, google, facebook. what wasn't known was that a lot of hardware also used this vulnerable software. cisco, some of their software. it is in android phones. millions of them. it is an older version, but a lot of people still use them. millions of devices. the interesting part is it is the responsibility of the handset makers to push out the patch. the way android works, say you have a samsung phone. if google puts out a patch for android, samsung is responsible or your wireless is responsible for pushing that out to you. >> so cory's phone gets hacked, is samsung going to be on the hook for lawsuits? >> this is an area where it is a weak link. it is harder to attack a phone versus a website. it does mean that samsung and verizon, they are the ones responsible for fixing these devices. >> these are the guys who are the guts of the internet. when there is stuff wrong with their devices, they need to be fixed quickly. >> how? >> you have to apply a patch. it is a similar situation. you have to do the patche

how do you feel about that now that google is trying to do this and microsoft is trying to do this. that must be scary. >> we have been used to it. we have competitors in the early days. we have always had competition. that is nothing new for us. if you're going to solve a big problem, there are going to be a lot of people who want to do it too. how do we build great products? we want to make sure that what we are doing is different. >> dropbox ceo drew houston. venture capitalist get hundreds of pitches from startups every year. how do they decide which ones to bonds? we will take you inside a border to find out when "bloomberg west" returns. ♪ >> i'm emily chang and this is "bloomberg west." it is time for our office hours segment. it features maynard webb. we asked startups to send in pictures. we will tell you how we vetted those pitches. >> i am maynard webb. in addition to my responsibilities, i have created a network investment effort. we are going to get your presentations. we see anywhere from 15-30 companies per week. the first thing we look for is industry focus. what w

how do you feel about that now that google and apple is trying to do this? it must be scary. we had competitors in the early days. we have always had competition along the way. it is nothing new for us. if you're going to solve a big problem among there will be a lot of other people who want to do it. how do we build really great products and make sure that what we are doing is different from what everybody else's? drewopbox ceo june houston. how do they decide which startups to fund and not fund? we will take you inside the boardroom to find out. ♪ >> i'm emily chang and this is bloomberg west. it is time now for our office hours segment, featuring the abu chairman. -- featuring the abu chairman. we want to show you just how they handle those pitches and what happens inside those rooms windows make or break decisions get made. addition to my other responsibilities, i have created a network called the web investment network. many of you have sent ideas for us to look at. we will go over those presentations. from 15-30here companies per week. the first thing we look for is i

i know this was exposed by google security users. >> it was found by google researchers and some researchers from another company. 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. as you guys 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 flaw has been around for two years raises some interesting questions about who knew about it. >> is this 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. there are a lot zero-day exploitables they have not found fixes for. howev

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

the protests against the google busses. people say there is a widening disparity between the haves and the have-nots. >> in the united states. again, i left the day-to-day operation, so i do not have authority to speak on their policy. i am starting to look into this now, just personally. i'm trying to get involved with leaders in various industries and some of the nonprofits that are trying to work in this space. it seems to me when so many jobs are being created and there's so much energy and life happening, it should good for everyone. if it is not, what can we do to fix that? it is not a weekend solution. there are a lot of different people who have to get together and think long-term. it seems to me that there has to be a way to solve this problem. it should not be a bad thing. >> a question about jelly. i got 15 responses in seconds. when are you going to merge jelly with twitter? >> it is already working. we work with twitter and facebook. we blend the two networks together. that is one of the ways that we get answer

>> the tax break and the protesting against google buses. protesting twitter in a week. yes. exactly. in the united states. again, i have left day to day operations so i do not have authority to speak on what twitter's responsibility is, that i am starting to look into this now. just personally. get involved with various tech industries. in a boom time when so many jobs are created, there is so much and if it is not, what can we do to fix that? solution.a weekend a lot of people have to get together and think long-term about how to make it work. it seems to me there has to be a way to solve the puzzle. questions from the jelly verse. -- responsess within seconds. argan asks when will you merge jelly with twitter? >> it is our it he working with twitter. we work with twitter and facebook. we blend the networks together and that is one way we can your answers. will youe is asking ever sell? >> jelly is the company we are trying to build and work on for the next several decades. this is what i am doing now. there is no sell date. >> what our current use cases, and what do you en

