she isn't buying dr. dre. is apple buying into a different head space when it beat buys bes electronic. >> whether it be the streaming service, the headphones, that's a valuable audience because it's younger, it's not to say its kids, but the quote/unquote millennial person who is sort of seeing what other people in their age range are doing and maybe are copying it. apple, you know, audiences, the people who have allegiance to apple as a brand are tending to be a bit older right now than a lot of people who made that brand allegiance to apple that came with about ten years ago when apple refreshed all of its products. they have to acquire something for that cool character. they definitely have it. it's better than other markets in that space. >> are there people reacting to news of this deal are talking like downloading is already over, done, peaked. we're still talking about a multi billion dollars industry. >> it's all together different talking about an industry that has stopped growing. i bet there is a t

it's not clear how much dr. dre will actually be there. as far as what we know, they are definitely coming along with the company. that is where most of the value is. the software and hardware are not necessarily groundbreaking technologies. it's about these two guys in particular. >> any detail from the lawyers as to whether that change of control provision is already part of this deal? that seems pretty basic to find out. think they want to over complicate matters right now. to get thing we want more detail on is how exactly the licensing works. beats was going out and striking its own deals with music label for same way apple does. whether or not you can have these parallel businesses that are not operating on completely different licensing deals is another story. we will have to wait and see on that. >> i have not heard anything about the competition from companies such as amazon.com. if you are in the streaming business, you have to deal with not only the other music players like spotify and pandora, but you have to provide some kind

dr. dre is already celebrating. are you ready for football? round one of the nfl draft is over, but the best value is yet to come. we will tell you what it is. in world, russia flexes its muscle as putin parties like he is back in the ussr. nasa is now a landlord.

why does apple need dr. dre? he did eminem. 1998. he said here is this white guy from detroit. >> ok, yeah. let's get to the third front page. you shocked me with that. we are moving over to ukraine. pro-russian separatists are goi ng ahead with preparations for a referendum on sunday. what is surprising is that vladimir putin says the referendum should be delayed. meanwhile, russia is showing off ade, marking a par the defeat of germany in world war ii> . >> a lot of pageantry wrapped around the politics. toand putin is likely to go crimea to review the black sea sleeve. so, those are the front page stories. >> the guest host is michael holland. a great day to talk about the banking industry. richard falkenrath is with the too. the imagery i saw from london this morning of the -- >> celebration of the axis. >> does vladimir putin want a non-soviety union? ♪ he is not trying to re-create the soviet union, but he does want a sphere of influence. him, parts of ukraine are in that. >> how do you respond to what we

givingppears to involve dr. dre full-time positions at apple. dr. dre will focus on his music as a priority and will work for apple when they need him. staying in the united states, the american economy took a bigger hit from harsh winter weather during the first quarter than expected. figures show the u.s. economy shrank by one percent between january and march. it is significantly slower than a previous prediction for the first quarter and is a turnaround for the last three months of 2013 when the u.s. economy powered ahead with a growth rate of 2.6% on an annualized basis. much of it was attributed to the strength of the severe winter weather that hit the united states. atmrs. build up inventories a slower pace and it was the worst performance for the u.s. for the first three months of 2011. innomists expect a rebound 2014. that is the reason for u.s. investors to brush these figures aside. lets take a look at how they are doing, over in the united states, the american markets are in positive territory with the remaining minutes this thursday. a

apple makes a play for dr. dre. the tech giant is close to buying beats electronics in its biggest ever purchase. putin flexes his muscles. tanks rumble across red square for victory day as europe readies new sanctions. welcome to "the pulse." i am anna edwards. program,ng up on the cashing in on cosmetics. i meet the founder of space nk which sells some of the world's finest makeup and the business of botox. i sit down with an apprentice winner who runs a chain of skincare clinics. that is still to come on the program. we begin with our top story, the abandoned megamerger. but lisa's and omnicom have called off their $35 billion try to create the world's largest advertising company. one executive not surprised. bloomberg caught up with him earlier this morning. >> we were surprised by the speed with which it fell apart. call three or four weeks ago, it was predictable that it was going to fall. they sort of semi-criticized one another and both said it was better -- or it was good to be separate. >> for more on the

