Hes charged with providing Material Support to terrorists. Global news 24 hours a day powered by more than 2700 journalists and and analysts in more than 120 countries. This is bloomberg. Emily im emily chang and this is Bloomberg Technology. Emily im emily chang and this is Bloomberg Technology. Coming up, goodbye, ireland. Declares it would no longer final taxes to its irish subsidiaries. Walt disney and 20 three fox still in talks 21st century fox still in talks. What it means for bob iger. Of twins joined the ranks billionaires thanks to bitcoin. Toshiba and Western Digital have agreed in principle to settle their legal dispute over the sale of toshibas flash memory business. Toshiba agreed to sell that business for 18 billion. We will have more for you on that story later in the show. We will continue to bring you all of the details. First, i want to bring in matt larson for more. As we understand it, we knew they were reaching a settlement but the terms of that settlement we know. Walk us through the turns. Erms. Mark i have had not a chance to look at the terms. Western digital sandisk was disputing that toshiba has the adequate rights to sell interest in a joint venture between Western Digital and toshiba. May have been in litigation in california state court, arbitration proceedings that were set to conclude in the First Quarter of next year right around the same time as the sale needed to be completed. It was in both Companies Best interest to bring this lawsuit to a close. It looks like they were able to reach a deal. The details of that deal are being released now. It has been rumored that the companies were getting close to some kind of agreement. It looks like the agreement was approved. Lawyers have been able to draft up legal documents. Both companies will be better off in putting this dispute behind them. Emily what is the significance of this in the context of a rapidly consolidating chip business to potential big takeovers brodcoadcom and qualcomm. Is the relationship . Matt there is consolidation. And a lot of companies are looking at where they are going to secure supply. How those supply chain relationships are going to be are going to be consolidated, whether they are going to be secured. For Western Digital, this is certainly a big deal in securing their chip supply into the 2020s. Western digital and toshiba have been collaborating on a number outputerent paths to memory chips. You are seeing a lot of jockeying and companies trying to figure out where the next generation of chips will be manufactured. Whose technology is going into the chips. Most apparently, who is actually manufacturing the semi conductor. Emily we will be listening in that call 30 minutes from now. Matt larson for us in the newsroom. Thanks for breaking it down. Facebook is changing its tax structure. The company will start to pay taxes in the countries where sales are made rather than funneling through the irish subsidiary. Facebook has come under pressure for its tax practices, specifically routing u. K. Based sales through ireland. In the states, it is locked in a battle with the irs which may cost them more than 5 billion, plus interest and penalties related to the irish operations. Joining us now is sarah frier who covers facebook. It seems like it would make sense they would pay taxes on which the sales are generated, right . Sarah it does make sense but these companies exist on the internet. They have been able to be very decidee about where they book that revenue. Most of the advertising revenue will still be book that revenue. Most of the advertising revenue will still be routed through ireland, but this is a big win for the individual countries, for italy, germany, france places that will collect taxes from facebook. Cases, the actual tax rate for facebook in one case a paid 6,000 in taxes in a year it is move does not necessarily mean that facebooks overall taxes will go up. Emily why not . Sarah it could end up being the same rate for them, it is just going to be very complicated to implement. In the report today that broke the news, they said it might not be fully operational until the end of 2019. This change is a long ways away. Facebook is just letting us know now. Emily what do you make of the timing of this . Facebook is under pressure for fake news and many other things. Sarah this is a very critical moment for the company, where they have to make sure they are on the good side of the governments they are working with. In some of these jurisdictions, there are elections were they have come under pressure for the way information is spread on their platform. That have been asked to tackle isis accounts spreading in europe. The company is working with government and regulators on those issues. Also, they were not going to be able to use the same tax rates in ireland for much longer. Emily you have an excellent news, whereout fake it gets propagated. Where you interviewed someone who has created very partisan and in the limitary news. You talk about how facebook is fighting that battle. Selina news, where it gets propagated. Wang who covers twitter for us, here to talk about an buzzfeed onpiece in how steve bannon and breitbart tried to manipulate the steve bannon and breitbart tried to manipulate the weaknesses in twitters policy. Selina, i will start with you. What was the just of this article gist of this article and how did bannon and breitbart manipulate twitter . Selina the real crux of that story was bannon an breitbart were trying to seek retribution. Annon went on this hunt for legal and editorial wave to damage twitters reputation and devalue them. To get shortsellers really galvanized about this company. I think at the pinpoint of this shows the philosophical conundrum twitter has been under how do they maintain this open platform, while not allowing abuse to run ramp pent . There is