linked in ceo jeff weiner and reid hoffman. that critical mass is interesting things. there are three core areas. one is professional identity, enabling people to represent their professional experiences, their skills, their ambitions. second is making it easy for people to are share profeional insights. pa ofwhat mes them go is what people pay a lot more attention than the company borders. people talk to each other a lot. you would not be surprised to see somebody from e-bay with somethg from yahoo talking small business or someone from google talking to someone at twitter about new time and those sorts of thing. it's important to have the network amplifier of innovation and ideas is to have that kind of ideation, have that kind of new blood in thinking. i think the valley does that very well. >> charlie: ken langone, al hunt, kevin sheekey, jeff weiner and reid hoffman when we continue. >> charlie: we begin tonight with politics, new jersey govn chris christie announced today that he would be run for president in 2012. he spoke this afternoon at a new conference in trenton, new jersey and here's what he said. >> together with mary pat and our children i me have an obligation to seriously consider what people were asking me to do. i will all be grateful for their confidence in me. over the last few weeks i thought longnd hard about this decision. i looked at the options, listened to so many people and considered whether this was someing that i nded to take on. but in the end, what i've always felt was the right decision remains the right decision today. now, is not my time. i have a commitment to new jersey that i sily will not abandon. that's a promise i made to the people of this state when i took office 20 months auto, to fix a broken new jersey. when i look at what we've accomplished so far, i'm proud but i know we're not nearly done. i've made this commitment to my state first and foremost. the people sent me to trenton to get the job done and i'm just not prepared to walk away. >> charlie: this decision ends growing speculation as to whether goverr cristity would enter the race. the shiftthe focus to mitt romney and anything piery. joining me is ken the langone. no o is more disappointed about that than ken ngone. tell me how you look at the decion. >> i'm disappointed at the decision, and i'll tell you why. if his heart was the in it, the disappointment would be if he run ande didn't make the evident he made to win. i admire the man for the ft he says this is not my time, it' not for me now. i'm disappointed in the fact we would have had superb leadership. charlie america has never needed the truth more than it needs it right this minute. the truth about what we've been to go, what we can afford, what we can't afford about what needs to be done to be fixed. and i want to be very forthright. i have the same feelings about our governor in new york state as i do about governor cristie. he was the attorney general and he picked up the case -- charlie we never had a greater need than we do right now for the truth. being told what's possible and what's not chris, the thing i admired about this man is he took on the most difficult challenges economy did it in partisan fhion he couldn't have done it without the leaders of the opposing party. >> charlie: what did you do to try to get him to run. >> i called him. i'm a pretty good salesman. he ca into my office. we had this meeng, melf and dan and we visited with him. we explained with him why we thought he was the guy. after that meeting, i then asked him if we could arrange a meeting and i invited of course over three to four days 90 people. and ey all ce. >> charlie: republicans or republicans and democrats. >> some democrats too. yesterday, jt yesterday three people keep -- came up to me at lunch, three extremely liberal mocrats, prominent people and said please get him and if you get m i want to help. the greatest thing i see right now charlie is i don't think this is going to be a partisan election. i think this is together to be election thank god at's right for america. this man happened his chance. >> charlie: this is about governor christie and what you did. he said the reason that he did not want to run is he wanted to stay in new jersey. he owed it to new jersey. do you accept that as the reason. >> yes. that's the character of the man. last week when he was -- and the impassioned lady made the plea about why he should run he said you got to remember it's got to be inside me. his family wanted to do whatever he wanted him to do. wonderful family. i spoke to his wife this morning. i spoked to the governor this morning. i assured him i was not disappointed. >> charlie: what did he say when he called you. >> he told me he thoug about all the factors, he told me about the work left to be done in new jersey. he thought about all of the needs that would be required on his part and it just, he says ken it's just not my time. he didn't say he was the ready. he has an enormoussense of obligation for his commitments. and i think one of the thing that really drove this decision was his plea thathile he's made great progress in jersey, it's fragile right now and over the next two years it will be stronger. i think there's a good chae he will not get re-elected as governor of new jersey. >> charlie: other people speculated