Make money in mobile. All right, that is all coming up over the next hour, but first, lets get headlines from bloombergs su keenan. Google named former ford ceo he to their board of directors. Mulally was appointed july 9. He will serve on googles audit committee. Meanwhile, yahoo is promising a return of cash to shareholders from at least half of any proceeds of its sale of alibaba. Yahoo also reported revenue that missed analyst estimates. Shares in yahoo are rallying an afterhours, and finally, intel, the worlds biggest chipmaker, has thirdquarter sales the top that topped some predictions, and that is fueling a stronger rebound in the personal computer market. Those are the top headlines. Pimm, back to you. All right, thank you, and more on alan mulally and his move to google. Matt miller joins us. God, here like, oh, my is going from a car company in detroit, about as old economy as you can get to google headquarters in california, which is about as new as economy gets for people your age or my age. Really it makes sense if you alqan wasout the way talking, that ford is about Mobility Solutions and bringing people together. They are going to be part of the new way that people get around. It is not always about one person in his or her car but whole bunch of different systems. He was saying these things a lot. Now i am finally saying i cant believe i didnt get it in the first place. You did not check this box before . The board of apple, the board of google . I asked him all these things all the time and he doesnt tell me because he is true blue. He is on the level. This is not a guy who leaks things to the press or tells his buddy certain things before he tells other people. That is not the right way to do business. You couldnt tell anyway. He didnt even give me a heads up. Not a wave of the hand . No, in fact, i was emailing him this morning, sitting at fords manhattan dealership getting the oil changed on my truck, and i said alan, what are you doing . And he said i am working on my Social Security benefits, which i am starting to think may not have been entirely true. It depends on how much he gets at 67. 5. You never know. In any case it makes sense , now that you think about it. Driverless cars. Driverless cars are part of the Mobility Solution of the future. Alan and he are very close. He helped save the familys most important asset. Its interesting to see and i think its interesting that when you think about it, at the very basic, larry page and alan mulally are both designers. Ally from boeing. And the you know who else knows about this . Cory johnson. Our editor at large. Cory, does this mean good things for Silicon Valley . They get alan mulally to join the board of google. 3450 a month is the maximum amount someone can get in Social Security according to my recent research on google. I wonder if matt asked him how he was finding his Social Security information. That mightve been the clue. For mulally, its interesting, not just because he did such Amazing Things with ford but , because a lot that happened at boeing happened under his development. While the rollout costs some issues, he was long gone before that, and i think the development of that and the market for that plane is something he gets the credit for as well. So a widely respected leader. Googles self driving car gets a lot of attention, but their efforts to put android in the dashboard are going to be the biggest effort in the nearterm and maybe forever, understanding how Car Companies think about developing the dashboard and how other Software Makers could get inside that and are in deed doing so is going to be invaluable. When you get inside the automobile, is yahoo something you want to look at at some kind of Navigation System . You mentioned google and alan mulally. We got some results today from the company. We got Earnings Results today. This is one of those great times you can really distinguish between what is happening with the stock and what is happening with the business. There are a lot of machinations. Machinations. Machinations, indeed. Marissa mayer changed the deal, convinced alibaba to change the deal. She would only be required to sell half the stake in ali baba. That means they will continue to receive a benefit from owning their alibaba share. And yet, they will still be able to return a big chunk of change, and investors are looking for that boost, so they are getting a little bit of their cake and why would they have to sell shares in alibaba to give the money back to shareholders . Couldnt they use that as collateral and take out a deck contract with their investors and pay them back that way . I talked to the chief Financial Officer of yahoo many times about this. 10 goldman. Dman, and ken said they looked at every way possible to modify it. The big concern is the taxes. They have come up with a solution. This is a better solution than what they had going forward. So this is an agreement between yahoo and alibaba. That they are only going to sell half of the stake. Right. And the stock is up after hours because of it. But if you separate the alibaba machination from the business of yahoo , what you see is the business of yahoo is not doing wonderfully well. Their operating margins are quite low. Their operating profits are quite low. Their revenue continues to increase. They spent over a billion dollars in acquisitions in the last year. Which is helping the top line of the company. It is helping the sale and revenue, but its not translating into Great Results in terms of earnings. Thats very disconcerting. They have taken a lot of the money, the cash cushion that Marissa Mayer had when she took this job to years ago, and spent that