Plus, if you want to buy your locomotive, i will talk to someone who has them on sale. First, headlines from my weighty most radio cohost. In a regulatory filing today the internet Domain Company did not specify the number nor the price range of shares. Bese are details that will divided closer to the offering. They have 12 million customers. Moving ceos. It is acquiring messaging startup whatsapp. Pilgrims pride withdrew its proposal. Tyson outbid them. Headline, big inc. Traded for the First Time Since spinning off from time. Think we have the opportunity to super serve our customers in ways we have not done before because in time warner we were stuck in a box. Properties iss essence magazine. And the author of the new book the man from essence, edward lewis joins me now. Thank you for being here. Lets start off with the time inc. Situation. They areirony that spinning off their magazine and Media Business into a separate company. One was it like when you first got involved with time . They had a 49 stake in the company for a long time. Into a i entered relationship with time in 2000, they agreed to sell 49 , and i agreed to retain 51 , and during that. Time, when the deal was completed, we got to know each other. I got to realize the incredible resources they had. In 2004 they said they would like to buy the remaining 51 . It has been a wonderful association in terms of the growth that essence has experienced. . Lets start off talking about the four gentlemen that you came together with. Magazine orhad editorial experience. What did you decide to do . We wanted to go into business. We wanted to make a difference. This is against the backdrop of will was going on in 1968 with the coming of Martin Luther king and robert kennedy. At a us came together they said there must be a need for a magazine for negro women, and they got us together and said we have an and says lewis know something about money. Why dont you get together . Other, butknow each we wanted to do something that was very meaningful in terms of celebrating beautiful o intelligence of black women. Big bumps,re some because youre going to be a lawyer. I had aspirations. I got out of graduate school, i went to georgetown law school, i knew my life was that. Except the world gave me ups and downs. First National City bank led me to my dream of starting my own business. I want to give you some names from the book, because these gentlemen that you form the company with, it was tough times to raise the money to get the magazine going, even just hiring in editorinchief. Clarence smith. My former partner, we met in 1970. We had an incredible relationship over the many years, the 33 years we were together. He was responsible for advertising, and he did a magnificent job of wanting to make sure the advertisers had an appreciation and determines the power of black women in the marketplace. As far as putting together the whole content of the magazine, it seems as though one of your points and you interviewed people, you wanted to know what they were interested in politically, socially, culturally. It was not just about the publishing business. Absolutely. We were talking about the totality of black women. She is concerned about relationships, family, career. She is concerned about schools, voting, all of the issues that all of us are dealing with, but also dealing with the issues of beauty and making herself phil good. Essence has been her friend that she can count on. I remember one reticular chapter, particular chapter, called black man, do you love me . That came about because of a very heated conversation. Yes. One thing i feel really good about is that we devoted issues that year to black men, so black women and black men can have an appreciation of each other, to understand each other. Just getting a better understanding what it is to be black men and black women. This was back in 1977, you were at the office, and a box arrives. You opened it and there was all this paper. Tell us what was in it. To us to a subpoena let us know that my former partners were in the process of taking over the business. Getting the information from the lawyers, it came as a real shock. We had to respond, and respond we did. Im here today. You prevailed. We prevailed. You were able to retain the ownership of essence communications. Write in the book that ,he focus on individual africanamerican whollyowned businesses may have been surpassed by a general focus by all corporations on minority demographics and groups and customers. What do you have to say about that . All corporations, particularly where we are the art of the capitalist system, and we are part of this country, and we try to run a business, and we try to redirect with try tos out there we make sure that they understood the power of the market that we serve to that was underserved. We wanted to remind corporations and people that if you invest in havearket, you will a wonderful return on your investment. There were some corporations that thought that africanamericans did not buy cereal, Paper Products but did not contribute to the consumer society. Regrettably. We did not in our Procter Gamble ad until 1985. It was not for lack of trying, it was just because you cannot convince them that black women bought their products. That is the struggle, the fight we had to continue. The Beauty Industry was another industry we had to overcome to make sure that they knew that black women used their products. It was a continuing struggle all these years for us to convince the marketer that this is a market that you need to be a part of. What is the struggle right now . The biggest challenge in terms of accurate american in terms of africanamerican and black owned businesses . Theres a sense of purpose, but we have a changed world. Particularly in the area of print a miss and i sold the company in 2005. One has to be keenly aware of making choices that you know your customer, making sure that you understand the appreciation of cash is king, queen, jack, and everything else. And try to hire the smartest people you can