From their homes. Day,l news, 24 hours a hourbyhour 2400 journalists in more than 150 news bureaus around the world. Emily im emily chang and this is bloomberg west. Exploring aandora sale. We will discuss potential buyers of the radio streaming service. Plus, cisco up 10 . I will speak with Ceo Chuck Robbins about what is working for the company. And twitters shares take another letdown. Can the company pull its stock out of the gutter, despite no new users in the latest quarter . I will speak with ceo adam bain. Emily first to our lead, another day of turbulence in the market. The dow taking over 400 points, eventually settling just 250 points down. A half e hour and final hour and a half of trading, it dropped more than 10 . Our editor at large cory johnson joins us now from the newsroom with the breakdown. Is this worse than the markets today . The markets cory the markets are certainly ugly, but it is Technology Stocks that are suffering the most. Nasdaq is over 15 in decline this year. Look into technology, you see Certain Companies are suffering more than others. I think that is one of the things that was so well loved in the last year, and it is getting no love anymore. Emily so which company would you single out . Cory we pulled together some charts of a few companies. This shows you what they are compared to the nasdaq, or compared to the s p 500 even. Some of the names that we have seen move, chief among them, one of the biggest losers of the year, pros holdings. A Software Services company. The decline is so much greater than what we have seen from other companies. On the s p 500, its now more than 11 , which hurts. Tableau software, down 61 for the year. And there are companies that are still profitable, growing, adding users, Big Companies like linkedin, the third worst Big Tech Company and all of the russell 3000. Showing a big selloff. Look, i am always quick to at the business analysis, not stock market analysis, but i. Companiesthe market would Beat Estimates and lower numbers a little bit, or even miss numbers and raise estimates. The market is looking at things as a glass half empty. You can see the reactions from stocks being so beloved declining. To talk aboutwant pandora. Shares plunging after hours after sales were a tad weaker than analysts had expected. Also, active listeners tell by more than 4000 from a year ago. Perhaps the bigger news that broke just before earnings came out, the company is said to be exploring a sale. It is working with Morgan Stanley to reach out to potential buyers. Lucas shock covers pandora and Music Companies in general. He joins us from l. A. Also joining us, the managing partner at uptown pitchers. Lucas, i want to start with you. After 15 years of not selling, now pandora is considering a sale. What do we know . Theyter so far, just that are looking into it, and a lot of speculation about who the prospective buyers can be. We have asked pandora about this for many years. They have been a Public Company for a while and have not been profitable, but i think pandora is starting to feel the squeeze from a lot of competition, whether it is from apple or spotify, and though their advertising numbers get better, their user growth has plateaued , and they areyear having a look at international potential growth, but that wont affect business for at least a year or two. Are the potential buyers . Google, amazon . Elaborate. Reporter i would say that they are all sort of strategic moves. One would be serious xm, because they are a big satellite radio company, but they do not have the same audience in online or mobile, where pandora is strong. Another might be a Big Tech Company with a Music Service that already exists, but could use a list, like apple or google, and another would be spotify, which is popular with younger users, but does not have the relevance where pandora is popular. Apple has been a brainerd buyer of pandora for years, and i asked pandora cofounder Tim Westergren about this on studio 1. 0. They in particular, do ever talk about selling to apple . He could not commentate on that, but he said this. I look at them as a partner. It makes sense that they would have radio products that compete with us, but stepping back, they have invented this field that we benefit from. Emily mark, what do you make of this . I think there is a changing landscape in the media sector. A lot of media owners want to move towards its description services, because you get a steady stream of revenue. I dont look at public m a, but if you look at who is moving hard at them, apple has made a lot of moves at getting into streaming services. There may their Music Service is terrible. I think it is among the worst. Emily wow. Mark but you look at other buyers, i think amazon would be great. They want to invest more in video and music and building subscription businesses. And google. I think the Subscription Business Model is one that is great for media. Emily whats bad about apple . Mark well, have you tried using apple music . Emily i have, but i will refrain from sharing my opinion. Mark post acquisition of deeds, they have done theycquisition of beats, are so desperate that i think they are alienating a lot of who have been traditional itunes users for downloading music. Emily that said, apple and spotify have 30 million songs. Andorra, this might be their biggest problem, they have one million songs. I am a huge pandora listener, and i listened to a lot of their songs over and over and over again. I still dont change the channel. What do you make of this . Cory pandora has always had this issue, but pandora has not seen their costs fall. , thereve also, however is a lot of ground with the carmakers and getting pandora installed in the dashboards. That is a strength they have. They share that with i heard adio and cleartr channel. But they are seeing a lot of growth, particularly in this quarter. A slowing growth, particularly in this quarter. That is hurting these guys, a good spot are at