Funds. Pitches his takeover directly to the board. The bid is worth 5. 6 billion. Those are the headlines. Lets take a look at some of the markets. Tokyo and bone by right now a bloodbath with linkedin shares down nearly 30 . Look at why investors are rushing for the exits. More changes afoot at Sumner Redstones empire. What is next for cbs and viacom as the companies embark on a new era. The zika virus continues its spread, rising in the u. S. And spain. Could genetic engineering be the answer . First, to our lead. Linkedin shares plunging in afterhours trading as much as 30 on weaker than expected guidance for 2016. Revenue in the current period will be 820 million, falling short of estimates by 47 million. Revenue in the Fourth Quarter climbed 34 . The Company Reported net loss of 47 million, down 6000 yearoveryear. He with me to break it down is our Bloomberg Intelligence analyst in san francisco. David kirkpatrick and new york. And our editor at large, cory johnson in new york as well. Great to be here. All of us here. In one place together. Cory, break it down. Is this just about the forecast . Cory it is about the forecast for this is supposed to be a growth stock. Across of a lot of important metrics. You saw growth but a meaningful deceleration of that growth. Emily linkedin gets compared to facebook. The Business Models are completely different. But when it comes to user growth, linkedin is not showing much. Still, their projection shows they are going to have 47 million less in revenue and they lost 7 billion and market cap. I think frankly this is still one of the Great Companies of the digital age. That has a position unmatched by anybody in high network, professional people globally. It is the only network for Business People everywhere. I think it has got stable management, fantastic opportunities for more profit. I think it is overdone. Emily the talent recruiters that defines good job candidates is unrivaled. Cory i would agree. It is a company that is doing well but it is it a question of canada chief of valuation . That can it achieve a valuation . User growth pickup in the last quarter. Up to 414 million which is a nice, big number. That is a lot bigger both in twitters entire audience and growing a lot in terms of adding those users. But i think that it is a pace to that growth. It is really interesting to hear them talk about Global Economic slowdown. In markets outside the u. S. , they talk about having a real head in terms of business slowing down. I think it is interesting because we are starting to fear that from tech companies, not just from oil and gas companies. Tech companies, like google and linkedin, see slowing growth internationally. Emily this is the only u. S. Social network that has found a way to break into china, albeit slowly but surely through a joint venture. We have been listening to jeff weiner on the call. Take a listen to what jeff had to say. Jeff as we look towards 2016, you can expect to see linkedin content more deeply integrated into the core experiment as well as deeper integration across our premium products. We also see a great opportunity this year to leverage our go to Market Strategy to continue to deliver content into the enterprise. Emily in san francisco, would you agree that there is a mismatch here between the strength of the business and a perception of the strength of the business . Its funny you commented on facebook earlier. If you look at the new guidance, 2016 expectations are facebook is growing much faster. Linkedin trades higher than facebook. This is a Growth Expectation stock. A couple of reasons is the phaseout in the solutions businesses. There are online sales that is happening. In the core talent solutions. They are focusing on a narrower product. So execution is going to be key. What this is doing right now is shattering the confidence in their ability to match those high Growth Expectations. David you think about twitters valuation not long ago was a lot higher than what linkedin is now. Emily not anymore. David now its about half. This is a great company. You look at the long, which is the way i look at the world there i no other truly Global Social network other than facebook besides linkedin. That is a very big deal. Emily where is a user growth going to come from . David as the Global Economy is going to be greater. Africa, latin america, asia. That is where their opportunity cory they changed their products quite a bit over the course of this year. They talked about that in the conference call, changing their mobile app. There was a suggestion of reporting on a new category going forward. So, they are changing the fanbelt while the engine runs. Emily they have been changing the mobile app. Mobile traffic has been a 50 . The was concern that some of these changes would lead to shortterm hiccups. Is it an app im going to every single day . Cory they talked about it in the conference call. They wanted to make it an app that sales people go to every day. They want to create tools to use this app every single day. Integrating with calendars. Go to meeting, the names of the people and their linked in bios will come up. That is their goal is daily use. Emily maybe salespeople are going to it every day. Is that enough . If they are expecting that core focus on mobile, they have that diversified mobile app strategy that will roll out this year in terms of what the Adoption Rate is and how that improves engagement. Like i said, execution the near term is to keep focus. Longterm, the fundamentals from how big the market is and what linkedins positioning is, still continues to be strong. It is the ability to gauge how quickly of they can grow in the nearterm as quickly as they expect them to. David to puncture my own pollyanna approach, in some