He is the cloud chief. And even bigger shift to be taking inside microsoft. Lots of changes are going on. Bring inn cory cory. I think it is a big deal. Have aft is a cited to microsoft person lead microsoft. Is not aomebody who great corporate manager. Heated boost revenue. His unit is a big deal for microsoft. It says a lot about the future of the company. He is in charge of enterprise and the cloud. Player ort the music the surface or xbox. It is the Corporate Customer and the Cloud Business. The cloud is the antidesktop. It is the antiwindows. Outside of the xbox, the only big business in iker soft in the last decade. Investors would like to have seen someone with success running a big company. That is things you read in the notes, they would like to of seen summit seen somebody with more experience of the manager side. I attended a front, they are bringing in a technician, that is the legacy of bill gates. He wanted somebody with technical expertise. Is he the influence despite the fact that investors would like to see bill gates a step away. We see his influence in this piece of news. It will be interesting to see how it plays out. We will see if he moves away from the company. At the end of the day, you may have two former ceos on the board. Is that healthy for board dynamic . What does that mean for the freedom . We caught up with nadella. Heres what he said at the Cloud Business. If you look at what happened in the last quarter, it grew over 100 . Five 50 of the fortune 500 companies. Growth the kind of new that we are seeing. We are going through a fundamental shift. What you think the amazon Cloud Business is doing . About 3 billion. Recognizes theft have to focus. The guy has been architecting that focus is the new ceo. Is a young guy. From what i understand, he is a young executive. This is make iker soft have the. Oungest is 46 years old. A new, youthful approach would be important for this company to find new ways. There is a big overhang with the antitrust battles of the 1990s. The Business Practices of that era, microsoft grew their other businesses based on the success of windows. He was not around that. Business was not grown on the monopoly of windows. They dont have to rely on a single at select windows. Will they do this nokia business . They are going to be pushing for them to really bring results through on this nokia business, which they have not been able to do. We want to bring in someone with a perspective. Analyst. Oftware is this the right guy at the right time for microsoft . I think so. He brings a couple of characteristics that are important for them. First, you have a technologist as ceo again. I think that helps. Steve ballmer was a sales guy. He may not get enough credit for bulimic commercial sales. He is not a technologist. Having somebody who can speak to developers, there is a fight over developer mind show share. He come from a part of the business that is winning. The commercial business grew 12 . That is a huge number. We discussed a lot of the issues on the consumer side, the profit pool that moves microsoft is the commercial business. Before i came on, this brings a more youthful qualities of the it bringstween people back to the table. When you think about Institutional Investors sitting down with microsoft, there is a big monolithic giant that hasnt done anything. The correct move was to ignore it. , which isanagement managing expectations and helping make microsoft more opaque for investors. Think when youre talking figure tech company, with the product is first in what the sales are second. Ande figure out the cloud the necessity to be more collaborative, that has allowed enterprises to run linux on their platform. That was different 10 years ago. He is reach out across the lines to competitors and partners. That is very important when you think about microsoft ends up. With him coming into the mix coming from a cloud background, it makes investors say what is this guide up to . Well do what theyve done with icer 65 office 365 listen to more from him. This is an exciting place to be at. We look at what we are doing with our devices and services and Cloud Computing it is an amazing spot to be. It is enervated of and taking to market across society. Mentions other things. It is a very exciting place to be, innovative. Is it an exciting place to be . Are they innovative . Think on the consumer front they miss mobile completely. Theyre trying to catch up. Im glad you brought up mobile. Does that factor into your models at all . Microsoft had been hoping to use them as a partner to get windows on their phones. Now that his daughter going to happen, how does that impact microsofts ability to expand into mobile phones . There is no doubt that it hampers it. We are this deeply in third place, success does not mean you have to do one or two. You make windows more relevant. You keep it relevant. Theye think too much that have to be a growth business. At its size it does not matter how well they do. This is a huge cash flow for them. Investors are not putting a lot of value on the consumer business to begin with. Nokia makes them more relevant and smartphones, they have to have a more, development framework. If they can do that, Development Developers might come back. Ive used the windows eight phone. It is very groundbreaking in different from android and apple. Theyre in third place. It is tough for them to get anywhere. It will take time. The narrative will be what drives the profitability. The Enterprise Business is doing well. The consumer business is less bad. Price were seeing different things. Ballmer came in when the stock was in a tech bubble. Bill gates have the common sense to get out. Bill has been a steady seller of the stock. One of the intriguing storylines coming out of this is bill gates may be stepping in as chairman. That is an enormous change for the company. Will that make a difference . How much will it make . People struggle with how much of an operational chairman of the board you want. Offer nadellacan advice. You want a board that offers advice and you hire a ceo to run the company. Bill gates is been very upfront that his