that fact. >> i'll tell you why. he's doing the popular things. he's telling people they can't have what they're entitled to. he's addressing issues of established institutions. >> charlie: did you believe and did he believe if he got in he could w. >> yes. >> charlie: the nomination. >> and the election. yes. >> charlie: why could he beat mitt romney? >> first of all i want you to if you that governor romney just call me a little while ago and i swore my allegiance to him. >> charlie: you're shifting to. >> i'm not shifting. >> charlie: you were for christy and he's no longer running. >> i'm a guy whout a cause. >> charlie: you're saying on this program y're prepared and you told governor romney you're with him. >> absolutely. if governor christie doesn't run, governor romney, i'm with you. >> charlie: at the going to be the nominee? >> i hope. look i think right now wt with a need to do all of us as american take atep back. get a party affiliation. as i said good governor cuomo woulrun for the president under these circumstances i would vote for governor cuomo. he's making the tough unpopular decisions that you would i think somebody ofis persuasion would not do. >> charlie: i was sitting with you at a public charity event to raise money for a very good cause. >> the -- >> charlie: featured speaker was bill clint,ormer presiden he finished and you looked at me and you said if he was running today i would vote for him. >> you bet. >> and then yo said a few moment ago. >> i would vote for hillary too. it's not important partisan politics please i hope everybody tonight hears maybe you won't awe forty three with me but -- agree with me but never has america been confronted with greater challenges than it is right this minute. >> charlie: what are the challenge that worry you the most. >> number on whaare we gng to do abo all the promises we made to all these people that can't be kept. you can pay me now or you can pay me later. ust me crlie, we c't afford -- >> charlie: these are entitlements. >> entitlements, social security. >> charlie: the president tried to make a bargain with the congress to deal with this. you're not in favor of that bargain or are you in favor of the people who said we will not make that deal. >> i do not believe in rgains, i believe in doing the right thing. i shouldn't get social security, charlie. i should pay more taxes. but, every nickel -- >> charlie: the president wants you to pair pay more taxes. >>y nickel you takerom me you take -- >> charlie: the case you're mang. the way you feel about the country and what you said is a bipartisan attitude you have where you say president obama is notate giving the ride leadership. are you sure you made every argument tt coulde made to goveor christie to convince him to run. >> charlie i did everything but kiss him on the lips, okay. all right. what can i tell you. he knows, look, as i said, i admire a man who in spite of all the persuasive power, henry kissinger, he gets up at this meeting and says gone i never been involved in domestic politics before. i want you to know the what foreign leaders look for in all leaders, character and courage. i ask you to run. then he sat down. that's all he said. you name it. john whitehead came. i invited him i wanted him to meet governor christie. thpeople, i have people that are enormously wealthy at that time have never picked up a phone to raise a nickel for anybody called memoranda and -- called me and said i'll call everyone i know to hit them up for money. >> charlie: in thend he said he could not go. he wouldn't close the door in the future. >> no, but i'm not sure, look i'm not second guessing him. the tonic he's giving to new york -- new jersey, the tonic he's giving to new jersey is a little bitter from time to time. the tonic we have to take in america is not all roses and cream. we have to take some pain. >> charlie: you are an articulate, very articulate and passionate man. you always put your advocacy out front and have been willing to listen and to be criticized and to make your point and to engage in battle and a lot of people arou it. the point is the country needs a debate and we hope that comes out of this political campaign in the fight for the republican numb make and the nomination. not only at the presidential level but the senatorial level people are saying why are we and why are we not there. do you aee with at that time. >> i'm in business charlie with people. you made the right decision, some you w and some you lose because you were fooled. this man has had the presincy for two and-a-half years. two and-a-ha years, charlie. and all you have to do, forget you're talking about following, why are all these one-time fervent supporters of his calling and saying if you get chrisie, i want to help. it's about 11:30 and he speaks and i said isn't this great. we had jeff -- >> charlie: one of the best. >> great new yorker. and i said isn't this wonderful that all kids are going to have this man as a role model, okay. charlie, let's be objective. he had no pparation for the awesomeness of the jo of president of the united states. he had none. he's a greet speaker. i'll give it to him charlie. he's articulate. >> charlie: the preparation that governor christie had was not only as a prosecutor, i'm assumi you're saying, but also how many years has he been governor. >> year and-a-half, two years. >> charlie: so the preparation that chris chstie had did so much better in the preparation that senator obama, president obama had a year and-a-half two years as governor of new jersey versus two years in the sate and then in the state senate. >> let's talk about the senate, charlie. the two ars -- >> charlie: and thecademic record -- >> we don't know about his academic record because we don't know where he went. let's remember this, the two years he was in the senate he was campaigning. he wasn't drafting bills. chare, let's look at what it is. he gave a phenomenal speech? 