Become part of the washington machine. That is not who i am. Brad the 52yearold firstterm senator is headed to New Hampshire today, followed by key states like iowa, New Hampshire, and nevada. Fedex is buying Dutch Shipping Company tnt for 4. 8 billion in cash. That is the same company ups tried to buy in 2012 before but later said they would kill the deal. But fedex ceo fred smith said he is confident they will win approval. Fred smith if you look at our situation in europe and tnts, a are highly complementary and they will not result in a great deal of redundant these or market share numbers, which would appear to be problematic as it was in the case of the previous transaction. Brad the stronger dollar is helping fedex. Ups is going to pay 30 more for tnt than what fedex is going to pay. Private equity firm primarily in the canadian tension Plan Investment board are buying the company for 4. 3 billion in the largest leveraged buyout of the year. It comes after activist investor elliott manner pushed for Management Changes this year. Goldman sachs is buying 73. 4 million shares, worth about 2. 7 billion. The proceeds will help Stephen Harper to god the budget. Canada is looking for new sources of revenue to make up for the drop in oil prices. And dukes win over wisconsin last night was the ratings winner for cbs. It showed a 17. 1 rating in major markets, the biggest in 18 years and 33 bigger than last year. And now to todays lead. Education is perhaps the last area that has not yet been disrupted by technology. And this week in scottsdale, arizona, some of the brightest minds in tech and education are joining forces to improve ways to think about learning. Bloomberg west editor at large cory johnson is there now. Cory this thing is huge. I was shocked and i came in last night, 2500 people youre here focused on these ideas of technology, innovation, and not the future of business, but education. And among men, mark cuban, entrepreneur, Dallas Mavericks owner, and he has a lot of hats that he wears. He also has a lot of interest in best in the ways that he thinks that technology in particular will change the way education is done, particularly at the college level. We had a nice long chat about that. Mark cuban i think there will be a lot of universities that go out of business. And im not talking about apollo and university of phoenix for profit types. But schools and universities themselves. You will see some changes. What people and investors fail to realize is, lets just say for the sake of example, School Charges 40,000 per year for tuition. If you lose 1000 students, that is 40 million per year. There are not a lot of companies, particularly education type companies, that can adjust a 40 million losses. If a kid goes through school in four years, college or postgraduate for that matter but if the school keeps a kid and graduates them in four years, its much more costeffective graduation for the school. They can make it more costeffective for kids to get books. The Retention System can help keep kids in schools. That can help reduce the cost to deal with the ups and downs of demographic changes as kids dont go or go to school. Cory you need big data to monitor that. Mark they help schools put together monitoring systems, so when kids are doing things on their own schedules where they have to turn in things particularly if they are online students, you want to be able to monitor them stop if things monitor them. And if things are not happening on time, you want to alert not just the school, but the student not just the student, but this school as well. Cory for those schools when a look at this, youve got a whole different interaction with the debate has it is happening digitally. Mark right, its not the traditional way that we are used to where you go to class and take roll call and you are either there or not. Now its different. A portion of it can be a line or all of it. You want to know if the kid is tracking to make sure they are reaching their milestones in order to be successful. Its harder to self monitor when you are taking online classes, or just in general the way classes are today. Cory the one thing that is changing is the way the books were. Mark one of my Shark Tank Companies is looking at books. What they have done basically is to pack back. Cory is my dyslexia kicking in. Mark i get a confused over time. What they do is they are working with publishers now to try to come up with analytically the best approach to selling textbooks, not just the physical textbooks, but ebooks replenishing ebooks, and in some cases, a payperview for books as well. You may be like me. I did not buy the books because i could not afford them. I would borrow them. Now you can rent them for a limited time frame. Trying to create almost a windows system, like the movie business, but you can get the books when you need them, and is a price you need them. Cory do publishers want that, though . Mark they are learning they dont have a choice. As school gets more and more expensive its one thing when your books were a set amount. And now College Tuition has dramatically expanded and grown. Cory three times the rate of any other inflation. Mark right, and the marginal cost of the books appears to be enormous and kids are not always making the choice to buy them, or they are printing them, or buying them used. They are not getting the renewable Revenue Sources that they used to. Cory and youve got that on shark tank. Are you making money in those investments . Mark ive had one that goes at that has gone out of business and two others that should go out of business, but they are not smart enough to do it. Im fortunatate i do not have to limit my cap at all occasion. I just have to find a great one. Shark inc. Is one thing, because im trying to support entrepreneurs. Outside of shark tank, and looking for a home run. I Want Companies that go out and try new students and find the best outcome based values for students. Thats a different type of investment than what i do at shark tank. Cory snapchat and pinterest and companies that