Barred from the upcoming a lipid games following recent allegations of doping and a coverup by Olympic Games following recent allegations of doping and a coverup by russian authorities. Global news 24 hours a day powered by 2600 journalists. I matt miller. This is bloomberg. Emily im emily chang and this is bloomberg west. Historic, and tech deal marks the end of yahoo as we know it, and a cyber scandal on the eve of the democrats big week. And we will focus on the men leaving apples worst kept secret project. First to our lead yahoo buying price and yahoo four 4 billion. This concludes a sevenmonth project that began in january. The deal also effectively ends the turnaround efforts of yahoo Ceo Marissa Mayer, whose appointment in 2012 was celebrated by wall street and Silicon Valley, or she is staying on for now. I spoke with her today and asked what horizon could do for yahoo that yahoo could not do as and then the company. Take a listen. I think there is tremendous scale from the different assets they have been investing in. And we have reinvented our products. We have tried to make yahoo mail perfect for the phone, very proud of where yahoo mail, that client is today. The same thing is true for news, weather, sports, finance. We have our cornerstone applications that when the users use them, they engage with them, they love them, they engage with them every single day. For us, verizon has tremendous distribution. That is one area that we are excited about. Its just a huge amount of scale. You plan to stay. What role do you envision in this new entity . Will closeely we in q1. My immediate priority is seeing the transaction through the close, but also watching the assets andr asian the equity stake we have there. Moving forward, we will figure it out. It will probably look different. We have a lot of time going through the acquisition process leading up to the announcement. We have been in the auction process. We will sit down with the folks at verizon and aol this week. As versus integration plans. I love yahoo and its really important to communicate the next chapter. Emily you came here with so much possibility, so much hope youre it you wanted to restore yahoo , bring search back. How do you feel about this outcome . It. Feel very good about yahoo is a company that changed the world, and not very Many Companies can change the world. If you think about it, before yahoo , the internet was a Government Research project. The emailumanized andunt, popularized search realtime media. Thats really amazing. For me, it is how do you take all of those hysterical historical moments and have the paradigm shift to mobile, and when you look at the businesses, we are proud. A billion users, 600 million coming through mobile. That has tripled over the last three years, in large part, we think, because of the quality of the products and the investment we have made, and there is an incredibly powerful Transformational Company that. As changed the world its incredibly important. Obviously, this transaction is not just about the strategic deal for yahoo , but also unlocking value for our our shareholders. This was an opportunity to kill two birds with one stone, so to speak. Emily do you think having an activist investor made it harder, make your job harder . I think the company has various active agendas around it, around the past few years. At i think you should always be open to challenge, always open to scrutiny. Elements certainly that become more of a distraction. But the challenge is not something i would shy away from. Emily uncertainty you have to stay focused through it. Im really proud of how the this executed through process, through this uncertainty. We have exceeded our goals for the first half of the year and we want to keep that momentum going. We will have that for the operating businesses in the future. Emily you said if you have three more years, you could turn this company around, you could want a choke up list. Do you think you could have done more if you had more time . I think we could have accelerated growth. That is the part of the deal with verizon im excited about. Base is up 55 over the last four years, with mobile usage tripling. We have a large legacy business that has been declining. Im incredibly power incredibly proud of the growth we had. We can go to 1. 6 billion of revenue. That we can keep in either scenario the amazing growing and im proud of the acceleration of that effort. Want what do you really to do next . Will you be a Public Company ceo again . I know you love products. Do you want to be abc . Do you want to start something of your own . Involved in a product that change the world. I got that at google. I got that at yahoo . I love all phases of the company. Managed google i 100,000s, and i love all phases of the company. I love, you know, the effort and the energy and the hard work required to stem decline. Is so, you know, all of that really exciting to me. But its really about being able to be part of the company that will transform culture and transform peoples lives. Have three children. Your decisions around parenting were highly scrutinized for whatever it is worth. But how has that is such a big accomplishment. How has motherhood changed you and change the way you lead and your approach to business . I think you learn so much about yourself and having children. My children are just amazing. Being a mother is incredible experience overall. I havened that quality time with my kids, but i love to work. I love to have impact. I love to talk with them overall about it. My parents were over this week and yesterday, my son came out and he said, ok, so you are going to go and do your board calls and then i am going to play ball and we will have dinner. And i was like, ok, and my parents were laughing that my three and a halfyearold knows when my board call is. But to me, it has been a blend of my style. I get my quality time with them and watching them grow and learn and my background was artificial to watch at, and your own children learn is just incredible. But its also i love to work. I love to have a big impact. I love to have that space to bond with them over, and for me, it is really important to keep going. Up with a to come blended working style that incorporates them, but still allows me to prioritize is important. How conversation with yahoo Ceo Marissa Mayer there. Of next, we will dig deeper into Marissa Mayers tech legacy with an exec who was there from her formative years at google. 