find, and stay out of their way. Listen to people. Thank you for being here. Edward lewis, the cofounder of essence magazine. Chairman, what yahoo maynard webb thinks about companies who worry about poor performance from their employees. More of his thoughts from the next big thing summit. It is time for our first mystery guest clue. Is taking stock. The next big thing summit brings together the most influential investors to talk but the next big thing in business. Cory johnson has been there all day, and he has now joined by yahoo chairman maynard webb. He is not only the chairman and warmer coo, but he is also an active venture investor. I thought would be great if we can have a conversation about a conference like this and the notion of a next big thing. What is the work that you do to try to identify the next thing . There is a lot. For me i am always looking for what is the who was the person pitching the idea, how relevant is it, how big is the market, and how different is it . The different part. There are some weird ideas out there, and some that are not fully formed until the date. Y become something impressive. Sometimes the Consumer Companies have already started to spin, but other companies you have to get it in the formative idea. The team matters the most he can even if they do not do well on the first idea they can often give it go after the second one. The second thing that matters a lot is what is the idea, and how much do i believe that it is relevant and can be big . Do you do the Market Research , and ba 101 mba 101 . Ofif i were to show you some the pitches we get, you would roll over laughing. 10 in youre doing revenue, next year youre going to do 14 million, and all over the place. The way they capture market numbers is billions of market. We do take a look, and that our team goes out and assesses what we believe what Market Opportunity is when we look at an idea. But things get funky. I had a friend who had mapped out 10 years of monthly revenue and cost. I pay very little attention to anything that is two or three years out at this stage when you are so small. It will either be way better, or worse. T way this is an amazing conference. And also an amazing fog. A great team, a great pedigree, and the market is big but when do you know . Week,see 20 to 25 deals a and we only invest in about one a month. A heck of a lot more than we say guest. Also, the team may not be quite right or i do not believe that the team is going to be able to pull off what we want them to pull off. The market may not be where we wanted to be or it may be outside of the sweet spot. I try to invest in things i have seen or experienced selecting get a little bit of a differentiation and head start. What throws it off his valuation. If we are investing very early, we need some good terms because we are taking a lot of rest so the rewards have to be high. , so the rewards have to be high. Everything from on cap notes, to price high, do not giving you enough to get in. Uncapped notes means you give money to the out of print or and raise the when they funds, you that you can come in what everybody else is that. Why i dont go back to hedge funds, people are always asking, and the thing was you were always wrong. If you got it right, and maybe got into late, you shouldve been earlier, or you should have been in earlier and it did work out yet. And even when it totally worked for me you were not big enough care to do you look at every investment as a failure . No. I look at every opportunity. I think it is hard to be an entrepreneur, and i am really a fan of all of them out there even the one we have to say no to. When i have an opportunity to get into my really feel like we termsessed, even at the we get in that. I feel honored to put my 90 affiliates to make the company better. To work to make the company better. Recently i met one that i theyht was awesome, and offered us a chance and im happy to be in. What about salesforce . I joined salesforce after they were already public. In insome of my own money 2008 when the market turned down, and everybody saw drop. Myut more money in, and finance guys managed me into compliance, saying who knows what the market is going to do. What i wanted to put in, they put in half and said you should have done that. But lloyd i wish i had done the i wish if boy, had done the other half. Thank you. Cory johnson, speaking with maynard webb. Coming up next, we will look at the growing market for tablet keyboard cases. One can turn a tablet into a more productive business tool. [applause] this is taking stock on bloomberg. I am pimm fox. Sales create at tablet market for accessories. One company is called zagg. Joining me is the chief executive randy hales. It is a big business. Tell us about the scale, and the items you ship. It is an exploding category. We like to talk about it as tech accessories. Thehing that will hands users. With mobile computing. Lets talk about the keyboard which caught my eye. This attaches to an ipad mini. Describe a little bit about it. It is probably the same product i use on a daily basis. What we saw when tablets were first introduced was they worry purchased for content consumption. Of now, with the advent with everackages, note, Microsoft Office 365, they have now become productivity tools. To really access a productivity tool you need a keyboard. This has some special features. It has magnets that are embedded in it. Tells about how it works. The idea behind the magnets is that it allows it to attach to your keyboard when you want to use it for productivity, but also separated when youre using for content consumption so you do not take away anything got from their tablets early on but allow them a lot more productivity when they are connected. Does this keyboard necessarily need to be charged . Oncurrently the battery life a typical tablet keyboard will run about 24 months. Introducing technology at the end of this month where you only have to charge it once every two years. This as protective as well is functional. It really needs to because