government. the have acquired experience of skepticism. they love it. if you are young chinese person today, you have to distinguish yourself by your opinion. that is one of the ways to get a job and get ahead. contradictionm in with the state. the younger generation is raised with a different set of values than their parents. >> do you think any of these chinese compass like alibaba can be a truly global company? >> it has global aspirations. how i am interested in is people see their parameters. alibaba has every attention -- intention of being global. there are products that work in america and do not translate.
great outdoors from a wearable devices to social media. some of the biggest inventions can play a bigger role in camping. theelle worked with out door product brands to pick the products rei sales in its stores. person likemping me, what are some the high-tech products that would make my experience easier? about taking is your technology into the outdoors. some of the really cool products available at rei are our bio light stove where you can cook your meal and charge it to your smart phone. is a really great way to share your memory and capture your memories and share them with your friends. those are two examples of the great products we have out there
right now. >> you were pretty instrumental in pushing the go pro to be sold in stores. why is that and how is it so? and go pro have a long-standing relationship dating back to 2005. , the companycamera continues to innovate every year. that is what we love about of. the cameras are super lightweight and more compact than ever. ever great amounts to allow you to mount the camera -- they have a great amount -- mounts. they make it really easy. in general, how would you say the technology has changed the way people experience the great outdoors? well, it was only a few years ago when we would talk about the fact our customer would disconnect when they got in the
outdoors and that is not the way people do the outdoors anymore. they stay connected in a lot of different ways. one way is wearable technology that allows you to navigate via gps on your hike and track your calorie count, your vertical feet. that is one great way to integrate technology. another really fun way is after you have been outdoors all day they want to cozy up in your sleeping bag and the tenant, tent, there are opportunities to show movies in your tent like entertainment for example. it is making it easier and more fun. >> what is the next to go pro and generation of high-tech outdoor gear, equipment? >> it is really about multi functional devices.
every body is looking for the single device that will do it on. i mentioned the stove that has dual functionality. we can imagine that same stove, you can cook your meals, plug your smartphone in and light up your camp and play music. the proliferation of the multifunctional tool. >> just periods when you venture out doors, what is your must-have? to have music around the campsite. it is a great facilitation for fun with your friends. there's a great rock out speaker system. you pair that with a solar powered battery pack a you can listen to music for the entire weekend. that is one of my favorites. a little secret, i bring along my -- [indiscernible] if i get cold, i can put them on. >> good to know. rei general merchandiser,
you take a test drive? for hours.it the mercedes element is only in japan. nintendo wants to branch out and find new revenue. they will sell the services of their characters. mario in japan with mercedes advertising when he steps on an evil mushroom. they have a mercedes you can use in the game in japan. it is not in the u.s. aversion and they would not tell me if they have upcoming partnerships here. they have a really fun eight version of this old favorite only for the new console. line upvery interesting of a number of games they have built up so far. >> is it a good strategy? can mario help save a nintendo?
>> it is really a sad story if you look at the profits over the last 5, 6 years. they used to make billions eight dollars a year. they are losing hundreds of millions of dollars a year. you can see a big loss this year. they used to make for a good ,0-20 years solid, every year 30%-40% margin as some years more. what did they are hoping to do is to sell more of the console. they sold over 100 million wii. it was so good that people bother watching i get another one. it does a lot more and it may help to boost their stock prices which have, down 15% this year. it is flat. no movement. shareholders are concerned, this is the great white hope. the one thing they hope will get
people to buy the new console. you cannot play it on your old wii. not a gamer. mario is even a game i play. >> i was going to say even non-gamers play mario. especially mario kart. my mom will sit down and play it. every body from the age of 4 to that has beenand the appeal. mario is the biggest selling franchise of all time. it is sold almost 500 million copies of some kind of mario game whether super mario world or mario kart. kart has 100 million copies. duty as farall of as the unit sales, nothing comes close to it. that has been the bonus.
they have harder games. i played some mario 3-d on nintendo today. i played the new donkey kong. forward thata step a lot of people would be surprised to find for nintendo. if you go in the store, you would be surprised. it is not the type of gamer you shoot and kill people all of the time. may be safer for the kids. >> and did you enjoy it? ofi like playing all kinds games. i enjoyed the donkey kong game. playingof mario kart is against other people. you can play against four people. you can sign up online for their against 12n and play other people. you can have a really big rallies and that would be the most fun. >> matt miller. >> i challenge you, john workman, and cory johnson -- jon
erlichman, and cory johnson. >> i will lose. will it be ok if i throw it out? >> you can be the princess. >> thank you. it is time for the bwest byte where we focus on one number that tells a whole lot. what you got? said, iton what matt is 1.7 million for. it brings me great pleasure. more than one .7 million views for a youtube video that brings together the opening sequence of know of thrones," which i you love reimagined to your last segment of mario. whirls wrapped in one. >> oh, my gosh. i love this video. the man behind it actually with
us right now via skype from kansas city. nick, what inspired you to do this? >> oh, my gosh. game of thrones because of their opening sequence is the best opening intro ever. i love it. i look forward to the intro as much as the show. i was watching it and thought it would be a great video and easy to do and it really was. >> [indiscernible] >> ok. ♪ now, you have a contract with the video entertainment network. did they help you make it go viral? you have a idea and you posted and they help to promote it. they leave it to the creators to do what ever want. you have a great path. the sky is the limit with it.
they help you promote it and get the ball rolling. it helps with other websites and blogs and whatnot. >> for people who do not know what it is, it is based here in an. and warner bros. is investment. what is it and what does the help to do? >> it is one of the largest youtube networks. they find people like myself and others who are interested in content. they say if you want to join our network, our youtube channel, we will help promote your video and we will advertise. the thingsio kart 8, i would like to advertise anyway. -- inut you in contact content with others to exchange ideas. they are great with helping people interested in the youtube and getsstart one up
more publicity than they could on their own. >> you are getting a lot of attention. what else are you working on? >> i am thinking, how do i top of this? you have no idea how they will do and how they will read at. for this one, people went crazy. "wired"on post" and all of the size. not -- and now i am on legitimate sites like bloomberg. and ive to pay attention am always like what ever i come up with, i will work on. >> i am glad you think we are legitimate. joining us and jon erlichman. see why the boat for watching this addition of "bloomberg west ." you can get the headlines at the bloomberg radio and tune in on
>> welcome to "money clip." i am adam johnson. the interim ceo of target talks about troubles in canada and what he has learned from jcpenney. this, by the way, is a bloomberg exclusive. elon musk is unleashing a dragon in the space race. we will take you to the border of russia and china and see how 2 very different countries are living side by side. and back at pimco, but his