Celebrity agents in a deal worth almost 2. 5 billion. William morrison deller endeavor is buying img. Holograms reviving concert biz . Revived from the dead, sort of, but are these holograms enough to revive the concert industry . Digitaltoday in the remix. First, to the lead, turns out apple and china mobile, the Worlds Largest wireless carrier to my do not yet have a deal to announce. China mobiles chairman said that the Company Events today thats no deal has been reached and that talks are ongoing to add the iphone to china mobile network. This comes after earlier reports that 80 deal was done in that china mobile would make the announcement today. A deal with china mobile which has over 750 million customers could mean billions in added revenue for apple. More, i want to bring in you also help set up googles operations in china, hong kong, and korea. We all know the Chinese Government can be difficult to work with, but why is it taking so long . Certainly there has been a technology factor, which it turns out 4g is actually not available in china until very recently. But they just got a license. Which allows the users to take full man advantage of the iphone services. Speculation is that china mobile is the Worlds Largest carrier, the largest carrier in china by far. Might have been or have more difficult to deal with, and apple is certainly dominant in its segment. You have a clash of two titans trying to reach an agreement. You can only imagine how difficult the discussions might have been cared greg they just got a 4g license. I thought i was the last thing they needed. Which is why we think the deal will happen. Details . Re the is unclear. I think it has to do with the economics. We as a china mobile doing deals with other handset with others. H 4g you helped set up google in china, when it comes to a u. S. Corporation, how does this work . There are a couple of things that are interesting about china. Everybody is fascinated by the size, but we have to remember that china is so large that it is an ecosystem within itself, so certainly the government has a set of policies and practices that to a nonchinese business would seem much different, maybe much like japan was in the 1980s. Having done business there, you have to appreciate that china has its own ecosystem. You have a different set of partnerships, a different set of protocols, a different set of integration do you have to do. You cannot just walk into it, shut up salt set up shop and expected to sell. Other carriers do already sell the iphone. This is a beijing website for china mobile. It is taking orders for a phone, a four g phone, and there are pictures of this phone on the website, and it looks exactly like the iphone 5s, and the three colors at the iphone 5s comes in, there is a golden apple, what are they doing . It is really a tease, isnt it . Silhouette, like a before the performer comes on stage. If you look at the name, the brighte means a star, or star. What theyre saying, i think, if we have a star that is about to be unveiled, here is the silhouettes, place your orders now. It seems a little dangerous of the deal have not been done. Which is why most people think it was going to be announced earlier today. So what is the timeframe . Is this just a matter of when, not if . Have information on that. Most people, and i just talk to our china colleague, everybody believes it is imminent. From us, certainly we think a pickup, evenof without china mobile pairing with the iphone, certainly sales have gone up in the last month or so because the other two carriers are carrying it o. Point of view, we are excited. This will stimulate apples iphone sales in china and globally toured if or when this will happen, how does it mi,ect samsung, xio others . Includes android enjoys a huge market share in china. We have to remember that china mobile is the largest carrier in the world and the largest carrier in china by far, 65 market share in mobile, just to give you a idea of how big they are. Analysts would say that doing this deal would give apple 17 year,n new users next which is a drop in the bucket compared to 750 million that china mobile has. The entire country has about 19 million smartphone users. 70 million is almost like adding a country to apples ecosystem 17 million is the most like adding a country to apples ecosystem. We will be watching. ,anaging director for inmobi thank you for joining us here on bloomberg west. William morris endeavor and Silver Lake Management have agreed to buy the sports agency, img, that represents models and athletes including Peyton Manning and gisele bunch and gisele bundchen. Cory johnson has more. Based in losrris angeles and already represents some of hollywoods bestknown names, matt damon, ben affleck, others. As far as taylor swift, doesnt emily. Also a big and justin timberlake. Also a big jt fan. What does it mean for hollywood . This is reshuffle the deck in hollywood. We had two majors duking it out for about 10 years, and we have had some murders going on in the last five, the most recent with William Morris and endeavor on caa, whichake has been a giant here in town for a long time. What this deal does is it makes William Morris endeavors the biggest a Talent Agency in the world, and to get them reach not just in film and television were they already dominate but it now puts them squarely in an arena with sports, like you mentioned, and it also gives them greater reach with music and really lucrative areas that they are not in now like naming rights for stadiums. I think be sports aspect of this is really interesting because it seems like it is a very steady business in that athletes seem to be getting paid more as tv rights go up and athletes share in some of that, but at that to the duration of contracts, a very steady cash flow for the agent. That is absolutely right. Also what you have going on here right now is the Film Industry is contracting, studios are putting out fewer and fewer movies and fewer and fewer lock busters, and they are paying less for the actors, the directors, and the writers