Also, if you want to buy your own Steam Locomotive, i will talk to someone who has them on sale. And it is monday, so my producers will once again try to stump me with tonights mystery guest. First, headlines from my radio cohost, carol massar. In a regulatory filing today the internet Domain Company did not specify the number nor the price range of shares. Those are details that will be provided closer to the offering. Go dottie hats go daddy has 12 million customers. Ebay is moving ceos. It is acquiring messaging startup whatsapp. For 19 billion. Offerson foods raised its for hill scheier brands, outbidding pilgrims pride. 55 ams withdrew its share proposal. Back to you. Thank you very much, carol massar. Another big headline, time inc. Traded for the First Time Since spinning off from time. Time warner. They saw their stock tall one percent. Fall one percent. I think we have the opportunity to super serve our customers in ways we have not done before because in time warner we were stuck in a box. We are breaking out of that box today. One of Times Properties is essence magazine. The cofounder and the author of the new book the man from essence, edward lewis joins me now. Thank you for being here. Lets start off with the time inc. Situation. It is an irony that they are spinning off their magazine and Media Business into a separate company and that is at the same time as your book comes out. What was it like when you first got involved with time . They had a 49 stake in the company for a long time. When i entered into a relationship with time in 2000, they agreed to sell 49 , and i agreed to retain 51 , and during that time, when the deal was completed, we got to know each other. I got to realize the incredible resources they had. Fortunately, they came to me in 2004 they said they would like to buy the remaining 51 . In 2005,ed that deal and it has been a wonderful association in terms of the growth that essence has experienced. Lets start off talking about the four gentlemen that you came together with. None of you had magazine or editorial experience. None whatsoever. And what did you decide to do . We wanted to go into business. We wanted to make a difference. This is against the backdrop of will was going on in 1968 with the killing of Martin Luther king and robert kennedy. 25 of us came together at a private meeting at a home, and they said there must be a need for a magazine for negro women, and the gentleman who brought us together, one of my partners said they had an idea, and says lewis know something about money. Why dont you get together . My other partners came together. We did not know each other, but we wanted to do something that was very meaningful in terms of celebrating the beauty and intelligence of black women. There were some big bumps, because youre going to be a lawyer. I had aspirations. I got out of graduate school, i went to georgetown law school, i knew my life was that. Except the law was not meant for me. The world gave me ups and downs. First National City bank led me to my dream of starting my own business. I want to give you some names from the book, because these gentlemen that you form the company with, it was tough times to raise the money to get the magazine going, even just hiring an editorinchief. Clarence smith. My former partner, we met in 1970. We had an incredible relationship over the many years, the 33 years we were together. He was responsible for advertising, and he did a magnificent job of wanting to make sure the advertisers had an appreciation and determined the power of black women in the marketplace. As far as putting together the whole content of the magazine, it seems as though one of your points and you interviewed people, you wanted to know what they were interested in politically, socially, culturally. It was not just about the publishing business. Absolutely. We were talking about the totality of black women. What it is to be a woman. She is concerned about relationships, family, career. She is concerned about schools, voting, all of the issues that all of us are dealing with, but at the same time also dealing with the issues of beauty and making herself feel good. Essence has been her friend that she can count on. I remember one particular chapter, called black man, do you love me . That came about because of a very heated discussion about the contents of the magazine. Indeed it. We wanted to know one thing i feel really good about is that we devoted issues every year to black men, so that black women and black men can have an appreciation of each other, to understand each other. And from the standpoint of black women, just getting a better understanding what it is to be black men and black women. I mention the bumps along the road. One of them was philip delivered in a box from a law firm. This was back in 1977, you were at the office, and a box arrives. You opened it and there was all this paper. Tell us what was in it. It was a subpoena to us to let us know that my former partners were in the process of wanting to take over the business. Getting the information from the lawyers, it came as a real shock. We had to respond, and respond we did. Im here today. You prevailed. We prevailed. You were able to retain the ownership of essence communications. Yes indeed. You also write in the book that the focus on individual, africanamerican whollyowned businesses may have been surpassed by a general focus by all corporations on minority demographics and groups and customers. What do you have to say about that . All corporations, particularly where we are the part of the capitalist system, and we are part of this country, and we try to run a business, we try to interact with business out there we try to make sure that they understood the power of the market that we serve to that we serve that was , underserved. We wanted to remind corporations and people that if you invest in our market, you will have a wonderful return on your investment. You write in the book that there were some corporations that thought that africanamericans did not buy cereal, paper products, did not contribute to the consumer society. Regrettably. We did not in our Procter Gamble ad until 1985. It was not for lack of trying, it was just because you cannot convince