 Okay, welcome to John Furrier, SiliconANGLE.com, SiliconANGLE.tv, a daily program called The Extraction Point, where we are at the center of all the data flowing around the web. And from start to finish, from the morning till the afternoon, a lot of stuff happening. We will be there extracting all the signal from the noise here at four o'clock every day. That's going to be our format. We're going to have a lot of fun with it. I'm really excited by really the idea of bringing a lot of people in to SiliconANGLE.tv and focusing on knowledge, extracting that knowledge out from the data out there and from the opinions. So it's going to be opinions. It's going to be facts. It's going to be a discussion around what's happening. Last Friday, for example, we had a great conversation with Doug Garland and Ramin Darbahar from Finland, talking about Nokia and Microsoft, and it was a very good conversation and it hit us that that's a format we want to expand on. So we're going to try to do it every day at four o'clock. We're going to talk about the key things that need to be extracted out of the marketplace. A lot of bloggers out there, a lot of noise in the marketplace talking about news, what does it mean, and the data is going to be at the center of it, and we're going to extract that data and bring in our friends and people that we follow in Silicon Valley and beyond to get their opinions, to talk about it, and to extract out the detail so that you know what it means. For example, today there's been some big news about the HP buying a company called Vertica, an area close to our space in the cloud software market, and we have a lot of information on that because that's obviously impacts the big data market, and obviously we're here at Cloudera, the home of big data, where our office is in Cloudera Labs, where SiliconANGLE Labs is located, and so HP bought a company today, a pretty big deal called Vertica, which is backed by Kleina Perkins, Bessemer, NEA, and Highland Capital. The CEO is Chris Lynch, and it's a company that's about six years old, based in Billericka, Massachusetts, and it's interesting that HP is now going after the big data market. We've seen, you know, Hadoop, Rise Up, and companies like Cloudera, the hottest startup in Silicon Valley, established their leadership in big data, and now the big guys are coming in. We see EMC buy Green Plum, a very fast-growing startup, now part of EMC. IBM is doing a lot of work in big data, and now HP buying Vertica is a huge deal because HP had a huge investment with PDW, which is Parallel Data Warehouse, and that has now been eliminated with this acquisition, so it shows that HP is changing their strategy to be a big data player, and we're going to bring in some folks tomorrow to talk about that in detail, so tomorrow we'll find some folks here in the big data market that have experience in that. We'll drill down on it, but that's what this show's about. We want to get to the heart of the issue, and really the extraction point is this show at four o'clock every day, and we're going to talk about all the things that need to be extracted out and discussed. You want to follow us on Twitter? It's SiliconANGLE, at SiliconANGLE, or at Furrier's My Handle, and looking for some folks who want to just send some comments in and send them in. Now this week we have some interesting guests we have tomorrow. We're going to have Omar Trajman from Cloudera, who used to work at Vertica. I was going to comment on the big data scene from HP and kind of what that means to the marketplace. On Wednesday we're going to have Andy Kessler, author, famous hedge fund manager, Silicon Valley Guru. He writes for the Wall Street Journal of New York Times. He's flying in from LA from his trip down there, and recently wrote another book called Eat People, and we're going to talk to him about entrepreneurship and key lessons. And then on Thursday we're going to have Rich Scranton come in. He's the CEO of Bleco, a very well-funded, big-hyped startup that's in the search engine space, and we're going to drill down on them and talk about some of their value. It's pretty hard on Bleco when they launch. Didn't really like the product at first, but we're going to drill down and get an update from Rich and give them a chance to talk about some of their innovations. I've been a little bit bullish lately on Bleco, mainly because they didn't feed into the hype, and I think the marketplace gave them a lot of the hype, and I'm going to give them a pass on that on my critical comments, because what they're doing is very interesting. They're attacking these content farms, and they're looking at spam in a new way. So we're going to hear from Rich Scranton on that on Thursday. And then Friday we might take a day off on Friday or have a guest host because I'm going away on vacation. Our kids have a five-day weekend, so that's going to be probably a no-go on Friday. We'll see. We'll let you know as the week comes on. So, Ricky, who do we have? Do we have Bala come in the house yet? We have a guest coming in here. We have a guest that's coming in. His name is Bala. He's a new hire here at Cloudera. He's in the management space. We're talking in detail about management. Looks like we'll fix the coming out of meetings right now. We'll see if we can get him in. Let's take a look at what's going on the web today. So the big news today, in my opinion, is a couple things. One, in the spirit of extraction, extracting out the signal is the reality of the bubble that we're living in. Zynga is looking at taking in about, you know, a quarter million to $300 million in new financing at a $7 billion valuation. I heard from my sources that the number is close to $9 billion. I also have some friends who are angel investors in Zynga and first-round investors. So I could not be thrilled for my friend Paul Martino and Rich Levendorff who may have a massive exit in that company. I hope they sold some shares and paid back their funds 10 times over. So those guys are sitting pretty. And for Mark Pincus, who is the CEO, is about my age, really made it big and put his mark on the tech industry. He's been an entrepreneur for years going back to his career. He's had some startups. He's had some successes, but nothing to this level. So I like Zynga. I like the valuation. I like the cash flow. And I think they deserve to have that kind of valuation. But to me, that's the big story is these valuations. And I wrote a blog post on Friday talking about the bubble. And I had some interesting comments. Matt Eastwood, who's an IDC analyst, said it's a market cap bubble, not an IT bubble. Well, I think a bubble is