daytoday job as his foundation. Tinkering on the Little Things maybe a little bit overblown. Moving from chairman just a board member is notable. It will not be totally out of it. He spoke to bloomberg tv last week. Heres what he had to say about his future plans. My fulltime work with the foundation for the rest of my life. We are enjoying that. Depth. O do it in i am not going to change that. I will help up our time. I spoke to an investor last night that said it is either no time or full time. This is one of the biggest areas of concern for investors. Wella step down of gates those concerns . Il be helpful if he moves a little that out of the limelight. One of the things you hear about Satya Nadella is that he is an insider. I think that is a little but overblown. If bill can move a little bit , that isshadow helpful. Satya nadella needs to have some operating room to carve out his own identity. He is an incredibly intelligent and articulate person. When he is accomplished is notable in terms of running the Enterprise Business. That is been overshadowed by investors. It would be odd to have two former ceos on the board. I imagine ballmer will move on. Thank you very much. Come up, just two days more until the big game. We will talk to the president of stub hub about the changing super bowl ticket demand. We are working on the process. I am engaged in running our enterprise division. I have said everything i am going to say. Youre watching in the loop live on bloomberg television. Watched Television Event of the year is just about here. The super bowl, player salaries, ticket salaries, adam johnson takes you behind the most surprising numbers of super bowl xlviii. Are you ready for some football . About 110 Million People will watch. Almost as many people as the entire population of mexico. See rule one was played in 1967. Tickets are 12 and fans were outraged that they were so expensive. Now the face idea premium seats are going for as much as 2600. Youll pay more for stub hub which has a 30 person suite for 800,000. Not all quarterbacks are like. Paid manning has the highest is one ofssell wilson the lowest paid starters making a base of just over half 1 million. Manny was drafted in the 1990s. Russell wilson was nine years old. A record 1. 2 5 billion buffalo wings kobe eden during the game. That is enough to stretch from Centurylink Field in seattle to Metlife Stadium in new york 30 times. All the fans thinking about going to the big game on sunday, it is mind blowing about how prices work. If you believe in supply and demand, check this out. This is what happened to super bowl pricing. You prices going up. Supply and demand truly work when you see with more supply the price comes down. That is all have is a super bowl tickets. Initiates very , pricing about 4000. As supply increases, rices go up a little bit rices go up a little bit. Game, get closer to the the supply drops and the price drops dramatically. Ticket sellers recognize that the writ of the tickets before the game. The price actually comes down when you have 2000 seats available. Out, with the super bowl using the same dynamic. When supply increases, the price of starting to grab down. We expect the supply will drop as we get closer to the game. Bowls more to super pricing then a supply and demand. Where the best places to score some tickets or any live event is stub hub. Join us is the president of stub hub. What are you seeing in terms of pricing . Are seeing prices a few hundred dollars lower than where they were last year. We have about 3000 Tickets Available for sale on stub hub. Aroundest priced are 1400. He would not get to that price until sometime on super bowl sunday. Is at the price they are being sold at . How are you making a comparison . Their list prices. In the average price of tickets being sold, is about 2000 so far. As a few hundred dollars less than last year. Why is there a depressed demand westmark it is a cold super bowl. It is a cold super bowl. Would have the islanders and the rangers on one of the coldest nights of the year to play yankee stadium, there was not an ntc. New yorkers just dont care about this game. The brokers are hoping the locals will bail them out. Is that going to happen . That rangers game was to new york teams played in new york. These are two west coast teams. I think this is the first coldweather outdoor super bowl we have ever had. Prices are down versus previous years. Our volume is up. Overall, the dollars is up versus last year. We are selling to more fans because of lower prices. Yes look at volume and price. I been the super bowl before. How the cityting is turning out. I saw jake plummer last night. I saw joe montana. There is a lot of excitement. It is an event. Super bowls are an event. In a warm weather city, there are more people interested in going to that event. It is harder in 20 degree weather to stand outside. Think you so much. Only one team can walk up the field with the lombardi trophy. Spenders will be here for the big game. Youre watching in the loop live on bloomberg television. I am cory johnson. Let us check on markets. What is going on this friday . We expected volatility this year and we have gotten it in the first month of 2014. S p 500 futures are off one percent. We are on the markets again in 30 minutes. Reported profits that trailed estimates. Google had betterthanexpected fourthquarter sales. And it is a quarter for amazon. Webt of people thought that traffic would be big numbers for amazon. Been twice the rate of members Internet Sales growth. There were not only growing with the internet, they were growing faster than ecommerce. They have a competitive share and continue to take it. The stock was down. At ae stock was trading thousand time earnings. The valuation left no room for error. They might raise the cost of amazon prime. That is a big deal in the u. S. Analysts were wrong. Google is showing terrific growth. Price of their ads falling, with the number of ads rose by 31 . That is really strong for google. To figure out how to put programs on display. Those changes seem to be working. Theyre making some big changes with the way ads