google most obviously. that is what gave you anything that gives more and more people easily on the internet is good for these companies. that is the point of view. >> ben, how do you think google thinks about this? are they trying to help each other or are they actually competing? >> i think they pretty much are competing but with the same reason. as mark said, these are free services, anyone who gets a broadband instead of soul internet, theyw end up using google and facebook more than anything else, and google and facebook make a lot of money. so to give you a sense and developed companies, facebook makes about $12 per person per year. in developing countries, it is --bably $2 or $ but or $3, but that is a lot of money. >> and google earnings after the bell, what do you expect? >> in line with the street, so 20% year-over-year revenue consecutive or 16th quarter. that is google. i think we are in for about $6.40 in earnings roughly close to consensus. we think those numbers are achievable. people visit t

and google are set to report this week. will the numbers be good or not some good question -- not so good? from new york, paul, let's start out with google. what are the big trends you are watching? >> the market is looking for continued good results. the big technology selloff over the last couple of weeks, google has hung in there quite well. stocks down one percent or two percent, year to date. partners respect the fact that the core business continues to topline revenue growth. tension on the markets as they continue to invest in new business and pose strong topline to bottom-line numbers. >> on the other hand, yahoo! is down almost 17%. they were hit particularly hard in the latest selloff. what are you looking at when it comes to yahoo!? have some new information about original content and original programming that they are making a push on. how do investors feel about that? >> there are two things here. first and foremost, the value of their investment in alibaba, which will presumably become public this year, reflec

i know this was exposed by jordan -- google security users. >> it was found by google researchers and researchers from a company elsewhere. it is a tremendous find. they found a serious bug. they also coordinated the release of a fix for it. a software patch. the bug is tremendously powerful, but there's also a fix available. most large websites have pushed out that fix. were discussing, this is a flaw in the encryption software used by two thirds of the world. it is open source software. it is community-created. the fact that this law has been around for two years raises some interesting questions about who knew about it. >> is is a victory for open source? so many people are looking at it so they could find the problem. where is a failure, because so many people were using this? >> i would not even look at either one of those. one of the things we really have to understand is that the problem with these is that they are out there all the time. it does not make you better or worse it takes two years to find it. can waita lot they that they have not found fixes for. however, i would s

priceline's marketing, mostly dollars going to google, but they also compete with google. we will talk to priceline group ceo next. ? ♪ >> welcome back to "the best of bloomberg west." i am emily chang. online travel is a crowded, competitive space. it is priceline's revenue that makes it the largest such company in the world. i spoke with priceline's group ceo darren huston. booking on mobile. >> we are investing very heavily in mobile. just to give you an example, we did $1 billion a looking's on mobile. 2012, $3 billion. 2013, $18 billion booking on mobile. it is a very important channel for us in terms of acquiring new customers. it is also a critical part of the end to end experience. now that people are using tablets, mobile phones and other electronic devices along the whole journey, is giving us a great opportunity to enhance our product for our users. >> are you specifying for mobile apps? >> all five companies have apps for the ios platform as well as for android. we continue to evolve those products. they all have very high ratings from consumers. we have a to

>> google wants what it gets sometimes, and he got this. google is coming in later now for this. google has a lot of users. it has to get more. it has to find more places to advertise so we will do whatever it can to get these kinds of companies to get access to all the folks all over the world so it can show more ads and sell services. >> the goal according to google and facebook is to bring internet access to everyone. are these unmanned aircraft in use anywhere for this purpose on a large scale? or has this not actually happened yet? >> it has not actually happened yet. we did stuff like this when we worked with the army. as far as commercial ventures and widespread use, not so much. >> brian, how do we even know this technology is actually going to come to fruition? is it too early? >> that is a big question. i think our guest knows more than this than i do. who will take the moon shots. they will spend the money and get the smartest people together. facebook is doing this sort of effort as well and it is not just ringing and other people from nasa to other places. they need

