Excuse me. He is here with us. Who matt levine is with us i miss the guy. I want to stand california writes about the inner workings of wall street and like me, came because there is an incredible from the business, a derivatives story out of palo alto. Background. An earthquake in the mobile messaging market. 19k zuckerberg spending did you go through an Investment BankingTraining Program . I did not, i was a lawyer billion dollars in cash and stocks to buy whatsapp. First. I skipped the insane hours and left law for banking because up users use every day. Up a lifestyle would be better. I came from that background. It has an unproven revenue model. I went through a sales and Training Program at credit Cristina Alesci is here and paul suisse. You are alive. Guessed what, i love that kedrosky. Business. What made you write this book . Facebook justifying 19 i wanted to shadow eight billion . Analysts because wall street, even after the crash, was a huge that is like out of an austin magnet for talent from ivy powers movie. A lot of explaining to do as League Universities and other top colleges. I was curious why people wanted we are seeing the stock react to still do this when the rest of the world hated bankers. This morning. This goes to show you how much what was so appealing so i facebook needs user growth and wanted to dive into the subculture and spent three years how much it is going to pay for user growth. Tracking with these young men and women everywhere the went. Another storyline that will be i wanted to come up with what i think is a pretty nuanced and developing over the next couple of hours and days is how much it paid to keep whatsapp out of competitors hands. Humane portrait of what its that is probably a huge part like to be young on wall street. Where are the eight of them now . Some of them are still in of the price tag. Finance and some of them have google may have had interest. Left into technology or done other things with their lives. What was your biggest take this is Facebook Posta very ,efensive move to stay relevant away . My biggest take away was that these are very hard jobs. To stay cool, and to own your they work insane hours. Network. They want all communications there is something called the with your network. Banker 95 when you work from 9 whatever it is, they want you to a. M. Until five a. M. The next communicate over one of day. That is pretty common. Facebooks platforms. How much of this is keeping i think there has been a huge transition since the crisis. It out of googles hands . Int we see especially it is not really an explosive recruitment numbers from the top colleges is that wall street is growth story, is that is it . Much less of a draw than it used to be. It used to be the default option not an explosive profit if you went to harvard or yale or princeton. I dont think it is that anymore. You still have thousands of growth story. Kids dying to get in. But an incredible growth story. On friday afternoon, i was in 500 million photos shared per the car next to my husband who day. Runs a trading desk at a bank on huge are gob smackingly the phone with the prince and kid and he gave him an offer and the princeton kid said this is a numbers. Dream come true. You are not paying for revenue. Is it fair to say that people youre probably paying some kind dont want to work on wall street anymore . Of negative optionality. If you look at the data in what kind of revenue . 2006, if you are a princeton 6 billion people breathe air. Senior with a job graduation, there is a 46 chance that job is on wall street. But it is free. That is no longer nearly as big i have been using whatsapp for a member and harvard has gone from 28 to 15 are in many years. I love both of them. Students want that job but not they dont cost me anything. The overwhelming plurality it what is the point . The way to look at it take has been. Is it fair to say these eight twitter as an example. Kids hated life during those eight years . 250 million active users. I wouldnt say they all hated life but they hated it to some in the neighborhood degree. When you were in early lawyer out of law school, i might think of 1 billion in revenue in being a lawyer is pretty 2015. 500 million, grueling and miserable. Thats life when you are 25. I think thats right in the going to one billion users. Corporate and financial world. When you are in that world, you what kind of revenue command can they add . Lose the perspective of people who dont work in Corporate Finance and Investment Banking there is no reason that you and law firms. Is it fair to say that the couldnt see similar numbers without creating an awful experience. Culture of wall street is truly twitter has not been destroyed by building a revenue model into it. Tortuous and morally bankrupt . I read the devil wears i am comfortable with the idea product. That there is a revenue model many girls are working making here. That said of the story is not the issue. The deeper issue is what 22,000 per year getting their asses kicked. Discount could you apply to i dont think they would be . Acebook earnings doing it if they did not think there was a problem retaining people. In 1999 when tons of kids where is the moat here . Want to go to tech and banks in fromto bring relaxed, everybody seemed to go back to banking after that. Is this just to wall street is january, one of the cofounders of whatsapp talking about why and its been successful this long for a reason . They wont be advertising. People go into because they want to make all that money . I think people want to feel he said that is not what they want to do. Our company is built around good about what they do. I dont want to be hated for their job. After the crisis and the technologya great occupied movement, i dont think ceos cared about it that much. Companies in Silicon Valley that for the young people, it was monetized by advertising to disruptive. Their users. They saw friends and family we felt that we wanted to take a different route. Members questioning their decision to work on wall street. Putting advertising