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

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

does not have the google place door. in typical amazon fashion, they're creating their own parity bill custodio -- they build their own studio. look, hard-core gamers want to play hard-core games. they don't want to play -- they want to play bio shock, not mine craft. >> whether it is on gaming or something like imdb, which is a place where you find everything about actors in the entertainment business these days. jeff bezos made a big push on the idea when you're watching films or finding out who the actors to imdb, i don't know necessarily of people are using those services in a big way. >> bezos wasn't there today. would he think about that? >> they presented him these things every month. it wasn't even dave limp that handles all the events. it was pete larson. it is not going to get the attention that the kindle fire and the kindle e-readers have gotten in terms of big promotional holiday time launchers. >> what about the apple closed ecosystem versus this android open ecosystem. how big a difference does that make.

. >> speaking of google, google's executive chairman eric schmidt has a cameo in a party scene. you did get feedback from him on how authentic that was. what did he tell you? >> that was very encouraging when he showed up to shoot and looked around and said i have been to this party. that was great affirmation for us. >> there are references in the show to steve jobs. could you have done the show without making references to specific people? was that integral? >> yes, i suppose. everyone has macs and pcs. it is so everywhere, and there are pretend companies, too. we just kind of -- they coexist. it just seemed right. >> silicon valley creator, mike judge and executive producer alec berg were with jon erlichman. he brought us superheroes like iron man spiderman. we are talking to stan lee, the man behind marvel comics. ♪ >> welcome back to "the best of bloomberg west." i'm emily chang. marvel's ninth film adaptation, "captain america - the winter soldier" hits theaters this weekend. "the avengers" was the third highest grossing movie of all-time. that is good news for disney. i

. >> these are things that have come up since we started shooting like the google buses. it is kind of brand new. there is plenty of material out there. hopefully, we do another one. >> speaking of google, the chairman, eric schmidt, has a cameo in a party scene. we got feedback on how authentic it was. what did he tell you? >> it was very encouraging and you look around and said i have been to this party which was great affirmation for us. >> there are references to steve jobs. >> am i? >> would you have done it without making specific mentions of certain people? >> yeah, everyone has got mac's and pcs. it is everywhere. there are pretend companies, too. they coexist in this. it just seemed right. >> what did you think about your show that will make a different? >> we did an enormous amount of a research and try to get all the very subtle details as right as we could. you feel like there is nuance in our show. we wanted to make it as funny and enjoyable as possible. hopefully, that is why people watch it, not because it is technologically correct. >> one of the central a

the new ticker for google plus. googl. the four-letter ticker goog is used for class c stock. class b shares controlled by page and schmidt. those shares still get 10 more votes. that is the format for the stock. >> we spoke with mike judge that created the show. we will see that tomorrow, right? looking forward to it. we will see you later. ♪ the following is a paid program. works the following is a paid advertisement for scalp med. officer.elevision stay tuned and find out how you can find the system -- try the system for $29 $.95. try it for $2995. details ahead. >> does scalp med work?

the new ticker for google plus. googl. the four-letter ticker goog is used for class c stock. class b shares controlled by page and schmidt. those shares still get 10 more votes. that is the format for the stock. >> we spoke with mike judge that created the show. we will see that tomorrow, right it --> looking forward to right? picks for watching, we will see you later. ♪ . >> welcome to "lunch money." i am adam johnson. in tech, it is all about the launch. they are bringing new products and new competition. and movie producers ron howard and brian grazer trying to make video for the digital generation. by the way, they are short videos for short attention spans. we have heard about high-frequency traders, but how do you write a best seller? and lands for reinventing the modern corporation.