what about dr. dre? >> he just lost a loss, he was suing trying to collect some old royalties he felt he was owed. he had about 150 million you -- $150 million. >> is there any idea of where these -- who they would displace in the billionaire ranking? >> it is hard to say. he is not the first music mogul to become a billionaire. david took that path a long time ago. he is a mere one billion guy. >> indeed aired thank you -- indeed. thank you. joining me now from los angeles is alex rosson, the chief executive of audeze, they make audio file headphones for the high-end market. could you describe four people what makes you different from almost every other headphone out there? >> thank you for having me on the show. what differentiate just from most manufacturers on the market is that we use a thin film suspended between magnetic structures. that thin film causes vibration which causes sound. it is a very accurate had phone, barry has vodafone -- very fast headphone, and the least amount of distortion on t

there's dr. dre. but just as important as jimmy iovine, worked with everyone from lady gaga to u2, and one of the industry's earliest adopters of the new media platform. he is in talks to join apple's team in a creative role. but they aren't the only ones to stand. he and dr. dre aren't the only ones that stand to make money. carlyle group invested $500 million last year. vivendi, and universal investors. we hear it could be announced as soon as next week. in the meantime, this gives new meaning to the dr. dre lyrics "still got love for the streets." kayla, back to you. >> all right, thanks so much for that, morgan. >> let's look closer at what the deal would mean. michael wolf is the co-founder of activate, former ceo of mtv and indeed former yahoo! board member. welcome to the program. >> thank you. >> so which side of the fence do you come down here? are you on the kind of intellectual side that this is about content and this is about music streaming? or are you kind of more on the imaging side of

apple will buy dr. dre's beats by dr. dre for a price of $3 billion. 2.6 billion in cash and 400 million in equity. guess what? dr. dre will now join apple. he will be part of this company, along with jimmy iavine along with the one of the biggest in the music industry with interscope records. this is huge deal. he was a long-time friend of apple cofounder steve jobs of the two of them came together, talked about this before steve jobs died. here we have reality of it, apple buying beats by dr. dre. the interesting aspect what do they do with it? do they make the smart headphones? david: there had been this wall between los angeles, between the entertainment division and folks in silicon valley. this is a move to break down this wall of we were talking about how much cash apple has, how they will be spending some of that cash. whether they will be going into content, which of course they would love to get more into. this is perfect way for them to do that. but also to break down that wall. because sometimes they have been

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

that was the message given to dr. dre from oil tycoon t. boone pickens following news of apple's beats acquisition, it came over twitter no less. pickens, unashamedly told dre is now 1%. he was there before. the tweet was retreat the 100 times. first time he is sliding up, seidelling up to hip-hop superstars. previous tweet corrected rapper drake saying it is first billion that is hard to make. not the first million. musician had to assume that before. look how many times it retweeted. like 21,000. >> can't wrap my mind around logic of first billion is harder, i don't understand. >> really is. >> percentages. >> here is the thing. is everybody jumping the gun here? this is not a done deal between beats and apple. melissa: apparently did. re's first deal because he doesn't realize first deal and agree in prince approximately and pop the cork and you agree on terms and sign papers. he jumped gun. i think it is funny boone is tweeting. probably not him with a fantastic publicist and team. it is very funny to make him hip and relevant. >>> huge

clearly dr. dre has the beat. 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

beats co-founder jimmy ivin and dr. dre, too. now, apple expects the deal to close in its fiscal fourth quarter. 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.