2004 at the democratic convention and off we went to the races. i'm sorry charlie. >> charlie: in 2004 when john kerry was nominee. >> give christy cret he managed an office of prosecutors. a big job. he took on the job of governor of new jersey and they won. remember that expression, they won. spitzer said everything changes. nothing changed, except spitzer went out and found some workers, okay. charlie, we don't have the luxury of philosophical province this i'm. we nd to get something in there that's going to address the serious and daunting allenges of this country. i love america, charlie. nothing could have happened to me any place in the world except here. all the good thing that came out of my life, all right, crlie. all i want is to make sure it's here for kids five generations from now. the whole approach to the economy of the country, the entire approach is flabby, it doesn't work charlie. do you realize, this twist, do you know what we're doing? we're actually flattening the yield curve. charlie: we'reetting into a debate i'm anxious to have you and and we'll talk about the future of america but at the same time, at the same time american businesss sitting on a lot of cash. >> why. >> charlie: i know. i'm giving you an opportunity. sittinon a lot of money and not investing in the country. not investing in new employees or new products. they're not out there trying to hire people and sell new products. >> charlie, i'll give you one for instance. the jobs bill. there's a provision inthe jobs bill. if i'm unemployed and you give me an interview, and you don't hire me, i can sue you for discrimination because you didn't hire me because i was unemployed. tune what's going to happen? they're not going to get the interview. charlie, i'm telling you,he world is up side, the regulations that have come down the pike aren't getting the job. sarbanes-oxley, not one conviction. we've had a number o convictions since sarbanes-oxley. tune is it was on the books before sarbanes-oxley. i'm not going to spend money ad run theisk of being tied up in business. i'm better off taking my cash going to a beach some place and getting no return on my money. charlie, money is like water. it finds its own level. don't ever forget that. you create an environment where people are motivated to invest and they tonight invest. i'm looking for new ideas every day. i'm investing today. i'm investing in social network companies, medical companies. but charlie i reach a point where no matter how successful the business is, i'm going to be strangled. look at detreat. i don't plame you, i blame management. because do you know what the say i can't give it to you can't affordate. they did and toomore value out of the car to make up forrate. but guess what, charlie, the union is up with all e good goodies in the organization. -- capitalism isn't supposed to work that way. we have laws that say if you're a senior critter you come first. >> i already said to mitt romney, you're with him. to most of the people you know anxious to support chris christie going to probably go to mitt romney? >> they're looking at what needs to be done and they're asking the question. they're saying who is most apt to do the things that need to be done to address the issue the way they be addressed to get the country on track. by the way charlie, i don't care who it is, we've got at least five years of pain. >> charlie: you want to seat hard decisions made and you're prepared to be taxed more, you're prepared to be taxed more if you n be assured that that money is not going off to some program that you may notagree with but in fact goes to reduce the deficit. >> why are we in trouble charlie? interest rates are absurdly low. if they go up 2%, only 2%, the cost, the additional interest cost is300 billion a year. >> charlie: all right. thank you for coming. >> thank you >> charlie: we'll continue our conveation about gornor crist christy from washington. al hunt of plume better news re in the studio, kevin sheekey of bloomberg news. i'm pleasedto have both of them to here this conversation. here we have a decision by a governor of new jersey, al, saying he does not want to run for president because he has an obligation to the people of new jersey. tell me what you make of this decision. >> i'm sure he cares a lot about the people of new jersey but i don't think at was the main reason he didn't run. i heoncluded that this was a very very tough hill to climb in a very short period of time. chris christie is a very compelling figure. he's a larger than life figure in so many ways charlie. running for esident is incredibly difficult. bill clinton is the only guy who came close to awe nonsing it. he was 45 