are out there for a long time mark but even that is changing. Once youve got that and you have that unit one and you have raised that unicorn and you have raised 5 billion, now in order to do an ipo, you have to outperform. You cannot just be an increase of 30 per quarter or 40 percent per year. You have to blow up your numbers. That is why you have seen snapchat go to what they are doing. They dont have that revenue outlet. Revenue has become far more important. It has gone full circle. Back in the days of broadcast, we could do a 30 million ipo. I just read yesterday they were more 100 million private finances from vcs than there were ipos. Cory during the bubble. Mark no, now. Over the last 10 years, more i. T. Investment has grown through this investment then through ipos. Because there is no ipo market and because the fcc has screwed this up dramatically i have to get that dig in there you have to change your ideas with all your companies and how you expect them to grow. Mark until the market reappears, the smaller ipo market, you will see more of that. You will see a billiondollar education unicorn. The question is, what happens next . Because she will also see billiondollar unicorns go out of business. Cory fascinating stuff from mark cuban. You get a sense that there are big ideas coming into education, whether it is Charter Schools at the kid level all the way to the postgraduate level, real changes in the way that education is being offered. Brad cory johnson at the summit in scottsdale. Thank you. Coming up, our guest host of the hour talking about how tech is disrupting the travel industry. And later in this hour, andrew masons next act. Brad im brad stone and this is bloomberg west. Coming up, how one company is working to make your trip a more local experience. Andrew mason joins us on his latest adventure. But first, a check of todays top headline. The job market remains strong despite the disappointing labor report. 5 million positions waiting to be filled in february, the highest number of openings in 14 years. Construction and Food Services had the biggest lanes. And samsung showed positive signs in its firstquarter earnings guidance. Forecasting a profit of 5 billion for the quarter. Its the strongest number in three quarters. Demand for samsung chips and is a panels is making forestalled smartphone sales making up for stalled smartphone sales. Our guest of this hour is the ceo of a startup that allows travelers to book tours and get insider tips. For the next hour, well look at how Companies Like peak. Com have changed travel. Welcome back. Ruzwana thanks for having me. Brad last night, i went on peek. Com and i created my perfect traveling experience. There and do traveling with kids. Talk about how its good for users. Ruzwana its a onestop shop for activities. You are bringing together a host of different experiences that might be great for kids. We curate perfect days coming from people such as wolfgang puck, giving you think they love to do in cities when they travel. You give people inside on a great way to spend time in San Francisco. Brad one of the reasons i asked you to guest host todays show is there is a much consolidation and competition in Online Travel right now. Expedias acquisition of orbits and travelocity in january, the rise in the priceline group, google and amazon getting into Online Travel, how much room is therefore startups right now . Ruzwana i think in our space, which is activities, it is actually local and travel. Its about a hundred billion dollars global market. What you find is because you are working with Small Businesses that are quite fragmented, you really have not had a human come out and be able to do anything great in this space. First tourists, 70 dont even have Online Booking. Its like the restaurant space before opentable came along. Brad talk about acquisitions, that trend and why you are wellpositioned with peek, ruzwana 50 years ago, we were all told that buying a car or a house will make us happy. And a lot of the science is showing that it is not things that make us happy, but experiences. Theres a shift in society. Peek. Com is providing that in ways that will fulfill and inspire them. Brad what ways are people traveling now you go with a guidebook anymore . Or with their smartphones as guides . Ruzwana people are looking really last minute. When he comes to activities, 75 of people are booking in six hours. The much shorter window and much more spontaneous. They want to pull up their phone and say, what can i do you and they want to find cool things to do. And we are even seeing this with hotels and airfare. Brad thank you. Stay with us. The founder and ceo of peek is our guest host today. Expedia at the top of the travel industry may be threatened. Next, how google is changing the business for startups and the alike. And we will talk to andrew mason about why he is entering the travel business. You can watch a streaming on your phone at bloomberg tv amazon. Com and bloomberg fired tv. Brad im brad stone and this is bloomberg west. Today, we are taking an indepth look at how technology is changing the travel industry. There are dozens of ways to book a hotel or flight online, but only a handful of companies that handle the site. Google and airbnb are posing new challenges. Travis katz joins us now with more. Thanks for joining us. We are talking about this consolidation in the travel industry with expedia buying orbitz and travelocity. Travis what we see is most consumers like to have choice and options. Our whole business gogo bought gogobot is built around this. When consolidation happens there are fewer options and consumers are less happy. Ruzwana what do you think about people having smart phones in their pockets and using that to do more . Travis i think that is revolutionizing the way people are doing things. And the millenials have grown up with smartphones. They are getting used to having information at their fingertips. People are planning a lot less and finding spontaneous things to do. They dont feel like they need to book their hotels ahead