. >> emc strategy has always been this federation structure. trade publicly some of your different units to allow employee also to have some currency, some wealth creation there, but keep it all in the family. just because emc and dell are going to be combined privately, it seems like that's still going to be one of the preferred ways emc mon titzed some of these different units. >> in order to not only keep control but also gain scale. i still contrast that to what's happening with hp. here's a company that was built on scale. saying it can split up and get smaller and be more nimble. while at the same time, dell is bulking up. the bulking up strategy at this stage makes more sense to me. we'll get into the two pieces of hp. >> you're really looking at two kinds of ipos, which is a hot private company that may be overprized relative to what markets will pay. and a spinout of a traditional or legacy type company. look at pay pal. the question is whether or not these are the companies of the future that can put up the growth to get the multiples

. >>> dell's plan to take over emc may face a tax burden. the company could end up having to pay a tax bill of up to $9 billion. part of the problem could stem from the structure of the deal as dell is proposing to use a new type of stock to help pay for the company. shares of emc fell more than 2% to $25.25 and dell is privately held. >>> according to the alzheimer's association, there are now 5.3 million americans 65 and older living with dementia. the total direct cost of caring for someone with this disease has reached a staggering $226 billion, with medicare picking up half the cost. but research shows that delaying the illness by five years could help decrease med care spending. reesa sperling is director for the center of alzheimer's research at brigham and women's hospital. nice to have you here. those are stunning numbers. but as we try and solve the problem of dementia, where do you think we a >> well, i think we're making a lot of progress in treating the disease, but the greatest progress has beet treatments be reach that stage o

>> sure, look at emc. they really had to sell to dell. it just shows. it's like watching grass grow in terms of overall growth. if it's not m&a, this is going to be a mt. everest like uphill battle in terms of trying to be a hybrid cloud player. as we've seen time and time again over the last few years, these companies talked a good talk, but they don't walk the walk. it really comes down to m&a. that's the opportunity. i think you see countless examples. look at microsoft. it's the only company that's done organically some acquisitions, but they made the horde decisions. >> dan, thanks for joining us, making the case. appreciate it. >> thanks for having me. >> don't miss an exclusive interview with meg whitman tomorrow at 9:00 a.m. on "squawk on the street." up next, one of the biggest names in the entertainment industry is making a triumphant return to los angeles to launch his new venture. he'll join us live from the l.a. forum when we come back. ♪ how else do you think he gets around so fast? take the reins this holiday and get the mercedes-benz y

emc and dell. >> emc and dell. >> pivotal, one of the software manufacturers is going to be spun out. >> it will be spun out in an ipo, partially very much like what emc did with bm back in 2007 will float a 20% stake. they've always intended to do this. the plan that now that dell is coming after emc with the ak which silgs plan, the plan is moving up. >> well, part of the reason is that we're going to be looking for cash. michael is talking about having to delever. the deal has been blessed by dell to be consummated before the close. so this ipo will happen before the -- >> it will get spun off before -- >> before the dell -- >> actually buys it? >> is that a way of trying to sweeten the deal? >> it is but also to look for cash. now there's a possibility that they think they can raise potentially billions. >> therefore, we saw the movie play out when they tried to take their own company. will they say you will with more money now? >> it's entirely possible. the shareholders seem not to like tracking stock with vm wear. they have come down by 1/3. they were at 90 in august. down arou

cynthia: chris hensley is excited, saying emc insurance took the lead for businesses to privately fund half of the project. >> it will be removal of existing walnut as we know it. there will be traffic, parking, some beautification. cynthia: phase one will replace the dark and outdated streetscape with new landscaping and lighting. the city will remove the bus shelters and resurface the roadway to create a unique pedestrian and bike friendly district that will look similar to this. >> this is the first step. i think it is no different if you look at what we did with the east village. we did a hardscape, did everything on the streetscape. cynthia: they then hope to attract new trendy shops and restaurants all along here. >> get that real city feel, that would be good. >> i don't want to walk all the way to the east village to do some shopping. downtown used to be a hotspot for that, i think it should be again, especially since we got all this residential coming in cynthia: blackbird investments plans to restore the old tea room, build 60 apartments, an underground parking garage, and br