but he had been thinking about it since he was five. he was well prepared to do it. i think as captivating a figure as chris christie is and potentially a good candidate i think it was much too late. 100 days before ople started voting to put this together ill think would have bn very difficult not to mention the flack he would have gotten from the right wing of the party. >> charlie: you're a good political reporter. en you're talking to the people who were talking to him were they saying that to him or were they saying something else. >> there's a number of different sorts of people. ken langone does a great job with hard questionnaire stores, he's not in touch with the grates roots of america. some of people wall 9 hor, they tonight feel comfortable with romney or perry. they just wanted a winner. there are exceptions. kevin is one. matthew was certainly one. most people who run campaigns, particularly presidential campaign said this is just an extraordinary undertaking, i dot think, i think es too late to do it. >> -- >> charlie: kevin, do you think tha was his reason. >> blawbl it was too late to do it, in fact too late to do the thing. >> i haven't spoke request the governor. i think i actually see the governor is the rare politician who doesn't believe all the high. part of his personality is people are trying to get him to do reasons of things for their own reasons and not for his. i'm very much on the other side of his. two things i would say to chris christie if he asked me, he didn't. if he one is you don't run for president when you're ready. you run when the country's ready for you. the countr is ready for an outsider like chris christie and he could have won. the second part sounds like a joke but i don't mean it like a joke but i think ken langone referred to it earlier if he had a better chance of beating presidentbama than the governor's race the next time out. that's a true statement. sounds like a joafnlgt he has a very tough road towards re-election. he's going to make did you have decisis. it's a quitoxic state. i don't think he gets another start. >> charlie: albt. >> i'm not sure if he gets another shotr not. i don't know what's going to happen in four weeks much less fo years charlie. but he had to get there from here. and whether he would have been the strongest candidate against president obama is an arguably good point. how is he going to address the gun lobby, the evangelical christians. how does he address the anti-strain in the republican party. that's a dominant part of the republican party. it's imreez for people like ken langone to sit in the room and say i want a winner. that's not the way it works in iowa or new hampshire or florida. i think it would have been a tough road to thet get that non-nation. if he did get it, i agree he would have been formidable against obama. i don't think he would have gotten. >> charlie: do you think he do beat obama as kevin suggested. >> i don't know but he would ve certainly, it wouldave been at least a 50/50 race going into it right now. obama's in trouble. and he's got some relevant stngths. >> charlie: what happens to the republican party, albert. >> romney is the clear front runner. the good news is christie's not in. there are money people on the sidelines who will move to romney. somewhat disturbing news is why was there the christie moment to be begin with. met romney a month ago was the clear front runner, at least the established fronted runner. he's been through it before, he's cleaned and experienced. he would same to have. background but there's something about mitt romney that doesn't quite turn on a lot of republicans and otr voters. he may well overcome that. certainly other candidates like richard nixon have. but i think there is a feeling right now that mitt romney on paper looks good in person, not quite as good. >> charlie: your assessment of mitt romney. >> i think it's a different kind of year. i think in the front page early this week late lt week talked about the states the president would have to win to put this thing together. people are often diluted by power where it doesn't exist. the headline could have easily said and probably should have said mathematically impossible for the present of the united states to win re-election. he's 37% job in florida. you can't behind ohio with 90% employment. you can't win those states whoever gets the republican nomition is the front runner for president. we're a long way ay as at points now twin now and the election. if you get this republican nomination whether you're mitt romney or governor perry you're the front runner for the next president of the unitestates. the move to the country is that severe. people are looking for change, they're scared. they will go for simple answers. the president doesn't have simple answers and doesn't have the sense of optimism he had. people want optimism. they want someone to bring them change and it will be an up hill btle for the president on re-election. >> charlie: what about herman cane number one and rick pair or or rick rry number one and herman hibit number two. how are they influenced or h are their fortunes changed by christie decision not to run. >> they're fortune in that it's not somebody else filling up some of that space. perry is the new kid on the block even no he's in there two months