they are portable all the time. They take a lot of abuse. Great battery technology, bury very efficient chipsets. Also decided to expand the range of zagg products. We are introducing a full series of tablet keyboards. We offer the number one selling one for the ipad air and also the ipad mini. Traditional setup, it wrongs in office belongs in an office. In the next couple of weeks we the firstucing rugged keyboard for on the go use. You may be sitting in on some of our r d meetings, but a very flexible web form is something we will introduce extra fall. We can respond quickly to the market. Thank you for joining us. Folks collects of model train, but what about a fullsize locomotive . This is taking stock on bloomberg. I am pimm fox. Look at the market moving headlines we go to carol massar. Family Dollar Stores have planed a poison pill against a potential takeover. Droppedount chain more than 13 . A record premium offered for the pharmaceutical maker. And finally, mcdonalds, the largest restaurant chain reporting a sales gain in the month of may at just under one percent. This is for stores open at least a year. Asian sales are carrying them. After the conclusion of world a new, france needed fleet of locomotives. They turned to the United States a oneforone in our class locomotive. Only six of these historic trains survive in working order. One of them is up for sale. Joining me now is andrew cook, cookchairman of william holdings. What comprises this unusual combination of train asset . S . To begin with i should make a point that my company has a very is missed supplying parts business supplying parts to passenger cars, freight cars, those were the things throughout europe and britain. This was a little sign line, if ideline, if you like, to boost our image in the world of railway, and to feel a little bit of a gap in the market. The steamlly locomotive and its service carriage is the minor part of a whole train which is called the classic train. It is probably the world leader in train travel and train transportation for people. Some 40 of the population travels on trains every day. That we would try and see how we could get on with andoring a classic train, catering for the trade market, particularly in switzerland. This was really the icing on the cake to give it more appeal. Afterwas all completed a complex three or four your program. Year that continued annually with several trips a year. We found the real attraction from a commercial standpoint was the train itself, the carriages and locomotive. I was approached a year or so ago by a Consortium Specialist in travel companies who wanted to take a long lease of the train. That has been very successful. Leaving locomotive without a regular user. This locomotive i do need to be in the hands of either needs to be in the hands of a skilled operator of train, rather than a builder of parts or trains, which is what i do, or any to be in the hands of an as yet group Enthusiast Group that can cherish it. I have done the hard work, i took this locomotive from a work and i could not switzerland, the most rail friendly country in the world, and restored it. It is a beautiful condition. Compliantletely with all of the safety regulations. Time fort is someone else to have a go. If they wanted to, they ship it to another part of the world and recreate another age of steam. Absolutely. Conversely asost this has been the work of englishmen, it will not run in england but it will run throughout the European Networks with the exception of spain and portugal and russia. It will run in every other european country and it will of course run in the united aids of the americas United States of america. I have had serious interest in repatriating it to the country of its birth. Uplifted, put on a and seene into the usa there and then on the dockside and driven off back to its legs of birth. Place of birth. Can you give us a little detail of the history of your family and your business interests . You have been making thing for a very long time things for a very long time. My personal history is so colored, and such a roller coaster ride, there are some ebooks i have written. My company was originally a family business. Aws in the making swor mid19th century. Weer a family division, started making steel castings. It was a very small as this in the 1950s, and then group for a time and then declined almost into a state of bankruptcy in the early 1980s when i took it on from the state of bankruptcy. Thenlt it up again and fought off a hostile takeover bid. I paid off the debt, and it took about 40 years to do what some of your more skillful entrepreneurs do in a fifth of that time to get to a point where my family owns the whole thing. Is of a respectable size. In dollars we have annual sales of about 150 million. We employ just over 800 people, four factories, and niche , rail components, parts for military vehicles, oil, power, most of the basic Engineering Industries that keep the lights on and keep things moving. Are you going to miss the train . I can always go and see it when somebody else owns it, but i think the businessman in me says it is time to move on, time to address other challenges. I find my satisfaction comes bym building things up creating them, and meeting challenges that no one else will do. I think it is the right thing to do, to move on. I have written a book about it, there is a lot of film about it, and it will always be there. I look forward to coming and advising new owner on how to get the best out of it. Thank you. Coming up, im good to speak with a gentleman who spent eight years working with alibabas founder jack ma. We will learn how he built the ecommerce juggernaut. Mystery guest clue number two. This is taking stock on bloomberg. I am pimm fox. Gianthinese ecommerce alibaba is set to go public. Ater this year theyre expected to raise more than 15 billion. 