Business before it begins. Verizon is the buyer. Call it the oscars of Silicon Valley. Some the biggest names among them gathered to honor achievement in science. First, to the lead. Nearly four months since microsoft ceo Steve Ballmer announced he would be retiring. Bloomberg has reported that they want somebody replaced by the end of year, the chances are dwindling by the day. Qualcomm promoted Steve Mollenkopf to the top job after we reported he was among the top candidates. There is plenty of a buzz about satya nadella. What is going on with the search . Paul kedrosky is a managing partner at sk ventures. He will be with us. It is kind of odd. A strange cross of reality tv and monty python. The whole idea of a short list goes out the window when your talk about microsoft. Everybody is gone. We have a short list. The obvious problem here is anybody with any sort of understanding of technology knows what they are stepping into. They are walking to labor badly broken organization with a stellar marketplace that is very mature. Add products that are going to end up on the chopping block. That is not an exciting opportunity. When you step out and look at and the problem is, it is not easy for them to make those kind of decisions. What stays and what goes . What vision do they bring . It is an impossible position. Is it the board or people do not want the job . I think people do not want the job and a candidate problem. The classic candidate problem when you are out there as a headhunting firm and opportunity, you have a hard time getting the quality of candidates that the board would like to take the position coming in. Even if they find somebody interesting, they turn around and go to their own company and say that i have an offer from microsoft. That the leverage it into a better position in their company. These are tailormade opportunities for everybody but microsoft. What is most likely here internal, external, anyone . No, it has to be nadella. They have concerns. They want to bring in fresh blood. You have an organization that is floundering. Somebody that is not Steve Ballmer. A fresh perspective. Some were longevity. In that mind, the concern is, he is not run an organization. Very few people have. Only people would not come to organization. You think nadella is the guy for the job . I do. I think you would be a strong candidate. The board has its eyes set on an outside candidate. After taking him seriously, look outside and being disappointed that none of the outside candidates want to come in. Do you think that would name somebody before the end of the year . What is the likelihood . I noticed paddy power did carry lines and abandoned it. And there you go. You cannot get british bookies. They will not to do it by the end of the year. Take an air ball, is going to extend into early next year. I wish they would not. I wish it will make a decision. I do not see it happening. We are watching and preview every twist and turn up by the day. Paul kedrosky, we will be back. Some are calling it the oscars of Silicon Valley. Kevin spacey, yuri milner, sergey brin. I am emily chang. Hollywood stars and a red carpet entrance, not in hollywood, but right here in Silicon Valley last night. Awards for research and innovation and science and physics given by kevin spacey and conan obrien. 3 million, money donated by Mark Zuckerberg and sergey brin. I was on the red carpet at the event. It was a big win for physics. Only an hour long. A remarkable thing. I hope hollywood will learn a big thing. Maybe all we need is science. I preferred this. The average sat score is higher. This would be a fantastic evening. Can you make fun of scientists . And never. No. They are nerds. Of course, you can. It is really amazing these people who are wishing them luck all of the time. What is the latest on aereo . We will win. Can you tell me about the robot stuff . I will leave that up to andy. It has a chance to be transformative over time. Is good to see the geeks and if you nerds. The fundamentals of science and Space Continuum and time cyclical. Are there black holes and particles will start your word about Late Night Television . Thank you. He was out there for plenty of time, conan obrien. Paul kedrosky is with us and jon erlichman. How do you rate this on your cool meter . You know, it is a get together for folks who wish 2015 was happening right now are traveling to vancouver. I get it, it has been a long standing among the geeks. I am glad they are supporting. I am so was skeptical. It will continue on a regular basis. Their fascination ebb and flows with economic times. You put up a brandnew building. How much do you think this have to do with google just started, the company that is supposed to cure aging . Do you think those are the big life questions these guys want to answer . Pick me. Pick me. Absolutely. This is the longer going obsession inSilicon Valley. Surgically make it. If you cannot find something or you could discover a strange theory to get you to last forever. You give other people money so that they can find ways. This is the wonderful thing about utopian vision of technology. They believe it is possible to find cures for the alist problems like they wont exist. Sergey brins wifes the ceo of 23andme said it was one of things she is worried about. I want to say stuff about what yuri milner said. He had the invested in facebook and twitter. I asked him what is the hottest company he has not invested in . You look at countries like snapchat. A very interesting way to counter some of the problems of the web which stores everything. You think they have staying power . It is an interesting discovery. I was a little surprised he mentioned snapchat, given that our facebook a big rival. What are your thoughts on it . Snapchat is the hot talking point. A lot of people arent here is that can turn down 3 billion from facebook. It is an labased company. When you can get some of this to your tech people, that interested about each other since businesses. It does not happen every day. You have sun valley conference and in the summer. And like how