now, he didn't need another new indicated kid on the block. for haine. we'll see if eats the flavor on the week. i'll tell you charlie, i don't mean to hype you but a week from tone the plume berg debate pairy and haine, this is about economy and jobs and they both cim fleets their for tape as does romney and it will be a test. >> charlie: there's an opportunity for for perry to show the two debates he seems to have gotten poor marks is time for him to come back with a couple weeks behind him he's a better debater than people imagined in the last two outings. >> he has to come back. three strikes and ... he slipped in the polls anyway. it will be impossible to come back from a third bad performance. againhen he talks about his jobs, he says text america's all about. rick perry's stewardship we create more jobs in an the rest of america kinds. that should be what he wants to talk about instead of those other issues and herman cane said i'm the only most successful businessman in the field. so we'll see. >> charlie: the last remaining person that might enter this i assume is sarah palin. do you imagine she'll get in now. >> i can't imagine she will. for a lot of reasons now pointed out it is late particularly without sort of institutional force, whether it's be money or organization gefght to do it, she seems perfectly happy to watch this from the sidelines. i would be surprised she gets in and i don'think there's space to do that. a week from tonight we're together to find out whether rick perry is in th thing for real or mitt romney will be the republican nomination for president. >> charlie: if perry does not do well. >> the establishment writes him off. >> there's no question bit. republicans like to get arnd front runners. there's a history through the last several psychsals of republican presidents and nominees and that's what's going to happen in this case. they were looking for someone new and they're not going to get that. if perry falls they'll look for most of the republican establishment around mitt romney. >> charlie: does 9 third party have any legs. >> i'll make a much more definitive comment. there thereby lb a parole effect end of story. is that a 3% effect that moves the election or not one way or the other or is it a cannon that really n run. there's a group peter actman is pooftding gether in washington called americans elect. i have every reason to believer they'll get on the ballot. people are craving for something other than the two major political parties. there are people that say say t barack obama couldn't win without a three party. >> it depends who he runs against. look, the problem with that third party movement here is again they want to do a top down. in american politics you builde bottom up. that's where jessie venturea was a one trick pony. if you really want to build a movement you have to start not in washington but you have to start in akn,ou have to start out in the country and that's what they are unwilling to d >> charlie wheets what the tea party did. >> they did it as part of the republican party and you can see how effective they've been. they've been very effective. >> charlie: al hunt, thank you. >> thanks charlie, thanks kevin. >>harlie: see you tuesday night. >> see you next week. >> charlie: thank you. >> charlie: reid hoffman created linked in nine years ago inis living room. today it's the most dominant network for career-minded professionals. the company has over 120 milon member inore than 200 countries. linkedin adds member at a rate faster than two ne members per second. in may it became a public traded company. jeff wreern is the ceo and reid hoffman is chairman and cofounder. welcome. is this the first time you two appeared together as i've been told. >> yes. >> certainly in a setting like this. >> charlie: for television or public appearance. so where is linkedin today. >> i think it's continuing to grow. everyone now has to think of themselves as a business, not just a brand of themselves but how you invest in yourselves how you update your skills and we continue to employ. >> our focus area is connecting talent with opportunity with 120 million members growing at the absolute fastest rate. that ctical mass allows us to do some interesting thing. there were three core areas we're focused o one is professional identity, enabling people to represent their pressional experiences, their skills, their ambitions. second is making it easy for people to share professional insights so they can tab business intelligence that makes them bettert the jobs they're already in. and the third is operating erywhere our members work. >> charlie: somebody asked why do i need linkedin when i have facebook. what would you say. >> context matters. we're exclusively focused within a professional ctext. that's what we do and that's always been the case since the company was founded for startes just by focusing on professional context you get a clear signal in a world where it's so easy to share and little friction in terms of sharing of information knowledge and opinions. people are increasingly overwhelmed. when you can frame information in a ton text in our case professional orientation it becomes more relevant and valuable. >> separate and apart from that i think there's fairly obvious reasons people want to even california their