of time. Its changing a lot of peoples behaviors. The industry is trying to catch up with what people are doing on the consumer front. Brad travis, you recently secured a lot of funding from a Vacation Rental site home away. Tell us about that and murder about the partnerships you are looking to strike. Travis home away led a 20 million round in gogobot this fall. There are not special preferences with it, but the idea is that home away is looking to expand beyond just rental and and to the holistic traveling thing generally. There is a lot of synergy there with where to eat and sleep and have fun. We will be working on both the application and on the web to help people look at where they should they, but also the whole context of the trip. Where are the best beaches . Where are the best places to eat . We will help make the experience richer and it will help more people discover gogobot, so its a good fit. We are having a lot of interesting discussions about that, particularly with this idea of mobile. If you dont have a frequent use case, people might download an app, and then forget about it. Gogobot will be used not just for traveling, but also when you are in your hometown looking at where to go for dinner tonight. That can bring these travel apps to life. Ruzwana what do you think is happening in terms of priceline and making a transition to opentable and getting into Online Booking as well . Travis i think the opentable move on priceline was an interesting one. Its an example of people thinking about the travel space and its not just about selling the hotels, which is where the biggest margins are. We have to think about where the consumers are on their phones and what theyre doing more frequently. And we have to look at ways to make that last. Having the habits that people can use, and then using that to upsell for other products. That is the space where we play very heavily in the mobile space. I think a lot of companies are looking for ways to get into that base to make sure they do not lose that space to make sure they do not lose the consumer when they get into the act. Brad weve got to leave it there. Coming up, groupon cofounder andrew mason talks about his next act. You can also watch us streaming on your tablet, phone, apple tv, and amazon fire tv. Brad this is bloomberg west, where we focus on innovation technology, and the future of business. I am brad stone. Oil prices are rebounding, hitting their highest level in nearly two months after u. S. Crude output fell from a record high. A total u. S. Count of rings in its lowest level in five years. Arizona senator john mccain announced that he will run for another term in 2016. The republican will be 80 years old at the time of election day but tells the news that critics who say he is too old are wrong. Senator mccain i said watch me. Watch me. Take a look at my 18hour days and my legislative accomplishments. Listen, i am just getting started. Brad mccain also cited the long jeopardy of his mother, roberta, longevity of his mother roberta, who is 100 three years old. Voters in chicago are heading to the polls for the election for mayor, with rahm emanuel going up against chuy garcia, and whoever is elected will turn around the budget issues, which have left this city ratings on the verge of being called junk. And in online Media Service dailymotion, a french conglomerate is negotiating for a stake in the youtube rival at a price of around 235 million dollars. Vivendi is under pressure to grow its business. And tiger woods says his golf game has finally returned to a place where he is confident he can win, and that includes this weekend at the masters. He has not played on the pga tour since the tournament in february, where he withdrew due to back pain. He is seeking his fifth green jacket since 2005. And we are back with our travel special, and the founder and ceo of the travel startup has changed dramatically. And joining us is brad. Thanks for joining us. I want to start where we were last segment. All of this consolidation, is it good for regular people . Brad g. priceline will be doing 500 million, expedia 500 million. That enables them to reinvest the profits and have more Innovative Services or consumers, so i have to be in the camp that it will be a positive thing for consumers. Ruzwana looking at last minute bookings. Brad g. they are taking advantage of a huge platform disruption. Maybe the biggest since the intervention of the internet is self, and they are servicing can boomers who want that lastminute booking, and so they have grown incredibly fast. Notwithstanding the giants, like media and orbitz and priceline and i think that will continue as more and more people have these supercomputers in their pockets. Brad stone there was an acquisition of ita a few years ago, and they have these bookings right in the search engine. How disruptive can that be to some of the Portfolio Companies . Brad g. today, we start it on our smartphones, so i inc. In a postgoogle world, search becomes more relevant, not less relevant, in the way we shop and buy travel, so he gives us an opportunity for vertical travel app that can give it on the phone and the homes green of the loan and opportunity for consumers. And i think that mobile apps are going to be more significant than search. Brad stone and how closely is the industry watching googles activity in terms of the search results . Brad g. of course, everything they do is scrutinized. And there is the baidu acquisition, the search application for travel, and it will be much more difficult or google to do any less. Ruzwana the activity space as been a forgotten area. It is worth billions in the global market. What do you think . Brad g. i think as we move to ondemand mobile purchases where we can optimize these on location, i think it will really start to Gain Momentum towards the activity space. We are seeing people in location who want to find that guide, want to find that special service, who want to find that special restaurant, and now they have their phones, and they can do that, and now we have Companie