for a profitability standpoint, but the growth is really slowing. Well we are just getting a comment from pandora, saying they do not comment on rumors of potential sales, but we will continue to follow this story. That call that comment came from the Earnings Call happening right now. Thank you both. Mark, you are sticking with me. Out, groupons beating estimates saying it has almost 49 million active customers, up from last year. The stock is up nearly 20 after hours. Meantime, activision blizzard. As lowerthanexpected sales shares took a dive down as much as 20 at one point in extended trade. The company has recovered some losses since then. Higherbs reporting profits and seeing revenue more than 6 in the fourth quarter. Has worked hard to convince investors that they are resilient in the face of decline, but they have fallen even faster than the rest of the market. Hitng up, twitter shares and other alltime low. Ceo adam bain tells me how the Company Plans to prove the world wrong. Thats next. Plus, scientists unlock one of the most mysterious secrets of the universe, confirming that time can alter its speed under the force of gravity. We will explain later this hour. Emily yahoo layoffs have begun. Conference rooms across all yahoo facilities have been reserved to let employees know they are fired. Marissa mayer is cutting more than 15 of staff, more than 1500 jobs. This comes at a Pivotal Point in god who industry, Marissa Mayer facing in yahoo s history, Marissa Mayer facing declining sales. An shares are facing alltime low for twitter. The company lost 2 Million Court core users, but they say growth has bounced back in january. Still, they cannot seem to shake the doubters. Earlier, i sat down with adam bain and asked him for a confidence check. In thee are confident product roadmap and the trends we are seeing. The trends are already good the trends that are already good signs are daily , the percentage related to monthly active users went up this past quarter. The signs are there for sure. , productno mistake execution ultimately will drive user growth. We feel like we have a great product roadmap, and we are confident on the road ahead. Emily how confident are you in jack dorsey . Adam jack talked about his ability to manage both jobs. I can only speak from my point of view. I have seen him in action, and from a product standpoint he is unbelievable with the team. Hes got a vision with the company. Him and histed by ability to execute at the company, and he is doing a great job. Emily you live and breathe twitter. You built the revenue engine. How do you deal with the incessant negativity that surrounds the company, and how is it impacting morale . We know more people are looking. Adam i think the morale of the company, there is a massive determination of the company to prove the outside world wrong. We have heard this on the business side, too. We have heard, hey, how are they going to monetize . If you look at 2015, we had a strong year in terms of Revenue Growth, more than 60 year on year. For q4 of this past year, we announced revenue that is over 50 . There are questions about our ability to monetize, but we have proven them wrong over the last fiveandahalf years. I look at the next five and a half years is a good chance to prove them wrong again. Emily on that note, Revenue Growth is going down. It was 48 last quarter. Revenue growth seems to be slowing dramatically. What is going to turn that around . Adam let me talk about what is happening in the business. In our revenue stream on the advertising side, we had two categories of advertisers, big branded advertisers, which are people who run tv commercials and the like, and we have smaller performance advertisers, people looking for clicks and conversions, and mostly inside digital. Business advertisers is the largest percentage of our business, and the growth t here is going to come from growth of budgets. Ae performance business is smaller set of our advertiser revenue, but it is extremely fastgrowing, and ultimately we have a problem a product driven approach ahead. Emily that is why people are concerned about direct response advertising. Why are you having trouble . Adam we are not having trouble. We started with the branded advertising first. This is the king we looked at when we first started. The big brand advertisers were already on the platform. We did not have to pied piper them to the platform. We knew that if it would make them easier to expand business on twitter, we would be successful. We saw it during the super bowl. 90 of the Television Advertisers were also running ads on twitter, and over 50 of that budget was actually running inside of our video platform as well. The rumorsear constantly about twitter selling. Have you considered selling . Have you gotten offers . From the management perspective, our goal is to increase shareholder value. We believe that the roadmap we have ahead and the team we have in place is a strong team, and we are continuing to see growth. Emily why not innovate faster or bigger . Why not do away with the 140character limit and see what happens . Adam yesterday we turned on a feature. I courage you and the people at home emily ive seen it. Adam to turn it on. It is an extension of the white the while you were away feature. We bring the best tweets to the top of your timeline. Whats great about it is, we have content creators on the platform who are getting incredible insight. Twitter is a platform that will continue to really dominate. Emily you are known for being so nice. But recently, i have been seeing more attitude from adam bain. When wendys and burger king had a smack down on twitter, facebook said it happened on social media, and you are not too happy with that. Adam i love twitter cannot i love twitter, and i want people to understand its true impact and power on the world, and it is powerful. Emily are we going to see you being less nice . Adam i can be. Emily adam bain of twitter, thank you for joining