President trump has picked the former president of eli lillys u. S. Division to become the next secretary of health and human services. If confirmed, azar replaces tom price. Global news 24 hours a day. This is bloomberg. Im emily chang and this is Bloomberg Technology. Coming up, the broadcom ceo says the Company Remains fully remained in the acquisition of qualcomm despite the rejection of their offer. We look at what is next for the mega chip deal. Uber has set the stage for one of the biggest private start of as softbank will have a bi a stake. Heating up in the discussions between at t and the government. First, qualcomm project broadcoms 105 billion offer, kicking off what would be the largest tech takeover battle in history. The chairman of qualcomms board issued this statement saying it is the boards unanimous belief that broadcoms proposal significantly undervalues qualcomm relative to the companys leadership position in mobile technology and our future growth prospects. What are the next steps . Joining me is ian king and ed hammond. Ian, i want to start with you because you spoke with the broadcom ceo. What did he have to say . Ian that was before this came out. He said i thought about this, what did he have to say . Im aware there might be issues, push back. I thought about all of them, i have talked to the customers and investors. Ed, what are the details, the bid and what happens now . Ed what is interesting here is we knew that broadcom was going to get pushback. I think they knew that as well. It seems on price rather than going to the scorched earth and saying no way this deal will get done. That was seen as relatively market and you saw that reflected in qualcomms shares which initially went down and went up when the bell opened. I think what happens next will be really important. Marketthey have shown a willino go directly to the shareholders and go hostile. They are probably now going to slate for the qualcomm board. Then it remains a question of how much money can they really put on the table. Almost certainly they will go above the initial salvo of 70 a share. Some talks are going in the mid80s but a lot of that depends on the feedback they get now and when they get nexget ne. Now . what happens ian that is a very good point. The assumption by the market is this is just about a prize. N atou look lower dow that statement, there is a fundamental difference in how you run a chip company. Say the good times are over and no more growth to be had. We need to back down the hatches. Qualcomm Still Believes it can grow and move into new say the e over and no not. Areas and that is absolutelyemily he hasf what he wants. Could this be the one thing he cannot make happen . Ed it is the biggest thing he has tried. A deal machine and built this company up through acquisitions, most notably the deal with broadcom. A differentstile, order of magnitude from anything he has tried. Even if he does get the shareholders of qualcomm on board, which is entirely possible, the real issue will be whether or not is passes the regulators. You are seeing qualcomms existing deals they are trying to put through in europe is being held up by the eu who is taking a very careful look at this. Even if this deal gets over the line in terms of the companies deciding to dance, whether it gets through the regulation hurdle is another story. Emily ian, how much is qualcomm really worth at this point given the potential of losing apples business . Ian it depends on who you believe. If you believe qualcomm management, it might get a bit of time. We could see a licensing model. Get that extra 2 billion of revenue are year. Year. It is worth much more than this, especially if you believe it happen,f it does not how does it reshape the chip landscape for them . Ian qualcomm has to prove itself, their management are the on the hook. They have stake in the reputation of showing growth. If they dont, particularly if they push this deal back, where does that leave them . Emily what is the next step . Ed we know broadcom has to make the next move in terms of buying the bid. For qualcomm, when of the interesting plays is how they factor in the deal in this. They could potentially increase what they offer to get that deal over the line. Will they get over the line in an extensive way in which it becomes unattractive . The problem is if they do that, potentially the shareholders will turn around and say this is ridiculous, you have overpaid just do not get bought out by a rival company. There are moves on both sides that could play out and i suspect you will see both parties do something that would affect the outcome of this deal. Emily ed hammond at ian king, thank you both. Alphabet continues to face more antitrust scrutiny in missouri. The state attorney general has opened an investigation on google manipulated search results to benefit its own products. He is also looking into whether googles great information fromut permission competitors. The announcement comes two months after yelp sent a letter complaining to google about regulators, congress and state attorney generals. Coming up, we will speak to William Hearst about his decision to launch a brandnew print magazine. Bloomberg technology is Live Streaming on twitter. Check us out weekdays 5 p. M. In new york and 2 p. M. In San Francisco. This is bloomberg. Emily vanity fair has named its next editor in chief. It is at the helm of the publication. She comes from the New York Times where she served as editor of the book department. She is known in the literary immunity. She will be the first female editor at vanity fair since tina brown in the 1980s. William hearst, the publishing magnate, unveiled a new magazine that focuses on culture, politics and the big issues impacting california. Traditional print publications have been facing headwinds to say