google made google glass for sale to the general public this week, but for one day only. it cost $1800 for axis to the program -- $1500 for axis to the program. we sat down to talk about who will could go mainstream. >> who will is still in beta at this point of and we talk about a $1500 price point it is still very much intended toward developers to experiment on applications. the reality is if you try the product, and he read the reviews it's probably going to be a while before becomes a mass-market hit. it is perhaps interesting to those of us who live here in the valley, we welcome new technology, but it will be a while before mainstream advice this in a broadscale way. >> i was told zero chance of having it going mainstream? >> it is too early to predict that. i would not make that prediction myself. when we saw the google by android in 2005, we saw them winning the -- put the operating system and everything of and without they were not spread into that google has executed incredibly well, so i would not count him out at this point. greg said terms of wearables in ge

and the google guys, about one and a quarter billion dollars less rich each. >>> on capitol hill today, the senate passed a bill that would retroactively restore jobless benefits to more than 2 million of the nation's long-term unemployed. that bill heads to the house and could face significant opposition, if it is renewed, the aid would mean a payment of $256 a week through the end of may for americans out of work for longer than six months. >>> the white house is trying to control the gender pay gap. both of them were targeted at contract workers, the order prohibits contract workers for retaliating for discussing pay. it encourages them to be more transparent based on gender and race, the order says they will level the playing field for all workers so no one becomes a second class citizen. >> when any of our citizens can't fulfill their potential for reasons that have nothing for do with their talent or character or work ethic, they're not living up to their work capability. we don't have second class citizens here, certainly not in the work place, so tomorrow the senate has a chanc

google buzz, google wave, google friend connect, all three social efforts by google that flopped. is google plus nexed? the head of google's social network is leaving the company after eight years. google says this does not signal the end of google plus. this has no i will pact or our google plus strategy. we have an incredibly talented team that will continue to build great experiences. michael kim joins us via skype from seattle. he worked with vick at microsoft to launch the cloud services and brad stone of bloomberg business week here in the studio who wrote in this week's issue a new story about google's and facebook's fight to control technology. why did vick leave? is google plus dying? >> google plus it continues to be important to google, photos, hangouts. those are growing products. they're being more integrated in android. the identity aspects are more in the seven. the original promise of google plus as a social network didn't work out. we know that. no one is spending time there. perhaps no coincidence, he is leaving after eight years of google. the promise that that

google says this does not signal the end of google plus. a spokesperson telling us this has no impact on our strategy. michael kim joins us via skype from seattle. he worked at microsoft to launch the dot-net cut services and also brad stone with me in the who wrote a new story about google and facebook's fight to control the future of technology. brad, what happened here? is google plus dying? googlee are elements of plus the continued to be very important to google. , hangouts. those are growing products. there being more integrated into android. i think the identity aspects are being closely integrated in the search. the original promise of google plus as a social network did not work out. we all know that. perhaps from an acquisitive, vick is leaving after eight years at google. the promise that product had, which you really staked his name and reputation to, did not work out. >> you worked with them at microsoft. what kind of guy is he? t was similar anywhere trying to get information about people into the cloud, right? >> yes, i had a

no word on how much google paid for titan. facebook did end up purchasing its own drone company so there it is called assenta. google shares rose 1.5% to $545.20. more on facebook. it's apparently no longer content with being just the largest social media site. it's preparing to provide online financial services starting in ireland. facebook just needs the approval of the irish regulatory board to offer users several types of financial transactions online. shares of facebook up slightly today. web md said it expects to report strong first quarter results at the end of the month. anticipates reaching the upper end of its annual earnings and revenue projection. the health information provider says 32% more people used its website in the first three months of the year. that gave a big boost to its ad sales. shares surged to $43.87. and general motors gained ground after said it's replacing executives in charge of communications and human resource. it's not linked to the on going safety crisis. gm attributes the move to mary barra