personal lives separate from their professional lives. we here that regardless of culture or cotry arounded world. >> why do you need an office when you have a house. why do you need a suit when you have sweat clothes. the than the simplest way of putting it. >> charlie: t ipo phenomena is the sck after opening and then going crazy. why do they go crazy? >> well i think that there's, i'm t really an expert public market and vationz but i think there's a lot of demand for growth. so people are interesting in things that the theyanticipate are building a future. and so the ipo markets have been closed for a while. when we went out i think it was one of thetimes when people re looking for me. alof that kind of combined for a lot of interest, a lot of attention, a lot of excitement. the vagaries of it going up and down and back up. i think three to five year plans. >> >> charlie: do you look at it every hour or day. >> i've looked it up five times nce may. >> charlie: i know people run media companies look at itvery 30 minutes. >> when you're serious investing three to five year time frame and what you're building in the future, this week, this month, you pay some attention to it but what matters is a year from now. >> charlie: where do y come down from this idea there is a bubble from around the corner. this is a glimmer what might be. >> i think is important to draw distinction what happened between the late 90's and what's happening now. you will be able to find isolated cases where there is over evaluation. when you look at the category leaders concerning the web in the let 90's. i think things certainly start to get ahead of themselves and at that time things were going blic for the sake of going public not for generatinthe right kind of investment, strengthening their balance sheet for longer term investment purposes. i think today you look at category leaders like a facebook, zinga, lkedin, groupon and these companies have clear e sustainable propositions that can massively scale. they have more predict been top line and in certain cases. i think there are some clear distinctions. >> i would just add the only time it turns out to be double is in fact the growth everyone feels is present isn't realized. it's kind of a guess as to what the future looks like. i think actually to amplify wht jeff's saying is these companies have an interesting in sething much more fundamental. >> charlie: i think these the answer. there's no understandable rea liable earning streams that you can see in companies today. the coupon business, gupon is part of that. is it beginningo lose some of its luster. without looking at a specific company. >> i think one of the things that jeff says that i love is to have a firm grip of the obvious. and part of the thing is people like lower prices, right. and peoplelike, and they're willing to experiment or try things or go to a new local service. and so i actually think the substance of offering discounts to incent behavior will continue and deepen. >> charlie: clearly will but the people doing it say in some instances is they're not getting it for business. people come and take advantage of the discount but don't come back. >> i haven't heard someone claim that whose actually really done a study. >> charlie: extraordinary times over the weekend. >> i read it. it was very anecdotal. if only 10 or 20% come bachus actually still valuable to do. >> charlie: that's what i'm saying, more than you had before. >> the question is you're looking for what is the yield. if the percentage is zero then it's not worth it. even a small percentage makes it worth it. what i've been looking forking for the pple who report these anecdotes is do something quantitative, do something that shows it's lower than 10% yield because if it's at least 10 it's still valuable. >> charlie: i'm interested there a standpoint of technology. how many architect lets will there be and what's the dirnlt who will survive. will it be points, feures, battery life, what? >> i think priceoint is clearly going to matter but it's got to be optimized with quality. and the quality of the offering, you look at what's happening with the bar that's been set. one dimension you didn't mention that i would certainly include is the number of offerings and applications within the application marketplace because these devices are only going to be as powerful as the applications that are running on them. >> charlie: and it has a far more extensive application catalog than the others. >> yes. they've been able with great success with that ego system. you've g an droids. amazon is leveraging an droids. >> charlie: they had all these other thing they could offer, the movies and books. >> and price points. so when you talk about prime and the ability to get they're on an advantage basis and you start rolling in prime economics it starts tget interesting. >> charlie: president obama came out to your campus. >> he did. >> charlie: what did he do? is this about job creation or what. >> charlie: well it' about a plan that i think is an intelligent one to help stimulate jobs in the economy. he's trying to do a kind of modern tnhall. you think of this i our forefathers years he used to be in townhall. what is a modern townhall but to talk through nettics. given thatting linkedin is most associated with economic creation