Executive of at home. The chief hear from executive of at home. All of that and more over the next hour. First, lets get headlines from su keenan. King digital,ed secondquarter sales missed analyst estimates. They cut their 2014 outlook and declared a 150 million special dividend. The stock is getting hammered in the afterhours trade. Down as much as 20 . Hand bag maker fell the most in more than five years on concerns that it is starting to cool. The coo says that they will continue at a high singled in this percentage rate. This follows a 30 gain in the first half. Job growth rose to the highest level in more than 13 years. The number of unfilled position climbed by 94,000. That is the most since february, 2001. Another big headline comes from the world of sports. Executive microsoft Steve Ballmer officially has become the owner of the Los Angeles Clippers. This comes after a judge determined that shelley sterling had the authority to sell the team. Trish regan spoke with both. Teve ballmer and dick parsons according to throw my sources, i learned last night that the lawyers were working. Ery very hard aroundtheclock that is what lawyers are supposed to do. Happened,t actually the deal might actually close the following morning. Critical that as soon as the judge issued the final order. Is you dont want to leave a ton of time. More legalcreate havoc. At 9 a. M. West coast time, 12 noon, the judge made his final order that permitted the sale and in fact the money change hands at that point and so within 30 minutes, the deal was done and Steve Ballmer became 2 official owner for billion of the Los Angeles Clippers. A lot of excitement. I will get to it steve had to say. I did want to share some sound from the interview that i did with dick parsons who spoke about the value of the clippers and what it represented. This was a team that within the past 12 months was it value , 500, 600 someone million. The last team that sold in the nba before this sale was the Milwaukee Bucks for 550 million. This is selling for 2 billion. I asked Steve Ballmer about this. Critics said that he overpaid for the team and he laughed really hard. He was very enthusiastic and he was excited about this deal. Paid, i paidce i it. He let out a big laugh, i am thrilled, i have a history looking at Tech Companies and i have a basketball team, they are lower risk. The morale of the fans is something else. What does confirming Steve Ballmer do to the morale of the fan base. Dick parsons says that this is terrific. It helps everyone to feel better. The word from clipper nation, the teams, the fans, the staff, it is a good day for the nba. He needed to have this happen, its a good day for steve. I asked steve, what are you going to do in terms of managing the team . You said, it will not be like it was when i was at microsoft but i will be pretty involved. It is nice when it is your job to go to a basketball game. I want to do everything i can to support the team. I will not be designing plays, but i am definitely enthusiastic. It is like product development. He was really very excited. Dick parsons was equally excited to season closure to this legal mess that they have had on their hands for the last three and a half months. There will be a big celebration in los angeles and Steve Ballmer will address the fans. Expect some more news early next of l. A. And the Los Angeles Clippers then. Thank you so much, trish regan. The shares of king digital are getting crushed in afterhours trading today. Missed Second Quarter sales estimates. The company cut their 2014 outlook. Joining me now is Bloomberg Intelligence internet and media , providing context on a variety of industries. What can you tell us about candy crush and king digital . The takeaway are two things. Two things internet investors look for. Revenue and users. Both have been disappointing. You saw the company guiding to lower bookings. A very alarming sign in the decline of daily active users. How does this use to facebook . The company has moved much towards mobile games. Story is as the candy creche game matures, the less people play, the less people that spend money on that game, they should be able to offset that with the new games coming through and weve seen that they havent monetized as well. Does this mean they will have to go on the acquisition trail to acquire better and more popular games . That is what theyve done, they have gone ahead and spent almost 100 million on a gaming company. It is called nonstop games. It could the a tacit admission by the company that they need to venture out of the casual Games Companies and look at other games. Probably theres something in the pipeline we havent seen yet. Monetizey it doesnt well. What is the Business Model right now that works in gaming to make money . It is really about trying to get to these microtransactions going. The way it exploded on the scene was on facebook they were just another game out there. The revenue skyrocketed. They try to buy gold bars, those kinds of things. Replicate aing to new games. Very few companies have been successful in monetizing. We saw with zynga, how theyre going through the same issues. Are we going to see a lot more onehit wonders when it comes to gaming . Of the onlybeen one companies that has had multiple top 10 games with the other ones being pretty much gone co. Entertainment. Very few have been able to turn out hit after hit. Casual gamers, people who do games on mobile. They are not very loyal to big brands or Big Companies themselves. It is hard to bring that when the engagement wears off. Thank you very much. Coming up next, i will introduce you to a chief executive of a company who makes the heating and cooling devices for your cars seats. Makes isto know who heated steering wheels . Stick around. More next on taking stock. This is taking stock on bloomberg. Jen thurn stock is