Google is selling its motorola handset business less than two years after buying it. They agreed to sell it for lenovo for just under 3 billion. Remember, google bought them for 12. 4 billion. Hold on a second. It is now selling for 2. 9 billion dollars. That sounds like a huge loss. Hubel has already sold the settop box business but would keep some of the patents, some 2000 patents and the trademark portfolio all going over to lenovo. Ok, there are some numbers over there. Does anybody have an envelope . At of the envelope, this is my personal stationary, and there is the math, and theyre all sorts of sources for this coming and we have got the 12 number. Take out cash. Take out settop, and there is the value of the patents. Then you have got the tax losses, carried forward, and here you have got the Cocktail Party in dominoes and all the other expenses, and you come out with actual profit. So what you are saying is that google did not lose money on this. No way. And this is a good deal . What i am hearing is that this is a really good deal for google. Ok, a good deal for google. Ceo larry page spoke yesterday on the webcast. A great product base that we have been focusing on with strong leadership at low novo. They have the expertise and track record to scale this into a major player. They have got a lot of experience. Ok, so a positive larry page, reserved, but still positive after the deal was announced. Lets get another perspective, the pros and the cons. This deal basically happened because of intellectual property, a threat of litigation. They wanted the patents. They wanted the patents. Selling the patents to other people, maybe suing google, looking at windows mobile, so in that dimension, the acquisition was a success, but they also really had some big rings for motorola. They got in a longtime executive to run it, another they brought in to motorola, and the phones were interesting, but it never really achieved promised that they had for it. That was brad stone. He mentioned the ceo of Motorola Mobility who was brought into pump in some energy, and we caught up with them at the Consumer Electronics show. That was in las vegas, you might remember, a couple of weeks ago. We are trying to build a brand around lenovo. People did not have a brand that could impede with galaxy and the iphone. We are only five months in. We are seeing a really high experience device with android. An intuitive Android Device compared to some of our competitors. Ok, google looks like it is moving on, and motorola is happy also. And then there was the purchase of the low end. It was said that lenovo has jumped the shark. That is a curious way of putting it. And this is what we heard from the head of the lenovo u. S. Operations from last week. We are number one commercial. So we are going to leverage that. Our customers ask us to expand more. This gives us an opportunity to have a bigger portfolio. All right. The deal can serve as a lesson to another big company, and we are talking about microsoft, which is about to acquire another smartphone maker, nokia. Microsoft has lost ground in the mobile software markets, but with nokia, this gets into hardware. Can microsoft do the Hardware Software dance . There are a few things that are different about the nokia deal than the google deal. They are in a position where they do not have anyone else, so they can start to well the hardware and the software together to get a different experience. A big factor in trying to make this deal is figuring out who the next ceo of microsoft is. Steve ballmer is retiring once the successor takes over, and if you have not heard, microsoft is having a hard time with this. And a no from the ford ceo, so that is one guy off of the ceo list. And another was elevated to a ceo spotify was rumored to be a successor, so that is two nos, and then there is another one where we are crossing our fingers. We really are focused around here, and as long as the board supports me, i would want to stay here. I think this is a fantastic company where we are going. So close. Is this a job that nobody wants . There is still reportedly a contender, along with some other internal candidates. Stay tuned. Another tech ceo getting another milestone. Facebook, turning 10 next week. How does he feel about it . And the centralbank smack down. And then before we go to break, take a look at this. Another Justin Bieber sighting. Flashing lights and screaming fans, there you will find a popstar. He turned himself in, not for drag racing a lamborghini but a charge of allegedly assaulting a limo driver. The 19yearold is scheduled to appear in court march 10. This is lunch money on bloomberg television, and we are also streaming online and on your phone. Revenue jumped in the final quarter of 2014 for facebook, and more than half of that revenue came from mobile devices. Facebook also meet estimates for profit. They are really looking to fulfill their potential as one of the fundamental Communications Platforms of the planet. I think they are in some ways playing a role like email plays, but they are one company. This is a onecompanyowned e mail, and now you have this incredible platform globally with all of this incredible data, and they are figuring out how to make money off of it, and the upside, i have to say, is really huge, in that they have shown they can convert it to a mobile business. All right, so how