don't forget about dr. dre. a video shows the artist alluding that the deal is real. that is next. >> it came out two weeks ago. they need to update forbes list. the first billionaire in hip-hop right here. >> we are talking to dr. dre next. ♪ >> welcome back. i'm emily chang. apple is said to be turning up the volume on its music offerings. with people with knowledge of the matter say they are close to striking a deal to buy beats electronics for 3.2 billion dollars. founded by music executive and dr. dre in 2008, beats was known for the beats headphones and streaming service. it would be the biggest purchase for apple to date by far. i spoke with jon erlichman and the former president of rhapsody, the first subscription service to offer unlimited streaming service for a flat fee. >> i think what it means is the they are seeing the writing on the wall. the future is in streaming. it is surprising in the sense that you have apple as a company where steve jobs had very strongly suggested that people will always want to own their music. i think this is a sign of a tur

we'll take your dollar. >> call dr. dre, too, for some money. now that he's hit it big. >> he can afford to loan it out. >>> also, percolating this morning with caffeine. the top-five coffee obsessed cities. "men's health" has ranked america's biggest coffee drinkers. the top spot goes to portland, maine, followed by manchester, new hampshire, burlington, vermont, portland, oregon, and albuquerque, new mexico. we've been asking for your morning mug photos on twitter and facebook. here's jamie from maryland. >> she looks angry. >> she hasn't drank the coffee yet. >> a bitter brew there. >> grumpy. >> and this one is from kristen. there might be vodka in there. debbie likes a very large cup when she's watching "gma." and christine starts her day with wonder woman. >> i lived for a while in portland, maine. it's cold there. you need hot coffee. >>> we have to take a break. i'm going to stop talking. we'll be right back. >> it all makes sense now. >> yeah. nope. what about funny business? no. bamboozling? what is "bamboozling"? it's like, uh, malark

they hope to buy beast electronics started by dr. dre. he seemed to make it clear. >> the first millionaire in hip hope. >> posted to facebook last night, the deal would be worth more ma than $3 billion. we go to mike with yahoo finance. this is a big move by appleby buying something and not building it in-house. is this a new post-steve jobs directive we're seeing here? >> it certainly is new. apple made very few technology purchases in the past. it shows something about apple's phase of development. they're basically a mature company with are a tremendous amount of cash hanging around >> they already sell beat accessories in their apple stores and they have itones, the top selling music in the world. why is this important to apple's future? >> i wouldn't say this is important to apple's future. it's about a month's worth of apple's excess cash flow. the think the way apple is looking at this, as an interesting experiment in adjacent business. not so much of a big bet on the furor the brand. it's not a tremendous bet for apple. beat alre

dr. dre and jimmy iovine will be joining apple. in a statement announcing the deal, tim cook said music is such an important part of all of our lives and hold a special place in our hearts apple. that is why we have kept investing in music and we bring together these extraordinary teams to continue to create the most innovative music products in the world. how will the beats deal improve apple's business? joining me now, editor-at-large cory johnson, west coast correspondent jon erlichman and senior analyst with jmp security. thank you for joining us. who wins here -- apple or beats? >> i don't think the shareholders do. if there's something under the surface, this is backward looking to where it came from versus where it needs to go and it's something they should have been able to do internally. we are wondering where the innovation and imagination will come from to take it to the next level. >> to what degree do the contracts walk with beats? can they now take all of the streaming rights they had acquired in the negotiation with

dr. dre was making an album. you can make a $10 album or sell $3 head phones, what are you going to do. >> more about apple's possible deal. >> t. boone pickens said congratulations, dr. dre, welcome to the 1%. >> .01%. >> you built that. >> so many things to unpackage in that. >> peter tweeted beats just sold apple's today's pet rock. >> and lou says here's why apple beats is smart. integrate it into head phone that incorporate apple ecosystem and lots of beats people are samsung. >> pet rock, is that fair? i don't have teenage kids. >> you've seen them everywhere, i'm sure. >> how do you value something like this? >> it makes me a little nervous. would i buy this? >> i would not. >> would i buy the stock? i haven't bought a. regret it had sometimes, but i just don't buy stuff that has a bigger pe than i can count, but just think about it. this guy is -- he's 49, so he will become a billionaire. if he invests that, and in a diversified portfolio. he will become a billion air, and that just couldn't have happened