it will get media or technology, they do not get to get together. Theyre lucky when hollywood edges in the snapchat story. The one thing i would add is potentially the richest guy there, i do not know for sure, have a knapsack on where the millionaires were wearing the penguin outfits. Sergey brin was wearing a backpack. We have not talked about snapchat very much. There is interest in information that is not permanent. Do you think it is here to stay or a fad . I did do some variation it is here to stay. I like the analogy. I like the way it sounded. The problem it solves it secures communication in a sense. It is a way of having photo sharing week to make sure the communication is pure by making it disappears. Really the problem is trying to solve is one of security of communication by making the picture disappear. That is legitimate problem. Whether with snap chat or absorbed and other things. To pretend it is not a problem for people take photos that will later embarrass them is naive. Is a legitimate problem. Like so many things, doesnt it absorbed and everybody else like instagram is trying to take on facebook . I do not know the answer. I also talked to kevin spacey. Take a listen to what he had to say about whether or not there will be a third season. Theres been uncertainty. Please tell me you are doing a third season. I have no idea. Netflix said you are. Jon, he did not make it seem like it was a done deal. You recently spoke with the head of netflixs content and division. He indicated it was on the path of happening. I think netflix would like for the show to continue for a long time. Earlier this week, we highlighted that netflix and house of cards got a fair nods of golden globes. They will ride a wonderful marketing story if they can keep it going over the next few years. Im sure they would have no problem. As the regular dollars and cts that can factor in. We also had a chance to catch up with Rupert Murdoch. I asked him about aereo. Aereo . We will win. We will win. Just like that. Rupert murdoch cannot be surprised by his level of confidence. [laughter] i just love it we should have a show where we asked Rupert Murdoch questions on ongoing basis. What is your favorite color . Where do like to go for holiday . Remarkable fascinating answers to important questions that amazes me. That is why he was so perfect for twitter when he was doing it for a while a while. Inscrutable man. Jon, you cover the cable wars. Traditional broadcasting, where do you see this heading with aereo . A good cover headline that they will win. A real serious story. If aereo is successful, it raises questions for all of the Cable Companies that are paying this high amounts of money to the content creators to carry their shows, we have reported here that you can see those pay tv operators create our partner with aereo or create their own service. Theres a lot left. It is a serious story. We will hear from aereo ceo. Twitter reverses a policy change after just one day. What about management . That is coming up on bloomberg west. Welcome back. I am emily chang. Twitter is scrapping its plan to adjust the block function after backlash. It had been changed for just one day before they decided to reinstate the old policy. Its turned the block feature into a mute function. People blocked could read or retweet. I am joined by sarah freier. I will start with you. Smart move or not smart to backtrack . It was clearly getting a lot of heat from people who said this would cause them to be further harassed either stalkers or people who hated them in other ways. They could still see their profile pictures. They can still interact. I use twitter all of the time that i definitely block people. What do you think . This is a big Public Company now. One day reversing. Is it a good thing they are so open to this or a bad thing that they change your mind so quickly . I wanted to say it is a good thing. A Public Company can change its mind so quickly after really noisy feedback. It seems like it should be a good thing but it is not really. It speaks to the process. How in the world do you make a decision like this and not anticipate the kind of feedback you get . Whenever somebody block somebody, people are just being punks about it and the blocking people and say yeah, i block you. There are examples that became public. People talking about their experience with abuse and harassment. You can still see some of the tweets on public websites. Psychologically impractical, it had implications. A version of the function and not expect people to, crawling down your tweets. The argument it is public anyway, why they did in the first place is very different isnt it from how facebook has dealt with things like they made changes . Users are very used to seeing a different version of a newsfeed or change in a feature and being told this is how it is. You will forget it was different. They know best. It also has its own issues. You have to know your users. A lot of products that have failed with users like facebook home and maybe they are not testing enough. Twitter is sort of a kneejerk reaction could be a risk in the future. Your users know if you complain enough, something will happen. Who has it right twitter or facebook . Twitter. Less paternalistic. People have much of about the management approach. Paul kedrosky, thank you for joining us. Sarah frier, as well. Beyonce created a stir after dropping a whole new surprise album exclusively on itunes. We look at the strategy. That is next. You are watching bloomberg west where we focus on technology and the future of business. I am emily chang. Google is considering designing its own server chip using technology from arm holdings. A person familiar said google could better manage the interaction between hardware and software. A big impact on intel should google follow through. Google is intels fifth largest client. Charter communications is preparing an offer letter to acquire time warner cable. Charter will offer less than 135 a share and delivered the letter as soon as next week. 2 other companies are keeping an eye and may