us. Maybe we will see more of last nights adam bain, the twitter coo. For more, i want to talk to mark sister. What you think about this . Putting it into context, five years ago when adam joined, they had zero revenue. They are approaching almost a 300 billion run rate in revenue. That is outstanding. Emily their core users declined by 2 million. His is a social media site with declining users. Mark they obviously have a problem, and they know it, which is that they have not innovated enough on the user interface, and that is what jack is committed to. If you look at how much facebook has changed over the last three or four years, and how little twitter is twitter has changed, that is the real change they need to bring. But going from zero billion zero dollars to a 3 billion itway is astounding, and if were anyone other than twitter, we would be talking about what a next outing success it is. The problem is, you are to the most Successful Company since google, and on that metric, facebook has done better. Facebook,s not just though. Instagram now has more users than twitter. Look, i love twitter, i use it all the time. I wanted to be better. Want it to be better. I dont want to say a death sentence, but it seems really bad. Adam wouldure even not say it is good, and im sure they are addressing it. What twitter does is it provides a unique service in the market. When World Leaders are talking about what is going on in their countries, they are talking about it on twitter. E have are at handles we dont do the same thing on facebook. I am not doing a comparable facebook scrape, but i think twitter is a unique asset. The biggest challenge is how to get new user growth. Mom, she wouldmy not come to twitter and know what to do, and she knows what to do on facebook. Emily personally, have you seen a change in engagement . Have you considered using facebook and other platforms more because of the lack of engagement . Mark i have been pretty public about this. My consumption on twitter has not come down. My production on twitter has not gone down. What has gone up is my consumption of the timeline on facebook. Like many my age, im 47, and i got on facebook i had kids, and it was my tight network of people, so it was about a community and not broader media. Or i changed that about nine 10 months ago, because i realized how much volume facebook drives, i invested much more heavily in facebook than i ever have before. Back with meuster later this hour. , donaldwere following trump and univision have settled their lawsuit over the miss usa pageant. Terms are confidential, but trump had sued for 500 million in damages for breach of contract. The billionaire sued the spanish rock castor after it not to air the pageant after his controversial remarks brandish broadcaster spanish broadcaster decided not to air it after his traversal remarks on immigration. More coming up next. Scientists have recorded the sound of two black holes colliding, billions of years ago. The single signal was picked up by a giant antenna located in Washington State and louisiana. Perhaps the biggest scientific rate through since the discovery of the hanks particle. It shows that huge bursts of energy in the universe can alter the flow of time. Here we explain this extraordinary discovery in a little more detail. Detected fory they the First Time Ever signs of gravitational waves, a byproduct of seismic events in the universe, like the collision of two lack kohls or a major star explosion. Moving at the speed of light a major starr explosion. This discovery comes after decades of searching, and confirms a final prediction from albert einsteins scary of general relativity, something be physicist put forward about 100 years ago. Researchers say the discovery will help us to fully understand gravity, and even learn more about what happened in the big bang. Emily if einstein were here today, i am sure he would be delighted to see science finally prove his theory right. ,fter sitting on the sidelines qualcomm is looking to make acquisitions. To raiseo looking revenues 10 . Coming up, Chuck Robinson says there is no reason to panic about the economy. He joins us next after a Sales Forecast that will boost investor confidence. Is bloomberg west. To look at the stories making headlines in asia. It is already friday there. Definitely, emily. Global stocks of falling into a bear market. That afternoon come back failing to erase losses. Street closing lower. And of course in asia on thursday, having said that, gold had its best a day in seven years. It is close to a bowl market. Rio tinto says it may cut dividends by 50 . It has abandon a pledged to boost payments with the commodity slump, cutting profits by half. It will cancel or trim dividends altogether. It is hoping it will help maintain its Credit Rating after it could be downgraded. Looking for extra investment. Beijing promoted the hang seng alongside the saudi exchange, but no decision has been made. Of theuld make it one Biggest Companies in the world. It has made it clear saudi oil reserves are not up for sale. 15monthas surged to a high, fueling speculation policy makers may intervene. Now getting very close to levels it was at before it announced that expansion of stimulus in october 2014. Next week we get japan gdp numbers which are expected to show the economy shrank in the final quarter of last year. Emily . Emily what more will or can kur odasan do . Analysts are saying they will have to do something, whether that is more rhetoric, or outright currency intervention. That is up in the art. David bloom thinks they could be forced to cut rates further. Bank of america is saying officials will try to talk down investors from pushing that Exchange Rate too far. The experiment is turning out to be a failure. It was meant to fight in inflation and instead the yen has surged by 8 . It is unclear what policymakers have left in their toolbox. Emily all right. Thanks so much. Global news 24 hours a day powered by our journal