Last month. Becoming cup is fast one of the most popular events in the United States thanks in part to technology. 46 of americans are watching and at least six percent are watching online. Soccer fans are also twice as likely to watch matches online and fans of other sports. Our lead story of the day, for the second time in three weeks, there is a major shakeup in twitters Top Executive ranks as the company tries to boost user engagement. Twitter has named former Goldman Sachs anchor anthony noto as its new cfo. He led the twitter ipo and has a background including serving as the cfo of the nfl, a west white bread, spent some time in the middle east in the army. Gupta, wholace mike will stay on as Senior Vice President of strategic investments. This comes weeks after reports of a power struggle. Todays news is sending the shares of twitter higher. Cory johnson is with me in the studio. From san diego is paul kedrosky. In l. A. , jon erlichman. Tell us more about anthony noto. Obviously, well known on wall street. Why take this job . And not just an investment banker, before that, spent time as an analyst. ,his is somebody that someone clearly, twitter executives got to know well on the road to the twitter ipo. As you build relationships, that builds trust. This is someone that was already going through transition, had announced plans to join a hedge fund. He was transitioning. Twitter was looking for a little bit of wall street love. The frustration that some investors have had with the lack of user growth have left them in a tough spot. Here we are with somebody who knows the companys story well who is now essentially going to be in a position to defend the company or better tell their story on wall street. Weeks ago, he announced he would be going to this hedge management, a big surprise to Goldman Sachs. What do you make of this happening now . It is a bit of a strange timing. I do not imagine that they are jumping up with elation unless they have some insider news. Much sense make to me, but in many ways, it is a smarter move financially and personally, then going to the hedge fund. This is what twitter needs. They had two quarters where they thought they did the right thing by wall street, but wall street punished them for it. First quarter, they answered all the questions. Second quarter, they delivered excellent ration in growth, and wall street did not like that either. Now they need somebody that can speak twitter to wall street. A lot of the complaints on twitter have been about user growth and the product and engagement. Cory, how much does this have to do with their business . When we look at their finances, things look good. Fundamentally, because the user numbers are small compared to facebook, which has five times as many users, but the growth has really slowed down. We are talking about single digit growth. This company should have so much more runway. That is something the Management Team needs to fix and noto needs to communicate that with wall street and executives. One of the problems that twitter faces is the stock is expensive for not growing fast. In some ways, that is notos fault for pricing and where he did. We know there have been a lot , inhakeups in the c suite twitter in general. Dick costolo seems to be getting the house in order, but is it risky moving so many top move managers at the same time . Happening atrly the same time, so we will conclude that there is something going on. Whether these are individual stories that happened over time, that is the question. For example, as we highlighted, andrelationship tween dick their new cfo anthony noto. , who had been the cfo, is not leaving the company but taking on a new role. Is there bad blood there . Hard to say. But he will be doing something pretty interesting, running this new strategic investment area, which not Businesss Development or partnerships, but it is kind of like google ventures, looking and where they can make some interesting moves with the cash they have from the ipo. What do you think dick costolo is thinking right now . Why is he making all of these moves right now, at once . From a leadership perspective. Frustratedeen probably since their First Financial quarter as a Public Company, partly that they did not execute the way he wouldve liked, but also feels as if wall street and investors did not see the company the way that he thought. Often managers will say that and that is not because the shareholders are wrong but somehow because the manager is screwing up. Dick firmly believes that there is a story to tell here, and if he has the right person in place until it, and on the other side, if they do better on the product side, it will be a much Better Company than wall street perceives it to be. These are the changes he needs to make, take under control of the product and how the message goes out on the street. You can see, wall street likes it today. When facebook went public, it did not look great right away it took a few quarters to get mobile revenue. How much do you think this is dick costolo trying to get people he can trust in his corner . Its a huge part of it, but he is a pro. This is not his company. He was a manager brought in to smooth over the bumps. This is still the ongoing story, lets fix this and smooth everything over and put in all the pros in those positions. This was an inevitable move, as was taking more control over product. These are things you would expect to see with management. How often do you see this with a new Public Company . Been at this for a while. I have known him for 15 years. He has a lot of experience, and he is also getting paid a ton of money. Over a million and a half shares, outright grant of stock come up another 500,000 options. Worthoptions are already half 1 million. If he stays those four years, hes receiving stock worth 64 million in todays value. And that is more than goldman money . Probably. It is serious cash. But he also has the requisite experience. He is cfo of a complicated, big media company, the nfl. Managing all the different aspects