about a review that is a little less than glowing . Everything seems to be going way up, way up, way up, and then you look at the number of users, and it is only going up by a little bit. Obviously, some people do not have the internet. It is unlikely that growth is going to accelerate. The last earnings call, a big mistake was to say they were almost saturated in the market. It looks like they are basically saturated almost in the entire market. That is not to say they have a bleak financial future. They are able to get more and more out of each user, and they can take advantage of mobile, and so growth may not be huge, but the numbers will still be huge. The company is turning 10 next week, and it is also on the cover of Bloomberg Businessweek. The Ceo Mark Zuckerberg recently talked about the big day. The first 10 years of facebook, and one of the things that i remember from really early on, i had one of my friends that i used to do most of my Computer Science problems with in school, and now he works at facebook and runs most of our engineering team, and i remember after releasing the first version of facebook at harvard, we had this conversation where, all right, it is awesome that now there is this utility and community at our school, but clearly, someday, somebody is going to build this war the world, and it did not occur to me that it would be us. Yes, actually, it was him, and biz stone got a chance to sit down with the ceo, and here is his take. Here are the things that bloomberg learned from Mark Zuckerberg on the eve of their 10th anniversary. Three big anniversaries this year. Facebook is turning 10, he is turning 30 in may, and it is the 10th anniversary of his date with his wife. Such milestones. A lot of time thinking and writing about this period, and one thing that emerged was gratitude, so we decided to write a thank you note to somebody every single day. Number two. Numeral apps. Facebook users do not want to see changes every time they log on. His answer is a creative lab. Over the next year, they will be introducing independent mobile apps that may not even have the facebook brand affiliated with them, like instagram. The first up is an app called paper. It is like a news reading app clipboard which will allow users to browse stories and updates from their friends on their phones and tablets in a visually appealing way. Number three, flexibility on identity. Inside facebook during its decade, an idea that users should use their real name, but now a lot of teenagers or activists would like to communicate anonymously. Zuckerberg says he understands that, so we are going to see a lot of apps that allow users to communicate anonymously if they choose. Number after you are, connecting the world. There are three or 4 billion people around the world who are not on the internet. His plan is to bring people online and onto facebook. This is something called internet. Org, to build wireless and Internet Networks in foreign countries. He says he does not have a particularly good answer to that yet, but he compares his idealism to the passion he felt when building the network in a dorm room 10 years ago. All right, so lets get an outsider view. What will facebook look like in 10 years . The difficulty for facebook is that it is basically true. We get kind of bored by it. It seems less fun, and that is true or people that have been using it for a long time. The excitement is waning, and then it makes it more difficult to hire people and it becomes a boring utility company. Zuckerberg does not believe that is true. What is certainly the case is they built an entirely new layer to the internet, and everything that gets developed has to interact with facebook. You see that in the News Business where the traffic comes from facebook. That is going to be the case. It will become an essential valve for all of this. Facebook hits puberty, the cover story of the new edition of Bloomberg Businessweek that hits the newsstands today. The new york jets owners say new york will benefit from the super bowl for years to come. We will take a look. And while we gear up for the super bowl, china is gearing up for the lunar new year. They are lighting up the cities, celebrating their most important festival. There you can see courses and swines, and some western characters. The china celebration kicks off tomorrow and lasts for 15 days. Happy new year. Game day, super bowl just three days away, they claim they are going to generate nearly 600 million for the metro new york area, but not everyone is buying that. When we asked the nfl where they came up with the number, they say, it was a company, and then they will not tell you. In the last years, none has come close to numbers like that. 200 million would be one third of what the nfl says, but others say it could be from zero to 100 million. They will be spending their money, but other things do not get spent on. People coming to hotel rooms, but then there are people who would come for other reasons who do not book the hotel rooms, and then some would go to broadway plays or go out to dinner, but only a few restaurants will get that impact, so it is not as big of a field as you would think. Also, because new york is new york, you do not see that much of an insulation. All right, with all of that skepticism, we decided to ask the cochair of the Super Bowl Host Committee and also an owner of the