dr. dre and carlyle group, dr. dre could be become the first billionaire rapper when the carlyle group paid 50% of the company. if the it goes through, carlisle will make one billion in profit. apple end the day lower. liz: we have breaking news on herbalife, hlf. here is the news. according to sources telling fox business, that the firm, meaning herbalife, has found, quote, listening devices at its headquarters, meaning bugs. we don't know anything about who planted them but basically the firm has been searching around and doing investigation within its own buildings and has found listening devices at its l.a. headquarters. herbalife of course, it is health sheikh company at the center of this huge battle between billionaire bill ackman who absolutely believes it's a total pyramid scheme and he has been shorting the stock at a till, he is not winning this price, and carl icahn the billionaire who believes it's a long for this bet. and he likes the company. once again apparently according to sources talking to fox

dr. dre doesn't want the furniture but buying home anyway. maybe that is part of the reason why the price was not 50 million. could be issue of furniture. that is possibility. this is somebody, he is worth 550 milliondollars. certainly we have not confirmed the apple story, that they're going to be buying his company for more than $3 billion. they were very specific. they will stay in los angeles. this is their full-time home. it has a waterfall and moat by the way. you could fit 30 cars parked, with a six-car garage. what else to say? liz: we like the wraparound pool. >> wraparound pool. the pool is beautiful. they actually listed the home for sale but reportedly he jumped right in there. we think the timing if you look at calendar dates when he went to look at the home which is multiple times we should say, he actually, the timing seems to be as he was in talks with apple which is reported, not confirmed that apple will be buying beats. this is in contract. papers signed. he is buying the home. liz: in-laws will want to stay, you know? they

dre. the iphonemaker is reportedly close to buying beatz electronics. it was founded by dr. dre and producer jimmy ivine is known for the high end headphones. one pair can go for more than $400. it would be apple's largest acquisition to date if it goes through. >>> working for a little less than a billion is bill karins. >> a little. >> just a tiny bit. >> the next time i negotiate it won't be so easy. >> share some of the wealth, especially with mom. >> a lot of people had plans, going to brunch or a nice picnic outside. we'll get to this in a second. let's show you what happened yesterday. we showed you pictures earlier of the outbreak in the central and northern plains. this was to the north. southern minnesota, portions of iowa. seven tornadoes, none of those big, huge and strong. no fatalities, no injuries. today we'll still have a chance of strong storms in the middle of the country, i get it, do not think we'll see a lot of tornados with that. the rain just won't turn off. someone needs to shut the faucet in the northwest. a wet spring. one of the weste eswettest we

dr. dre, i listened to that guy's music when i was growing up. he became a huge producer, and now he's getting into hardware and consumer goods and making it there. he's pretty much had the trifecta in the industry, so yeah, maybe it's hard to contain the excitement. >>> before we move to the second topic, in today's yahoo's topic, we asked, is this a right move in. 51% say no, it should focus on its own products. all right. moving on. new memoir, timothy geithner said he considered stepping down back in 2010 and suggested hillary clinton as a possible successor. he's got a book coming up, a great title "stress test." robert frank, what do we know about geithner and this recommendation to the president? >> what's interesting to read andrew sorkin's article in the times, and excerpts from the book, he tried to resign so many times, he was just trying to find anyone around him who the president might accept as a replacement. at some point heside jack lew, and then what about hillary? he was just throwing names in there. i don't know whether to beli

. >>> one of the dr. dre's songs is been there, done that. a video that might be the ultimate proof that the apple/beats deal is actually happening. . >>> each of us picked a stock that stood out to us. my pick was whole food, getting the breakfast lunch and dinner absolutely eaten. the company is making money, yeah it's growing, but there was something that the co-ceo said on the call that spooked people. for a long time whole foods had the field to ourselves. that was nice, but we don't anylonger. a lot of people are jumping on this kale bandwagon. sprouts raised its guidance, and the field is getting crowded. >> mine is electronics arts s apparently the video game business is not dead. >> it is not. google and amazon are in a big old battle to dominate same-day deliveries. our very own courtney reagan sat at home all day and put them to the test. >> i put the shopping express and amazon same-day deliver withy to a test run. i had to start early to get my orders in before the cutoff time before amazon and before the delivery slots ran out f

