Sources say that Jefferies Group cut numbers at its income meeting. Focusing on products and mortgages. Because of the energy well, some of those cuts earned bonuses last week. Those of the headlines from bloomberg news. Lets take a look out the asiapacific is looking right now. During the lunch break, this is how other markets are trading right now. Shanghai is up half a percent. Time for bloomberg west. Coming up, we hear directly from mercer mayer about yahoo. I ask her about her turnarounds strategy and whether the company is up for sale. Gopro is thinking again. Back . It get its mojo is a changing of the guard. Biggest challenges for the successor of nbc. First to the lead, gopro shares plunged in extended trading. Investors focused on the Sales Guidance coming in way below estimates. Firstquarter revenue between 160 million and 180 Million Dollars compared to 287 minute dollars and estimates. Million the company is also playing the cfo with ryan mcgee from qualcomm. It slashed the price twice since its debut in july. What is next for the company to do . Joining us is bob mcdonnell. Thank you for joining us. What went so wrong at gopro . The problem youve got is this is a company thats been trying to promote themselves originally as a Media Company and as a bigger vision player. People have recognized its a Hardware Company that has an audience that quite frankly is somewhat limited. We pretty much have what we need, and this is the reality they are starting to face. Emily lets listen to nick woodman on the call just moments ago talking about the competition. Take a listen. In several respects, business is good. However, our growth rate has slowed as some analysts have attributed this to competitive threats and the ability to address a market beyond our core customer. That is not how we see it. Emily if thats not the reason, if its not competition, what is . Im not sure he is acknowledging reality. There absolutely is competition. There are many other vendors who are producing these action cameras and there is a limited number of people who want action cameras. The bigger question for me is, as they move forward into things like potential Virtual Reality cameras, what about moving beyond just action cams into virtual or digital travel, or new kinds of areas . That would be interesting, but im not hearing gopro talk about those as potential growth opportunities. Emily lets bring in a guest whose company rents these cameras. What is the trend you are seeing . Theres a segment of the audience that loves the gopro. Adventurers, backpackers, hikers, people who are looking for capturing the moments that are happening as they travel. Gopro has worked out great, but the newer product started out at 400, the same price the original gopro, but its a smaller one, not as powerful, so it just did not resonate with the audience. It seemed more gimmicky and cheaper, but for the same price. No one really bought it. And then they slashed it to half the price, 200. We had pushed back with customers who had no reason to go get the second one. Gopro has a really strong brand, but their latest product has not been as satisfying as the initial strong product lineup that came up with. Emily is it too hard to use, was it because of all the competition . It is harder to use than the original gopro. They were always good at the instant gratification. If you took a snowboarding video and you saw it immediately, and the second one is lacking. There are so many new products that are exactly like the gopro for half or one fourth the price. Some are even better than the gopro so its really hard for them to fend off the competition by just the marketing and branding they are doing. Emily bob, what will investors take away from this . Bob they did pick up a little bit after the afterhours drop. Emily but hopefully, for the broader market, there were so much enthusiasm about this company, and look at what is happening now. Bob they positioned the company as a Media Company. That gets different multiples than a Hardware Company. Now people realize it is a Hardware Company and it will face a more challenging environment from a competitive perspective. It will be tough on investors for gopro. Emily so you dont think any Hardware Company like fitbit will go public again . Bob i dont think so. With all this with apple and smartphone. We are entering an era where we will see a lot of the categories that have been established are pretty saturated and we will see new areas like with drones and hoverboards and things like that. But none of them will reach the same kind of levels weve seen with the other product categories. There has to be a reflection of that reality. There were 50 plus Drone Companies in just one floor of the showcase. Even for the things gopro is trying to come up with, there are so many drones before the gopro drone releasing in march. You look at companies coming in from china, they dont have the kind of marketing are branding that gopro has. They dont spend a lot so they can focus on production and just getting it over here. Its a tough market for gopro to just keep focusing on hardware, to be able to sustain themselves in a public market. Emily shares crashing right now, we will be watching how they open next week. Thanks so much for joining us. We have some m a in the works. According to people familiar with the matter, they say discussions taking place between advisors of lions gate and starz and they are moving forward. The Company Reports earnings thursday. Speaking of deals, cisco says it will acquire jasper technologies for 1. 