up 70 this year. Gentherm . Ly is steering wheelhe on your pickup truck. The chief executive joins us, daniel coker. Thank you for being here. Two features that are high on the list of any auto buyers to seats,hey want heated they want cooled seats, they want a heated steering wheel. How did you come up with this idea . We came up with the concept of using thermoelectric devices. He wanted a market for device converted tod Electrical Energy into thermal energy. It draws in thermal air, heat and cools it and provides very quick time. The eye of cars are very interested in comfort and convenience. What about combustion . When i talk about the Combustion Engine. But we talked about earlier was being able to convert Electrical Energy into thermal energy. Is probably the seatback affect. Convertthe ability to thermal energy into an Electrical Energy. Heat in terms of using the fuel for propulsion. You said 70 . Over 70 gets pushed out of the exhaust pipes. In our view, that should be put to task. We have devices that conversed the thermal energy into electrical power to take a load off the alternator and let the vehicle become more fuel efficient. These are the early stages of testing. Weve had support from the department of energy and to key customers, Ford Motor Company and bmw. They are testing these to help. S design volkswagen, ford. Can you tell us which has maybe a little difference . Tell us about some of the Big Companies. All of the Car Companies worldwide. We have a very strong relationship with the key north american and german customers and we had a Good Building relationship with the asian customers. All of the Car Companies are very interested in the next thing, the next technology. As a technology company, it is our mission to provide those answers for them and work with them in a partnership to develop practical products. Is impossible to use Technology Energy power devices such as smart phones, tablets, im sure you are familiar with the interior of the tesla, it is one large screen. Power consumption in and on a keeps going up. Many of the early applications will be diverging the power that we can produce into customer convenience items where you can recharge your iphone or your ipad as you drive without drawing power away from the engine. The tesla does not have an internal Combustion Engine for us to recapture waste heat from. It is a highly efficient vehicle. Tesla is interest for us in terms of heating and cooling seats and providing creature comforts inside of the cabin. What kinds of features are sort of Science Fiction right now that could be science fact in 1224 months . I think the concept of converting waste heat into electrical power is a very unusual concept and something that has been around for quite a while, since the early 1800s. See when you a breakthrough . That scientists have been able to harness these effects and use them on a very basic level . We have been able to design and build devices on a prototype level that have performed to modeling expectations. We are targeting largescale industrial applications to get some practical use and understanding out of this. We have Power Generation devices for the oil and gas industry. Oil pipelines run through some very friendly territories and theyre not always available to the grid. Each of these stations and control stations have to have a logical power from someplace. We built and installed thermoelectric stations that provide electricity for these stations to be able to monitor, measure, and control the oil flow through the oil and gas fields. That is one of the practical applications. I want to thank you for spending time with me. Coming up, we will introduce you to beta works, a start a factory behind some successful startups which includes buzz feed, airbnb, and twitter. You will meet the founder and the chief executive later on this hour. Is taking stock on bloomberg. This is taking stock on bloomberg. We talked about gentherm, a stock is risen 70 so far this year. Lets take a look at American Apparel. More thanhas dropped 25 so far this year. Its founder was ousted last month by the companys board and the company is battling Sexual Harassment lawsuits. Ronnie moas was recently ranked as the number one ranked firm for performance through january of this year. He joins me here in new york. You have been following American Apparel for a couple of years, give us an update about what is going on. Has been a very volatile there. There was a problem with the ceo, he was ousted because of his behavior and performance. The distribution center, it did not go smoothly. They are competing with forever 21, h m, zara, they were the first to use usinghops stop sweatshops in asia. That puts them at a disadvantage. The last time you and i spoke, you said, beware, it is a risky investment but you did recommend buying the shares. Sinceould move higher and the ouster of andy reid organization under a variety of owners and payments. It seems as though at least the company is still around. The company is still around and my view on the valuation has not changed. It can go to two dollars and it can go to zero. A lot of things can go in their favor. That is a lot for the company. This is part of the competition. I hope there would be a movement via social media that consumers would start supporting Companies Like this. It might take another 510 years to gain traction. They will be able to remain solvent. How has this been with the board . Has been a distraction. They heard some stories about that have started to surface. When all of the investigating journalists are digging deep into the situation. I know the Los Angeles Times did a big piece on it. He visited south korea and, you tell it. What feeling did you have after spending time in south korea . South korea is an actual ordinary story. They only got their independence in 1948. What both