make rival bids. There are new numbers on how popular it is. According to a poll, streaming viewers binge watch. They say watching multiple episodes of make the show more enjoyable. Intel is close to a deal to launch oncue. People tell bloomberg an agreement could be announced as soon as next week. Jon erlichman is back. This is a business that intel has spent a lot of time on. Why so . That is what is so amazing that you would invest so many time and energy. We covered what apple has up its sleeve with the future of television and here is intel that has something that people have said is really cool. It has a lot to do with the ceo transition. Paul is moving on. This project really started to build steam. Intel house and build a lot of technology to showcase what its chips are able to do and what they can power. As this project got a bigger, he had to ask questions about where it sits on the priority list when you think about the Marketing Campaign required for Something Like this. You have outlets and intel does not do that. You dont have subscribers or content deals from the beginning, go out and find a partner and from partner, it turned into why is verizon willing to pay up for this . A few reasons. When you think about what verizon has done to compete with Cable Companies, have a video. Verizon fios is not available in every market. It is costly to make it and all of the new markets. You have to build infrastructure. Why we are talking about cable consolidation, the Companies Come together and can save on costs. The thing about the technology is it is not required big. Verizon will be able to enter a bunch of new markets with this Technology Without having to do a lot of infrastructure. A huge reason why. Thank you. The whos who list of Silicon Valley heavyweights hit the red carpet for their version of the oscars. The breakthrough price. Rupert murdoch was there and i asked him about the court battle over aereo. Take a listen. Aereo . We will be just fine. We will win. We will win. Aereos ceo joined us earlier. I asked him to comment on murdoch. It is going to work itself out. We have been winning. Time will tell. Why are you so confident it will work for you . Basic, simple reasons. The law is on our side. It has been shown or four times now. Within the Consumer Sentiment is on our side. We have tremendous support. It is common sense. Consumers need this it is so important to have competition and alternatives. If the Supreme Court and so, there is talk it could go to the Supreme Court, heres the broadcast petition, do you think that will affect your chances . Well, yes it we filed in which we urged the court to consider the case as well mainly from our perspective, it is a war of contrition. We have been winning. They are essentially trying to get us in every possible jurisdiction. We want to get on and build our company. That is the status at the moment. If, worse case scenario, it is found you are not legal, would you pay . I have no idea. Lets talk about how the business is going. You recently said aereo needs six thousand or 7000 subscribers in any region. Do you need a thousand paying customers to be profitable . Thats the question everybody wants to ask. We can break even at 5000, 6000 subscribers. We are now in 11 markets. We will hopefully be in 15 in the next few weeks. So far, the growth has been fantastic. We are seminars in every city we go to. Could not be happier about the progress the business has made. The company, people, resources tremendous year it has been for us. How many paying subscribers do you have . One person says we have 2200. Is he wrong . I cannot comment. And you have more . It is a simple yes or no. Is a simple bet to say yet. We got something. Did you know beyonce was releasing a new album today . Neither did anybody else. I am emily chang. Beyonce fans got a big surprise today without any promotion, she released an album is mostly on itunes. The selftitled record is the top seller. Twitter had mentioned beyonce have spiked up by more than 5000 tweets after the album came out. Jon erlichman has more on the surprise out of new hollywood. A surprise to me and i am a big fan. You are the fan and i cannot get Single Ladies out of my head today. Hey, hey. I do not believe i did that. Beyonces new apple made headlines. How far did she really push the new boundaries . Joining me is seth, from an electronic music company. Most artists releasing music on itunes these days. How innovative is a beyonce being here . She is being really innovative the more i think about it. You cannot buy any track right now. You have to buy the full album. It will not be available until next week. She has bundled in videos for every single track. At 15. 99, it is almost like an event. It is like you are buying a ticket to experience a beyonce in a way on items that you cannot do anywhere else. Doing it this way, did it give her the ability to say you have to buy the whole thing . In a society where we are a one track mind. Buy one single if youre going to buy one at all. She is going against the grain. Albums have given way to songs. Songs are being remixed by djs. She is saying stop all of that, i am beyonce. I am the star. I am going to determine how you consume me. This is how it is going to work. She shows her power as a diva. There are not many more who can command that kind of price point. Unlike Something Like daft punk where there was a lot of hype and prerelease music leading to the release, by the time it got released, we felt like we had heard it before. This is all about the music. My friend said is all about the music, not to the hype. She tells about the idea of better connecting with fans. Earlier, you said a lot of people like to get their hands on some earlier. The idea of uploading the sound of cloud or ability to put your own spin on an artists music. This a new world of music. She is connecting to the fans, this is her art and these are her tracks. Nobody is going to do anything to them as far as she can tell. She is in control. By breaking this on instagram and having access to twitter and facebook