ways they really do have a problem. Its an app you use in frequently. They have tried hard with a media strategy. Dan roth has done a great job putting media in there. Emily the content strategy thats driving advertising, right . David the reality is it is still a service you use very intimately, and that is a weakness. On the other hand, my own little company, all of our best employees we have gotten from advertising on linkedin. It is the de facto best place to get employees if you are small business. Emily David Kirkpatrick techonomy ceo with me for the hour. Cory johnson. Time to say goodbye to you. Thanks so much for joining us. Shares fluctuated with the other major averages. Julie hyman has the details on the session. Julie it was a lackluster session in terms of decisiveness on the part of market dispense. We had major averages fluctuate in a very narrow range. The nasdaq did manage to eke out a gain by the end of the day. The nasdaq 100 of the largest caps of stocks on the nasdaq did not manage to eke out that same gain. There were a number of different reports for investors to consider from jobless claims rise into productivity falling by the most in almost two years. That affected trading as well. But if you looked at big cap tech, there was a split over the day. Within the nasdaq 100, the stocks that were both contributing and weighing on the average the most were google and facebook on the downside and amazon and cisco on the upside. Yahoo shares rebounded after citigroup upgraded though shares to a buy. Basically for the reason that the company told us about a couple days ago that it was potentially putting itself up for sale or at least considering a very strategic option. Finally, nxp semiconductors, though shares also a standout after the Company Forecast quarterly revenue to rise as much as 55 after takeover of Semi Conductor is complete. Back to you. Emily julie hyman. Now to someone with a true earnings hangover. Nick woodman, the founder of go pro has lost his billionaire status. It has fallen to 770 million. In september, 2014, gopro shares have tanked off slowing sales. He was the highestpaid executive in the u. S. Back in 2014, raking in over 287 million that year. Coming up, Sumner Redstones thirtyyear reign at cbs and viacom is over. We will take a look for what this means for the future of both companies. We will take you inside the stadium for a look at how super bowl 50 promises to pull off the techiest sporting event in history. Emily shares of Charter Communications down after posting sales that came in in line with analyst estimates. Net loss widened in the Fourth Quarter thanks to the added expenses of buying time warner and bright house. Charter awaiting regulatory clearance and faces rising competition from online streaming services. It is a changing of the guard at viacom. The ceo was just named executive chairman of the Entertainment Company after Sumner Redstone resigned from the position. This marks an end to redstones reign over the Media Company he has control for almost 30 years. And comes a day after redstone resigned as chairman of ceo. It was met with some resistance. He lacks the support of Shari Redstone. For more, i want to bring in Bloomberg NewsChris Palmeri in l. A. , tracking Sumner Redstone. Also with us is the executive Vice President of screen media ventures. David, i will start with you. What do you make of his departure and what will his legacy be . David it was time for him to go. He is certainly old and he was getting long in the tooth. His legacy he built this conglomerate which was an amazing machine during the basic cable heyday in putting together cbs and paramount. Hes a media baron, a builder in the truest sense of the word in the media landscape. But as everyones knows, cbs, viacom have not done very well over the last couple years. Cbs is number one in viewers. Les moonves got promoted. The Cable Properties have not fared so well. They needed a change. Emily that question is, what changes at cbs and viacom as a result . David i do not think much. That is what Shari Redstone to not support daumann, because she wanted somebody new. He is the same old same old. It will be very interesting how long will he last . I dont know. That is what her point of view was she did not want to be herself and she did not want to be him. One of the things that strikes me about viacom, a National Comparison is time warner and hbo. Hbo is not just a great content company, but it is an Amazing Technology company. They put enormous resources into their digital product, hbo go, especially,. They have engineers working on that, and proving that all the time. I do not think viacom have anything comparable. That is the kind of thing we need to see from them. Emily how is this been rippling throughout hollywood . Chris it is definitely the talk of the town. This is almost the best show that viacoms produced in a while. [laughter] chris people are really going to miss. This is one of the reasons why sumner made the decision to step down as chairman because he was becoming too much of a distraction for management and investors were saying, who is really in charge here . Now hes let everyone know it is not him. Emily les moonves clearly is. We did have les moonves on bloomberg a couple months ago. Take a listen to what he had to say. Les we are primarily a broadcasting company, and they are a basic cable company. The value in having us to together no longer make sense. So, i think both companies are better off going there separate paths. Emily are they really better off . What is the value of being separate . Im trying to figure that out myself. The basic cable cubbies have not fared well on their own. Cbs has done very well with new programming that they have not had a new