Killed numeral for black girls in an infamous church bombing. 4 black girls in an infamous church bombing. The president once again urged voters to support roy moore. Meantime, Vice President mike pence has been silent on the election, which has split the republican party. He has not commented publicly since november 9 when a spokesman called the allegations against roy moore disturbing. In new york, a pipe bomb suspect faces federal charges. Is charged with providing Material Support to terrorists. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Emily im emily chang and this is bloomberg technology. Coming up, goodbye, ireland. Facebook declares it will no longer funnel taxes to its irish subsidiaries. Walt disney and 21st century fox still in talks. What it means for bob iger and his legacy. The winklevoss twins join the ranks of 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. Theres going to be a call at about 30 minutes. We will continue to bring you all the details, but first, i want to bring in a Bloomberg Intelligence reporter for more. We knew they were reaching a settlement, but now we know the terms of that settlement. Walk us through those terms. Mark i have had not a chance to look at the terms. They are still coming out. Western digital sandisk was disputing that toshiba has the adequate rights to sell interest in a joint venture between Western Digital and toshiba. They 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 broadcom and qualcomm. Is there a 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 of different paths to output 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. We will bring you any more headlines as we have them. 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 creative about where they decide to 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. Emily in many cases, the actual tax rate for facebook in one case, they paid 6,000 in taxes in a year it is infuriating. Sarah it is. You have facebook, google, apple all of these companies trying the best they can to manage their tax issues. There is talk of repatriation of cash. It will get a little harder for them. In terms of numbers, this 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 story out about fake news, where it gets propagated. Where you interviewed someone who has created very partisan and inflammatory news. You talk about how facebook is fighting that battle. Selina wang who covers twitter for us, here to talk about an interesting piece in buzzfeed on how steve bannon and breitbart tried to manipulate the weaknesses in twitters policy. Selina, i will start with you. What was the 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. It seemed like the platform was silencing conservative voices, especially the writers of breitbart. Bannon went on this hunt for a 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 rampant . To a certain extent, they succeeded, right . 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 what is appropriate information and neither does facebook. Thats very murky territory. They just want to be an open town hall people to say whatever they want to say if it is good , or bad, and they are handsoff. Emily 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. How much 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. Basically this year, his very popular conservative website does get crushed by facebooks fake news efforts in their change of the algorithm rankings. It is just not profitable to run anymore. 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 believe inflame, harass and many question whether twitter should allow him on the platform. That is exactly right. Not only users, but i have spoken to a member of their own trust and safety council. If it were a regular user, the belief is that twitter would kick him off. Twitter tries to weigh the newsworthiness against the tweets. 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 numbers, engagement, keeping that in the news overall awareness for their brand. And twitter as an overall zeitgeist. They are willing to put that over the concern of users that trump is not a healthy addition to twitter. Emily comments from a former facebook executive, 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 sean 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 . Sarah 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. Now he wants to create bonds in the community, do something good for the world. He has done a lot of 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 deal between 21st century fox and walt disney. How this plays into disneys big bets on streaming content. Bloomberg technology is Live Streaming on twitter. Check us out at 5 00 p. M. In new york and 2 00 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, there are key assets internationally it is looking at with fox. All the content that will come with it. Obviously, fox has a lot of 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 bad bet and seems to be the most existential bet for disney right now. Emily im curious what this means for hulu. If this happens, disney 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 . Stan yeah, i 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 to 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. It is 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 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. Stan knows so well, analyst day for disney is thursday. Disney would love to have this 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 speaking of timing, this deal would come towards the end of bob 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 semitrucks. 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 semitruck order yet from pepsi. It is worth an estimated 2 million. Walmart and anheuserbusch have 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 obamaera internet regulations known as Net Neutrality that kept it from charging Web Companies to boost their content 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 is inaccurate and false. On this day, 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 of trading, shares are up more than 49,000 with a market cap of more than 800 billion. Coming up, the winklevoss twins may have missed out on becoming facebook billionaires, but now bitcoin has them joining the club. Who elses in the ranks . That is next. Check us out on the Bloomberg Radio app, bloomberg. Com and siriusxm. 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. I have your first word headlines around the world. , the Democratic Senate candidate, has won in alabama. Alabama has not sent a democrat to the senate since 1992 and voted overwhelmingly for the president last year. Alabama has been at a crossroads. We have been at crossroads in the past, and unfortunately, we have usually taken the wrong course. Tonight, ladies and gentlemen, you took the right road. State,u. S. Secretary of rex tillerson, says america is prepared to negotiate with north korea