new york jets, and we asked him what he thought. Yes, it has been estimated anywhere between 500 million to 600 million. You can argue, and you will get it from both sides, particularly in the last month, but youre going to get a legacy in marketing, as john has been talking about, for years to come of all of the impressions of new york. People are going to say, that looks like a fun place, so lets go. The head of the Super Bowl Committee just has to be working with one that reopened their hotel. We have 396 brandnew rooms. We were closed for several weeks. Which is a shame. The regency is reopened. The home of the Power Breakfast is now back, so we look for a very busy couple of days, and then we are up and running. Ok, so maybe you are not showing up at the regency, but dont worry. From Bloomberg Businessweek, we have got some other ideas for you. Are you one of the 400,000 people expecting to come to new york for the super bowl . Guess what . You are in luck, because everyone, it turns out, is looking to cash in on your stay. I checked out three places for the big game where you could hole up, including this one only three miles away from metlife stadium. Good morning. This is chris. He is listing his twobedroom apartment for a 200 per night. Now, that might seem pricey, but it does come with leftovers. I am not going to clean that, and if they clean it out, it is ok. Of course, the apartment comes with a supersized tv and his incredible collection. Yes, yes, yes. 1800 a night. I have only put it up a few days ago, and i have had some inquiries. Nobody has committed yet, so we will see. I am here in new jersey at the econo lodge, and they have a special suite that they are hoping to rent for 800 per night. Lets take a look. Your standard fare, knives, leather furniture, microwave and fridge combo. Oh, yes, a lot of hotels have a jacuzzi, but how many have a jacuzzi in the bedroom . This heart is only one of the amenities you will have here. There is a sheet thread count that measures in the dozens, and the view. You have got a beautiful, wholesale frozen fish distributor right across the street. On the other side of the spectrum is the new york palace hotel. This is not a living room. It is part of the 5000 square feet that make up this week, which, by the way, goes for wendy 5,000 per night. Now, if i was an ordinary guy, i would take this Grand Staircase to go upstairs, but i am not going to do that. I do not want to be hypercritical here, but where is my marble heart above the bed . Where is my jacuzzi in the room . There is the jacuzzi, not in the bedroom. It is up on the roof. So for 25,000, you not only get three bedrooms and six bathrooms. With the super bowl, you can spend anywhere from 800 to 25,000 per night, and if you do, that is wonderful, but most of us will probably watch the game the way it was originally intended, on our tv at home. Thank you. All right, super bowl, minus three days. We are talking ads tomorrow. We have got a whole lot more with players talking about life after football. Perish the thought. And the fed bank of india governor is not happy. We are going to hear from him. This is lunch money on bloomberg television. Todays moving picture, where the video is the story. The president taking a sick leave. An acute respiratory condition and also a high fever. This is according to the website. This is him meeting with an eu official. No indication of how long he might be bed ridden. Not a lot of sympathy from protesters, who still want him to resign. Temperatures there are minus four degrees fahrenheit last night. Newly 700 passengers got sick. The cruise hundreds of people had stomach problems. In atlanta, ice storms have left thousands of people stranded. Some stores took in as many as 300 people. The Vice President spoke to people this morning. We went to local establishments to buy food. We also had snacks and coke and water and things like that. We took all that product. Quite a story. Officials warned the roads are still icy and still a threat. Today, central bankers are defending their currencies. An effort to stem the flow of capital leaving yesterday, the fed announced another reduction of 10 billion a month. The top banker says he would appreciate a little coordination. The National Multi corporation they have to play a part in restoring that. They cannot wash their hands off and say, we will do what we need to. We are in the process of doing that. They may not like the kinds of adjustments we may be forced to do. Not mincing his words. Emerging markets were hurt by the easy money, which flowed into the economies and made it easier to forget about the necessary actions that had to be taken. This came on top of the fact emerging markets tried to support Global Growth by huge fiscal and monetary it overlaid already strong stimulus from the countries. The reason the emerging markets were unhappy is because this was going to make it difficult to do the necessary adjustment. They said, what do you want us to do . Now, withdrawing the money, they are saying, you complain when it went in, and why should you complain when it went out . It distorts our economies and has the money coming in, which made it more difficult for us to do the adjustment which would lead to growth, and prepare for the money going out. Should the Federal Reserve take market pain into consideration when deciding policy . We take it to