for zillow. the ceo of blackberry tells me right now his company has no buyout offers on the table. he pins the chance of a successful turnaround in terms of adding value at greater than 80%. former republican vice president candidate sarah palin has launched her own online tv network. the sarah palin channel will cost about $10 a month and offer news, video chats, and behind the scene video. we will speak with the founders that help launched the channel. to our lead story of the day -- online real estate rivals the low and are joining forces. the deal was for 3.5 billion dollars in an all stock transaction. the sites will continue to operate under their current names, so they are not combining brands. both sites allow house hunters to find information on homes, rentals and generate revenue by selling ads, particularly to real estate agents. shares of trulia are soaring in stakeholders in the low are not acting up happy. cory johnson is here as is alex sherman who helped break this story last week. what are you hearing now that we know this is officially happening? >> this is a huge premium on this deal. we reported this deal last week but the terms are a little different than what we reported. this is an all stock deal for 3.5 billion dollars total, giving zillow about two thirds of the company and trulia about one third. but if you back it out before our scoop, it's a 74% premium zillow is paying. that's an enormous rhenium even in terms of two high-growth companies. that is why we see zillow stock backing up a little bit and trulia stock rising then the 30% or more than a rose last week. these companies coming together, and they will continue to run independently as two different sites. over the long term, we may see one site impacting the other and we may see operationally how these sites come together in the long-term. the synergies are coming from operator expenditures -- say app development or marketing development. as one company, you can cut out the duplicate of costs. >> we will be hearing from the zillow ceo in just a moment but when you look at the numbers, who is the winner in this deal? >> zillow is paying a lot of money in its wider stock is down so much. the revenue growth rate for trulia is so much better. the shareholders for trulia are the big winners because the stock is up so much. the real losers are the realtors and advertisers will stop they do not benefit from this consolidation at all. that's the reason they are probably keeping these brands separate. if you are a realtor and want your advertising to be seen by people hunting for houses, you continue to have people using both trulia and zillow, you will have to advertise on both of you want the impact from those ads and zillow is figuring that combmining these two aren't nearly one plus 1 -- it's something less than two. they might benefit from twice as many ads out there. >> this is not the first real estate company zillow has acquired. what do you know about the strategy here? it seems to be becoming a portfolio of real estate assets. >> this is not the first time a company like zillow in the sense you are a large, online company that makes most of your money from advertising has gone this route. we saw that with expedia and a few other different travel websites. i think that is what zillow was trying to do here, seeing the theoretical value could be owning a number of sites, not shutting them down, operating him independently. even though they are the number one and number two real estate website, they do two different things. zillow is a website for anyone who want information about homes will stop current homeowners use zillow to see how much is my house worth? trulia caters to people buying houses. it's two different audiences and that's part of why the website will operate separately. >> alex sherman, who helped rake this story and our editor-at-large, cory johnson in new york. earlier, stephanie ruhle and tom keene spoke with the zillow ceo about this deal. they started by asking him when the low and trulia will reach vertical mast. >> it is very early, so it is hard to say. real estate professionals spend $12 billion year in advertising and only 4% on zillow and trulia combined. >> aren't the two of you already dominating, capturing all the online advertising dollars? after zillow and trulia, i have no idea who's on third. >> there is a lot of fragmentation in this space will stop most real estate advertising still occurs off-line, newspapers and outdoor advertising. a lot of it goes to a long tail of local real estate sites am including tens of thousands of real estate sites in any given city. that long tail in the aggregate is a lot of consumer audience. zillow and trulia are probably the best known national brands but is very fragmented as far as the local level. >> right now, what is your ultimate goal? we heard you do want to see zillow and trulia as separate entities. why not combine them and be separate brands? >> i think it's very important to have multiple brands. other online companies have done this effectively. the weather company operates weather.com, weather underground and intellicast. expedia operates several. having multiple brands allows different brands to appeal to different consumers and allows you to expand your overall reach. the consumer overlap is actually quite small -- less than half of trulia's users visit zillow -- there is not that much consumer overlap and it makes a lot of sense to invest in both brands. >> on this monday, do you open yourself up to acquisition with the convenience of this merger? does somebody else go after you? >> who knows? i certainly think we like our chances as a combined company. we thought i combining forces that we could be even more successful. from zillow's standpoint, shareholders will hold about two thirds of the company and at closing, trulia