in order to gain better revenues. Can we turn your attention to ibm and apple. You talk about increasing revenue. They have new applications for what . Enterprise customers . Business customers . This is another one where the headline is ibm and apple using the best of their Watson Technology i dont want them to use the worst. Of their Watson Technology. Indeed. According to sources familiar, by the way. But the big deal here is not the app. Its the fact that you will have all of these ibm sales people and Service People on their feet on the street knocking on client stores and saying you have to check this out. Its an ipad, and iphone. Corporate customers are going to access this dont they download stuff from the loud . I thought everybody was in the cloud. Its ultimately about devices and selling highmargin devices. They are going to penetrate the Corporate Market in ways they never have before. That starts today. I think this appleibm relationship is about that. They have a partnership that i think it is all about the sales of products, not about developing apps. All right, so i am wondering, matt miller, if you can connect that. If you have the app in the automobile which was produced by ford, you have more of these, the crm application, put it right on the dashboard of the car. And the car is your office. And then eventually, i am going to put on some oculus rift goggles where i dont have to drive anywhere but i can do business with everybody in the same space, virtual reality. I dont know. Maybe, cory . The interesting thing, i think going back to google and , Alan Mulallys move there. Remember, he was very close to Steve Ballmer and microsoft actually supplied ford, and still does, with all of their in car app gadgetry. And now its almost like he is going to a competitor. Competition is a way of life in Silicon Valley. Is a way of life in Silicon Valley. They are using microsoft operating systems. Ford has Microsoft Office and Microsoft Windows all over the company. Increasingly, youre going to see these companies overlapping and competition is the name of the game. You think hulu and pied piper will get together . I dont think that will be the case. Well see. Any idea how much money they are going to commit to this venture . Yes its been conspicuously , absent from the press release. They havent committed what theyre going to spend. The focus of the press release is apps in development. But i think the key is to have ibm sales. You know, there is this thing that has developed in Silicon Valley, and we have talked a lot about it on street smart. The ipad really change things. Executives walk up to their i. T. Guys and say i have to find a way to use my phone but you are going to make this ipad work on our corporate systems. But what didnt happen there was a development of Corporate Software were you had software really coming from providers developing whatever an individual corporation might have in terms of its own proprietary software, its own proprietary Sales Management software and so on. Written for the ipad. Its bad news for blackberry if the ipad is available. From the army of salespeople everyday from imb trying to sell this stuff that come from ibm everyday trying to sell this. I think ultimately that is going to be the big benefit of apple breaking into the corporate side of things, which goes all the way back to prejohn scully when getting into the Corporate Market was the biggest failure of apple and the biggest success of ibm we will see if they can actually bring the price down if they can do that. They have taken an upper niche. Right . Its almost a luxury product. Compared to the other offerings, from microsoft, from hp, and it will be interesting to see if they are willing to stomach the thin margins. I want to thank you very much matt miller, bloomberg news. , also thank you to cory johnson, bloomberg editoratlarge, joining us from san francisco. All right coming up, i am going , to introduce you to a billionaire who is behind tony petrone tequila. We will talk about his latest venture in the music industry. This is taking stock on bloomberg. John paul dejoria cofounded John Mitchell hair Care Products in 1970. He sold products door to door. Out of this automobile. Now the company is worth over 900 million. That is not enough for this billionaire. He wants to add music mogul to his resume. His new Wireless Phone service is rock mobile. It is partnering with monster to create highend headphones as well. John paul dejoria, thank you for being here. America still works. Clearly, something is working. You have got to start by explaining what is this new rock mobile. Rock mobile will go on any smartphone, whether it is an android or iphone. It makes no difference. What it is, for music lovers, it is a dream come true. It gives you access to one of the Worlds Largest databases of music, where you can download on all of your devices as much as you want. There is no limit. There are over 22 million songs to pick from. Just as much as you want. In addition to that you get all , the phone calls you want, all the texting you want, all the data that you want. No contracts. Whatever it may be with your phone number. Its a new way of doing things where its allinone. Very, very unique. And its 49. 95 a month. 49. 