4was 4 million billion a steal . What verizon gets out of this deal. Plus, sprint posting its 16 straight quarter of subscriber gains. Investors to get is a sign of progress for the ceo who has been using aggressive promotions. This is bloomberg. Emily picking up on our top story, the end of yahoo as we know it after months of speculation, verizon is buying and for the time being, seo Marissa Mayer is not going anywhere. Our guest worked alongside Marissa Mayer at google, and also joining us, the former head of yahoo s Global Business department, and with us for the bloomberge hour, hour contributing our bloomberg contributing editor. You know her very well. This was the outcome she was opening for in the beginning all these four years ago. How much of a success or a failure is this outcome for her . Yeah, i think it remains to be seen what happens over the next six months for sure. I think she has committed for at least the next six months, to see through the integration with verizon. Its a disappointment for me, i think for a lot of entrepreneurs. We came in, she came in with high hopes. She probably would not say, but its got to be sort of disappointing to her, and yet it could still turn into a success for the next chapter with verizon. You worked for her, worked at yahoo is there hope for yahoo , or is this a declining business . Im quite hopeful in terms of the combination of assets with regards to aol and yahoo under the umbrella of the verizon partnership. The platform is fantastic. They understand the business. They really get it. They know what they are investing in. If you combine the two, and media, the challenges that google and the challenges that google and facebook own the lions share of the market. How do you take your unfair digital mediat in advertising. That will be the way to judge the failure or success. We spoke to Tim Armstrong this moment on bloomer television. Take a listen to what he had to say. On bloomberg television. Take a listen to what he had to say. Of aol,ombination verizon, and yahoo is a very strong partnership. People focus on facebook and google, but if you look at the hundreds of media companies, Internet Companies, being number three with an opportunity to gain market share is what this deal is about. For the verizon site of the house, this is a very smart top. At you look at the five Internet Companies in the world, their valuations are in the hundreds of ilions. Has gotten into this space for an investment of around 10 billion. I think if you look at this and we are number three with a very reasonable investment and you have a very Hardworking Team of people at yahoo , at aol, and verizon, are going to work well together, this is a very strategic deal, a very important deal for the future. I think our market share is only going to grow based on our opportunity to scale. Emily david, some are saying 4. 8 alien dollars is a steal 4. 8 billion is a steal. Others are saying this is aol time warner part two. What do you think . David i think tims point is a very legitimate one. If you believe this has atential to be with to be contender with those other two. 10 billion is not a lot of money for verizon to get into a completely new business, getting away from being a dumb pipe. But i think google and facebook have shown what it is. It is extremely Sophisticated Technology that allows targeting of individuals based on deep knowledge of who they are. That is the thing yahoo fundamentally lax, and fundamentally lacks, and aol badly. Ess, but lacks they do not seem to be at the level of competing with facebook or google with online advertising. On the other hand, they could be a small Growth Business compared to the other to do. For 10 billion, not a bad deal. Emily Marissa Mayer is staying on. Take a listen to what marty martyd to say walder had to say this morning. This is different. Its important that we spend time with the Leadership Team this week. It she will be key to successful integration. I will leave it at that. We will come back when it seems right, but is premature to talk about. Emily it sounds like she is staying for now, but what you think is really next for her . Sure. Withhave done integration ale well, so they have some experience. That leads me to be helpful. There is no chance that marisa is going tuesday at verizon. I dont think that is a culture fit in the longterm. I think she is committed to the transition. She says she is going to help yahoo enter its next chapter. I dont think she said anything. Bout finishing that chapter that people saying emily do you think she would want to do that . Says but i think there will be the opportunity to can it or that for sure, perhaps in the right partnership she would fit in. I hope that she stays on the product side, building something herself. But i am excited. We are going to see the next chapter for sure and i dont because going to be in verizon. Do you think she will do a good job . I think the challenge is understanding the target audience. Thehe reviews point, audience for advertising was based on brands and advertisers from madison avenue. They have