on something that is painful. Did you work in banking so personal that is your phone because you wanted to do the right thing and have your and putting advertising in the friends and family be part of you or did you want to work there because it paid that way of people trying to money . Communicate and wanted to stay for me personally, i wanted to do it because wall street is a in touch and messaging each other would be so, and our mind, wrong. So they do not want war every single day. Its a battle. Its the nature of the business and i am a east and i like that. I think youre right. Advertising revenue. They want more users. How will they make money . That is a good question. Abouting that kevin talks the user number out there. In the book is it used to be the 450 million users we do not case that even if you did not feel that way, you would go to know how many of those are wall street anyway because it was a default path for liberal paying users. Arts majors and people who were not sure they wanted to work in you only start paying after the finance. First year. It was just an easy job to fall into. It is really hard to even come i think that has changed and now it is really the people who are up with a revenue estimate. Competitive and dreamed about i have been using it for working on wall street. The people going there now years. Actually want to be bankers. I dont think i have paid. They are not just doing this as a twoyear stopover on the way to their true passion. We need to talk about lets talk blackberry instant messenger. Something else you wrote this week that has absolutely it is one of the most viable everyone on wall street talking. It is your new York Magazine things that had. I loved it and still i started piece about up private party at a private love, invitation only, using an iphone. What does this mean for blackberry . Oh. Tell us who was there and what happened. So sad. I should have been there. This thing is such a it was the annual dinner of cap dinosaur. Up a fight which is an 80yearold secret society. There are all kinds of issues with the valuation. Phi it consists of there is an asset to be sold here am a but i dont think this the bigwigs of wall street ceos materially changes what you will get out of the sale. What does it mean for candy crush . And private equity executives and hedge fund guys. If you are paying 19 billion people like wilbur ross are on for whatsapp there and sandyweil and jimmy candy crush if it is 19 lee. Billion for whatsapp, what on jon corzine, dick fuld. Earth is snapchat worth . It could go and apply the he was not there but hes on the same metric 40 per active membership list. It was a whos who of wall street. I wanted to sneak in because i wanted to see what goes on user that seems to be what we behind closed doors. What did you see . Are looking at if you look at it on a market user basis. I am i wall street enthusiast. Weight. My mind is blown and i am wait. Massively disappointed, were you . Absolutely. I rented a tuxedo. The numbers on the per user basis are all over the map. I go into the Saint Regis Hotel to see what is happening. I agree. I see a bunch of millionaires and billionaires dressed in drag. Look at linkedin, twitter, as part of the induction facebook valuations. Process, new members have to you are sitting at over 100. Dress in drag and had to do skits and musical acts. Some of these acts are quite look back in history. Offensive. Offensive how . Sexist jokes, homophobic hotmail,osoft bought occupydigs about the youre looking at similar prices. These prices have been paid for a long, long times. Jokes. There was really offensive stuff. Just this morning, i saw paul i think people are going in the qualey apologizing saying my wrong direction by getting hung up on the 19 billion. Brief remarks were at the event that is the reflection of a and did not they were part of company that has seen stunning growth over five years. Is it too soon to evaluate the spirit of the event but did Mark Zuckerberg is a dealmaker . Not reflect my views. Absolutely. The thing i have a hard time yeah. With what was the spirit of the event . [laughter] you were laughing at me. I would be humiliated if there i think that is a great was a hidden camera in my kitchen and if they saw question. Zuckerberg just decided, i am conversations i might have with going to hang out with this guy, my husband or friends or my children. At the end of the day, if you we are going to spend valentines day together, we are are a public figure, if you or someone who is a newsmaker and going to each covered sexist,making racist, strawberries, and that i will lead him give him 19 billion. Homophobic remarks, what will be is someone that looks at this the fallout . I dont know. My hope is that they realize that this dinner and this secret on the face of it, it begs the question, does Facebook Think society is a really dangerous and destructive thing. Its own stock is overvalued . I told one member that i think does it think that now is the you guys should turn it into a time to do this kind of a stock deal because we have the Charity Event and go do something good for the world one day per year. Have any contacted you . They have and they are not firepower behind us right now . Which was the lesson of the pleased. 