always going to be people seeking intense backlash. Pent . There is always going to be people seeking intense backlash. They wanted to be the free speech wing of the free speech party. They dont want to be the arbiter of information and neither does facebook. They just want to be an open townthey just want to be an open town hall people to say whatever they want and say if it is good or bad and they are handsoff. Emily in which has been a bane of their existence. Sarah the profile saw this call of action, the fact that facebook was neutral. They would allow content that is viral. How do you make the best viral content . It is outrageous. It is something that will spark emotion, partisan. He was building a website that went even further than fox news in terms of conservative leanings which often veered into fake news. Front what we were talking about with twitter, facebook has had to make the same decision. Of this content to we limit it . Do we ban it . Do we removed rankings in the newsfeed algorithm which is similar to twitters verification check mark. Veryally this year, his popular conservativ website does get crushed i facebooks fake news efforts in their change of the algorithm rankings. Emily producing the same thing but it will not be viral. Will it be allowed in facebook . Sarah the thing with facebook, they are trying to dampen this stuff from going viral, but they dont want to be the arbiter of truth just like twitter does not want to be. They dont want to exclusively say this cannot go on our platform. That brings up free speech concerns even though facebook and twitter are not governmental bodies. They understand their power over global conversation. That want to be seen as censoring anyones ideology. Emily which brings us to the controversy we talk about about the president being on twitter and using it to what many people nflame, harass and many question whether twitter should allow him on the platform. Selina there are members of the own Safety Council who dont want President Trump on the platform because Cyber Bullying if it were a regular user, the police of twitter would kick him off. Theter tries to weigh newsworthiness against the tww eets. In the case of donald trump, we heard from the executive chairman that they like that trump is using the platform. That Global Leaders are turning to twitter as their first mode a few can indication because that is good for twitters user engagement, keeping news overall awareness for their brand. And twitter as an overall zeitgeist. They were able to get this over the concern of users that trump is not a healthy addition to twitter. Twitter. Emily comments from a former facebook executive, news overall awareness for their brand. Speaking at a conference at Stanford Business school last month, he said i feel tremendous guilt. It literally is at a point where we have created tools that are ripping apart the social fabric on how society works. He never said facebook by name but many people believe he was talking about facebook. Facebook has now come out and really hit back on his comments in a very unusual move to talk about a specific persons comments. What do you make of this whole situation . Sarah i think the most unusual thing is facebook pushing back. We have seen people comment on facebook and how facebook is destroying society forever. This year, we heard it from shaun parker. There was a big book last year from a former facebook employees that really skewered the company. The company usually stays quiet in these circumstances. What he said mustve really angered someone at the top. He is basically using this moment to cement how he wants people to think about him and his contributions to this legacy. He was big on the Facebook Team back in the day. This is a moment for him to come out and speak within facebook, theyre probably worried they are using it opportunistically. Emily do you think within facebook at the moment they are questioning this issue . Oh, no, what did we create . Selina absolutely. This is essential to Mark Zuckerbergs evolution. Over the course of the year, he change the companys mission statement. Instead of connecting the world connecting the world is not necessarily get you to be in good for the world. In he wants to create bonds the community, do something good for the world. He has done a lot oof stuff on the side. This company is thinking about what kind of role they can have in the world longterm. That said, these are all very difficult decisions. Do you take down the fake news page . Do you let it up and derank it . Do you flag it as disputed . These are very hard questions they would have to consider. Not just take news, but harassment. Fake accounts. These are all things maybe even having bigger impact in other countries than they are in the u. S. And look great has gotten us here. Emily very wide spectrum. Thank you both. The story of 2018 perhaps. Coming up, talks continue in a possible the of between 20th century fox and walt disney. How this plays into disneys business in streaming content. Bloomberg technology is Live Streaming on twitter. Check us out 5 p. M. In new york and 2 p. M. In San Francisco. This is bloomberg. Emily we continue to watch the deal talks between 21st century fox and disney unfold. It is walking away with a financial asset sale. Who gains the upper hand in the megamedia deal and what does it signify about the landscape about the major Hollywood Studio . Stan meyers joins us on the phone. He currently has an overweight reading in disney. Joining us also is cory johnson. Stan, what do you think of the opportunity here for disney . Stan thanks for having me to discuss this mega deal. At the core of the deal is about disneys ambition to reshape its future. It wants to broaden its competitive mode. It wants to improve its Companies Growth profile. Obviously, the rt assets internationally it is