95 a month. Thats it. Many people have phones but dont have music. They cant afford it. Those who have music complain that their bills are so high. With this, the family can have all the music they want, and there is no additional cost. So when we look at this, partnering with people, and there are a few moving parts. You have a great business show. We found a way to pay for this along the way so that we are not beholden to anybody. No loans are out there. All the technology between the state of washington and everybody in the united kingdom. We have it all. We own it all. We are able to reduce the price with fewer people, and we have the highest technology. Its similar to Paul Mitchell. We launched the finest hair Care Products with little to no money. This costs more money, but petrone the same way. Lets sit back and explain how is it without actually owning the network that you are able now to offer, i think it is 4g service . Very good question. There are four Major Networks in the United States. To we have already partnered with. So by using them, depending on which network you want to go with, they get their piece of the pie. The record companies, of course, Music Companies i had records in my day. They get their piece no matter who has it. It allows them and the artist to make more money. But on top of that, which i love to talk about i am giving to , certain charities four percent of the gross for a year. To help make the world a better place to live. A lot of people say that is stupid because i am doing that before i make any money. It will be a while before you get your money back. But we found in life that by giving along the way, even if it means you get your profits later its a good way to do business. ,down the road in a year or two, our base will be so big that i will get the money back eventually. And i will do some good in the meantime. Did you have to go out and sign specific agreements with all of the Music Companies . We certainly did. Of course, we had to, so they could have their royalties and, in turn, give their artists their royalties. It is interesting talking about artists. I will talk about some, some country and western guys. They like helping out tennessee. They are part of my four percent of the gross. It is going to charities to help change the world. Its part of the music industry. And their songs will get played and they will get whatever they , get for their songs, but on top of it all, they want to lend a helping hand. A lot of musicians are the same way. We will have more of the conversation and more on what he is doing to change the world next on taking stock. \ this is taking stock on bloomberg. Im pimm fox. I am joined by john paul dejoria, who is the cofounder of Paul Mitchell and also of petrone spirits. Of rockw also a founder mobile. Your music. Thats online. Youre offering that is part of a Telephone Service with data and so on. Youre also an entrepreneur when it comes to distilled spirits. How did you connect all these things . Well, petrone is very i want to mention on rock mobile also, you can use it for free of charge for two weeks. See how the compressed music sounds even a much better. Free for two weeks. Free for two weeks. No phone calls, just all the music, free. As far as the marketing of this goes, have you done this all yourself, or are you connected with a larger Marketing Team . Its all underground. Our team is a small team. We believe in few moving parts. We use social media to spread it. If you can get everything you month,or 49 95 cents a phone calls, texting, data youre going to want to tell , friends about it. How did petrone tequila turn itself into a global brand . At one time it was underground. We were hoping that someone would pay the money for this highquality tequila. Because it was so expensive to make, we went doortodoor selling it. That was the marketing. You were right. I went to spagos in beverly puck, to barsg and restaurants saying try this out. Or i would go to a bartender and say i will buy you a shot of tequila. I would say, check this out. They would say what is this . I would say this is the new wave of tequila. At Paul Mitchell, we would bring in 3000 top hairdressers from all over the United States and the world and give them free petrone tequila. The key to underground marketing is if you have the highest quality product bar none, you want to be in the repeat business, not the selling business. It has to be so good that people repeat it. Well, as you know, in 25 short years, petrone became the worlds number one tequila. We are in 25 countries. I think was also appreciated is that every race, color and creed is treating themselves to petrone. Its not just one particular group. Its a world blend for all people to enjoy. We did the same thing with Paul Mitchell. It is not a color of skin. It is types of hair. You mentioned quickly going doortodoor, actually showing up. That seems to be a hallmark of the success you created. I learned that in my early 20s selling encyclopedias doortodoor with no appointments. It works. We started Paul Mitchell that way, beauty salon to beauty salon. Petrone, the same way it was launched. You have to come back and tell us about nascar racing as well. I know your family is into it. Alexis is the world champion. I know, your daughter. Thank you. Founder and chairman of the board of john Paul Mitchell systems and the cofounder of rock mobile, john paul dejoria. This is taking stock on bloomberg. Im pimm fox. Today Johnson Johnson raised , its earnings forecast for the second consecutive quarter. They reported 21 growth in their drugs business, and it is now the biggest unit of the company. All day my cohost carol massar has been at the Company Headquarters in new brunswick, new jersey, and she joins me now. Carol . As you know, the company did come out with earnings. I was just going to say despite the results, 21 growth , as you just mentioned. Shares of Johnson Johnson didnt react positively. They were down. Yes, they were, in fact, pimm. You are right. They did beat the top and bottom lines. A couple of things might be going