shareholders will own about one third. as a chairman and fiduciary at the zillow, i'm thrilled about owning two thirds of the combined company. that's better than owning 100% of zillow standalone. they feel the same way, that owning a third of the combined company was advantageous. this is an immature, fragmented market and this merger is exciting, but with a very long way ahead. this is going to play out over many, many years. >> that was the zillow ceo speaking with stephanie ruhle and tom keene. up next, blackberry ceo john chen talks about the future of the struggling smartphone maker. i will ask him if he can turn the company around by himself. ♪ >> i'm emily chang and this is "bloomberg west." one research firm has said blackberry peaked at 21%. today, the number is less than 1%. so what does blackberry ceo john chen have to say about the company's future? i sat down recently and asked him just that. >> you sold 58 to sap -- are you going to sell blackberry also? >> there is a standard answer for public company officers. >> give me the nonstandard. >> i would prefer to do a lot of values before i even contemplate that. >> as the ceo, you owe it to shareholders to consider offers. >> absolutely. it's only fair. not only the shareholders but also employees. >> there's been a lot of speculation about the offers that have come across your desk? >> as far as personally? >> offers to buy blackberry. >> i don't have any offers. if people would like to talk -- talk is not an offer. >> would you sell to a chinese company? >> the answer is i'm probably unable to do that. we have one of our august in-store bases in the government in countries, the g7 -- i think it would be a lot of regulatory issues and concerns. and i appreciate that. >> what do you give your own chances for success? >> if you are talking about being able to create value, i think i can do that. >> 100 percent? >> everybody likes to talk about that. i talk about 50/50 or 80/20. i would say better than 80/20. uncomfortable where the company i am comfortable with generating more value. whether it going to be good enough to be iconic again, that's something i need to chew on. i don't know the answer. >> blackberry ceo john chen. there will be a full 30 minute airing of my interview on studio 1.0 coming this fall. we have been following developing news -- a california judge says that $2 billion sale of the l.a. clippers to former microsoft ceo steve ballmer may proceed without the consent of donald sterling. tori johnson is in new york with more on the story. >> ring me on the phone is legendary sports agent leigh steinberg. during his career, he negotiated $2 billion worth of contracts will stop you spend 40 years brokering deals and sports. is this one of the weirdest deals you have seen? >> it has actually had a pretty consistent forward trust. when they put together the trust between the starlings, it said in it that if two or more doctors declared one of the principles to be incompetent, then the other partner could run the trust. what the judge has done today is go ahead and reaffirm when shelley sterling sent donald to to psychiatrist and they both judged he was incompetent, she has controlled the sale with armor. they are looking to august 15 to put a deal together and then goodbye donald sterling. >> it seems right around the corner. it's interesting that owner's and ownership of teams is a contractually obligated issue that would end up in court. it's kind of a shocker. >> frankly, under the terms of the field sterling signed with the league, he went ahead and said he would give up his right to go to court to challenge any decision that was made. this was not about a revocation they made. it's about who runs the trust and whether the trust could execute a cell. now that the judges ruled they can go ahead and make the cell and it's gotten curiouser and curiouser. the long, strange odyssey of donald sterling ought to be coming to an end. can they appeal this? they can appeal it. there are lawyers making prodigious amount of money from doing all of this at the end result is going to be the same. there will be a new owner of the clippers and it's going to happen before the season begins. >> to that new owner -- steve ballmer buying the team at enormous price tag of $2 billion -- was that one of the factors in the judge's decision here? >> here is a team that was 2014 at $575 million. i would say that someone of the premium went into this sale. the owners have a vested interest in that price yang affirmed. all of the other facilities. >> can you imagine the sonic boom you heard, the shared exultation of joy. so, there are a whole lot of interests here. you also had chris paul and doc rivers from the clippers say they would not go ahead and play and it was like there preempt or he shot. maybe there was enough pressure here. now, this can always be appealed. things can be appealed forever, but i'm going to guess the sale ends up going through on august 15. >> let me ask you about the player deal. this current age of players, we have not seen them be politically involved in any given way. michael jordan sort of showing the way by not involve. would the fact the players are saying you're not going to -- because of the coach and the players saying they would not play? >> i am not sure it affected the judge. it certainly affected adam silver and how quickly he went ahead and gave sterling a lifetime ban will stop we saw an intensity of reaction all across the country and around the world. this whole incident put the leaks marketing tv contract and relation with players at risk. ♪ >> welcome back to "bloomberg west." i'm emily chang. time warner is looking for user growth and counting on the internet to deliver it. the network is aiming to expand its audience while maintaining its ties to cable providers. so what exactly is time warner