them that black women bought their products. That is the struggle, the fight we had to continue. The Beauty Industry was another industry we had to overcome to make sure that they knew that black women used their products. The fashion industry is another one. It was a continuing struggle all these years for us to convince the marketer that this is a market that you need to be a part of. What is the struggle right now . The biggest challenge in terms of africanamerican and black owned businesses . Is there that sense of purpose that you describe in your book . I think theres a sense of purpose, but we have a changed world. Particularly in the area of print. I sold the company in 2005. One has to be keenly aware of making choices that you know your customer, making sure that you understand the appreciation of cash is king, queen, jack, and everything else. And try to hire the smartest people you can find, and stay out of their way. And listen to what people have to say. Thank you for being here. Great listening to you. Thank you. Edward lewis, the cofounder of essence magazine. The author of the new book the man from essence. Coming up, what yahoo chairman maynard webb thinks about companies who worry about poor performance from their employees. More of his thoughts from the next big thing summit. It is time for our first mystery guest clue. You can say that my mystery guest is in the war against wrinkles. This is taking stock. I am pimm fox. The bloomberg next big thing summit brings together the most influential investors to talk but the next big thing in business. My colleague, bloomberg west editoratlarge cory johnson has been there all day, and he has now joined by yahoo chairman maynard webb. He is not only the chairman and former coo, but he is also an active venture investor. I thought would be great if we can have a conversation about a conference like this and the notion of a next big thing. What is the work that you do to try to identify the next thing . There is a lot. For me, i am always looking for who was the person pitching the idea, how relevant is it, how big is the market, and how different is it . Let me take the last the first. Different part. There are some weird ideas out there, and some that are not fully formed until they become something impressive. You know, i have spent a lot of time investing in earlystage companies. Sometimes the Consumer Companies have already started to spin, but the enterprise company, you have to catch them earlier and you are really betting on the formative idea. For me the team matters the most , he can even if they do not do well on the first idea they can often give it go after the second one. The second thing that matters a lot is what is the idea, and how much do i believe that it is relevant and can be big . Do you do the market research, mba 101 . Total adjustment to market is x if i were to show you some of the pitches we get, you would roll over laughing. Even if youre doing 10 in revenue, next year youre going to do 14 million, and all over the place. The way they capture market numbers is billions of market. We do take a look, and that our team goes out and assesses what we believe what Market Opportunity is when we look at an idea. But things get funky. I had a friend who had mapped out 10 years of monthly revenue and cost. I would not like i pay , very little attention to anything that is two or three years out at this stage when you are so small. It will either be way better, or way worse. Lets say you got these great people. And by the way, or this is an amazing conference. That is the next big thing. The cloud. The amazingloud, fog. You see a great team, a great pedigree, and the market is big but when do you say no . We see 20 to 25 deals a week, and we only invest in about one a month. We say no a heck of a lot more than we say yes. Also, the team may not be quite right or i do not believe that the team is going to be able to pull off what we want them to pull off. The market may not be where we wanted to be or it may be outside of the sweet spot. I try to invest in things i have seen or experienced selecting get a little bit of a differentiation and head start. The other thing that throws it off his valuation. If we are investing very early, we need some good terms because we are taking a lot of risk, so the rewards have to be high. Sometimes valuation you mean the price is higher, but they are not selling a lot of percentage equity . Price everything from on cap notes, to price high, do not giving you enough to get in. Defined on cap notes . Uncapped notes means you give money to the out of print or and money to the entrepreneur, and eventually when they raise the funds, you that you can come in what everybody else is that. I am not a big fan of that. Why i dont go back to hedge funds, people are always asking, and the thing was you were always always wrong. ,it did not matter what happened to that investment. If you got it right, and maybe got into late, you shouldve been earlier, or you should have been in earlier and it did work out yet. And even when it totally worked , you are not big enough. Do you look at every investment as a failure . No. Actually, i look at every opportunity. I think it is hard to be an entrepreneur, and i am really a fan of all of them out there even the ones we have to say no to. When i have an opportunity to get in, really feel like we are blessed, even at the terms we get in that. I feel honored to put my 90 affiliates to work to make the company better. Recently i met one that i thought was awesome, and they offered us a chance and im happy to be in. I think it will be fun. What about salesforce . You an investor . Yes. Were you big enough in that . I joined salesforce after they were already public. I put some of my own money in in 2008 when the market turned down, and everybody saw drop. Everybodys stock dropped. And i put more money in, and my finance guys managed me into compliance, saying who knows what the market is going to do. What i wanted to put in, they put in half and said you should do that. Which was still a nice number. But, boy, i wish i had done the other half. Thank you. Cory johnson, speaking with maynard webb. The chairman of yahoo coming up next, we will look at