Unlike other music sites like pandora, it is curated by humans rather than algorithms. Terms of the deal were not disclosed. A single better has won the government did going auction am a purchasing the entire kaisha of almost 30,000 bitcoins. As part of a larger pool of the Virtual Currency seized from the website. The auction attracted 45 bidders. The lot of bitcoins was worth about 19 million at current prices. To our lead story of the day, for the second time in less than three weeks there is a major shakeup in twitters Top Executive ranks as the company tries to boost future engagement. Anthony noto has been named as the new cfo. He has a varied background including serving as cfo of the nfl. He is also west point grad, spending time in that middle east fallen the army. The shuffle comes just weeks after the coo resigned amid reports of a power struggle between himself and ceo dick costolo. Cory johnson is here with me in the studio, joining us from san diego are Paul Kedrosky and jon erlichman. Tell us a little more about anthony noto. Obviously is very wellknown on wall street. Why take this job . And not just an investment banker, before that he spent a lot of time as an analyst. This is somebody that the twitter executive dick costolo got to know very well. This is somebody who was already going through transition and already announced plans to join the 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 fund, code two 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. It did not make much sense 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 of shakeups in the c suite, in twitter in general. Dick costolo seems to be getting the house in order, but is it risky moving so many top managers at the same time . It is clearly happening at 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, the relationship tween dick and their new cfo anthony noto. Mike gupta, 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 is not m a, is not Business 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. He has been frustrated 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 . He has 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, another 500,000 options. Those options are already worth 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 was 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. The timeline 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. Where do you see this acquisition going, and the broader twitter commerce effort . They hired ahead of commerce, but have not done with it yet. Commerce 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. Welcome back to bloomberg west. Im emily chang. Facebook is under pressure because of ads that it posted. Cory johnson is in the newsroom with the story. This campaign is staging a protest at facebook offices asking that they disgorge 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. People are sympathetic to the 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 right, 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. We 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. Anyone who knows anything about this regime knows that its tentacles spread beyond the region and within the region. Whether syrians lived in paris or london, they cannot be criticize 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. It is fairly amazing that not 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. Propaganda matters when it is a crisis and conflict of this scale. For many ordinary syrians, they believe the world has forgotten them and what has happened in syria, so the idea that facebook can do business that promotes a regime that has besieged entire cities and bombed their own people just because they took the ads down, we think this show solidarity for syrians. We have not forgotten what happened in that 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 . I think this 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. What is interesting is, if you look at the reporting on syria, the world is talking about isis and iraq. The assad regime is responsible for the majority of things that have unraveled in serial over the last three years. If isis were advertising on facebook, there would be outrage, 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. Coming up, how one winner of 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. Storehouse is one of nine apps that won 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 allows people to share videos, pictures, and text. People wanted to tell stories that went beyond a single photo, but also did not want to write a blog post, so they can put photos and videos together and lay them out in an interesting way. Is it like an extended version of imovie . It allows you to create something closer to a Magazine Article but allowing some video in there 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 . We are looking to expand to 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 hopeful that it will open up 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. Thats right, one thing i did was really trying to help people take advantage of apples unique 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. We are seeing everything from 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 polish that perhaps 7 did not have. As a user, i am hoping that things will get better. 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. Since i am 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, worldchanging products in them that are coming soon . I am very optimistic. My friends at apple who i talk to are excited, they are quiet, which means they are working hard on a bunch of things. Storehouse recently raised 7 million. How will use the money . We are looking to get a great team here in San Francisco, we want to do more on the photos 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 for 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. We 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. Time for on the markets. Lets talk about where stocks ended the day. We did have a big rally which sent the s p and the dow to new records. The dow did get within two points of that psychologically important level. Definitely a big day based on chinese and u. S. Manufacturing data. You are watching bloomberg west. I am emily chang. Twitter has a new cfo. It is also making a new acquisition. It has reached a deal to acquire 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. I think about what it means for twitter, and one of its biggest rivals is being understood by the Public Market. Anthony will help translate between those two worlds. What do 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. How is dick costolo seen by his employees . He is a wonderful manager, he 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 . Twitter is doubling down on 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. If you are an ebay user, they can target one of their existing users with a product they think they want to buy and bring them into the mobile product. Not long 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, about nathan hubbard, who they brought in from ticketmaster. He is incredible. I think he is the right guy to help them figure out what commerce 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 those current active users, 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. One of the things that dick costolo and other cofounders have said is it does not matter how many people are using twitter because you see tweets everywhere, on tv, in magazines. Is that true, or do they need people to be signing up and using the product to make money . That is wher