4 billion, boosting state stake in the growing market. As part of the acquisition, jaspers ceo will join cisco to run a new software unit. Turning to the broader markets, u. S. Stocks rallying in afternoon trade thanks to gains in the energy sector. Here is the rap from new york. Despite a Late Afternoon rally, the nasdaq cannot break into positive territory. The s p and the dow did make it into the green by the end of trade. That was their first gain for this month. Google fell more than 4 . Its long time search chief is retiring, reversing gains from the day before after betterthanexpected earnings. Amazon is back in a bear market. They plan to spend money on opening 400 bookstores, putting barnes noble stock into a tailspin. Major pc makers also slid on wednesday. A contraction of 6 year on year versus a prior contraction of 2 on chronically weak demand and a rising in inventories. Apple rose in late trading, reclaiming its title as the worlds Biggest Company with the market cap of 534 billion. 34 S P Companies report earnings thursday including netgear and linkedin. Emily later this hour you will want to stick around for this. My conversation with yahoo Ceo Marissa Mayer as the company puts out the for sale sign. Then we dig into changes that cbs, chairman Sumner Redstone is stepping down. Emily two gaming stocks both surging after the bell. A stronger forecast than analysts had projected. Investors also liking what glu had to say. The Company Announcing a new addition to its celebrity lineup, taylor swift. Cbs chairman Sumner Redstone is stepping down and les moonves will take his place. He will also remain the companys president and ceo. Redstones daughter sherry was offered a nonexecutive role but she declined it. She will be vice chair. Lucas, what is your read on this . Lucas a couple of things. One that this is just a vote of confidence for les moonves. He has said for some time that all things are going well at cbs when you consider the Broader Media environment has taken a beating where viacom has dropped the most and there have been a lot of complaints about the leadership. The bigger question is to what happens there. There will be a Board Meeting with the viacom board tomorrow to decide what happens with the chairman role. Theres a lot of speculation that sumner will lead and somebody else will get amped up. Emily shareholders already coming out saying not to point not to appoint moonves. What do you make of that . So did sherry redstone, she issued a statement saying she didnt think anyone who is a trustee should also be the chairman of viacom. That would disqualify both sherry and philippe. What it all comes down to tomorrow is who has the votes on the board. The board of directors will decide who is the next chairman. If philippe has enough people loyal to him, then he can stay. Its hard to know until you know the loyalties of these different people. Emily how much actually changes . Not much with cbs. Any time i had to write a story in the past few months or years about the whole succession at cbs, they try to say les is in control, the board likes what he is doing, so leave us out of all the lighting and let it continue at viacom that seems to be what happened here. Les moonves is running that company and he will as long as he wants to. His contract runs through 2019. Emily thank you so much, lucas. Ending years of speculations about what happens that cbs. Now to a story we are geeking out on. By 2020, more people will own a phone than have electricity. In four years, 5. 4 people have a phone globally. By comparison, 5. 3 billion people will have electricity, 3. 5 billion will have running billion cars will be on the road. Coming up, google says goodbye to the brain behind its iconic search engine. We take a look at his successor and the next generation of product development. Take a look at this aerial view of apples future headquarters in cupertino, california. The project began in 2012 and will wrap up next year. The new facility will house 12,000 workers and cover 2. 8 million square feet. Emily a stock we are watching begin trading in the first ipo of 2016. After pricing at the low end of the range, its the First Publicly Traded Company specializing in a controversial medicine technique called crisper, which is said to have the potential to treat autoimmune disorders with a onetime treatment. A longtime google executive announced today hes planning to retire and spend more time on philanthropic work. He introduced new features like text prediction, tweaking the algorithm to favor mobile. He acknowledged those milestones in a blog post, saying who would have imagined that in a short 15 years you could tap a button, ask google anything, and get an answer. Today it has become Second Nature to us. My dream star trek computer is becoming a reality. I want to bring in jack clark who covers google for us and danny sullivan. Thanks so much for being here. I love your tweet from earlier today where you said imagine him leaving apple, explain to us how powerful his impact on the google that we all use today is. He has been the force that has guided Google Search over these 15 years. Hes the person who took the original recipe that larry and sergei cooked up when they founded google, turned it into i dont think people tend to think about Search Engines and google the way that think about the latest and greatest smartphones coming out, but thats effectively what happens behind the scenes. The constant improvements and changes. He has been the executive at the helm of all that. Emily google and search is what drives the companies revenue. Is this a loss . This is passing the baton to another executive that worked closely with him. They worked closely on a variety of projects to make the changes smarter and faster. It seems more like a continuation. Emily what does it say about his vision and the evolution of google after this . He is continuing to be very forwardlooking, not taking things as an assumption that it will always be there. He sees that Machine Learning is an Incredible Opportunity to improve everything, including search. Having someone who is at the core of that taking over the search operation at google i think speaks to that vision that this is the future and that we have the right person in charge of it. Emily we also learned