hit. Their shows are getting long in the tooth. They need to do some changing. Im trying to figure out what do they benefit by separating . I dont know if it is better to Stay Together or not, but what is the benefit of separating . Emily how much of this is disruption in when it comes to netflix and better original content new distribution platforms . Everything is changing dramatically. The problem is with tv now, none of the basic cable stations like spike, Comedy Central vod viewing. Has got to change the way they do things. So does cbs. Nobody really knows the answer. Everyone is competing with netflix. You brought up the best point hbo was in the game way before netflix. If hbo is the true leader of all this pack, and everybody else is falling what they have done. Cbs has tried to go into an svod site. They have their core viewers were going to watch cbs, without commercials but that have they expanded their base . I dont think so. The universe of competitors has grown so much for it all these networks you never thought of, and they are putting out products that people are accessed with. Emily well have to leave it there. Thank you for joining us. Chris palmeri with us from l. A. David kilpatrick is sticking with me. Coming up, the rampant spread of the zika virus hits a new milestone. We explain why researchers are focusing on genetics rather than insecticides to fight the disease. Emily a story we are watching. Spain has confirmed europes first case of zika virus in a pregnant woman. A milestone in the diseases rapid spread around the world. In the u. S. , new york is reporting 11 positive cases among residents. And florida reporting nine cases earlier this week. All of these cases have been spread by people traveling from other countries. But nowhere is the virus more rampant than in latin america. Remember there is no vaccine or cure for zika and decades of efforts to eradicate mosquito borne diseases with insecticides have failed to researchers are turning to altering the dna of mosquitoes and such a way that would suppress the disease or what about the species entirely. Our Bloomberg View columnist faye has just written about this and joins us from boston to explain. David kilpatrick is with me as well. Explain how this would work. How a genetically engineered mosquito could wipe out an entire population of another kind of mosquito . Faye well, its not clear whether you could actually wipe out a whole population, but there are a lot of really interesting new technologies that are coming online. There something that goes way beyond ordinary genetic engineering, called gene drive. And that is something where there has been a lot of progress in the last few months. David isnt it true we have just made a lot of progress recently and what we can do with genetic engineering and that were faced with some amazing new opportunities in general, which this is a good example of . Faye i think so. One of the big breakthroughs has been something thats referred to sometimes as crisper, gene editing, a more precise way of changing the dna of plants or animals. And people have been combining that with this Gene Drive Technology and experimenting. In the lab they have been able to take an artificial genome and spread it through a whole population of fruit flies and also made progress in mosquitoes. A lot of that research has been aimed at trying to make mosquitoes resistant to malaria. Emily so, what are the biggest obstacles here . Is it legal, ethical issues, is a logistics . Faye its all of the above, but i think one of the biggest obstacles that the scientists are going to face is going to be gaining the public trust, because they have had enough problems with doing genetic engineering in domestic plants and animals. Here they are talking about changing the genetics of a wild animal, part of the ecosystem, which is something profoundly new. And its an animal that we do not like buy, but we do not know all of the longterm consequences. I think we are already seeing some conspiracy theories floating around about some of the earlier field trials and more traditional genetic engineering to try to combat the zika mosquitoes. David is that with a worried about the react against, if we start altering ecosystems, it could cause other problems we cannot predict . You do not know what other, what animals might attend on those mosquitoes for food. And just an unanticipated consequence of doing Something Like this. In the case of the zika carrying mosquitoes, Scientists Say they actually do not belong in the americas. They are an invasive species, they hitchhiked with humans. Emily so, quickly, there are conspiracy theories that the British Biotech firm is leading the charge on this, contributed to the spread of the virus. Quickly, what do you think of that . They are worried about keeping the public trust. This Conspiracy Theory shows how fragile that trust can be. The British Company is actually not doing gene drive. They are experimenting just with altering the genes of a few mosquitoes and hoping a mate and pass the gene on to cull the population. It shows how paranoid people can be about any genetic modification. We will talk Cyber Security when we come back. Emily turning to Cyber Security, symantec, coming in with a beat on quarterly sales. Private equities from silver lake is putting in 500 million. Typically, companies go to nj during the final parts of business. Stage of business. Foxconn has definitely set the pattern. Emily thank you so much for the update. Well continue to follow the story. Emily turning to Cyber Security, symantec, coming in with a beat on quarterly sales. Private equities from silver lake is putting in 500 million. Ken howard the appointed to the board. Ceo george kurtz is here to tell us all about