. >>> rap pioneer dr. dre could be in for a billion-dollar payday. apple is reportedly close to buying beat electronics for $3.2 billion. that's the company behind the popular beats by dr. dre headphones. the financial times says a final deal is close and could be announced as soon as next week. >>> vladimir putin is using today's victory day celebrations to further incite tensions over ukraine. he spoke at an event honoring the 69th anniversary of the end of world war ii in his first visit since russia annexed it in march, he held crime mia's incorporation into the state he said there are difficulties but 2014 will be remembered as the year all people decided to be together with russia. >>> intelligence authorities are arriving in nigeria to assist in the search for hundreds of kidnapped schoolgirls there. craig boswell says parents of the teenagers are increasingly frustrated with their own government's response. >> reporter: nigerians are marching daily to press their government to do more to find at least 276 kidnapped schoolgirls. they have been

. >>> dr. dre's beats and who are the most admired first ladies? >>> hello. thanks for joining us today. i'm betty nguyen. >>> secretary of state of veterans affairs has been called to testify before congress. it stems from allegations of mistreatment at a v.a. hospital in phoenix whereas many as 40 veterans reportedly died while waiting for medical treatment. a house committee has voted to subpoena all records and correspondence. tracie potts from washington. good morning to you. the question really is what happens if these subpoenas come up empty? >> if the subpoenas come up empty, the lawmakers on capitol hill aren't buying that. there's been discussions between their staff and va staff about e-mail that is they believe the va is holding on to. every single democrat and republican on this house committee voted in favor of this subpoena. they're hoping to get more information about why some vets had to wait so long to see a doctor. >> i'm now going to sign a subpoena for production of e-mails. >> reporter: lawmakers are giving the va until may 19th to turn

namely dr. dre's co-founder, jimmy ivine, one of the earliest adopters of new platforms. he reportedly is in talks with apple in a creative role. >> if you take it a step further and think about the -- what it adds to their management team it starts to make sense, albeit a very expensive hire. >> this typically builds its own hardware internally rather than acquire it. talent or not, analysts are skeptical. but beats did put in a reported $1.2 billion in revenue last year. and the brand is not just recognizable among consumers, it is even considered cool. >> i think it is very dope. >> i think it is very exciting news. apple is a great company. and the combination of the two will be awesome. both companies. >> i just hope that doesn't mean prices go up. >> apple, it will still be in the same position, i will still be broke, so yeah, i'll try to save up for it. >> reporter: but a deal is not done yet. sources say an official announcement could come as soon as next week. but negotiations could also still fall through. for "nightly business report," i'm morgan brennan in san

vine is staying on, will dr. dre be part of it? on.ord is iovine will stay dr. dre -- he is the first hip-hop billionaire, so he can do whatever he wants. the world is his oyster now. -- very much against this deal, finding out that beats is its own iconic brand, it is a higher business, and you may not expect apple to have this year? >> i have been hearing for years the question, why does apple not get into the hardware business? never did i hear the name beats ,. people like that they are getting into the business. this just may not be the way there were hoping. >> i wanted to ask about samsung. the chairman had a massive heart attack over the weekend. how much is he involved in the day-to-day? what is the latest on his condition? >> obviously it's a very serious situation. there is a lot of analysis of the future of samsung given that the family has so much control. his son has stepped in to take control, but there is a huge ownership the us. there is been a lot of discussion about what the succession planning is. also with regard to these things, they probab