the growing market for tablet keyboard cases. It an ipad into more productive business tool. That is next. This is taking stock on bloomberg. I am pimm fox. Worldwide tablet sales create a 200 in 2014. That creates a growing market for tablet accessories. One of the leaders is a Company Called zagg. Joining me is the chief executive randy hales. It is a big business. Tell us about the scale, and the items you ship. It is an exploding category. We like to talk about it as tech accessories. Techcessories. A marriage of tech and accessories. Anything that will hands the users. With mobile computing. Lets talk about the keyboard which caught my eye. This attaches to an ipad mini. Describe a little bit about it. It is probably the same product i use on a daily basis. What we saw when tablets were first introduced was they worry purchased for content consumption. Surfing the internet, watching videos, that type of thing. And now, with the advent of software packages, with ever note, Microsoft Office 365, they have now become productivity tools. To really access a productivity tool you need a keyboard. This has some special features. It has magnets that are embedded in it. Tell us about how it works. The idea behind the magnets is that it allows it to attach to your keyboard when you want to use it for productivity, but also separate it when youre using for content consumption so you do not take away anything got from their tablets early on but allow them a lot more productivity when they are connected. Does this keyboard necessarily need to be charged . Currently the battery life on a typical tablet keyboard will run about 24 months. We are introducing technology at the end of this month where you only have to charge it once every two years. Once every two years. What were some of the technical issues related to building this, because this as protective as well is functional. It really needs to because they are portable all the time. They take a lot of abuse. The technology we developed great battery technology, very , efficient chipsets. And the combination of some software management. You also decided to expand the range of zagg products. Tell us about that. We are introducing a full series of tablet keyboards. We offer the number one selling one for the ipad air and also the ipad mini. It is a very traditional setup, looks like it belongs in an office. We realized a lot of users were mobile users. In the next couple of weeks we are introducing the first rugged keyboard for on the go use. What about keyboards in the future . You will be able to make them fit whatever tablet is in use . Yes. You may be sitting in on some of our r d meetings, but a very flexible web form is something we will introduce extra fall. We can respond quickly to the market. Thank you for joining us. Coming up, lots of folks collect model trains, but what about a fullsize locomotive . This is taking stock on bloomberg. I am pimm fox. For a look at the market moving headlines we go to carol massar. Family Dollar Stores have adopted a poison pill plan or shareholders rights against a plan potential takeover. This after carl icahn revealed the Discount Chain dropped more he had taken a stake. The Discount Chain dropped more than 13 . A record premium offered for the pharmaceutical maker. This caused shares to nearly triple. Big bet on its line of hepatitis b and finally, drugs. And finally, mcdonalds, the largest restaurant chain reporting a sales gain in the month of may at just under one percent. This is for stores open at least a year. A look at asian sales are carrying them. Back to you. Thanks very much, carol massar. After the conclusion of world war ii, france needed a new fleet of locomotives. They turned to the United States to build a oneforone in our class locomotive. Only six of these historic trains survive in working order. One of them is up for sale. Joining me now is andrew cook, the chairman of william cook holdings, which is selling the locomotive. Andrew, thank you for being with us. What comprises this unusual combination of train assets . To begin with i should make a point that my company has a very big business supplying parts to passenger cars, freight cars, those sorts of things throughout europe and britain. This was a little sign line, if sideline, if you like, to boost our image in the world of railway, and to feel a little bit of a gap in the market. Essentially the Steam Locomotive and its service carriage is the minor part of a whole train which is called the classic train. Which isy switzerland, probably the world leader in train travel and train transportation for people some 40 of the population travel on the train every day on swiss rail lines. I decided that we would try and see how we could get on with restoring a classic train, and catering for the trade market, train market particularly in switzerland. ,the locomotive this was really , the icing on the cake to give it more appeal. This was all completed after a three or four year program. We made the first fair carrying passenger trip in 2009. That continued annually with several trips a year. Essentiallyfinding the real attraction from a commercial standpoint was the train itself, the carriages and locomotive. The locomotive was always an additional attraction. But i was approached a year or so ago by a consortium of specialist travel companies who wanted to take a long lease of the train. That has been very successful. Leaving locomotive without a regular user. So, after thinking about it for a bit, i thought, this locomotive either needs to be in the hands of a skilled operator of trains, rather than a builder of parts or trains, which is what i do, or any to be in the hands of an as yet group Enthusiast Group that can cherish it. I have done the hard work, i took this locomotive from a state, a condition where it could not work and i shipped it to switzerland, the most rail friendly country in the world, and i restored it. Put it in full working order. It is a beautiful condition. It is completely compliant with all of the safety regulations. It is time for someone else to have a go. Does this mean, weber ins of purchasing the locomotive and service car, if they wanted to, they could ship it to another part of the world and recrea