cynthia: chris hensley is excited saying emc insurance took the lead for businesses to privately fund half of the project. >> it will be removal of existing walnut as we know it. it will bring it back so there will be traffic, parking, purification. -- parking, beautification. cynthia: phase one will replace the dark and outdated streetscape with new landscaping and lighting. the city will remove the bus shelters and resurface the roadway to create a unique pedestrian and bike friendly district. >> this is a first step look at east village. we went in and did a hardscape and look what you got in east village. cynthia: they then hope to attract new trendy shops and restaurants all along here. >> get that real city feel that would be good. >> i don't want to walk all the way to east village to shop . downtown used to be a hotspot for that. i think it should be again since we got all this residential coming in. these old buildings. eric: blackbird investments plans to restore the old tea room and build 60 apartments an underground parking garage and shops which is expected to spur more d

emc had the same problems. you have companies with so much growth, they don't know what do with it. i believe if you go back to google, they have so many things working well. are they even thinking, we should just go buy the nfl rights to europe? which, by the way, the nfl rights to europe, 9:30 gam is about asia. those are asian -- you get the rights to that. you sell football in asia. google -- a lot of people are saying do you think google is focused on that? i keep coming back saying google has so many ways of making money right now they're the polar opposite of a hewlett or ibm. wow, let's make money in this. we can make more money in that. make money in this. abundance of riches. >> hewlett-packard? abundance. >> of. >> you tell me. >> we'll ask meg. >> when we come back, we'll talk to meg whitman about hp enterprise and concerns about an e. coli outbreak weighing on their shares of chipotle. down almost 5%. looking at the pre-marketed to, a down day would mean three straight, something we didn't do at all in october. this is the p. this is the p. ♪ ♪ their beard salve is

wants to do a deal with emc or some other company. meg: what we have said is that we did not create these two companies to compete with each other. we created these companies to go after new opportunities that only they can pursue. so at least for some period of time we have well-defined swim lanes. so hp inc. will be all over 3-d print. all over immersive reality. we will be focused on converged infrastructure, software defined data center, our services business, helping customers take their i.t. infrastructure from where it is today to where it has to be. so there is plenty of green field space for these companies. that is the reason i do not think it makes sense to eat the other company. we should take share from our competitors. emily: has it been harder than you thought? have you had moments where you thought i do not know if i can do this? this is hard. meg: it is hard. whenever you come into a turnaround -- and i have done a couple of them -- it is always harder than you think. even though i was on the board, you find out thing

certaina of being short emc currencies. thushka maharaj, great to have you with us this morning. next we take a closer look at what is behind today's surge in industrial metals. ♪ jonathan: good morning. i am jonathan ferro joining you live of the city of london. the ftse 100 getting a bounce this morning. -- let's geting more on the top stock story with caroline hyde. caroline: keeping on german stocks this morning. china slowdown? what china slowdown? -- infineon, the outlook is healthy. therefore upgrading. yearll, the next fiscal will be up around 13%. this is in the face of slow in china. impact this maker of chips. they are remaining strong and m&a seems to be faring them well. positive guidance of plenty. glencore getting a lift off what you were talking, the metals stock up almost 4%. copper searching up 2% across the board. this is the news that speculation in china. we could see asian stocks by metals. intould see investigation shortselling. meanwhile though, keep an eye on the downside. billiton down .29%. back to you. jonathan: let's bring you up to those metal pric

they are borrowing a lot from emc but i respect michael dell. it's impressive what he is doing, but i doubt he is finished in terms of consolidation. i think it's an interesting story and i'm very impressed with them. david: we have to move on to my favorite topic -- stephanie: there is someone that wins in every m&a deal, the lawyer. bill: and the banker. david: please stay with us. we break down media earnings, next. ♪ stephanie: welcome back to bloomberg go. here is the latest in the bloomberg business flash. victory for airbnb. they turned out a plan that would have limited short stay rentals and forced homes to register. chief financial officer is getting an award of .15 million over four years the former google vice president -- first use of an anti-spoofing law brings a quick guilty law and the trial of a new commodity trader. that could cause prosecutors to against -- ands when stephanie: we have to get a thing you're going to write about and care about. roger: they convicted him. bill: it make sense to me, i do not know the specifics