rapper dr. dre co-founded the company. the beats business which sells snazzy high quality headphones that are populr with teens and young adults. apple shareholders made some noise friday by selling the stock, which closed down 2 dollars at 585 dollars. "i really don't think there is an actionable trade set-up that is going to come off of this news. you know, we didn't see anything unusual in th options market in apple on friday, you know, so i really think the action was muted." buying beats would be the largest purchase to date for cash rich apple. but tech analyst rob enderle believes the tech giant is better -- off beat. "apple really doesn't need another premium sound brand. they already have two in both apple and itunes. and its hard to picture what they are going to do with beats and dr. dre." if the deal does happen.. dr. dre becomes the world's richest rapper. apple's next big release will likely be the iphone 6. reports predict that launch could happen in august. the wage debate will continue to be a hot topic th

dre posted this video just last night. >> the first billionaire in hip-hop. >> reporter: dr. dre, up from the rough streets of compton, conquering the hip-hop world. six grammys under his belt, but this could be his biggest hit yet. again, that number, $3.2 billion. this is the largest acquisition in the history of apple. it's eight times more than they've ever paid for a company. >> somebody ought to be really happy tonight. thank you, paula. and happy mother's day to you. >>> coming up next, confessions from the car lot to the makeup counter. the secret ways salespeople get you to spend more than you planned. >> the minute they sat in the chair, the amount of money they spent went up double, if not more. >> how to stay alert when they want you to spend more. due to menopausal changes. the problem isn't likely to go away... ...on its own. so it's time we do something about it. and there's help. premarin vaginal cream. a prescription that does what no over-the-counter product was designed to do. it provides estrogens to help rebuild vaginal tissue and make intercourse more co

dr dre co- founded the company. he could become the world's richest rapper. alibaba ipo update... the names of 28 people who will control the company will be discolsed in a filing. the e- commerce company out of china will likely become one of the largest tech ipo-s to date.. and, not so fast! one day after reaching a record close tuesday, the s&p trades to a new high wednesday. but then pulls back to end the session down 2 points. the dow also in the red trading 43 points lower, the nasdaq lost 12 points. gold contiues to melt down. this time by $7 and oil drop $1.15. trader todd horowitz of average joe options joins us for a look at the trading day. good morning to you, i have to start with that treasury topple... what is the word from the trading floor, todd? > > good morning, angie. well i'll tell you what we're seeing it depends on who you talk to... if you talk to the bulls, all you're seeing is an arbitrage selling for indebted high prices and buying american debt. if you're a bear, you're saying that something's got to give, the bonds, the interest rates are going to low,

dr. dre buys that manchin in beverly hills. it does come through the economy it is not a zero sum game. maybe you are not hiring a lot of people that is a decision the company has to make. i have this money do i hire people with the uncertainty about health care or do i add value to the shareholders? gerri: i want to read a comedy and have you respond. you wonder why the economy is stuck consider the hypophysis is headed invent -- investing in new plants or giving a race is big corporations are spending record profits plus borrowed money to buy back their own shares. is this a hindrance to the economy? >> to say that more like the tail wagging the dog. but there are generations now of people who have gotten hurt three times. ones with real estate and twice with the stock market. wages are flat with not much growth so people are not spending money the way they were. there will not buy equipment gerri: talk about the markets today. we have seen a lot of improvement in the markets. what should investors look at? we have seen good

dre's fault? it all has to do with his video in which they say dr. dre will become the first hip-hop planet. -- billionaire. >> the forbes list just change. they need to update. >> the first billionaire right here from the -- west coast. >> joining me for more is leo hindery, managing partner of intermedia partners, and also the top executive at the yankees yes network. great to see you. >> happy holidays, belatedly. >> luckily i got to get a little bit of son this weekend. >> you look great. you look great. >> so do you care what you think about this vehicle -- video? do you think that is why we did not hear anything? >> apple is a company that is so proud of its image, and there are two extraordinary things going on. it is buying technology, when it has never done that. it invents technology. i think it stuns a lot of us that they would pay $3 billion for headphones. >> it did not make sense to you? >> it certainly does not move the apple needle. the image problem is something you have to be cognizant of. who represents you going forward is at the