testing right now and how does it relate to the recent fox takeover bid? jon erlichman joins us now from l.a. with more on that. what is time warner testing? >> this company has a much to think about now. a fox bit is front and center but they have to think about how people are going to be consuming the content down the road. in the case of hbo, you've got a business that while incredibly profitable, falls inside the traditional world of cable will stop we've all heard the stories of young people who need internet and broadband access. a landline and cable access package, not so much. i'm not going to give away names but i was talking to a young producer in this segment who said she's using someone else's hbo password to access hbo go in conjunction with her broadband. hbo thinks how are we going to get young people to stay in this world of cable which has been financially good for us? one of the things they've been testing is a lower price all in cable package. you get some cable, not everything. you get internet and you can get hbo that way. it might be more aggressive on that front in conjunction with pay-tv players. >> john, younger viewers refer to access content through an over-the-top service like netflix. that would be easier for me. could this happen for hbo? >> it doesn't feel like it can easily happen. because of the ties between the cable companies and hbo. to be able to do something that matches exactly what netflix is including going to them, subscribing and accessing on all devices doesn't seem short-term. what does seem like it will be pushing toward is the ability to go to the cable company and get your broadband, get your hbo and maybe have less cable or no traditional cable. that would help them hold on to some of it. >> thank you so much. former vice presidential candidate sarah palin is launching her own online news channel. we will talk to two of the people who made that happen, next. ♪ >> time now for bloomberg television on the market. by julie hyman. let's look at where stocks traded today -- a little bit of bouncing around during the session but ending the day mixed tunnel was said and done with the nasdaq in the red and dow and s&p barely in the green. there was pending home sales a they came in worse than estimated and investors are weighing that against earning in various geopolitical conflict. more "bloomberg west" after the break. ♪ >> i'm emily chang and this is "bloomberg west" on bloomberg television, streaming on your phone, tablet and bloomberg.com. from the power rangers to potential candidates for president, he's backed names for the ideas for decades. he's the chairman of univision communication and has introduced the x-men and power rangers to american tv viewers. our bloomberg senior west coast correspondent, jon erlichman visited him in l.a.. what did he have to say about time warner? >> he had some helpful context -- you are talking about somebody you does have a strong relationship already with rupert murdoch. you talked about the power rangers which brought a lot of success along with other kids programming which ended up as part of a joint venture with fox which ultimately ended up being sold to disney and being abc family. certainly he's watching this closely but he set the stage for a media universe right now. companies like is the have been big acquirers of content, versus the business of time warner where they have shed some of their assets. >> i was not surprised because i think jeff, the ceo of time warner has trimmed the company to a point where he's paired for a takeover. >> there will be continued discussions around all sorts of media assets. he is the chairman of univision which had great ratings during the world cup. he said it will be sold at some point without providing any clarity on that. whether we would see a sale or ipo, that business as well. >> he just launched his own venture. what are his plans for that? >> this will be interesting to "bloomberg west viewers because you have new movie distributor's in hollywood -- they are recognizing the fact that movies can be successful in theaters and be successful on demand. they are acquiring 10 films -- you're seeing video there from "helmsman" a tommy lee jones film which they say will debut in november in theaters, but they might end up playing with the theatrical window. that would suggest maybe it's available on demand sooner than you would. they would also be teaming up with a large studio. in terms of why he's had so much media exposure over the years and didn't get into the film business earlier, here is his answer as to why now? >> to me, to the best of my knowledge, this business and that kind of does this plan is not one that existed 15 or 20 years ago. >> there has been a fairly successful summer box office story. it's been theaters for about a month but two weeks after its release, it was available on demand. i don't know that you will see a dissimilar story with the folks at the film company. >> he is also one of hillary clinton's biggest backers. she did a tour of silicon valley and tech companies here. what did he tell you about why he is supporting her? >> he's obviously someone who feels passionate about the middle east. he's a huge supporter of israel and has only seen her as being someone who is well-equipped to address the issues of the middle east. when i did ask him personally what kind of financial commitment he would be willing to make to see her become president, here's what he had to say. >> i think she would be great for the country. and great for the world. so on issues i care about, she is a plus. i think she is ready plus plus and i hope she makes the right decision. >> there you go. big decision certainly. >> jon, our senior west coast correspondent, thank you so much. spacex says the company could be sending people to mars in as little as 10 