april 16th. >>> good evening, everyone, we begin tonight with ibm and google. they are two iconic tech companies, two big disappointments and two stocks that carry a lot of weight. one of them the dow, the other the nasdaq, big blue's quarterly report out after the market close was another in a long line of revenue misses, income continues to be hurt by sharp declines in hardware sales. ibm earned $2.54 a share, right along with predictions but revenue missed coming in at $22 and a half billion, less than expected. that sent shares initially lower in after-hours trading. morgan brenner has been looking through the report and has more on that. so morgan, as you look through the numbers what do you see as the key takeaway from ibm. >> well, ibm is one of the ones with the bigger numbers, but shares have continued to weigh on their growth, countries like brazil, china, revenue falling in those countries about 11% from a year ago. but none more so than china. so revenues in the world's second largest economy actually fell about 20% from a year ago. that is as deman

do these trends hurt google more than facebook? >> i think google is in a tough spot. they have a gigantic cash machine in search. they have really done well. investors believe in that strength. they have to keep that running and keep that printing money, and at the same time transition to an entirely new way of advertising and helping users buy and sell things. that is really hard for big, slower companies. younger startups are basically able to move much faster. google will be challenged in the next years to really continue the growth it has had. >> google has made a big acquisitions, facebook has also with oculus, and a drone company, google buying a drone company, a lot of robotics companies. paul, are the moon-shots and acquisitions hurting google's bottom line? >> when google became public, they said, listen, a certain percentage of our expenditures both and operating expenses will be for moon-shots. we will have speculative investments. larry, sergey brin have said that from the day one. some of these will pan out, some will not. google, it is part of their stra

they are saying that they are afraid of google and others. the fact is they are friendly -- frenemies. comcast is the one with the wire into peoples homes. that is the connection that gives comcast enormous power. >> susan in your book you make the pretty good argument that the monopoly law does not understand how these systems work in the new era and the geographic comparison does not work. what is the right way to look at monopoly law? >> comcast has such enormous buying power with this merger. it is going to be buying all of the programming, setting prices for it. it is going to be buying all of the devices consumers have in their homes. lookedwer has not been at as stringently. comcast will be shaping entire markets. everyone will have to do things their way at the merger goes through. i know the department of justice will be looking at this closely from that perspective. the fcc has an even broader edict, which is to look at the public interest part of the deal and again whether it is in the public interest. yes? >> quickly, susan, are t

google stock is down in after-hours. is the chairman of ad exchange, and paul, your immediate reaction, cost per clicks are down, but clicks are up. is this all because of mobile? >> it is. google, like most other companies come is trying to manage his business from the desktop to the mobile environment. as the usage moves to mobile, two things happen. number one, the actual usage of the site goes up. as you mentioned, clicks were up 26% at google. the flipside of the coin is advertising pricing on mobile devices comes at a lower price point than the desktop. in the case of google, the cost per click pricing was down nine percent. of mediaike a lot companies, needs to manage the pricing on the ads versus the actual number of ads themselves. >> how serious is this? doesn't matter that cost per click is going down? >> it is relatively serious for google. to keep in place the growth, they need to start winning in mobile. it will take a real serious effort for them to put in place the technology and the people and things tha

google is putting google glass on sale for the general public for one day only. it costs $1500 for access to the program will it is available only to adults living in the united dates. google has a patent application pending. i sat down with a partner at xl partners. thatptimistic you see google glass will go mainstream? glass is still in beta. when you talk about it-point, it is still intimidating to developers who want to develop applications. the reality is that you try the product and you read the reviews. it will be a while before becomes mass market. it is interesting to those of us who live in the valley. it is a while before mainstream adopt google glass as a product. someone from coastal ventures told me that it has zero chance of going mainstream. >> it is too early to predict. inn google bought android 2005, everyone thought that the idea of google moving into mobile was not. no one thought that it an american company would become a major player in operating systems. years,look back nine google executed that incredibly well. >> in terms of wearables in

also, things like google glass. we have profiled students at usc who are now, as part of their curriculum, trying to see what is possible, what kinds of different projects they can launch that would be using something like google glass. there is a lot of opportunity out there. we are going to focus on those various things over the course of the week. >> let us compare that with the changes in the movie watching experience. >> a lot of filmmakers and producers will say, the end of the day, it is about good stories. that is true. but there is no doubt that new technology and new platforms allows for the story to change in some ways. we talk so much about netflix. we talk about binge watching. there are great examples and some of the shows that have been successful on those platforms being successful because people can gobble them up all at once. tot is being factored in future productions that are taking place. that is definitely a big theme. >> when it comes to movie financing, things like kickstarter have had some i