why would it buy dr. dre's beats electronics? i'll have a look. plus johnny manziel la, if you've got job skills cleveland wants to draft you, too. we'll tell you that and more on "real money." >> remember that video of amazon's drone? well, uavs take off the faa has selected six civilian drone sites to test out uavs for the utility and their safety. one of the sites is in texas. it's hoping to lift its local economy by cashing in on drones. out here on the seemingly endless plains of texas a lot of folks are counting on a new industry to take flight. >> there has been a lot of work. sometimes it's been a major headache but it's been fun because you know, i'm at the leading edge. >> reporter: david runs the unmanned system program in corpus christi university. the leading organization behind the drone test sites set up by the faa. out of 25 fiercely competitive bids hoping to become the silicon valley of drones, these six sites intend to make what may seem fantastical today into the future. >> a lot of people son the amazon video. it was rather cu

it was founded by dr. dre and jenny eirby. retailer radioshack is modifying its plan to close as many as 1,100 stores. the current agreements keep it from closing any more than 200 stores without lender approval. the company has a total of 4,300 locations. >>> and hilton worldwide beating estimates and raising its forecast for the year. hilton results were driven by 6.6% jump in revenue and 17% gain in management and franchise fees. >> let the delivery wars begin. retailers are competing on speed as well as price these days with same-day delivery becoming more prominent. >> google shopping express launched a pilot in manhattan and los angeles offering same-day delivery. amazon also offers same-day delivery in new york and other cities. i put both to the test. we have to start early to get the orders in before the cut-off time for amazon and before the delivery slots ran out for google. here's what i found. well, it's the morning. but it's time to go shopping. welcome to google shopping express. i need toothpaste. shampoo. goog

dre and will work there. dr. dre will do whatever it takes for apple. do you think this is tim cook trying to make his mark? goodw that they were very 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. and this looksng 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? thanks 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 problem -- probably profitable business? the headphone manufacturer. i'm presumably thinking like i a probablehere is headphone manufacturer subsidizing the digital business. headphones will be better. better.business will be we will fix the problem with falling ipod sales and falling digital sales. do you see that as the way apple thinks? >> offense their calculus, it's

dr. dre joins the club. >> right here from the [bleep] west coast. >> tyrese is super duper excited. >> tyrese is like my best friend dr. dre. he's oprah now. >> that means tyrese is gale! >> cara delevingne posted some videos on instagram. she was in the elevator with zooey deschanel, reese witherspoon and who do you make

jimmy and dr. dre bring that to apple. they have a ton of credibility with media companies and artists. >> you think there will be a culture class? -- clash? >> they're culturally less dissimilar than you might think. let's not forget the fact that steve jobs was considered by many to be an artist. you have content and then you have the marriage of artistry and technology. i think this is a really exciting deal to signify this convergence of technology meeting great content. content drives great technology. otherant to make this point. the biggest deal before this was when they bought next for $400 million. that was not only the biggest deal, but apple was proud of that. they would never do a deal that was bigger than the next deal. m and eight folks would say that -- m&a folks would say that. tole is willing to take bets complement its products and services in areas where it is weak. it is an important step for the company. generated cash from the time that the news leaked. is so massive that it is a bump in the log for t

dr. dre ready to cash in big. what you need to know about the rapper an entrepreneur on his way to be the first billionaire in hip-hop. take that p. diddy. ♪ can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. does it end after you've expanded your business? after your company's gone public? and the capital's been invested? or wn your compan's bought another? is it over after you' given back? you never stop achieving. that's why, at barclays, our ambition is to always realize yours. melissa: call it the single ladies effect. fewer women are settling down and tying the knot with the u.s. marriage rate falling 60% in last 40 years. shifting economic realities