a bubble. And I think the market cap bubble is one that has some collateral damage. I think, you know, in my post, I agreed with Brad O'Neill, who runs Tech Validate that there is a bubble and it's going to burst. I also agreed with this guy, Roger, who's a VC angel investor that some of the mega brands do deserve the valuation. I would agree that Twitter deserves a high valuation. I mean, this is so revolutionary, that product. It's so disruptive. Zynga, Facebook, and these are new mega franchises. And I think they're going to command the kind of valuations that will allow them to earn a lot of future cash flow. So those brands I agree with the things I don't agree with is the the valuation of Quora and these other companies that are kind of on second tier mega brands, not even close to even being mega brands, they're hyped up management teams with a unproven product. I think these are the kinds of companies that are going to be very frothy and bubble-ish that will ultimately burst. I don't know if it's been out there, but I do know the valuation of Quora. I'm going to try to see if the valuation, the valuation of Quora is out there. And not sure if I want to break it on this program, but if Arrington is breaking it yet, because normally Arrington, Mike Arrington breaks all of his scoops. If Arrington, you're watching this, if you the valuation, then if you know the valuation of Quora or you don't, then you're bummed because I know the valuation of Quora and what they're like asking for. So it's outrageous the valuation that Quora is demanding right now for some young guys who are good guys building good products. I just I just don't buy that that's going to be the kind of valuation. I think that's what the damage is going to be. And the collateral damage will be in this failed, in the case of failed startups. So to me, that's a major problem is those failed startups. The other hot thing that I'm finding is big data. The big data hype is key. And one of the things that really exciting about Silicon angle Silicon angle TV and the cube and the extraction point this show is that we're sitting at ground zero for big data. The Silicon angle offices is at the space of Cloudera, which is the company that's commercializing Hadoop. Cloudera is the hottest startup in Silicon Valley. And not a lot of people know about it. I mean, people are writing about all these Facebook companies like Quora or whatever, but you know, they're not writing about Cloudera. In fact, in a post by Sarah Lacey of AOL Tech Crunch, she wrote a post about the Facebook mafia. She can barely mention Hadoop because I don't think she really understands Hadoop. And I think that Hadoop and Cloudera are very relevant and next Facebook alumni is the founder of Cloudera, as well as ex-Yahoo with Amar Awadallah. But Cloudera is open source. It's about open source, about the smartest minds in the industry working on a really game changing technology. And that's really powerful. And we have a front row seat of that here at Silicon angle. So that's super exciting. Our studio is going to be here capturing it live. We're excited to have Ricky and Michael help out with the studio. We're going to try to get that up and running. The other notable things is a conversation we had, I had privately with a bunch of investors and VCs and executives privately, but then publicly we talked about Netflix. People were so down on Netflix. I think there's a Twitter debate that went on. I stood firm on long position on Netflix. People were arguing the stock price, but Netflix is definitely along on my mind. You know, they can be a game changer. I think Hulu might get caught in the net a little bit on this whole licensing thing, but I think Netflix has the answer. I'm really bullish that they're going to be a major player in the mobile space for content. The Intel investment today was an interesting story that they invested 26 million in a bunch of cloud, mobile cloud companies. You know, I think Intel is really groping at this point for relevance, and I think, you know, the Mego thing is a real shining example of how Intel really just seems to be missing a lot. I mean, they're very smart. I just think Intel might be moving a little bit too slow for the marketplace, and I think the Mego Nokia thing and then this recent patch of investments doesn't really show me anything from Intel. So I'm going to have to evaluate that a little further, but my opinion is Intel just seems to be slowly becoming closer to irrelevant and more and more in these conversations around being the Intel monopoly that they once had, and HP's big announcement this past week was, you know, a sign that they're moving from Intel. So Intel really is losing out in my mind. I think we're going to watch Intel closely. I'm sure that they cut expenses. Their earnings would look good, but ultimately from a product standpoint, I'm just not seeing it. So we're going to keep an eye on Intel. Ricky, how we doing on our guest Bala? Is he coming in here yet? He's stuck in a meeting. Some other top stories today. It's Valentine's Day. It's my daughter Jacqueline's 14th birthday. Jacqueline, if you watch, it's a shout out for you, and happy birthday. She's 14 on the 14th, and I'm going to go take care of the ladies in my life today. Jacqueline and my wife Linda. So we're going to have a good time with that, and we're going to end the show early today. Ricky, what do you think? Let's see if we got any questions from the group here. We're here in Silicon Angle.TV's headquarters. We're going to reset and bring back Ricky and our guest. We're going to find out where he's at, but we're at the SiliconAngle.TV studio where I'm John Furrier, founder of Silicon Angle, and we're going to start a daily show called The Extraction Point, and it's going to be a fun show as we highly opinionated for the folks that don't know me. I'm very opinionated, not afraid to share my opinion. Out there, I'm old enough where I can, not have to worry about it, and got a lot of experience to share there, so I'm looking forward to that. But more importantly, we're going to have some great guests, and we're going to have a lot of fun talking about the top news, and really extracting out the signal from the noise. So we right back, we're going to take a real quick break, and we'll come right back with more extraction point. Prepare for the extraction point. We've been briefed on all the important stories and events in the world of emerging information. Now, it's time to extract the data and turn it into action. Live from the SiliconAngle studios in the heart of Silicon Valley, this is extraction point with John Furrier.