of those countries have in common is that theyre cap but a, they would be the top 20 in the world by the end of the decade. About 35,000 a person, they are using purchasing power parity. South korea, it is really actually married to see what they have done in just 65 years. The particular segments of the korean economy. If you look at the largest names, they are sam song. You have hyundai, the automobile company, and the Steel Company that has a market cap of 25 billion. It has outperformed of the last 1015 years. I would be really surprised if it is not continue to outperform years. E next 1015 i was there for a few days. I walked back and forth. I dont remember as being impressive. Thank you very much for spending time with me. Andie moas, the president chief executive of standpoint research. Coming up, we will talk about marketing and how you can promote a video ads right and your twitter feed. We will show you this new feature next. Onthis is taking stock bloomberg. I am pimm fox. For a look at a market moving headlines, i want to go right to su keenan. Lets go right to alibaba. They have restructured control of their pay unit. They are preparing for their ipo which could be the biggest initial Public Offering ever. Also part of their intellectual property. Another blow for atlantic citys gaming industry, the bankrupt casino will close its doors next month after failing to find a buyer. This was taken over by creditors last year and fouled for bankruptcy a second time in june. More than three dozen people will lose their jobs. Another headline comes from twitter. Ads to increase their revenue after clicks bring more interaction from users. This is each time that someone clicks to build the site. The chief executive of beta works. These companies include tweetdecks, summarize. Thank you so much for being here. About theou tell us video ads in the site. Is this a good thing, this is a natural evolution. It is a natural evolution. There is a tremendous amount of content that is to the twitter stream and it is one click away. This makes total sense. We have been working with the twitter team in using the app in the stores. This is what theyve lost about five weeks ago. We have been with them for about eight weeks and we are getting phenomenal results from it in terms of the ability to be able to drive in stores. Tell us how that works. If you have an app, you can use twitter. Twitter has been more effective than facebook. App and tog your customers who are looking at can do one they click to install that particular app. What makes twitter more effective, they have done a good job of targeting. They have been a good job of presentation of this unit and making it interesting to users. Would say it is still early days on the twitter platform. This needs to be developed. We need to see how it is in six months but today it is working incredibly well for us. Speak to us about the personal inventory. I know that a beta works has something called insta paper where you are allowed to create your own inventory of articles and news bits that you are able to read offline. Tell us about that. Why would you develop Something Like that . This is a Wonderful Service that we did not actually develop. It is an individual who developed insta paper. He is a sole developer. This is almost like a dvr for reading. This is an interesting article. This has been at beta works for a little over a year. This is a wonderful product. I use this every day. It is on my home screen. I will say, i want to read later. I push them over to read later. Open up and read the articles. For longer form pieces, it is a wonderful platform and it is a platform that is reading. Highlighting things that you find interesting. You have done a lot of writing about reading and about some of the trends that you have been able to discern based on figuring out how long people read something and whether they go on and share that piece of information. Tell us about some of these investigations. We have been fortunate enough to build a whole bunch of companies in the reading space and also companies that understand a lot of data, about how news sites are being used. Blog postferring to a which i wrote a couple of weeks ago with data from chart beat, from the newspaper. , theo, the data suggests two things which we found from looking at this. The first is that there is a large number of people who are sharing articles. You know the term click bait and a link eight. Their are a lot of people writing headlines two stories to make them clickable. The data shows a lot of people clicking but not actually reading. That is not good for content producers, for some that are writing, that is the bad news. First of all, there is a tremendous amount of distribution coming from that. You look to the world of content and the world of the websites, five or seven years ago, most of it was coming from search. Today, the social web provides an enormous amount of traffic. Twitter, facebook. All of them. Is when youhing look at the data, particularly the data from the newspaper, we have seen a large increase in reading time over the year, over the last 12 months. The way we measure reading had an article, then you opened it, then you read 75 of the article. We count that as a read. We look to that data across the year and we have seen that particularly for certain sites. The atlantic came up very high. The New York Times came up high. Those are the three examples. People actually spend longer reading. This is a wonderful analysis. You can see time and attention and you can see this short piece here. Then there is this trough in the middle. Wow there is the hill of where people actually reading and spending a lot of time on the content. I think also we do see this in other media types. You mentioned in that, jon stewart. John oliver. John oliver, yes. How that has used this para