1990s. I dont want to elaborate too much but i will say that after too Many Companies did not use the original, i wrote about this overvalued paper to do transactions. In a british for back in 2012 they sat on it hoping it would go higher or they used cash. These are not people who enjoy kudos to them for doing the right thing, which is using the paper. This is the biggest deal being called out especially at private events where they are dressed up in sequins and since aol bought time warner. Leotards. The biggest Venture Capital do you think the young people deal ever. Should we change the way we who you followed would one day are using facebook . Hope to be in a society like this . I read this and i am embarrassed is it just a suite of apps that for those people. Im not proud of it but if you people care about . Turn the clock back 10 years or people sure love instagram and five years and say to me that whatsapp. A lot of these people who are would you want to be part of a using these products have society with these titans of industry, i would have said yes. You would have said yes . I would not have realized absolutely no idea that facebook is the owner of these products, this was the content. Which is even more remarkable. How do those young people feel you have to ask yourself, what about these iconic figures . Does that imply about facebook i asked them after the event also you asian . That must facebooks and described it to them and they laughed. They could not believe this valuation . Existed. One of them said it sounded like something occupy wall street what does that mean Going Forward . If it going to be a series of would want to make up of they acquisitions . Wanted to turn sentiment against bankers even more. You sort of read the story of is it going to be a series of acquisitions . Oldtime wall street and people sometimes get into the industry because they have heard the stories of excess and zuckerberg is buying users debauchery. I can imagine there are some young people who actually do want to one day be there. Years this still that he already has. That is a great point. Cristina alesci and paul exists, we will know that nothing on wall street. About kedrosky joining us from the culture has changed california. If they turn it into a Charity Event, it will be a good development. Readts find out if people if youre wondering where the 19 billion is going, it is not going here. Sequoia capital is the big winner. Young money. Congratulations to kevin roose it invested 8 million in whatsapp back in 2011. And matt levine. That is so crazy. When we come back, the other estimatedworth an super bowl champ is the company that makes the winners rings and 3. 5 billion. We will talk to the ceo of are being made jostinms when we come back. Instant billionaires several times over. Talk about valentines. Apparently, they signed the deal on the wall of the place where he used to get food stamps. That is what our producer told me. He used to get food stamps and now he can buy a sizable chunk of walmart. Indeed he could. We will have more Market Makers in just a few. Did notruce in ukraine last long. Were the 20 People Killed in kiev overnight. More than 20 people till then kiev overnight. I he has gone from coming and were company to creating an internet shaving start up. We will speak with jeffrey rader. Welcome back. We want to get straight to breaking news out of the ukraine. The death toll is rising in the continuing violence in the capital and around the country. The latest numbers from the interior Ministry Said that 13 police are dead, 64 protesters have been killed since february 18. The interior Ministry Says 551 people sought medical assistance as of 8 00 a. M. And 32 are hospitalized as of this morning. Fighting resumed this morning after a truce was declared last night. Diplomats spoke to president yanukovich but there were no comments on that truce has broken down. The u. S. Progress press byretary says he is outraged the things he has seen on the streets in ukraine. We will be back after the break. The situation in ukraine is getting worse by the hour. Deadly clashes ended a shortlived truce between the government and opposition leaders. The Associated Press reports that government snipers were seen shooting at protesters. The death toll stands above 50. Director of Dragon Capital joins us on the phone from kiev. And the chairman and ceo of. Reylock capital are intell us where you relation to the protesters and what the mood in the city is. Located aboutis 20 minutes from the main artery which is occupied by the demonstrators. The mood is obviously very chaotic. The population here in kiev is in a state of shock. We have never experienced such a level of violence in the last one the three years. 23 years. There have been very chaotic scenes. Shooting on the population. That violence went both ways. The population is replying with live ammunition. The situation is definitely best described as chaotic. Protesters have gotten into military depots, gotten hundreds of thousands of rounds of ammunition. It is not just on m in mission independent square. The reverberations are felt elsewhere. You cant get cash, you cannot fill up your car with gas. It is probably difficult to get food. I imagine that all of these things are quite different from normal life. Yes. If you look at the situation in parallel to other similar events , you have egypt, tunisia goodgives a bit of a background to understand. There are a lot of rumors going around. A lot of uncertainties. What i can say with a high degree of certainty is that the petrol stations are limiting the access and restricting the delivery of gas. Haveof the atms difficulty to get cash. You have these kind of rumors that float around. It is not helping calm the have you worn your high minds and the mood. Peter is sitting there in the school or college or grad School Offices of Dragon Capital. Class ring lately . It is a live situation. Chances are if you have one, it comes from jostens. Hans, you are in new york. The Company Makes another wellknown ring that you might better know as the super bowl i said it is a little early to ring. Invest in the debt. You have gone into the market already. Our viewpoint, looking at it the super bowl champions all get one from jostens. s, is still Publishing School from outside, is that this is yearbooks. Not something where we are hereve the ceo of jostens really on the verge of civil war. You dont think so . With us, chuck moody who is two no. Is that this is really months on the job but this is a company that has some history that goes deep into peoples lives. A population that is rising up against the corruption of the thanks for joining us. Country. What is your take away from your versusseeing an eu first couple of months on the job . Man, i would say the great russia, but it is the population trying to push out the