of that business. He has the right kind experience for this job, but fundamentally they have to find better ways to monetize this platform. Growth, for example, the number of times people click on the time line. A very important metric. User growth slowed down. Some other numbers looked better in terms of revenue per user, revenue per timeline view, so they are monetizing better, but growing slower. They need to turn that around and that will take all hands on deck. Anthony noto is the kind of person you want to do that. We will be talking about this later on with a longtime twitter investor. This do you see acquisition going, and the broader twitter commerce effort . They hired ahead of commerce, but have not done with it yet. Is probably still not the lions share of where the business will be. It is finding better ways to find effective ads in front of people. You could argue part of the acquisition they made will serve that. They have certainly been rolling out more at products. Dont be surprised if twitter puts together a quarter that encourages people i think the world cup will also be a good way to engage overall engagement on twitter. A lot of people have been turning to twitter during the world cup. A big game today, we will all be watching. Thank you. Go usa. Protesters gather outside facebooks London Office demanding the social network give back or donate money it made running ads from a Group Promoting syrias embattled president bashar alassad. Bloomberg west welcome back to bloomberg west welcome back to bloomberg west. Im emily chang. Facebook is under pressure because of as that it posted. Cory johnson is in the newsroom with the story. This. Campaign is staging a protest at facebook offices asking that they discourage the money they got from running those ads. The Campaign Director is with us from london. John, how was the protest . Good, strong support from the public. Even people in the offices in the facebook building who were opening windows and showing thumbs up. To theare sympathetic question that we are asking facebook, which is, if you have done business that promotes such a terrible regime, the thing you should be doing is making it right,and by making it we mean, give the profit you have made promoting an atrocious regime like this, give it back to the people who it belongs to, ordinary civilians who are in desperate need of assistance and food. There are a lot of aid agencies that could provide assistance with that money. Reached out to facebook and they said they took the ads down, do not really know who paid for the ads in the first place, but the money did not come from syria, so they felt they were not breaking any laws. Who knowsws who anything about this regime knows that its tentacles spread beyond the region and within the region. Whether they lived in paris or london, series cannot be cap gets the regime because it operates outside of their borders. It will not be a philanthropist who decides they want to buy facebook to promote the assad regime on facebook, it is an element of the syrian regime. It is disingenuous for facebook to suggest the money does not come from an element of the regime in some way. That notfairly amazing only did you get the thumbs up from the offices, but it is amazing to me that this got 200,000 likes, that this campaign had some effectiveness to it. That is what is quite worrying. When it is atters crisis and conflict of this scale. For many ordinary syrians, they believe the world has forgotten them and what has forgotten in syria, so the idea that facebook can do business that promotes a regime that has see each be sieged entire cities and bombed the people, just because they took the and down, we think this show solidarity for syrians. We have not forgotten what happened in your country. This is unacceptable business. There is a very simple way of putting this right. What does this tell us about the assad regime, if in fact they were behind it . What does this tell us about them and their use of technology when the country is in the middle of a civil war and there is International Condemnation of the syrian leadership . Was being done at the time of the sham elections, which assad was running. The ads were primarily outside of syria, so it was an attempt to legitimize the regime and the election. If you interesting is, look at the reporting on syria, the world is talking about isis and iraq. Responsiblegime is for the majority of things that have unraveled in serial over the last three years. Were advertising on facebook, there would be are, and rightly so. We are just astonished that there was not more are for that assad, who is responsible for what happened in syria, has been able to advertise, and facebook was able to advertise, make a profit, and hold onto it. I think it shows facebooks power in the world. We appreciate your time. Thank you. One winner ofhow the 2014 apple design award is trying to change how we use the ipad. That is next. Welcome back to bloomberg west. Im emily chang. Is the ipad merely a tool to consume content . If so, one company is trying to change that. Wons one of nine apps that a prestigious designing award. Joining me right now is the founder of storehouse, a former Senior Designer at apple. A storytelling app. What does that mean, how do you use it . Storehouse allow people to share videos, pictures, and text here people wanted to tell stories that went beyond a single photo, what also did not want to write a blog post, put photos and videos together and lay them out in an interesting way. Is like an extended version of imovie . It allows you to create something closer to a Magazine Article but allowing some video in their really as the multimedia element to this. Ipad sales are dropping. You are only on the ipad. Is that a concern, will you expand beyond that . Towe are looking to expand the other platforms. We do still think the ipad is a great device. When you look at how the Younger Generation adopted it, we are hope all that it will open a creation for a lot of people. You have unique