the least. Naste said itnde was limiting issues like gq and glamour. Joining us is William Hearst, chairman of hearst. His family has had a special place in journalism for the past 130 years. Nice to have you on the show. You launched a new magazine which will be going out four times a year. Why launch a magazine now in this environment . William i think when you are starting a new business venture, especially something in the area of culture and the arts, you dont want to be in that super crowded field. I think announcing a new blog or website, we have been lost. As a publication, it has a certain permanence. It is quarterly so we dont have to keep up with news. We reflect on things that are happening. I was modeling what we did with a little bit of vanity fair and a little bit of new yorker. They come out more often so they have to stay closer to the news. This lasts a longer time culture, politics, technology, trends, larger scale movements. We thought print would be a easy way to do it. Nowadays, the print publication is mostly electronic anyway. Most of the editors work in different places. The printing is just the last step in the process. W e ar we are very ready to do anything we do in the Magazine Online almost simultaneously. Emily what do you think is the state of the magazine business as budgets are getting cut, people are being laid off, magazines are being canceled . William it depends on what you are doing. If you want to do a mass pop magazine, that is difficult. If you have a very focused audience and delivering something of value to them, like the economist, i dont see that as a failing business. The New York Times has had a giant search in attention because of the interest in politics. The Washington Post, when jeff bezos bought it, most publishers were saying he had a secret technological idea. Jeff bezos had an unusual idea run it like a newspaper. Report the news, get it straight. Underneath the nose of the Washington Post is washington and politics. The Washington Post newspaper in the old days sort of wanted to be the New York Times. They were opening bureaus in singapore, trying to cover the world. They were a little unstable. Bezos, they are covering what is under their nose. Cover politics, coverancisco should technology. You are entering a crowded field. Emily what do you think of jones as the head of the vanity fair . William it is an interesting choice. A cover technology. Book choice rather than a popculture choice. I will be interested to see what happens but i think they will continue to have very good writing, very good photography and maybe more culture and less politics but that is a guest. S. Emily Raymond Carter took a a very tough stance against President Trump. William she knows how to mine old criminal cases and modern stories and melded into a unique conversation. Himself thought that things were changing. Emily budgets are getting cut. The big glossy pages, maybe they wont survive. Emily awilliam there were also lifestyle issues. Big black cars for everybody, fancy restaurants. Thehearst company is in newspaper business and we run a businesslike operation. It is a business reality. Emily what would your advice be to jones . William i hate to give it away because it is advice i want to give to myself but i think arts and culture are a very enduring interest area. More people going to museums and ballets than go to sporting events. Why do people who work in Silicon Valley want to live in San Francisco . It is not because stanford is here or because hewlettpackard was that i found here. It is because of the city. That is a part of life. That is what our magazine addresses. Emily we have been talking a lot about digital platforms and the responsibility in the age of fake news. What do you think is the responsibility of facebook and twitter . William i think news is news. Fake news is made up stuff. Emily fake stories. William what bothers i think the terminology is wrong. I think i dont believe in the trump terminology. I believe there is opinion and commentary which is very much what modern news has become. People sitting in a studio discussing things rather than reporters covering the news. Emily some of the news is actually inaccurate. William some advertising is inaccurate. Those things have to be right. If it is not accurate, it is not news, it is opinion. An opinion can be wrong, it can be interesting, but it is a completely different genre. If you let everyones opinion be the same, you are in the commentary business. Me, you have to get the names right and the fact right or you get fired. Emily if you let everyones opie the what is the responsibility of facebook . William i think you have to pick. Every business has we are a commentary business and we are good at it. Or you can say you are a News Business like bezos did with the post. Emily they say they are a tech business. William they are a tech business and a much better tech business that most Media Companies are, but Media Companies are better at gathering news that facebook is. There are National Business boundaries between tech. I think what has gotten facebook in trouble is they are selling advertising. Once you are selling advertising, you are playing by a different set of rules. Fox is mostly commentary and sells advertising, but they have to account for where these ads come from and how to report it certain ways because they are taking political ads. Facebook and decide tofacebook a commentary or news organization, it does not matter, but in the zone of advertising, you have to play by those rules. Emily William Hearst, great to have you on the show. William thank you. Emily coming up, things are heating up between at t and the Justice Department over the time warner deal. We will take a closer look at what is holding up the 85 billion merger. This is bloomberg. Emily