we have the same infrastructure whether it is google or amazon or netflix or yahoo! or microsoft or aol all looking at original content. looking at 10 episode shows that might cost anywhere from 700,000 to a few million dollars per episode. search.go toward now going to this original content business and what it might mean. >> can you only watch online? >> the success that netflix has had drawing customers, we want some of those same people and we have the cash to spend. >> netflix has produced a number of hits. single we can't name a one. let's bring in jon erlichman that got a look inside of microsoft xbox entertainment studios. they are making its own original series with the likes of steven spielberg. pretty fascinating story. i year-and-a-half ago, microsoft hired a very well-known person for her work at cbs and before that at warner bros.. everyone has been asking the question, what is the xbox team working on? they have not said much until now. we got an exclusive look of what we have been doing behind the scenes. inside this low-key office building, microsoft

most of it went to google. is that a strategy you expect to we have great websites and they convert tremendously well. we continue to look to google as well as two other source of is kayak orher it trip advisor. there are other places where we go and buy our demand. we continue to buy from most channels as long as the returns are there. we are seeing that our returns on all the channels are great. the day we would love our customers to be more direct. we use google and other sources of demand to find customers and show them how wonderful our products are. >> google is making more aggressive moves in your territory. obviously, they bought ita. how big a competitor g you expect them to be going forward? as angle respects us advertiser. they rely to get more of my money. codeecent acquisition of from room 77, that is not the biggest thing that has happened. google has been working on hotel price as for years. they want to continue to make that better. i think the biggest issue we face competitively is not google,

many of the employees will join google and its brands and apps will remain. hbo says the premiere of game of thrones got 6.6 million viewers in its first airing. up 52%. i was one of them. it was so popular on hbo go that the service crash for some viewers and wasn't completely restored until four hours later. meanwhile, silicon valley, a show about a tech startup received 2.5 ilya and viewers. -- million viewers. cory johnson here to talk about yahoo! and their ability to dominate. >> we have the same infrastructure whether it is google or amazon or netflix or yahoo! or microsoft or aol all looking at original content. looking at 10 episode shows that might cost anywhere from 700,000 to a few million dollars per episode. >> they go toward search. now going to this original content business and what it might mean. >> can you only watch online? >> the success that netflix has had drawing customers, we want some of those same people and we have the cash to spend. >> netflix has produced a number of hits. amazon, we can't name a single one. let's bring in jon er

google has bought more than 20 companies over the past year. google's founders have shown they have the desire for acquisitions both large and small. now they have a new way to satisfy that appetite while maintaining their control of the search giant. josh lipton, "nightly business report," silicon valley. >>> the auto parts maker delphi is getting drag need that massive legal trouble at general motors over those faulty ill anything switches it made. they have been linked to at least 13 crash-related deaths. plaintiffs suing g.m. have now added delphi's name in their lawsuits against the automaker, included a former delphi employee whose daughter was killed in a 2013 chevy cobalt accident. shares of the auto parts giant down about .5% today at 69.73. >>> that drop was nothing compared to the decline in shares of barnes & noble today. they tumbled nearly 14% after one of the bookstore's chains biggest investors ---ing talking about liberty media -- said it sold almost all its stock in the company. >> reporter: a blow for struggling bookstore cha

you look at the developments in the google system. then you look at china, which is trying to bring on cos, which will be an alternative to apple. you look at the smartwatch coming out of samsung, which they are looking at moving away from google, to have a different operating system which they may bring into their smartphones. so apple is saying to the rest of the ecosystem, look, i own these features, these are mine. if you want to compete, you have to come up with something different. that is the conversation i think is going on. >> apple is asking for $40 for every samsung device that infringes on these patents. is that anywhere near realistic? >> that is huge. i believe microsoft has been reported to be getting about $10 for all of its patents on software, architecture, and everything else, from samsung, five dollars from htc. so, $40 is almost a shutdown price. it disrupts cost of goods sold, disrupts margins to the point where it is very difficult to move on. that is partly a consideration of the google operating system being f