experience because you were a designer at apple and also a User Experience evangelist, which means that you helped other Companies Develop apps for ios. I didts right, one thing was really trying to help people uniquevantage of apples technology and hardware to push the boundaries of software. Thinking about what publishing could be on an ipad, thinking about the touchscreen, fast graphics processor. People are using this in some unique ways. Talk about that. From are seeing everything a girls night out, take a lot of photos, weekend backpacking trips. Also see how some professionals have adopted it. There are awardwinning photojournalists using it, documenting expeditions, deep photojournalism stories, cooking recipes. That is the most exciting part, seeing the variety of stories that have been told so far. When it comes to the design, what do you think about ios 8 and where johnny ives has taken it . Really excited. I think ios 7 set up a Nice Foundation and 8 will add some notsh that perhaps 7 did have. As a user, i am hoping that things will get uttered. You say some of the coolest features are not there yet. What are you thinking of . We see what is behind the scenes at the developers conference. We have not seen the big unveiling of things at the consumer standpoint. Not at apple anymore, i do not really know, but im always excited about my former colleagues in what they are working on. There has been a lot of talk about the state of innovation at apple. How optimistic are you that they still have some more great, world changing products in them that are coming soon . I am very optimistic. My friends who i talked to are excited, they are quiet, which means they are working hard on a bunch of things. Recently raised 7 million. How will use the money . We arelooking looking to get a great team here in San Francisco, we want to do more on the phones and on the web as well. Who are your main competitors . There are not a lot of folks working on the photo storytelling space. There are some working poor writers, products on the web, but we do not see many other apps doing the same thing on the iphone or ipad with photo storytelling. Will keep our eyes on you. Thank you for joining us. One of twitters Biggest Challenges is reversing user growth trends. How can they do it . We ask a former executive next. And you can watch us streaming on your tablet, phone, bloomberg. Com, apple tv, and amazon fire tv. The hour26 mins after which means Bloomberg Television is on the markets. I am watching the dow in particular right now because we are getting within a hairs 17,000 on thehing index for the very first time. As you can see, stocks are up across the board after 10 year china manufacturing data came in, more than expected. Also manufacturing data in the u. S. In line with expectations. , we should mention, is also trading at a record. We will continue to watch this as we see technology and Consumer Discretionary stocks leading the gains. I will keep updating you on whether we get to that milestone. More on the markets later. You are watching bloomberg ont where we focus technology, innovation and the future of business. Im emily chang. Twitter has reached a deal to tapcommerce. For more on what this means for twitters future is a former partner with red point ventures, previously with twitter. Thank you for joining us. I have to ask you about anthony noto first. What do you think . He has had a great reputation, have heard so many great things. He has a lot of fans inside twitter. Forink about what it means twitter, and one of its biggest rivals is being understood by the Public Market. Anthony will help translate between those two worlds. You imagine is happening with these executive moves happening at once . The head of engineering left, lots of shakeups in the product department. What is going on . Finding the right leaders at the right time to grow and build the company, to expand the opportunities they have. 300 million active users, i think they could be over a billion. They need the right people to get those spots. Costolo seen by his employees . Manager, heonderful is effective, is inspired by people who work for him. From a culture perspective, is there anything to worry about . Every company has its challenges and growing pains. Twitter has thousands of employees and is now a Public Company. Every phase along the way there will be growing pains, but it is a healthy thing overall. Tapcommerce, biggest acquisition since mopub. Why are they buying . Ontwitter is doubling down advertising. We have tons of company being built mobile only. For twitter to keep on doubling down on mobile advertising is part of them. Tapcommerce works on retargeting. Originally companies would try to get new users into the platform, but now that mobile has matured, tapcommerce builds Advertising Products that bring people back into products. User, theyan ebay can target one of their existing users with a product they think they want to buy and bring them into the mobile product. Ago, twitter hired a head of commerce but nobody knew what twitter was planning to do. Do you have a better idea of where they are going with this . I think you saw some news today, but nathan hubbard, who they brought in from ticketmaster, it is incredible. I think he is the right guy to help them figure out what congress is about. If you think about the evolution of what twitter is about, building stuff in stream, they are consuming something, and putting a buy now button next to products that people could buy instantly is the right path for them. You think that is what they will do . I saw some news and some testing for that earlier, so it may not be too far off base. How will this help user growth . What is most important is building cases for people to attach and learn how to use twitter. The more ways they can get twitter out there, instead of users,urrent active means a lot to them. If you think of their global reach, over a billion users. People are undercounting this reach that they have. One of the Biggest Networks out there. On