of them, he felt and his staff felt the right place to do with was townhall with linkedin. >> charlie: and to that. >> it was an incredibly memorable experience. i moderated it. it was a real privilege. i think the whitehouse on this particular visit to the valley recognized there may be an opportunity to do something like this. they reached out to us. with a jumped at the chance. you know i think longer term when it comes to the value we can add in the world, creating economic opportunity for people is a big part of that. and you think about the 153 billion peop inhe american work force,.3 billion people in the global work force and ultimately the vision is to be able to touch all of those folks by leveraging our platform. and with the president recently announcing the ameran jobs act, i thi they felt the whitehse felt this would be a good opportunity to reach out. we solicited questions from members at one point wewere receiving one question every five seconds. we received thousands of questions from thousands of men's and had a chance to actual fly some of those members in to ask the president some of those questions directly. and he responded and talked about his plans for the jobs act. >> charlie: back to the technology issue. based on so of the things you guys have both said. eric schmidt named the four horsemen, the four architectures we will look at amazon facebook apple and google, is that correct. does everybody agree with tt. >> some people would include microsoft. >> charlie: why wasn't microsoft included. >> one of the thing is when yew looking at an innovation cycle on the internet, i'm representing eric's point of view here but when you're looking at an innovation cycle microsoft hasn't been as forefront in the last few years about what is happening. >>harlie: what about people in the valley when they look at that say why haven't company with all these resources both financial, human and product. >> welder i think som of, what makes silicon valley grow people pay a lot me people to more things than just company borders. people talk with each other a lot isilicon valley. you would be be surprised to somebody from e-bay sitting down with someone from yahoo smawking small business or someone from doing talking to someone at twitter with new time and that sorts of thing. it's important to have essentially the network amplier of innovation and ideas is to ve that kind of ideation, have that kind of new blood in thinking. and i think the valley does that very well. so i think that's one of the reasons why those companies tend too. apple's a little bit of an out lier becausehey have the iphone and ipad, etcetera. they don't do as much on the internet services error. they print this magnificent tabletof enomy and have great developers and great apps but if you look to the degree they collect to the cloud is not as much as google, facebook. >> charlie: wt does that say about their future. >> others one of the areas where they have room for improvement. >> one of the thing that's so interesting about the companies you mentioned is the strategies to some extents are startingo converge because when you start talking about digital consumer web applications, products and servicesthers far less in terms of barriers than there have been in historic industries. and so each of these companies was able to establish a core value proposition that was massively successful. obviously google and search amazon and commerce, etcetera. to some extent, these businesses and these strategies are coming together and so you've got extraordinarily well-capitalized companies with incredible talent all coming together. it will be interesting to see how it plays out. >> charlie: steve jobs, what's the genius that he's been able to ... >> i think it's on multiple dimensions. i think there's a clear understanding ofhat he's done for signor product, for product quality for innovation. i think what's uque about steve jobs is he also is an extraordinary business thinker. and like i said before, he speaks about his company, his strategic, the way he designs product. with regard to product, there's not a wasted element. with regard to his expression where he wants to take the company and his vision there's not a wasted word. y the most insightfupersonn business. i've learned enormously from watching him and learning how he ran that company. >> charlie: have you ever met larry ellison. >> i have not. >> charlie: but yo met bill gates. >> i have. you have to have a proactive interest in the consumer industry for me to have me them. for me. you may have met them. >> charlie: did you meet mark- >> he does have an active interest in the industry >> charlie: mobile. the future of mobile. everybody says througho. you sai that to me recently. >> i think one of the things that, the interesting thing will be which application on mobile. clearly it will be a screen top, hip top with them. clearly it's always on, clearly it's location neighborhood. clearly that will enable a bunch of things. everything from navigation, the local reviews tohe local commerce services. the thing i think would be most fascinating is which of the apps we don't anticipate at all that are the ones that in no vague always has this creation of something entirely --like for exampl everyone knows games will be there but how will the