and google is suspending sales of the anoxic alarm. web --nic feature of the of the nest smoke alarm -- it could take two to three months to fix this problem. google. them in january. technology ipos are hitting wall street. grubhub and a cloud software company both started trading today. the grubhub ceo joint market makers and had this to say. washe reason we did the ipo to gain exposure for the company, to communicate to the world that this was a massive marketplace. there are $70 billion spent annually. only three percent of that is being placed online in any way. >> it is not just grubhub. the other company, opower. they have filed to go public. seeing a ton of ipos producing technology. >> now feels like a good time for these companies to go public treated investors are friendly to new technology ipos -- to go public. investors are friendly to new technology ipos. -- is thely this is company that is profitable. they had sales of $137 million last year. this company looks a lot like opentable, which is another company investors hav

google and facebook said they are not vulnerable. what we don't know is if they were vulnerable before it was fixed or if they were never vulnerable in the first place. a lot of large organizations like banks were never vulnerable because they don't use opened ssl. there's a wide range of web companies that were either vulnerable before and have been fixed or were never vulnerable in the first place. we just don't know the answer. >> its interesting to me that the most threatening thing of all was the inability to see into any computer's ram. >> right, let me take a step back. i would not say that banks were not vulnerable, because you have to understand that ssl not only used on websites, but tpn and e-mail. atms, all of these used ssl. the question is, were they using a vulnerable version of that. to say that the fix has been put out, the fix has been put out by the open ssl foundation. in fact, i was on a flight last night. i was compiling at 10 p.m. to get your question, yes, you are actually looking at arbitrary data in the work

.> i think that is part of it i think there is a side story were apple and google -- google change things up with the different share lasses --c la classes. apple is intensely competitive with google. in some ways, they are trying to some of the returns. i could understand why someone would say this is un-apple like. i like the fact that tim cook is being aggressive in doing something like this. >> we do know that tim cook had a meeting with carl icahn. icahn backed down. agreed with he apple's increased buyback and extremely pleased with the results. many analysts failed to understand the company. cory, i know you'll agree with the last part of the statement. do you think icahn knows more about the products that are becoming than the rest of us? to back down or stop rattling ing in thehold company. i think that is the point. like to not be a growth company? yeah. like to split the stock are going through a buyback. the increase in the buyback is the size of 3m. it is an incredible amount of numbers. under mentally, it is a different kind of company than it has been in the past. >> we are

google definitely will. it sounded like dick costolo said no moon shots that twitter, just focusing on the core. >> you tried oculus? >> i did. i thought it was extremely cool. i have never used it before, which i was embarrassed to admit, and it really is extraordinarily immersive. it's way down the road that it will make a difference for facebook, but it is cool cool. >> david kirkpatrick, jon erlichman, thank you all for watching this edition of "bloomberg west." we will see you tomorrow. ♪ >> welcome to "lunch money" where we tie together the best business stories. intech, twitter tumbles. user growth slides and photos the stock. the ceo of script says it is simple, the online tv service is stealing. walk this way. how chief executives take care of business on the go. bridget moynahan living on $1.25 per day. she will explain why. in mobile, which makes the best wine? our answers coming up.

google putting google glass on sale to the general public today. plus tax for00 access to the explorer program, the same price that developers pay. it is available only to adults living in the united states. this, as they have a patent application pending for tiny cameras in bedded and contact lenses. for more, i bring in a partner at excel partners. hosting a fireside chat with the cofounder of secret, today invite only conference. bringing together the top 180 executives in mobile. earlier executives and facebook. many mobile hits. good to see you. always great to have you here. talking about google glass. thatptimistic are you something like this can go mainstream? isthe way it goes mainstream. glass is still beta at this point. it is still very much intended for developers. i think the reality is you try the product. probably going to be a while before it comes a mass architect. perhaps interesting to those of us who live in the valley. i think it will be a while before main street really adopted in a broad street way. >> zero chance of google