at ts fight with the Justice Department over the time warner deal is headed for thanksgiving showdown. Officials have told at t to address their concerns about the 85 billion merger before the november 23 holiday. If not, the government could file suit to block the deal. Earlier, bob spoke with bloomberg about politics possibly getting in the mergers way. Administration, anything is possible. Look, as you know from your own experience, the people who populate these agencies are well intended, hardworking people. Buy the political angle despite the comment that President Trump made about the deal. A lot of things about this president has been i think there is an issue but in their mind. Whether or not that leads to a remedy, hard to tell. It is a vertical transaction. I cannot think of a vertical transaction being blocked. The concern is somehow they would use their position to disadvantage other suppliers of programming. Are they really going to take that the court . Bob that is really hard to tell. Im not involved in the deal. On the outside, i dont have a better view than anyone. You would think that basically a nolanam would not take on ryan in his prime. You would take on somebody on a decline. It is hard to tell but there is a lot of talk. Was pretty tough so we will see. These vertical deals are solved by agreements, unlike horizontal deals where there is an issue. Agreement thatn i will let other people buy that stuff. You remember last year before the election, a monster october m a, and then things cause for a bit. If you are a ceo from a Large Company and the tax bill does not have a stamp of approval yet and you are sitting there and watching this deal play out and the theater around it, does that make you hold back or do you see things pick up . Bob things have picked up in the last six or so weeks. The larger deals have a larger period, butestation things are very active. This was actually a very active year in an under i hate to say it but under 1 billion does not make the front page of the wall street journal. Things are very active right now. The financing markets are fabulous. You look at what news reports are in broadcom, no problem with financing. 100 billion. That is like a nation. The debt market in the past couple of weeks. Bob the Deal Financing markets are great because the banks really make money. They hope they dont have to loan it. Broadcom and qualcomm on the table which could be the biggest tech takeover ever has some time to play out, but the tax reform, tax cut story is interesting. Do you expect any of that money to come home and actually be used beyond dividends and buybacks but to be used for transformative deals . Bob the Biggest Issue is there is nothing exotic in them. We can talk about the individual race but things like border adjustment tax, that was a big negative because how do you value an Auto Parts Company or retailer or anyone who gets hit significantly . Repatriation, we have been talking about it for years. People are starting to think it is real. Think it will have it will be some of all of the above. Pay down debt, do all of that stuff. Thinkit provides fodder for moa especially if you are in a gargantuan company which is somebody who probably needed to put equity in the deal. Guy point ofls view and a push and pull on the one hand, you did not wait until tax upon his pinned down, but on the other hand, is there any concern the market may not be this favorable . Bob i think it tilts to the latter. Repatriation itself, that could have an effect on rates. On treasuries out and bring the money back, that would push rates up so who knows . Years talkingese about repatriation, we will not have tax reform but some things will happen and repatriation seems to be one of them. Emily that was the global chair of m a bob profusek. Coming up, we will check out what could be the largest private start of deals ever. Details on softbanks multibilliondollar investment in uber. If you like bloomberg news, check us out on the radio. You can check us out on the app and bloombergradio. Com. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. You are watching Bloomberg Technology. Lets start with a check on your first word news. The u. S. And philippines say President Donald Trump and agreed touterte mainstream the human rights agenda in the respective countries. They met today. Sarah sanders did not say if President Trump had been critical of dutertes violent war on the illegal drug trade. Kentucky republican senator rand paul is back at work after recuperating from violent injuries he suffered earlier this month during an altercation with a neighbor. Paul, who says hes still in pain, thank people for their support in a tweet. Pleaded not guilty cost es let me pick up. Lets have a quick look at the markets being called early in the asiapacific. New zealand is the only market that is open at the moment, up a quarter of 1 . Looking at futures right now, it does look like we might get some broader decline but lets do a fair value calculation. What were looking at its being called on the nikkei 225. A 300 point decline on the index. Im doing a fair value calculation give or take. We might be opening flat, maybe slightly lower depending on how the dollaryen moves from here. Can we get the dollaryen and currency chart up to give you an indication . A a few other things to mention, just before i go, we have a lot of data coming through in the asiapacific. Earnings coming through, retail sales out of china and new a a few other things to mention, just before icredit data out oft close on monday. If this is coming out of australia, but broadly speaking we are looking at a fairly moderate start to this trading session. We have come very close to the record high last week. A lack of corporate catalyst when you look at the corporate pipelines which is 10 of