and all the other channels, she is interacting wi her fans. Her fans are listening to this at the same time as the critics which is unlike getting a prerelease aversion to the critics and getting feedback. Is this hard to keep secret . That is what i wonder. How do you fly around the world and put this together and nobody knows . She has proven like her husband, they are very, very good at keeping things secret and out of the public and controlling all of the tapes and versions. There are so many leaks and holes for all of the different channels. This is fairly miraculous and that she has kept it under wraps. Apple has been working on this with her since the super bowl. It is not anybody decided on a whim. Amazing. Seth, thank you for giving us insight. The beyonce story and the beyonce fan. I cannot wait to download the full thing when i get home. When you are a ceo, he is building and launching rockets. They cost tens of thousands of dollars and need faa approval. I am dirk gate. An amateur rocketry is my passion. You love seeing big rockets in the air with lots of noise. I grew up during the space race and having some fascination. What drives it as a hobby is a bigger and faster and higher. 8000 pounds that would fly. They are very much toys. This is focused on high density, highcapacity wifi. Some the toughest problems in the industry. Rocketry is a passion. It lets my inner engineer comes out. The difficult part is the down part. Figure out. You have to think about electronics. It is similar to running a business. You have to know how your supply chain works. You have to have all of the pieces functioning. In the same way here, how you will put a project in the air. To me, rocketry is a family affair. We support a one way or another. Its great to see the kids put together the first rocket and launch it. It is worth all of the effort. That was dirk gates on his hobby of rocketry. The fda has halted sales of 23andme saying that not provide evidence the test are accurate. How is the ceo responded . Do not miss at that next. You can catch us streaming on your tablet and phone and bloomberg. Com. Welcome back. 23andme is facing a crackdown. The fda has ordered them to stop marketing the kit. They have not proved enough evidence. It is incredibly important to support scientists who are taking a risk in making significant breakthroughs. I really want to encourage people to take the risk and think about how can you change the world. You have a personal passion about genetics. Whats a big life science question on answered that you would like to see solved . Everything. How we age. We do not know the basics. It is fascinating. There are some in on answered questions. Quite a large prize 3 million. Why such a big number . It needs to be a huge number because we want to draw the attention and make people realize they can have a significant prize by taking risk and being successful. If you look at 3 million compared to what an nba player makes, it is small. We want stop this significant abut and the grand scheme, nba players are making more. The nobel prize has been criticized for stoking the egos. How do you respond how do you make sure it does not happen . We want to find people who are making impactful discovers right away. Not a lifetime award. People who took a risk and did something significant. It could be somebody young. Somebody who had an idea and took a risk and made a difference. I want people are making a difference. Any of the nominees in particular that stand out that you are rooting for . I know too much to answer that. A few genetics people that i root for. We are talking about big renovation and big science when fda has halted part of your big innovation. What is the latest . We are working aggressively with the fda. I believe we are committed there should be a direct path. There should be some kind of way where would that have this kind of big science so everybody can get access to their genome and a Massive Community where we are solving the worlds problems. And you feel it is unfair they are trying to make an example of you . We fell behind in our communication. It is a complicated area. We recognize and the fda. We are working and we are committed. We are going to do everything we can to show the fda we are committed to the process. When do you think it will be back on the market and the likelihood . We are still selling now. We are hoping that we can work with the fda to get it out very soon. I would love to give you a date. 23andme ceo and cofounder. Time for the bwest byte where we focus on one number that tells a lot. A friday byte. The best kind. 23. Conan obrien has 23 months on his contract for the show he does for tbs. I didnt know if he will consider a career in science after the contract ends. He seemed to be having a good time. And you know what . I think he is good at his daytime job. He is even funnier in person than on television. We have a little bit more of it. Lets take a listen to his riff. We got here. We taped the show. I do not know what is happening. Yes, i do. The cause is a good one. We are putting the focus on where it should be. The focus should be me. We are putting it on science. He also said it when he was growing up, the jocks had the upper hand and it is now the nerds. He will be on the wrong side of history. A patent on his hair . I do not know. While he is in town, you might well see what the folks at google can help you with. That hair maybe he can play basketball with you. He is tall. He has tall here. A tall, funny guy. Definitely great to see him in person. Split cory and conan, we have a point guard. I am not sure how good i would be. I would give a good try. Thank you for joining us. Have a wonderful weekend. We will see you on monday. This week on Political Capital harry reid and Chris Van Hollen talk about the budget deal and 2014. And also the volcker rule. And talking about paul ryans future. We begin the show with the Senate Majority leader harry reid. Thank you for being with us. You do not need another all night session. Does this mark the end of this war that has transpired