years. just how realistic is it elon musk's goal here? ♪ >> welcome back to "bloomberg west." i'm emily chang. it has been a challenging time for ebay, especially in the traditional marketplace business. there was a massive data breach when google changed its search algorithms, ranking some ebay results lower. the president was on with betty liu on "in the loop" this morning. she asked if ebay has lost customers due to the password breach. >> we have not seen that yet. we haven't seen any evidence we've lost a substantial on the people. we haven't seen any evidence data has been used maliciously, so that's the good news. the bad news is anytime you get 150 million people to turn over their password -- we are happy that it is increasingly in the rearview mirror. >> how do you make sure you completely regain the trust of your customers? >> just getting it right going forward. great product experience, having the overwhelming majority of transactions on ebay go well, which they have for decades. it's constantly getting it right for buyers and sellers. we are going to sell over $80 billion of goods this year. it's an enormous marketplace and i think almost all of our customers know the multiple layers of protection that we have. it's an unfortunate incident but we see customers coming back. i believe they trust us. >> do you know why the data has not been used maliciously yet? >> setting the password was a safe that not necessary maneuver. passwords were encrypted and we do not know if they were unencrypted. good news is we have not seen the level of fraud increase on our marketplace. >> there was another challenge you experienced -- google changed their algorithms so they were funneling less traffic to ebay. >> we don't anticipate because google controls their search algorithm like ebay controls our own and it's up to us to do -- to adapt to the changes they make. google makes changes in the way they adjust their algorithms and our job is to change the way we do our particular marketing to adapt to that and we are in the process of doing that now. we have a great, collaborative relationship with google and we are working on bringing some of that traffic back. >> how would you do that? can he give me an example of how you try to offset that? >> google's algorithm is their own and they work on that. we have teams that work very closely with them to make changes to the types of things people see if they search for an item like a luxury watch. we want them to come to ebay because we have the best selection of luxury watches the world. how that page might look unaware of my the rank is all deep in the mystery and magic of ebay and google algorithms. we are working with them on that now. >> here the next few weeks, we will be watching the ali baba ipo and what the company does with the money they raise and how much they are going to expand here in the u.s. what about ebay overseas and how you are expanding the business possibly in china? >> we are a global company and have the largest export business in the world. they are a great is this. their numbers from what we have seen are stunning. i suspect the next couple of years are going to be a story of the big companies further globalizing. our priorities have been russia, latin america, all the emerging markets growing very rapidly. >> domestic china will certainly be our focus over the next few years. while alibaba moves out from china around the world, we will be moving hopefully from the united states into china and other markets. it will be very interesting to watch. >> coming up, the technology behind sarah palin's new media platform. that is next. ♪ >> welcome back to "bloomberg west." i'm emily chang. former alaska governor sarah palin became a household name which was the 2008 republican vice presidential nominee. her stances on issues have won her many fans and critics. now she will have a new platform to speak about her views, her own online news network. >> hello and welcome to a new project -- this is a news channel that's a lot more than news. this is a community, where we will be able to share ideas and discuss the issues of the day. we are going to find solutions. are you tired of the media filters? well, i am. i always have been, but we are going to do something about it. >> the sarah palin channel launched last night. it is a subscription-based, charting at just under 10 dollars a month. the channel is backed by tapp, an online media ventures. the founders join us now. a former nbc executive and former cnn executive. i know you guys were up overnight launching this thing, but what are we going to see on the sarah palin channel? >> you are going to see a lot of material broadcast directly from sarah palin's home where we have cameras and development of lace and mobile cameras so she can shoot on the fly. she will be posting material every day that's going to be arranged of her commentary on events of the day. she's going to throw some ideas out there to start conversations and show a lot of behind-the-scenes footage of their life up there and be responding to material for members post to the channel. she's issued a challenge to post their own things and start a conversation. >> is the difference between this and a 24-hour news network like bloomberg, cnn or youtube? >> it fits comfortably in between. this is a channel where sarah is the editor and make the editorial decisions. this is not a typical news organization that is gathering news from all over the world. it's trying to give you the best of what they can and the time that they have. this is sarah talking directly to her fans and having a conversation with people who think and believe in a lot of what she believes. >> i understand you guys are just beginning this new venture and sarah palin is just the start. what kind of personalities are you looking for? >> there is no limit to