michael taking his company private and going into emcs world, that is not going to be easy to do. but he has got some advantages as a private company. i think it gives some options that hp does not have. ofen that their history non-rocky acquisition. emily: what do we know about layoffs. >> not much. hp will announce layoffs and then they will go a few quarters and add that they are adding to that. but the restructuring charges -- last quarter they took a small restructuring charge even in the midst of expanding their restructuring which didn't make sense. except that otherwise, they would have missed the core wildly. -- the quarter wildly. it may suggest that the restructuring will go down, $591 million in the restructuring. not that they are doing anything illicit as it relates to their accounting, but i would suggest to crawford's point about services, margins looking good, who knows what was bearish in that restructuring charge? emily: do you expect any acquisitions in hp ink or hp enterprise's future? crawford: i don't expect that hp ink will be particularly. for hewlett-pack

shira: it is funny because emc and dell are teaming up for the same reasons hewlett-packard is splitting apart. they say they are better apart than together. they have the same challenges and approaching it from completely different tactics. we will see who wins. emily: we have asked the question before and the answer is one tech company has really rebounded from the near break and that was apple. do you see that in the future for yahoo!? shira: it is hard to reinvent yourself in the technology industry to get change happened so quickly. to your point, apple did it, ibm did it arguably. ibm is trying to reinvent itself again. the fact we can only name maybe two examples in 40 plus years of technology history says something which shows you how difficult it is. emily: what happens the yahoo!? you have analysts saying it is time for marissa mayer to go. shira: they have not really articulated what the strategy is. they have all this cash coming in from the alibaba spin. what will they do with it? marissa mayer says they will jettison some underperforming strategies. underperforming assets.

shira: it is funny because emc and dell are teaming up for the same reasons hewlett-packard is splitting apart. they say they are better apart than together. they have the same challenges and approaching it from completely different tactics. we will see who wins. emily: we have asked the question before and the answer is one tech company has really rebounded from the near break and that was apple. do you see that in the future for yahoo!? shira: it is hard to reinvent yourself in the technology industry to get change happened so quickly. apple did it, ibm did it arguably. ibm is trying to reinvent itself again. the fact we can only name maybe two examples in 40 plus years of technology history says something which shows you how difficult it is. emily: what happens the yahoo!? you have analysts saying it is time for marissa mayer to go. shira: they have not really articulated what the strategy is. they have all this cash coming in from the alibaba spin. what will they do with it? marissa mayer says they will jettison some underperforming strategies. and then what? they have not articulate

hesh chambers first and whole foods was 14th and emc corps was 17th. winners this year all share key traits. globe said that they all treat workers well. and encourage them to have fun while they work. >> anchor: apple is working to let people send money to each other via text message. payment apps are popular as ways to split cost of things like meals and taxis. you can even pay the baby-sitter with a new app. pay pal app then mow rules the market but shares of that went down last year. no word from apple this morning about how far along their plan is. facebook takes on snapchat by sending out disappearing message feature. users send it like normal on facebook. but they can opt to have the text disappear after an hour. this is similar to snapchat messaging where texts go away after everyone read them and closed the chat screen. >> anchor: actor david hasslehoff wants a life free of hassle. so he changed his name. >> drop the hassle from my life for years. now i have made it official. david hof. >> anchor: there has to be a marketing play to this somew

del bought emc. charter and time-warner, that was supposed to be comcast and time-warner. that deal fell apart and charter jumped in. >> gotcha, what else is on the big show tonight, ali. >> we're talking about the visa waiver program. americans are worried about people who come to this country to do harm. some on capitol hill with calling for tougher restrictions on who can get a visa to visit america. will those prestrict shuns stop attacks or just hurt the tourist industry. >> you can watch ali velshi on target right here at 6:00 pm on al jazeera america. >>> the 14-year-old who was arrested after his clock was mistaken for a bomb is now seeking $10 million in damages. they claim he suffered physical and mental anguish. >>> still ahead, police in tribal areas, while officers in the tribal nations are not getting the information they need to do their jobs. >> we're here to fully get into the nuances of everything that's going on, not just in this country, but around the world. getting the news from the people who are affected. >> people need to demand reform... >> ali ve

charlie: why was it a mistake for them to buy emc? it gave you guys an opportunity. they figure out how to put cultures together. meg: exactly. it is a fascinating time in history. because two companies were similar in many ways. hp was larger company then dell. we have taken two diametrically opposed strategies with the same set of facts. anl,l the industry, incredibly techntonic plate shift. at one of these inflection point for our industry, where a lot of the old, proud companies were under pressure. our strategy was the lover the balance sheet, so you have no debt on the operating company. you have cash on the operating company. leain in in to new technology le cloud. make sure we give it to solution selling. and really focus on revenue growth. their strategy was lever up the balance sheet, put old technology together, take out the cost. and then try to make your way that way. two diametrically opposed strategies. going to votem for hewlett-packard enterprise all day long because i think fast is important, speed is important where we live. i'll say, they have got