that may be the new name for dr. dre. for beats electronics. the company makes high end head phones and operates a streaming service. the rapper and producer may join apple in a senior role. they say it may help apple score deals with record labels and may help apple attract younger customers. >>> bay area stores are helping sons and daughters. the goal, to make mom feel like a clean tomorrow. business is booming for flower stores like this one in san leandro. workers saw a steady flow of customer orders for mother's day. >> i think the economy has gotten a lot better. it is very busy in here. we have people in and out all day, all day long. >> roses and littleries the most popular flowers for customers. for tomorrow. >> what are diane's favorite flowers? >> the children are asleep. tulips. tulips are my personal favorite. but sort of out of season right now. spring hits and then they're done. >> where can we get some tulips this time of night? >> the home of all the tulips on the west coast. >> amazing. there may be time to fly them down. they

this was founded three years ago by dr. dre and creates the headphones used by music superstars. this also gives apple access to andbeats music service, their itunes music store has been undercut by the phenomenal growth of streaming services such as spotify. >> apple has built up this empire over 10 or 15 years based on this holy trinity between the itunes music store, the ipod, and of course there itunes software. what is happening is all of those things have become less dominant in the space, so that they need to basically move strategically, and tip this over to where consumers are going, the streaming, on-demand services. >> the purchase that will be finalized later this year marks a break for apple, which is used to developing their own technology. become apple will employees and it will make dr. dre a billionaire. >> she gave the world of unflinching look into america's racially divided self. ou, who rose from poverty and segregation to become one of the great civil rights activists died on wednesday. she was 86 years old. we look into the life of a woman that u.s. preside

dr. dre is also a great artist. he is not is clearly going full-time, but i'm sure he will add a lot as well. >> i understand what apple is getting. i think about the artists. 1/7 will make 1/5, 1/6, the amount of money that they would have gone from downloads. is that sustainable long-term? >> that is a debated qu estion. now you're getting into the music service. i do think it has to be. frankly, this is the way we are all getting our music. we're not going back to buying cds. if we cannot figure out a way for the artist to make money, the music industry is doomed. i do not think it will be doomed. music is too big a part of culture for that to happen. prices might go up. that would be good for apple. i don't think we will keep buying songs. by the song on itunes. >> the strength of the facebook effect was being able to look forward to where we go. our member the first time i heard stereo crystal clear. reach forward -- where will this transaction be in five years? >> is a great way to ask question. i think qualit

we have to listen to that byte from dr. dre again. take a listen to what he posted online overnight. >> the forbes list just change. it came out like two weeks ago. they need to update the forbes list. >> the first billionaire in have popped right here from the west coast. . >> that video has since been taken down. it makes it sound like a done deal. it is not as far as we know. >> widow know exactly what he is talking about. let's remember there could be a lot of explanations for apple by maybeo beats licensing the technology the same way that hp did. they might be trying to get to understand exactly what beats is doing a get to know the technology so we will have to see if this actually goes through and if the billions being talked about are the right number. it seems there is a it of a culture mismatch between apple and beats but apple has some issues right now with the branding, with fading itunes momentum and it needs to do something to reinvigorate the business model. >> what about a potential culture mismatch? ,> talking about

moving and shaking this hour, hip-hop mogul dr. dre. apple is in advanced talks to technology, a company dr. dre founded with music man jimmy iovine. they started the company in 2008, marketing the headphones as high-tech, stylish accessories. musicats has a streaming service that might be just as attractive to apple. they might make a killing on a deal like that. borgota was the first casino in new jersey to offer online gaming. will the best payoff? the ceo joins me. we are back in two the woman it's. ♪ -- we are back in two w old minutes. ♪ >> atlantic city's borgota hotel and spa was the first casino to offer online gambling. slower than off many expected. i sat down with las vegas sands billionaire sheldon adelson who had this to say about online gaming. >> let me say this, there is no reason, nor any compelling reason to put a casino in everyone's pocket. college, of age, students that go plenty of money, unfortunate people, working class people, middle-class people that will be andly exploited by and -- easily incentivize to