that google fiber is the most expensive of them all, 800 million they are spending on it. Jack now they are giving it away for free. Emily they are now targeting low Income Housing communities. Why . Jack they believe they need to stimulate entrepreneurs and give them access to the internet. Its so google can get data about how they use Internet Services and to give it a philanthropic gloss on what is a big fiber plate. Emily i feel like google fiber is the unsung moonshot in the google portfolio. We talked about self driving cars, robots, but how significant is google fiber, and how big could it really be . I dont cover the fiber space that closely, but its less of a moonshot and more of an atmosphere shot, something that can impact a lot more people right now. We may get the auto driving cars at some point, and that is exciting, but fiber is live for many people and is growing now even more. It has the ability to push the whole internet market in the u. S. And gives google a lot of data on how people are searching and accessing the internet and what they like. That is useful for refining search content as well as all sorts of other things. Emily google embracing qualcomm chip designed for servers, which could be a blow to intel. How big a blow . Any telegraphing of a move away from that is not breaking news for them. Its a type of chip that has lower power so lower electricity bills that google data centers. Its a big incentive to look at other options here. Emily danny, youve covered google for so many years and the company is changing so quickly. Its now the most valuable company in the world. There is new leadership and new blood. How do you see google in five years different than what we know it as today . I think you will continue to see it is a huge search company. It will continue to have huge revenues coming in off that. Perhaps the most significant changes, you might see the Consumer Market start to grow. They are little more diversified away from some of the ads that they are doing. And also very highly personalized devices, learning about what we desire before we get there. Emily danny sullivan, thank you so much for joining us today and our very own jack lark who covers google for bloomberg news. Thank you as well. Coming up, Marissa Mayer makes the case for yahoo s future. So far, investors are not buying it. Shares falling almost 5 today. Ace sharp surge of 25 . That would be a defeat for the japanese government. Rmb not aftern raising the offer to 5. 9 billion. Sharp has denied it has opted for foxconn. They will continue to talk with nj. They will relax the rules around for earners ringing money in and out. For foreigners bringing money in and out. Citigroup is planning to sell bonds as early as this week. Mitsubishi, sumitomo will comanage the offer with city. Citibank. Those are the headlines for bloomberg news. Lets check in how the markets have been trading. Markets are doing very well. With the exception of japan. After two days of losses, we are finally starting to see some gains. That being said, we have not n able to put together that being said, we will up today with a dollar much weaker. A big drop in the dollar index. Appetiteso much risk right now. The byproduct of this, the drop in the u. S. Dollar has been the inflation of the dollardenominated contracts. Whether oil, gold. A lot of the gains you are seeing across the region are inn to a very strong session both resources and oil. If you look from north asia to southeast asia, all the energy names are up 5 . Japan is down to the dollar yet. We are at 118. A stronger level than yesterday. Reopen inutes we will hong kong and shanghai. Yahoo Ceo Marissa Mayer has been under fair for months, and speculation has been getting letter. That did not stop her from unveiling a new turnaround plan that he says makes the Company Domestic and me. The best it can be. I spoke with her earlier and asked her to explain what she is focused on. Yahoo is pursuing three separate courses. A turnaround that she says its her priority, a reverse spin, and exploring the strategic alternatives. What does that really mean . Does that mean yahoo is for sale . Take a listen. Marissa we view all three of the areas being very complementary, this in the car business we are focused on being the best version we can be for users, advertisers, shareholders, and recognizing the value we had been the assets we build here. In terms of transactional pieces, they are aimed at separating the alibaba stake. Theyre definitely aimed at maximizing value. We think they can be pursued in parallel, and they are complementary as opposed to conflicting. As you saw, we announced yesterday that our board will be engaging on strategic proposals, exploring different strategic alternatives. We are not going to comment any further on the process. Until and unless we reach an agreement. Emily your cfo said there have been office for the company. Verizon has publicly expressed interest. How have they privately expressed that to you, and how have you responded . Marissa we are not going to comment on that, and those communications would stay private. Emily lets talk about your vision for yahoo as it compares to the board. A lot has been made of the fact that the chairman is the person who made the statement about strategic alternatives. Specifically, there must be debate among Board Members among the future of yahoo . Charles schwab just left. Do you feel that our Board Members who do not share your vision . Marissa regarding chuck, i think he was a terrific board member, and obviously a leader i really look up to and i have learned a lot from. Overall on the board, managing the board, i will say yes this situation is complicated yahoo s situation is complicated. Particularly the assets we have, in yahoo japan, as well as alibaba. That said, i think that is one of the reasons we need to have a somewhat complicated solution, and somewhat complicated path forward,