a model around consumption on mobile applications. But a lot of innovation occurs. Particularly in native advertising. Search was threaded and much more elegantly and the applications through the applications built under leadership. She dobut what did wrong . Ultimately it was a turnaround, and without that asked areas him a it was challenging to write the without that experience, it was challenging to right the ship. The advertising peace and never really stuck. They have the text that that is quite sophisticated and you combine that with search in native advertising within noble, and is essentially an opportunity within mobile, it is essentially an opportunity to grow within the race. You think thewhat legacy of Marissa Mayer is at this point and to the end of . Ahoo this historic icon of Silicon Valley. David it will always be historic. Its just a question whether its a declining history. I think she gets the credit for taking an extremely tough task on. Nobody thought it would be easy to turn around yahoo , and lets face it, she did not exactly turn it around. I thought it was great in your excellent interview with her and congrats on getting that, by she talked about the thinke, which i do not the world has focused on that figure if it is accurate and i guess it is if she is saying it. She has very much been the victim of sexism from the day she walked in there and with the extra scrutiny, people talking about the wrong things, partly because she was a woman, and i think that made her job somewhat harder. But its imperative to listen to our in your interview and hear that she has come out of this pretty formidable, i believe. I think she has got a great future. Emily do you guys think investors were harder on her because she was a woman. I dont think she failed because she was a woman. Harderbut were investors on her because she was a woman . Was public scrutiny more intense because she was a woman . Yes, i think there was more public scrutiny on her being a woman. Some of the personal stuff was really hard. Always talking about what she is doing with her children, her work from home policy and judging that. That has got to weigh on her. So, im sure that there was a component. I wish that there were more women in leadership. Unfortunate she was a lightning rod for attention. Andras,ll right, many, david patrick, are contributing editor you are staying with me. Who is responsible for the hackensack on the Democratic National committee . Some are going to russia. This is bloomberg. Emily now to a stop we have been watching. Now to a stock we have been watching. Microsoft a bump as analysts have been boosting estimates for the Semiconductor Maker for the last two weeks. And shares of nintendo over 70 today, the most since 1990. This after the Company Announced that it will only see limited financial benefits from the worldwide smash hit pokemon go. Up Cyber Security pointing to the russian government over the dnc hack attack. What will officials be looking for . If you like bloomberg news, check us out on the radio. This is bloomberg. Matt youre watching bloomberg west. Your first check of word news be the Democratic National convention is underway with reports that Hillary Clintons campaign has asked Bernie Sanders to encourage his supporters not to boo. Tos held an urgent meeting come up with a plan to avoid or quell disruptions. Heels that a the Cyber Security breach revealed staffers favored Hillary Clinton and try to undermine Bernie Sanders. The b Wasserman Schultz has stepped down because of that. Bernie sanders is scheduled to speak tonight. Gleason fort myers florida say an overnight shooting at a nightclub was not an act of terrorism. At least two people were killed and 17 wounded. The victims ancient in ray victims range in age. Police in munich are questioning a friend of the teenager who went on a shooting rampage last week. Speculation he may have known about the plans for the attack. The 18yearold killed nine people on friday before killing himself. Michael jordan has long discouraged sharing his political views but he discourages he writes, i have been deeply troubled by the deaths of africanamericans at the hands of Law Enforcement and angered by they cowardly targeting and killing of police officers. Global news 24 hours a day powered by 2600 journalists and analysts in one hundred 20 countries. This is bloomberg. 830 Tuesday Morning in sydney and i will hand it back to bloombergs paul allen to look at the market. trading about 1 5 of 1 following declines in the u. S. Futures indicating a modest three point gain on the local market. Shareholders and other creditors will collectively take a 260 million hit on that. This media reports in japan that the government is going to double its fiscal stimulus package to ¥6 trillion. Just a final word on south korea gdp. A slight rise expected to 2. 9 . Bloomberg tv and sydney australia. Is investigating a massive hack attack on the Democratic National committee. Leaked emails Shows Committee members favored Hillary Clinton and undermined Bernie Sanders. The revelations have been distracting day one of the convention with attendees chanting and booting from the floor. The hack has been traced to joining me now my cohost for the hour, David Kirkpatrick. Here with me in san francisco, a former white house director of finance Security Policy legislation. Where does the fbi begin here . What are they going to be looking into . They are going to be looking for more data to figure out who did this. Attribution is very difficult but if they can get more forensic evidence and potentially some other sources of intelligence to corroborate that, that will make a stronger case. It certainly is inconsistent with russias overall am oh. How hard is it to find out where they got into the system,