are delivered to customers and taken for the marketers and things working well for google. We will stay with technology. We have the president of stub hub with us. I want to talk ecommerce. That is your business. You said a Conversion Rates on mobile were still not where you want them to be. Mobileare not buying on tom of air browsing. It is the same challenge. Desktop is twice what is mobile. Ads on mobile arch evil because you are getting less for them are cheaper because you are getting less for them. A lot of what we are focused on is replatform in stub hub so we first. Start with mobile that is the key challenge for us. Andhy look at facebook twitter, have figured out mobile in a way others havent. What are they done so well . They found native ads that just appear in the flow of what you are looking at. They are content companies, they are not ecommerce companies. We make money when people buy things. Buy as a money made if we mobile device. It is hard to get semito buy on mobile than a desktop. Your product requires you to be on their feet. At the end of the day, youre walking into a concert or baseball stadium it seems like mobile is a great opportunity for you. It was nearly 20 of our sales last year. Content commerce content, commerce, two different challenges. The ad rates go up on mobile to the desktop level, it is about getting the conversion on mobile to come to the desktop level. What is psychologically the problem . Why wont people buy on their mobile device . Well theywill will buy, but they do not have all of the bells and whistles. We have optimized our mobile site from the last two years, and because theres less real estate, you cannot have all of the features and all of the bells and whistles that you have on the desk top. You guys do a lot of big events, like the super bowl, where are you seeing most business . The super bowl tends to be our single largest event throughout the next year, the bcs championship is our number two. No single event that is not more than half of a percent total sales. Very diverse business. What about the concert business . Over has really taken off the last couple of years, and it has grown to be a percentage of our business, so it has grown at a faster pace than the rest of our business. Concerts are more in more important to artists because it is a major source of revenue for artists, so what youre seeing tours with more dates, and the like bruno mars, you see more coming out of the halftime show. Instead of every three or four years, it is every two years, or in some cases every year. Buble, michael concert ticket sales are really how he makes his money. Stick with us. We have to talk about the panama canal, the new facelift. We have a programming note, under armour chairman and ceo coming up. Youre watching in the loop. We cannot stop talking about a commit is the super bowl, and the players that to take home the lombardi trophy will also get to take home a hefty bonus for their winning efforts. They are not the only ones cashing in on the big game. Olivia sterns is here with some of the business winners of the big game for everything from chips and dip to gentlemens clubs. And of course, the day after. This sounds a little bit silly to be talking about, but when we were doing all of these research, we this realized there is a large academic impact that you would not realize. This is the second biggest eating day after thanksgiving, i do not believe the runup in the use of avocados. Aragorn to consume over 100 Million Pounds of avocados, that is a 1200 permanent sent 1200 increase since 2000. Prices, driving up the and depending on your recipe, that is going to be 41 million bowls of walkable he. Guacamole. I want to tell you about the wings. 1. 2 5 billion wings will be eaten. Day of theiggest pick year for pizza delivery. Many men like to go and watch the games at the gentlemans club. I do not. I had no idea until yesterday, around any maze router majors porting event, the women fly into town into rows, and you get a big uptick in the dublin club business. In the Gentleman Club business. They have five times as many clients in the club of and they have ordered five percent more entertainers or contractors and they expect to see doubledip business on the super bowl sunday itself. The following day, about six percent of americans are excited to call in sick expected to call in sick. I will not be calling in sick from the strip club. [laughter] lets bring back the stubhub president. Think as we, do you get right before the super bowl youre going to see an uptick or a big drop in your sales . Usually what happens on the day off, you see prices come down. It went the other way around in dallas, and the main issue there was weather. Bowlorce before super 45 in dallas, there was no, ray guba and so prices reached a certain point on saturday, and friday night, and then they went up from there because the weather got better. It looked like it was not good to be that bad, and it was inside the dome, so my guess is that as the weather gets better you might see prices come up. The thing that i tell people is that if you are very picky about where you want is that, by your tickets now. The premium seats of course you would say that. I tell people the truth about generally they come down as the event approaches. 2002, my father wanted to go. Park, we saw the i hit a going down, and wall, could not find a scalper, and we had to watch the game from the bar. The ticket brokers that have completely given up their business to you. All they have is service. Mr. Ticket in San Francisco is lonely now. Do you have any notion of what share of the market you have . The segment share and hard to gauge, but if you look at just the online secondary ticket market, not the whole to getting the ticketing business in the dates the boy of about 50 of that in the United States, we have about 50 of that. They aggregate listings from ourselves and other competitors combat to show them in one place. How does that impact your business, that you have full price to separate one page a discovery on one page . It is not a problem. We have Customer Service that we do, and we