the kind of person who can succeed in this arena. anyone with an oversized personality, something to say, and a rabid fan base dying to hear what you have to say could do pretty well. we are looking at a whole range of categories from sports to lifestyle, cooking food, entertainment, music, finance, business intelligence, there's no limit. think about the person you idolize and who you would like to hear more from on a one to one direct channel. that's something digital video delivery can accomplish that traditional media cannot. you are not going to find individual people's channels on direct tv or on comcast. you will on tapp. >> these channels don't have to appeal to everybody. just your fans and fan base. you can have a direct conversation with them and you don't have to worry about the other filters the goods you are broadcasting to a wide group of people. these are people who have already let you know, whether through facebook or twitter that they are your fans and they want to hear more from you. >> glenn beck seems to be doing pretty well doing his own online network. can you give me any more specifics about who you are dream guest star? >> no one feels they are biased because they truly believe the things they're talking about and they're super fans don't believe there is bias either. we are looking for people who have something to say that's resonating with an audience that wants to hear more of it. they don't necessarily have to be controversial. you can be a musician who delights tens of thousands of people around the world in concert arenas and those people might want to be able to touch your world and have access into your life and why you wrote the songs the way you did and what you are performing and what guitar you play. there is no end to the types of content. you could be a wine connoisseur and just want to turn on your phone or tablet when you are on the go and learn more about your passion. >> sarah palin used to criticize cnn when you were there. what were those negotiations like? >> they were great. she's a fantastic person. she's a lot of fun. she's an amazing moose chili cook, by the way. i have eaten it up and alaska. she is really determined to have this direct connection to her audience, so it has been a pleasure. >> moose chili? i can only imagine. this is $9.95 a month and it will cost more if you want additional personalities. can you share any information about how you living the revenue between the personality and tapp? >> we really don't discuss the financials, especially individual relationships. but what we can talk about is the subscription model in general. it is superior to the advertising model online because the amount of traffic we need to generate to generate enough revenue to become profitable is much smaller than the amount of traffic you need to become profitable when you are advertiser-supported. any advertiser-supported universe, you need almost a l.a. and hits to generate $5 million a year. you need a fraction of that in a you need a fraction of that in order to generate $5 million a year in the subscription model. you need 50,000 subscribers and you are generating $5 million year. >> 50,000 subscribers -- is that what you are aiming to get? >> we don't have any particular goals. this is a new model for everyone and we are testing it. our goal is to generate enough money to cover our costs and anything above that becomes profit for all the parties involved. the primary goal is to talk directly to fans and have a community that we provide for the fans. we will see how it goes from there. >> cofounders of tapp, thank you for joining us. now it is time for "bwest byte," where we focus on one number our tells a whole lot. editor-at-large, cory johnson is in new york. what do you have for us? >> a very specific number -- the bwest byte today is dozens. trulia said in their conference today about their merger that they had dozens of multiple listing services that provide listings directly to trulia. zillow has none of these. the ability to show every house for sale in a given neighborhood has been a troubling one for zillow and i have been buying this data from third-party vendors. by biting trulia, they get a leg up in dozens of places and say they are well on our way and will add a bunch of the merger goes through. >> i wonder what this zillow-trulia megamerger means for other players in this space. what does it mean for them? >> those are different businesses -- one is a brokerage in a listing service. they have their own listings, but they don't pretend to show you every listing out there. trulia and zillow duper tend to show you everything out there. having things like condé nast or time warner, a lot of places were the same advertisers might have to buy ads, that is what the grand vision here is. they achieve some economies of scale and are talking about cost cuts in the next two years but they also get the benefit of having a lot of market share. >> what does it mean for users? the user experience on these sites are very different. >> one wonders. in it was clear from a conference call that they don't know how they're going to differentiate these. but it could become greater. you could imagine trulia becoming a higher-end thing and zillow more of a mass-market product for renters, buyers, sellers and so on. >> cory johnson in new york, thank you very much and thank you all for watching this edition of "bloomberg west." all the latest headlines all the time on your tablet, phone and bloomberg.com. ♪ these't miss inspirational stories of cancer survival in the following program brought to you by cancer treatment centers of america. about fighting cancer. a story about fighting complex and advanced stage cancers. it is not a tragedy as you might expect. it is a comeback story. these people,

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