an update from google on its self-driving cars. the company says that cars have logged nearly 700,000 autonomous miles. google has been testing the cars around their hometown of mountainview, to improve their ability of driving in urban areas, but they say there are more problems to solve before the car starts driving in other cities. microsoft will begin rolling out its first original xbox tv shows in june, including a reality series called "every street united" which will cover local soccer teams, as well as coverage of the binary music festival. to our lead story. after the disclosure of the heartbleed glitch, there is another glitch affecting the internet explorer browser. this affects about 25% of browsers out there, looking at versions 6 through 11, although the most recent ones are mainly being hurt. the way it works, it gives the hacker the same level of access as the official user. people that still have microsoft xp, windows xp, are particularly troubled in this case. cory johnson, microsoft stopped providing security pat

what does google have an stake? an attack on android, i should say. >> google has had this huge proxy battle all over the world. it has been dealing with. and google wants to see android protected and stay safe. it dominates the world. it has beat back the iphone. obviously apple is not going to go down without a fight and so google wants to win every battle it can and this is an important one. >> what is the next phase of this? >> that is the big question. some say no matter what happens it is a pr battle. apple wants to show we are the good guys. i think no matter what happens, it is going to be even more interesting because we've got a billion dollars or so from samsung in the first trial. if they get close to what they are getting, that would be really interesting. we do not know yet. it is very early. this could be big. >> we will continue to follow it closely. thanks so much. amazon prime subscribers consumed a binge watch episodes of "the sopranos." received jail to stream select tv show starting may 21. jon

>> the way android works, except for google own devices is if you have a samsung phone, google puts out a pass for android, samsung is responsible or your wireless carrier is responsible or posting that to you. >> -- for pushing that to you. let's imagine that my phone got hacked and i have a samsung phone that did not get an update, our samsung and verizon going to be on the hook for losses? >> is an interesting question. google was asked about updating their own services. this is the weak link. it's harder to attack a phone versus a website. you have to do it one by one but it means that samsung and verizon and at&t are the ones responsible for fixing these devices. >> what about the cisco juniper? >> these are the guys whose equipment are the guts of the internet. the things go wrong with devices, those need to be fixed quickly. >> how do you fix them? >> you have to apply a patch and it is a similar situation. you have to do the patches one by one. one person has to download the patch for a device or one router owner to download the patch for his or her router so it takes longer eve

, google, facebook. >> here this -- bit soup. like alphabet soup, but ones and zeros instead of letters. , which iss you cringe something judges and brilliant at. the cringe. funny.as pretty >> kudos to mike judge. he had to have had an internship at google. >> who is going to watch episode two? >> i'm all over it will stop >> i'm in. >> it was good. i think it was better than all of us expected. i don't watch much tv. funny and very true, but i thought it also -- i think it's the kind of thing people in silicon valley like to watch. >> it's time for the bwest byte, where we focus on one number that tells us a whole lot. >> how about the number five? that's the new ticker for google's class a share. the dreaded five letter ticket -- ticker right now. the old ticker is used for a new form of stock. what about the class the shares? those shares don't trade. those shares still get 10 more votes and that's a format for the stock and a lot of new ideas will follow. >> the real eric schmidt who made a cameo in "silicon valley." and we

google news. but i don't think that people feel like they are getting a voice that they would get on, let's say, bloomberg, or any of the news channel. at the end of the day, you need a human being who will do the final curration and describe a story. there are the facts and then there are someone's feelings about the facts and how they talk about the story. that is what happens at that final level of curation. the kind of view that as the machine is figuring out all of the stories that are useful and valuable. and then the editor is making the final call in reflecting the voice of the news outlet. >> and just in our last 10 seconds, when it comes to stories on, let's say, sports or celebrities, what do you find the greatest amount of content being generated and then ultimately making its way onto television, where is that coming from? >> that is hard to answer. if you think of breaking news that is happening all the time everywhere, sports is the same and entertainment is the same. honestly, they