who provide those scripts for these films. You have one area where they dominate but it is contracting, and they look over nac sports, and networks are paying a fortune for these sports rights, nfl, mlb, nba, and college, these are huge contracts the networks continuing to pay higher and higher rates for the great is a smart move. Are there real synergies in these different agencies or are they just imaginary . Peyton manning at papa johns is interesting, but will it work to get more money for these kind of deals . The synergies there are some there, especially with fashion and films and athletes. I think there definitely are synergies and, certainly when it comes to in that space, certainly when it comes to naming rights and marketing deals that img advises for college athletics. There certainly are some synergies there. Most of those are probably in the back office and not necessarily in the frontline of these businesses. Really this is a complementary deal. Img supplements William Morris existing businesses and extends them internationally where there is a lot more growth. All right, bloomberg news, andy fixemer, to every much. Thank you, cory. Google is taking heat after raising prices. A debate is coming up next on bloomberg west. You can also watch us streaming on your phone, tablet, and at bloomberg. Com. Welcome back to bloomberg west. I am emily chang. Boomer is taking a lot of heat uber is taking a lot of heat for the snow for snowstorm. This is because of ubers search pricing where users pay more when demand is higher. Uber tells bloomberg west search pricing gets more cars on the road quickly, helping to guarantee the uber reliability users countered users are clearly notified of and mustard knowledge the elevated pricing within the app before they can request a car. Thes ubers pricing market correct model . A man who is the author of the one percent windfall. Cory johnson also with us from new york. Cory and i had a conversation with an uber investor yesterday, and i have never seen so much the enemy and so much the him ently outragedem twitter responses. Ricedo you think of ubers policy and is it fair . Central question is for a noncentral service, in america, where you set the the market sets the right, should there really be a constraint to price when there is high demand . Many industries do this, for instance, airline, hotel, car most Major League Baseball teams are doing this, so i see no problem with uber setting price according to the market, and what is one of the most important things is that this is a nonessential service, it is not like everyone is entitled to a black car. Customers have a lot of next best alternatives. Bus, they canthe try to hail a taxi, they can actually wait because ubers search goes up and down, almost by the minute, or they could simply walk. I have a new problem with a for Profit Company said it price equivalent to what the market will pay. Quite a number of ventures toky ganesan compared uber a lifesaving cancer drug. 200,000 a year for recovery. Is that fair, or the more important to make sure the 200,000 is there seeking get better . Compare is it fair to uber to a lifesaving cancer drug . I disagree with venky. Lifesaving cancer drugs, there are not very many alternatives. For a pricey car, there are a lot of alternatives. Uber is a forprofit business. I do not think anybody will die if they do not get an uber ride during a snowstorm on new years eve. 35 a mile, doesnt that undermine trust that customers have in uber . Their statement is that the they want people to think of them as reliable. Availability is one thing, but some say pricecutting is another thing. Right. First of all, i think it is important to emphasize that once again a type of ofatives, it is a fair next best alternative, it is a fair price. From a trust standpoint, automatic it is a problem. Ubers is not about being a low cost leader, it is not a walmart. It is the contrary we offer efficient, good service, and for that, when times when theres too much demand we cannot offer that at a low price, we will increase price. I think from a trust standpoint, it is important to empathize that in many cities, for instance in boston, uberx has come out and that we will be 30 below your taxi service, so there is a trust factor. I think it is aborted that uber taken time it is important that uber taken time to plaintiff policy to customers. Last weekend, it was clear that it was not clear to customers, there was a big uproar, and you probably have the same problem on new years eve. Lets like cory get in on this action. What do you think of rafis argument compared to venkys. The notion of being nonexistent not extensional passionate to the business application. It is not just about back medication, but uber has made a choice, and when you compare to airline that is interesting because airlines are despised by their customers for the most part, and uber is making a choice to leave the issue of costs up to the moment, and that could ultimately really damage this business, but it is also something that was not technologically possible to truly skilled man at the moment and scale prices at the moment based on demand. It is the thing you would see more at the stock market then you would see the providing of a service or a good. It is interesting that this is possible, but we have never really seen businesses that can do this and wrote time and look to what the effect will be on Customer Loyalty and on customers who care about this service. This shows a passion of uber users but it also shows how uber screwed this up and really hurt that trust that they are trying to build of a new service out in this world. Facesi, do you think uber a risk of damaging their business . It comes down to what is uber s brand, and it is you will offer something community, you can trust on uber to get you in a reasonable time. No. Your book is about the one thing cent ultimately 1 ultimately they want to write service to everybody, not just the 1 . That is al gouge you, much smaller market than the bigger market of people who