, 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

you have streaming devices with google and roku. then you have the smart tvs from others and those seem to be from three different camps i wonder if one will emerge. does this help you get around the issues raised by a comcast time warner merger where you will have someone decide what service you get fast and what you don't. >> it's a great question. the first part is that i do think it is true that game consoles clearly survey slightly different audience than a streaming player or a smart tv. it is someone whose primary purpose for purchasing the device is a game or playing games. the prices higher. you do not see a $100 console. video is important but it's an adjunct to the gaming experience. take a streaming player and video is the first thing that people are looking to. the audience, the demographic, they're looking to either pull back on cable subscription or augment service with on-demand services and it's a slightly different market going out and buying these products and the price ranges from $35 to chromecast to $99 for ama

amazon is taking on amazon and -- google and apple. the difference between all the competitors and you can watch a streaming on your phone, tablet, bloomberg.com, and fire tv. ♪ x you are watching "bloomberg west where a focus on technology and the future of business. amazon launched its new fire tv bringing them into even closer competition with the likes of apple and google. all three the tech giants now offer internet connected gadgets for streaming video to a tv and this also escalates its rivalry with netflix and other services delivering exclusive content. the big question is who will win the battle for your living room? joining us now is brad stone and the author of the book on amazon and our senior west coast correspondent jon erlichman. i know you have been working on this story for weeks if not months. what do you think now you have seen it officially unveiled? >> they have been thinking about a set top box since the end of 2011 so this has been a long journey. what are the big ideas going to be? how will raise the bar on a

ofhave complete analysis amazon's big announcement tv,aling amazon fire stepping up the competition with google and netflix and more. first, a check on your top headlines. blackberry will no longer allowed t-mobile to sell its phones with its current contract expires on april 25. in a statement, t-mobile says blackberry business strategies are not complementary. urgedn february, the ceo users to switch over to the iphone. has hold up more than half of her stake in the social networking company. she sold 26 million of her 41 million shares since facebook went public in may 2012. some of the sales were to settle tax bills. china forooking to business opportunities. the chipmaker just announced a one hundred million dollar fund in china to try to get intel chips into more chinese made computers and mobile devices. they are also setting up an innovation center near many of the factories where the devices are made. first to our lead story of the day, a special show on amazon, a big unveiling in new york city of fire tv. they had to get the word fire in there. significant. i hate covering product ann

if amazon does come out with a set top box, they will be competing with apple tv, with google's chromecast. talk about the competitive landscape and where amazon fits in. >> you have to be frienemies. i watch the amazon videos and use their service through roku so they have to maintain that relationship. a lot of people have wondered if you do see a box, will netflix be available on it? if it wasn't available on it -- netflix is one of the most streamed services out there so i think amazon has to realize that you can have a box and a business tied to that and you could also build out your streaming service which i think they have been doing for a few reasons. it helps their prime offering which obviously allows -- you get the free shipping. another factor is people are buying fewer dvds these days. from amazon's side, if you can get a robust service like the video service they have been building, maybe that is a way to save a business that arguably has been in decline because people don't necessarily go to amazon.com to buy as many dvds. they are more likely to get digital downloads. >> la

the samsung lawyers told the jury that apple's lawsuit is really an attack on google's operating system and that apple is using samsung to get a court order blocking android phones. isle's lawyer argues it samsung that makes the samp -- the smartphones. grubhub is raising the price of its upcoming ipo. by threee the price dollars and now expects the price anywhere from $23 to $25 a share. it would be valued at just under $2 billion at the top of the range. cbs as abe a blow for looks to cash in on the upcoming masters tournament. tiger woods has redrawn -- withd rawn. having tiger in contention has routinely boosted ratings. inyears he was a nonfactor 2012, final-round ratings dropped 22%. amazon making a huge push into the streaming tv world. big announcement in new york tomorrow. we know it will be something about video, we don't know for sure if it will be a box. they denied it was a free streaming service. >> it is interesting how hardware has become an impediment. a lot of interesting players -- netflix is the biggest. >> they don't have a hardware play. >> they have done a lot of

if they come out with a set-top box, they will compete with google comcast. talk to us about the competitive landscape and where they might fit in. >> you have to befriend amazed -- frenemies. they have to maintain the relationship. a lot of people have wondered if you see a box of the will netflix be available on it? it is one of the most strained services out there. i think amazon has to realize you can have a box in business tied to that and can build out your streaming service am a which i think they have been doing for a few reasons. i think it helps the prime offering, which people like because you get free shipping. video is a big part of that. dvdse are buying fewer these days. if you can get a robust service like the video service they have been building, maybe that is the thato save the business arguably has been in decline because people do not necessarily go to amazon to buy as many dvds as they once did. they're more likely to get digital. >> talking about higher-quality or cable like contact, is that about production value and more money spent i

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