games be different for example. or which ways of navigating for example peonal communicati will actuallyhappen now that it's all that way. for example will everyo have oup smss in a way that isn't seen told i'm quite certain no one will get the full prediction. >> charlie: why h speech recognition been such a hard thing to do. >> i'm nots familiar with th underlying technology. that's another part ofthe consumer web but it's a really hard problem. i mean for no othereason think of the vagaries and nuances. you think about the way i which we say a word, you would say a word the way i would say a word the scrois inflection and tonality. it's a hard problem to get right. but if you believe what people are saying about some of the new mobile technologies coming out and potentially from apple, thermaye se interesting stuff. >> charlie: they may be doing there. do you know with a who impresses me a lotith so many people and so many ideas is the wayhat jeff basos has been able to guide a company from one thing to another thing. to become a product company now, not an e commerce company. but just to be able to do that and a lot of people doubt it. >> yes. i think one ofhe things that's really key about having vision and icking to it andaying i think there's thought of friction between here and there and a lot of expssio of doubt and some setbacks but i have a vision where that's going. whether it's kindle, or aws there are a lot of admissions that is rlly effective, clear vision, continued execution against it a delivery is some of it improves the industry. >>e was asked a question very recently. he said something that was i thursday very -- he said you have t be stubborn on your vision but flexible on the details. you need to be willing to be misunderstood if you're going to be able to truly innovate. >> charlie: that sounds like steve jobs doesn't it. >> if you look at the job he just did with kindle, people are saying he did a heck of a job with that introduction. >> charlie: you know when the kindle was out as it was in black and white, that he was thinking about the kindle fire. that idea, he's got something from here to here is a distance reachable. >> yes. >> he's thinking in terms of a holistic ego system. you can see it in the way he was introducing one thing after another. >> charlie: convergence is here. >> i think it's e those words that's appropriate. the high line is you don't have different media devices and different media types but you have the ability to access all media on any number of these different streams and to blend them together. it's not a fusion by which you re text and watch video at the same time but the device can be running and they can be combined. >> charlie: with the content. >> it's much more than -- anything that can be cannot verted from an atom to a bit will be and you think about the implications that's tree true convergence. the way it's impacting education industry, eventually government. it's all converging. it goes talk to those four large players within the industr that's convergence as well. >> charlie: share with us before we go, some interesting idea, something you heard thas in development that you think wow this could really, this could really take us to 3.0 or 4.0 or 5.0. >> one of e things i've been talking about -- >> charlie: something realizable today or not. >> one thing i've been talking about this years trying to focus on how data will generate web 3.0. it's not just big data it's the fact that the data is produced by people and it's indexed by people so it helps us navigate the world in different ways. you have web 1.0 and you interactivity called cyberspace. 2.0 is real identities and using these real relationships to navigate throughout the word. we're all generating a ton of rich data. now i think we're going to see new applications. that will be a new cloud service. >> charlie: can you add to that. >> picking up on the notion of data i think the taught is an an awe -- data is an asset to be leveraged. in relevancy in a world where it's so easy and frictionless, we're all completely inundated. the leveraging of data to create more revancy is a clear signal is going to add value in ways -- >> charlie: how do they do that the leveraging of data. >> if you're going to be a sustainable and valuable company on the consumer web you're going to need to be able to do that. yahoo did that back in the day with the portal. they started to organize the consumer web. google picked up on that and was able to more effectively scale that. now you increasingly see the social platforms ae to create a signal by virtue who is connected to whom. all three of these paradigms tice. thereto is more and more information d more knowledge. as a result how yo leverage data bringing the talent in to lerage the data is like the new search engineer of yesterday. and increasingly companies are investing in the right process and talent to extract as much data from that process as possible and that will manifest in terms of relevancy. and relevancy in ways i don't think we can entirely understand or predict today. but it's going to be really interesting to s how all plays out. >> charlie: thank you for coming. great to see you. >> thanks for having us. captioning sponsored by rose communications 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