emc 17th. the writteners share key traint the writteners share key traint. they all treat workers well and encourage them to have fun while they work. >>> the university of massachusetts has a new marty meehan was southern in. governor baker state leaders and members of our delegation were all on hand. with fees going up at umass this year, fox25 asked meehan how he.will keep college affordable. >> in terms of affordable offer a number of ways. a three-year degree that governor baker was talking about. a two and two program with community colleges. a way to offer degrees that will costs less money. >> tuition and fees at you can mass is $14,000. the first fae increase that the school has had in three -- the first fee increase that the school has this in three years and they would like to see more funding. >>> closed at the railroad crossing until tuesday. mass dot crews will be working through the weekend. anyone who uses route 109 in that air why should plan their detours. detours are in place but find an alternate route before you get to medfield. jewel sq

betty: this is all happening as dell is buying emc. when will we know which tactic was right? are almost the same strategy, surprisingly. phone companies are making a bet on big business. it would not be a surprise to many observers it's dell says selloff that pc business. hp is doing that this week. there is probably room for both players. while the will be so fatally distracted they will lose step. betty: thank you. had, that is still ahead of bloomberg markets, virgin america make since flight to hawaii. where will they go to next? ♪ betty: you are watching bloomberg markets. top ofas we approach the the hour let's look at all the major averages are of. we have a rally going on today .nd m&a activity people once again trying to assess odds of the fed moving in december. joining me is a derivatives mkmategist at holdings. we're coming down the home stretch of the year. historically we tend to see these here and rallies more often than not. is that how you are seeing people position themselves? >> it has been quieter over the last few days even though we are in the midst of

might you consider doing areething like emc dm w so that they have an opportunity to price your products properly? they looking at your forward will let 11.6 times and they're not happy. -- forward multiple at 11.6 times and they are not happy. simply one focused how fast the technology drives the business result they're looking for. every customer is looking for how they become digital. walmart talked about the need to move to digital. the real issue is that they want that architecture, they want technologies that work together when they come in the door. this is the region for our strategic -- reason for our strategic partnership to get the customer the better experience faster. we will continue to expand our portfolio. we made three acquisitions, we announced for we announced four strategic partnerships. we will make the moves we need. >> you are a recently new ceo at cisco. you are thinking about the next three years, next five years. one thing that seems certain is that the role be more and more digits flowing through your equipment. we know that part of the market is growing. as yo

emc? more than twice the size. this is one of the biggest deals of all times and creates a pharma powerhouse. we'll have an interview with the ceos of pfizer and allergan. we'll be right back. >>> it's time. time for stop trading with jim. >> gamestop had a problem. some of the games had a gap. they didn't come out until november. call of duty was in november. assassins creed, you and i don't play these, but they also missed. i'm wondering whether gamestop is not pressed down by the shorts, they want it to look badly. i was trying to figure out why gamestop didn't lower the year, because these games may have missed. >> may have been uneven in terms of the introduction of the games. they're not cutting back full-year guidance. >> so you try to figure out why is that -- >> they did not have a good quarter. >> they did not. but they may have a gap here. let's just say this is one where the bears shot first, now the bulls will shoot. the bulls will say there was a bit of a misschedule. that doesn't mean that they didn'

might you consider doing -vmware, soike emc investors have an opportunity to price your products properly? forstors will reward you growth and shareholders are looking at your growth, and they are not happy. when we think about how our customers look at what we bring simply, they are focused on how fast the technology drives the business result they are looking for. every customer is looking to become digital. you had walmart on this week, they talked about the need to move digital. the real issue is, they want that architecture, technologies that work together when they come in the door. this is one the reasons for our strategic partnership, so that our technology and apple's technology works seamlessly. you will see us continue to expand our portfolio. we made three acquisitions, we announced four. we sold a set-top box business. we are making the moves we need to to remain relevant to our customers. david: you are a relatively new ceo. i know you are thinking about the next 3, 5 years with the strategic vision. one thing that seems to be certain is that there will be more and more digi