want transportation at a affordable cost. I wouldnt agree with the word i would disagree with the word out. Word gouge. Price is something the use of a mechanism. Customers have the right to stand on the street and try to hail a taxi. It isis not about rights, about building a business. If theyre going to limit the ability to row their business if they take off a lot of people. If they do not tick off anyone, they will build a bigger presence business. It is a good question, and it is really important that they take the time to explain this Pricing Strategy so people fully understand it will stop a great example of a company that did not explain its Pricing Strategy is netflix a couple of years ago. They all the sudden increase the price of their streaming service by 40 and within three months, netflix stock went from 271 to 75. Rafi, we will see what time what uber decides to do here, but i spoke with the ceo of uber a few weeks ago, he said they basically take a 20 cut. Why not just take a smaller cut on the rare days when demand is so high and supply is so low that they need to raise the price three times, four times, why not pay their drivers a little more to get more drivers on the road for the benefit of their customers and for the purpose of Building Trust and reliability . Certainly when there is a search price, the drivers certainly get 80 of that. Theyou saying that perhaps should search prices in this instance . Wifi nothing they should search prices on the days when it is 1. 5, two times, but on the days , it is is up to 35 dangerous come Everybody Needs a ride, why not knows where its is is make an exception and take a smaller cut . I do not see the reason to do that because once again there are people out there paying that price, and this is that are is their business model. I should not see a reason why they would have to do it, and i do not think they should be apologetic for this rising strategy. That is what they are doing. They did not do a great job of conveying a, now it is their job to convey it to customers, and like any sort of luxury, high end product, sometimes you can afford and other times you cannot. All right, well, lets see how this lays out. Med, to every much for sharing your opinion with us here on bloomberg west, and cory is welker and we will have much more after this quick break. Welcome back. I am emily chang. It is time now for on the market, a look at what is happening on the market that 26 and 56 after. Julie hyman is an new york. Emily, thank you. We had the fed decision, and any insight whether tapering is going to happen now or later, we are not think that much activity in the market because investors are waiting for that information. That said, there was a downward bias to the markets, all bollings all bolling slightly, just six points. Treasuries not much change, but we are seeing a bit of a bump up in yield as you might expect. We will be bringing you all of the Market Reaction once we do get that information from the Federal Reserve. We will be back on the markets in 30 minute that we will be back with that fed decision as well. Welcome to the Early Edition of bloomberg west. I am emily chang. You can also watch at our later time, 3 00 pacific, 6 00 p. M. Eastern. India is cutting security outside the u. S. And the sea in new delhi and has removed transit privileges for american diplomats. The move comes after a female wasan diplomat said she subject to a strip search after she was arrested in new york. Homebig gains in a new instruction. The Commerce Department said the number of Housing Starts rose nearly 23 last month, hitting its highest level in more than five years. As investors wait to hear whether the fed will stop tapering start tapering its bond services. That announcement coming up in half an hour. And Movie Theater chain Amc Entertainment is up about 70 today at the goes public. Amc is controlled by chinass second richest man who bought the movie chain for 2. 6 billion last year. His group will retain 80 amc, making them the largest movie owner in the world. Ipos have taken advantage of filing sigrid secret filing provision under the jobs act. Well more Companies Follow suit in 2014, and what can be done to create a better trading environment for Smaller Technology companies . A managing partner at injuries on horowitz at andreessen or orowitz joins us. Lets talk a little bit about how it has worked so far, you guys are an investor in twitter, they filed secretly. How do you think the ipo process went for them . I think it has gone really well. I think confidential instead of secret on the things are the jobs act has allowed these companies to ease their way to being a public company, so things like confidential filings, things like the testing the waters provision that allows talking to Institutional Investors before they get on the road, those are net profit net positive. Water had a good ipo this year. We are on track to do when hundred 25 ipos this year, which is up significantly from where we have been the last 5, 10 years. How many more companies are going to file confidentially and take advantage of the protections of the jobs act . Think this has become the standard course now for most companies, and if you think about it, it is a really good thing for them because in the absence of this continental filing, what has happened is they are out there with a public filing for maybe 3, 6, 9 months, and they are in this quiet mandates, sohe sec it is hard for them to respond to criticism of their business or to operate their business in a way that makes sense. For the benefit of the confidential filing is it still gives investors plenty of time to see these numbers and the financials before they go on the road but make sure the companies are not sitting ducks for a long is goinge the sec through the review process. Is there any reason a company would not file confidentially if theyre technically allowed to . I cannot think of a good reason to do so. You pour yourself in a really big competitiveness advantage and you file publicly because of i said you got