1999mop founded alibaba in partner portman documented recently this in a new movie called crocodile in the yangtze. I wanted to be a part of what would be the next big thing, which is china and its growth. I happen to be there in 1999 as the internet darted to catch on. My friend introduced me to this english teacher who had just moved his company out of an apartment, and that was jack ma. He had a dream i thought i wanted to join up on, so i joined in 2000. Is nothis point, there angling that ali baba is going to be a 15 billion company . I joined it to be a part of the dream, but he was an english teacher and his cofounders working with teachers and students. It was hard to imagine that the company would become this big. Ys had the dream of being one of the top 10 websites in the world. It was fun to be a part of, but i do not think i could have imagined it would become this big. Lets talk about crocodile in the yangtze. Why the title . Quote about ebay being the shark in the ocean and alibaba being the crocodile in yangtze. Metaphor for saying as a local player in china they had an advantage over this foreign player coming into the chinese market. What do you want people to take away from watching the whole thing . Up editing it to share as thecesses as well mistakes that happened along the way. I have been showing it around the world for two years at different film festivals and what i want is for people to come away thinking that if they are setting out on their own m of building from scratch, they can relate to the ups and downs. S are there specific up and downs that would only be relevant if they trying to start a business in china . Not so much. I talk about how the internet rot china face to face with the west. There were certain issues that came about when alibaba did its partnership with yahoo . You had some political differences between the u. S. And china that created a difficult situation. But what i found is the story is universal. Ive shown in silicon valley, in nigeria, and colombia, and entrepreneurs around the world can all really relate to it. What kind of a person is jack ma . What would we learn if we sat down with him and spent some time . Thee is not well known in u. S. , but if you go into the store in china there is a whole set of books indicated to his leadership philosophies. People compare him to steve jobs, and i think that is a fair in the chinese context. He is a very innovative person, he is a very idealistic person. Mark zuckerberg, try to build something for the longterm and not a short term gain. As far as putting the documentary together, was there any challenge to try to retell the story . You do not know whether it will be a success when youre doing the work at the very beginning. Exactly. I made the film after i left the company. I spent a few years gathering ge, because we had thrown open our doors to the foreign media and different filmmakers and they each capture different crosssections of the history. I went out and copyrights to the various footage, and put it together to tell a story. I never would have known in the beginning that it would turn out to that, and luckily there was enough out there that i was able to the bubble story together. Able to put the whole story together. What about his ability to get hundreds of thousands of people excited . Is the pied piper entrepreneurship in china. An englishhe was teacher he had a lot of experience giving talks and speaking in front of groups. Not only did he build the platform that they have, but he helped to encourage new entrepreneurs through his own example to get on the platform. Ali baba is really more than a company, it is a community of hundreds of thousands of entrepreneurs at this point. Can people get a copy of your . Ovie videoondemand vimeo on demand made a deal with me, and you can get it through them. Thank you very much. Portman erisman, the filmmaker behind crocodile in the yangtze. Clue number three for my mystery guest. It is time now for our mystery guest. Kindoducers have been enough to provide us with some clues. Lets bring out our mystery guest. Thank you for being here. Nice to see you. Therapy. Are you the inventor . No. Are you a practitioner . Im. I am. Is this your soul business . No. You look familiar. Have you been on television . Yes. This therapy uses ultrasound waves . Yes. Youre a dermatologist to the stars, so you have actresses come to you. Yes. And you practice in manhattan . Yes. I am no good at dermatology. Somethingw technology that you are building on to make it better . Or are you just using it . I just use it a lot. Im just going to give up and say i do not know who you are. Now you do. It is a pleasure to be here. Therapy. S about your during pregnancy to see fetuses, but in this therapy it is used with heat to tighten skin. People who want to you look younger, but who do not want to knife or the theirables, it lifts cheeks and neck. Is a painful . It has a little bit of bite bite, but we give medication. There are other noninvasive received yours pro procedures. Erase brownsers to spots from prominent blood vessels. We can use chemical peels to erase brown spots. There are are injectables to smooth lines and wrinkles, and fillers to lift the face as well. Show the balance between men and women. Are you seeing an increase in male patients . I definitely am. Men are interested in being more subtle, and they like the ul therapy because it is less invasive and youre able to go right back to work. Are there people who should not have this . We do a good medical history. We would not be doing this if you have a history of cold sores or are pregnant. It is based on your medical history. Most people can have it done. Tell us about your products. This is a peel that we do in the office. This is the homecare box that we give them. This is something that can lighten brown spots. It is not invasive. Very interesting. Thank you for being our mystery guest. I was stumped. This has been taking stock, good night. Welcome to a special addition of bloomberg west edition of bloomberg west. At the neck big things summit, and were are bringing together intf andtial investors entrepreneurs. It has been eventful few hours so far today. A tornado is even picking