looking at assetse are key internationally it is looking at with fox. All the content that will come with it. Ipiously, fox has a lot of that disney can develop and ip that disney can develop and monetize a lot better than most. Emily cory, what are the risks of this deal . Cory there are a lot. You really have to look at the different parts of the business. Obviously, the risk always in hollywood is the ability to deliver hits. It is a hit driven business. It is true fox and a lot of same assets disney to create content, even marvel superhero content, but has not done a good job. That core performance could continue to follow fox into the arms of disney and is truly the greatest risk. I think another existential risk of this deal no company should know better about the problems of Cable Television right now. The move from fat bundles to skinny bundles and unbundled content, going over the top, pulls away from espn, disneys cash cow. Now you have been paying a lot of money to acquire fx, part of national geographic, other cable assets, even as we see people wanting skinnier bundles or no bundles at all. Doubling down on something that is not working is often a badase wanting and seems to be the most existential bet for disney right now. Emily im curious what this means for hulu. Disney happens, thi would become the majority owner with hulu. , with competitors like comcast among the minority owners. Do you see the Ownership Structure changing even more if this happens . Mean, i think comcast will likely pull out its stake out of hulu. I dont think it wants to be a minority partner with disney. Disney would have to chart its own course with hulu. Primarily, the focus here is to continue to build a directs the o Consumer Product that could compete and reshape the future of tv. Emily what do you think the International Implications would be here, because it could significantly impact the International Footprint given the sky assets . Cory the india assets might be the crown jewel of all of this. It is the one thing everywhere else, studios, Cable Networks not even doubling down, just adding more of what they got. Who knows if they keep the actual fox physical studios that they have, some pretty valuable real estate in central city in los angeles. Interesting looking at what they are looking at in terms of india and their ability to broadcast in europe, with the partial ownership of sky interet what they are looking at in terms of that could come with this deal. And their ability to get that all done. That is part of the story they want to tell analysts. Knows so well, analyst day for disney is thursday. Disney would love todisney wouls announcement the moment the markets close on thursday and say we have a whole new set of ideas for you. Isnt it great . Lets tell you why. Emily lets tell you why. Emily speaking of timing, this deal would come towards the end of bbob igers tenure. Stan, what would this mean for his legacy . Stan again, hes charting his course. He has been trying to retire for some time. I think he wants this transformational deal to remain his legacy, to become his legacy, combined with all the other deals he has done over time with lucasfilm and pixar in the past, and espn that he helped build. I think what is important is to chaperone, take this deal and make sure the integration goes smoothly and disney comes out on top at the end. Emily stan meyers, analyst at piper jaffray. Cory johnson. We will continue to chart the drumbeat to a potential deal in the matter of days. We will be watching and bring you all the latest headlines. Coming up, tesla just scored another big order for its semi trucks. We will bring you the details, and how much money it could bring in for the company. This is bloomberg. Emily tesla is getting its biggest no truck order yet. From patsy. It is worth an estimated 2 million. Anheuserbusch has ordered as well. Production is set for 2019. The tesla trucks could generate as much as 3. 5 billion in annual revenue for the company. Comcast spent years fighting the obama era internet regulations known as Net Neutrality that kept it from charging Web Companies to boost their contents fee. Now the Cable Company says it will not do that if the fcc repeals the rules later this week. In an email, a spokesperson said any reporting of privatization is inaccurate and false. Apple became a Public Company 37 years ago in 1980. Steve jobs was 25 at the time. The company sold 4. 6 million shares at 22 apiece. Since that first day ofapple be7 years trading, 49,000 re up more than thana market cap of more 800 billion. Coming up, the winklevoss twins may have missed out on becoming facebook billionaires but now bitcoin has been joining the than 800 billion. Coming up, theclub. Who elses in the ranks . That is next. Check us out on the Bloomberg Radio app, bloomberg. Com and sirisusxm. This is bloomberg. Check us out on the Bloomberg Radio i am alisa parenti. You are watching Bloomberg Technology. Huckabee sanders defended President Trumps tweets attacking Kirsten Gillibrand senatorter the new york demanded he step down over allegations of sexual misconduct. About the wayng our system functions as it is, politicians beg for money. That is nothing new. That comment is nothing new. Pass comments the this president has made, he has used that same terminology many times with relation to men. There is no way this comment is sexist at all. S imply that he is making a crude reference. Elizabeth warren tweeted the following. Agreed to lower the top tax rate for individuals to 37 . Also say negotiators agreed to set the Corporate Tax rate of 21 as part of lastminute negotiations. Lawmakers are working to deliver the sweeping tax overhaul to President Trump by christmas. The french president is hosting 160 four World Leaders and Business Leaders and prominent figures fighting Global Warming together.