the former head of the israeli central bank. He will likely be in the room with janet yellen. Worry about the rest of the world to much except to the extent it affects the united states. If emerging markets get hurt, could the u. S. Get hurt, too . Being inventive with regard to countries short of dollars. A big crisis, they will do something to protect the world economy. It is hockey kaluz at Yankee Stadium. Another stadium gets revamped. We will take you inside the l. A. Forum next. Status getting transformed. The Yankee Stadium transformed into an outdoor hockey rink. The rangers beat the islanders as part of the nhl six outdoor series. Will the games help ratings . It is a Mass Marketing event may be forever. I think they want to do as many as they can. They are concerned about doing too many. They hope to bring in new fans to the nhl. The ceo of said these games prove the brand can be a lot bigger. Are they accomplishing that . They are trying to. They hope to bring in fans who kind of like hockey but are not committed to any particular team and make them viewers and grow the sport. I think they are on their way. I thought it was fabulous last night. I watched every minute. It was so cold, it was like you and me. It was a fast game. A fast game. The players had a little trouble. There was not a lot of hitting. I think it was too cold. The point to the speed of the game, does hockey translate to television . Is that the ultimate challenge . It really does not and it never will. One of the beauties of hockey is the sound of hockey. You never pick that up on cv. I think you should bring the cameras down. Come up with a way to put you more into the game, but it is hard to follow. What can hockey learn from football. I think it is learning from football. The Outdoor Games where the nhl is saying, we have to do Something Different and unique, creating a bed and building around that, they are taking their many super bowls into the outdoor arena. You try to learn as best you can. Another arena getting a makeover. No ice. They are trying to make this one hotter. Jon erlichman with a tour. The forum has hosted every big musical act you can think of. It has really had to battle for attention. This place just got a massive makeover. Lets check it out. Over here, you have got some of the eagles equipment. To give the forum a proper facelift, 100 million were spent on renovations. Arguably the most important music venue in the world at one time. He really saw the opportunity to return it to its original splendor. We ripped everything out and basically gutted the building. If there is one thing that makes it the concert premier venue, maybe not just in the u. S. I have got it. One thing, the sound. Don henley said this is the best sounding building in the world. It is no accident. They put sound all over and it is already a great sounding building. For the rock stars, stylish hangout rooms. The games room. A fitness room. I get to test my fear of heights. Way at the top of the forum. If you are a lighting expert, you can just walk along star wars like. I also noticed you guys have your own mood lighting. Yes. We call it a starry night. That is cool. Pretty incredible. That is cool. From the arena to the working world, dan marino talks about lights and how he is helping athletes find jobs. Former nfl players can make it happen next. This is lunch money. We are also streaming live. I am adam johnson. In sports, three days away from super bowl xlviii. A great game. The days that pros hang up their cleats, that is tough. The life they know is over. That is where one nfl quarterback can help. Dan reno is an ambassador for the life reimagined row graham. The third all time career passing yards. Third all time for career touchdowns. Dan marino spoke as you are going through your career and whatever it may be, what you want to get into as far as your second career, it will help you. It is a platform. It is your personal gps. You can go there and get information. It was about relationships for me when i was playing. Building relationships outside the sport area kind of finding what your passions are. Either when you are done playing, more prepared and ready to go. I played 17 years. I had my idea i wanted to do tv and get into businesses. But i did not know for sure. I suggest, and i talked to current players, you always try to get in to a field you have a passion for. Org will help you navigate that. If you are a former player looking to make a change in your life, you could jump on the website and find out what you would want to do and they can help. He has been a cbs pregame analyst since 2003. Not everybody could get on tv. Two former nfl players can provide you with something else. The ultimate super bowl experience. Cost 7,700. In particular, it comes with a private jet that flies in. They have a car service that picks him up there. What is an exotic car . A lamborghini . Something you probably cannot pronounce. Then, from there, they take into their private penthouse. You have everything catered for them and their group here in most of the time, corporate guys or athletes are coming in with a group year they have a dedicated lifestyle manager on flight with them the whole time walking them through their dedicated itinerary to the private parties and tv events, dinner reservations, and making sure everything is exactly to their likeness, and getting that experience conversing with former players, doing a meet and greet and so on. If i am hosting a super deluxe super bowl event, i want to keep it cool and keep everybody in their interesting. I do not want a bunch of rich nerds. It is a thing where our relationships, where we are the cool kids out of the sports world i get that. You are. We make sure at the end of the day we make the experience matter. The experience matters. How did you get into this . We had two different career paths but had the same goal. For myself, i had a very brief nfl career but i understood the leverage and the meaning of walking through those doors and i wanted to expand that experience for the duration of my life. From that, i understood the difficulties in sickness and medicine going on with specialist sports. We want to have access and longevity and live a lifestyle for a certain time but we do not know who to do so. I made sure ive added everyone and i just the part and look the part and talk to the part consistently. I wanted to make sure i represented the brand. I wanted to be a value added and not a liability. With the relationships we already had from the nfl and the nba sports world, we are able to go in as a whole instead of an individual. When you take off the helmet, you no longer represent the team. You are representing a company. You do not have to feel like you are alone out there. That vendor and provider wants to do business with our company. Former Football Players starting out with all kinds of businesses. Here is betty liu. You look at a military or a Police Officer and you look at the discipline and really striving to be excellent. We want them part of our team. With the former athletes, allowing them a stepping stone, a transition to the business community. Why such a hard time adjusting . A lack of training. We are so focused on getting ready and physically and mentally training with strategy. While we are doing that and focusing on that for a time, we can look at those in the business and they are training in the business. Play one year or 10 years, all the sudden you lack that experience. I do not think it is a matter of intellectual knowledge. Should the nfl be more proactive in helping this along . The nfl can do more. They have been doing more. We are looking to partner with them. The nfl is a great institution. With all great institutions, it is not perfect. There are a lot of things we can improve upon. We hope to be one of the entities helping them do that. What are you helping the Football Players find . Crowd management is our number one breadandbutter. Security. Our mentor protege company. They are number one in their field. We look to go into that business and expand beyond that government contract. We have management opportunities. In line opportunities. Marketing opportunities. So many opportunities to get our guys back into the game they helped create and make big. Todays mystery meat, a little more dan marino. He would kill for my driving gloves. Get that guys pair of gloves. It is freezing out there. This, the great sack. Yes, it is. Falalalala, lalalala. Bloomberg television is on the markets. Thank you for joining us. Lets get caught up on how wall street performed today. Gains were fueled by an increase in Consumer Spending and corporate earnings that beat estimates. Nasdaq leading the charge. The s p 500 index up just over one percent. Jones up nearly three quarters of a percent. The markets have had some wild swings as investors try to find their footing in a new year of trading. Markwealth advisors sebastian is on the floor. Thank you for your time. It started out the year cant, but it has surged in the last week. It started out the year calm. If you see how much the s p moved, i would normally expect the vix to of sold off two points. Instead, we have the vix completely unchanged. N we see the s p up ache, up big, that is almost always a huge red flag for the market. I am looking at today as a potential oneoff event and were likely to head right back for more volatility. There was a large rally on wall street today, but the vix is underperforming. Why do you suppose that is . When you look at the cash vix, how much is the market going to move . If is is not selling off on a big rally, that is betting that the market is going to continue to be slipping backwards on fourth and that is why the vix did not selloff. Having a bige are rally, i am not feeling any better or safer about this market. I would rather own calls against long equities. That is why the vix held up so well today. Traders selling vix options. They are instead buying s p options. Costs iteresting is interesting. Traders were out there bidding up s p options. They are looking at that immediate and saying, there is a risk in the nearterm and theyre willing to sell longer term volatilities to pay for it. That is the trade we were watching today. Beginning next month and that is pending a regulatory review. What will this tell us about how the smart money lays nearterm expert expectations . That will be the real panic button. I think of it as the cost of insurance. If you want to know what the true fear index is going to be, i need insurance now on my way to the hospital. Indexill be a powerful and that is when people should watch if they want to know whether traders are pushing the panic button. From the floor of the cboe, thank you for your time