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Twitter Announces IPO; 911 Tapes Released of New Jersey Mall Shooting; Interview with Sean Murphy and Lenny Kesten; What's Next for Bloomberg?
Aired November 7, 2013 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MAGGIE HABERMAN, SENIOR POLITICAL REPORTER, "POLITICO": They are mostly concerned with keeping Kathleen Sebelius. She is the main head that people are calling for. I don't expect to see her leaving, but I do think the longer this takes, the longer this goes, you are hearing more grumbling behind the scenes about not just sort of the intrinsic problems the government has and the attractability of government in doing a project like this but its specific people are going to be the blame.
KATE BOLDUAN, CNN ANCHOR: And the longer it takes and the longer it goes the more of a problem it becomes for Democrats outside of the administration. You have the meeting, more than a dozen Senate Democrats at the White House yesterday. The sense is they basically said help me help you.
BOLDUAN: Help me win reelection because Obama care will be a problem. How potent do you think Obama care will be in the next election cycle?
HABERMAN: It's a little too early to say, right? If we deal with the fix of this in the next three to four months, I think Obama care for voters is very big. They've been hearing about this for a long time now, essentially the entire first Obama term. So I think the feelings about the program itself -- the promise for the White House is the perception that the president was not upfront about this and people are going to lose their plans or some people are at risk of losing their plans. They need to get control of that.
BOLDUAN: Despite all the problems, technical and maybe PR they have, do you think the longest lasting problem is the if you like it, you can keep it line?
HABERMAN: I think if there are a bunch of stories amassed in the media and Republicans against the plan over the course of the next six to eight months and that is more what breaks through than the idea of this is a person who was helped, this is a person who didn't have health care before and had cancer and was able to get it, that is a problem. I think as it stands now, I have to think that the bigger issue going into the midterms is the government shutdown. I think that hurt Republicans on net more than it hurt Democrats.
BOLDUAN: Republicans like Cuccinelli in Virginia, they say that actually hurt Cuccinelli, even his own aides said that hurt him in that election. Then the focus became, again, Obamacare and that started to help him towards the end. So Republicans have big issues going toward the midterms. Who knows if we'll have another government shutdown, right?
HABERMAN: I think the goal is for everybody to avoid a government shutdown for exactly the reason you just said. Republicans are very afraid they will end up getting blamed. I think there's very little evidence to suggest that Obamacare actually is what was the closer in the final days in Virginia. I know this is what Cuccinelli's folks are saying. They did not have money and were not doing polling at the end. What you heard from the McAuliffe people is that their polling was basically consistent. It showed a mild bump for him during the government shutdown, which made sense, and then essentially you had Republicans go back towards Cuccinelli in the final week. It sounds like it was basically a structural win for him.
BOLDUAN: And shocker, both sides will have their own interpretation.
BOLDUAN: What was the end result, driving factor in an election. Thanks so much, Maggie.
HABERMAN: Thanks for having me.
CHRIS CUOMO, CNN ANCHOR: Starting today you can own a little piece of that service that allows you to post updates called Twitter. The really rich and well-connected have already picked up their shares. And $26 apiece, that's the IPO price, but not the price the rest of the market will get it at. It's about a $14 billion market cap right now. So what does it mean for the rest of us? Alison Kosik is here with us. All these big questions, what's it worth, was it priced right, really comes second to just the basic idea of who should buy the stock.
ALISON KOSIK, CNN MONEY CORRESPONDENT: When you think about that, you think of when you buy any kind of product, is it worth it when you ask that question. You really have to look at the business model with Twitter and believe in their business. If you talk to analysts they'll tell you, at this point it looks like this is a company that's growing, that's ascending.
But this is a company that really is solely relying on ad dollars. So if you are on Twitter, you know what I'm talking about, that you click on the sponsored tweets. The question is where is the follow-through, the carry-through on that? So it's really questionable how far this can take Twitter.
Now, as far as what Twitter is doing today, they're making a public debut, selling shares. We'd like to compare what's happening with Twitter to what happened with Facebook, which many would call a big flop. Something that Twitter is doing differently that Facebook is they're being more conservative with the number of shares. Also the standing of the company was different. Facebook was a lot more mature when it came out. Twitter is a lot smaller, so it's still got room to grow. That actually could work in Twitter's favor. CUOMO: It plays both ways. It's younger, so it's not as proven, but it's got more upside potential, there's more magic to it. And obviously there's always a gamble in these stocks, because tech stocks, online things don't work off book value the way traditional companies do. One of the indulgences here for us will be how much money will they make today, the people in power> What do we know? What are some of the big numbers?
KOSIK: We're hearing it could be as much as $40 billion. The numbers are all over the map. They're going as high as 80. You look at what money Twitter is bringing in. Right now, Twitter isn't making any money. It's not turning a profit. It is bringing in money. Twitter made $500 million over the past 12 months. Its monthly users have gone up 39 percent from last year. So, yes, you are seeing growth there. Another plus for Twitter it that it's captured the mobile market because a lot of people access Twitter on their mobile device.
CUOMO: Which was the rub on Facebook.
KOSIK: Exactly, that was the problem on Facebook is they were trying to figure out how do we monetize these ad dollars on mobile? People only went to their desktop. So Twitter has that covered. In fact, they even acquired a company that exclusively tracks users movements from their mobile device to their desktop. So it's seamless and not many ad companies do that. So that's a plus for Twitter.
But one thing people want to see is they want to see Twitter turn a profit. It's projected to turn a profit next year. But right now what you're seeing Twitter do, they're building business, hiring people, acquiring companies. Once people start buying shares in this company, they'll want to see the company start turning a profit.
CUOMO: Only in the new economy do companies become huge before they turn a profit.
CUOMO: With the market at an all-time high now, hype is going to matter, people want the new thing.
KOSIK: And the timing, it's a good point you make, the timing couldn't be more perfect, because when Facebook went public the market was in a very different place than where the mark set now. The S&P 500 is up over 20 percent this year, a very different landscape than it was last year.
CUOMO: Alison Kosik, thank you very much for the intrigue. We'll see what happens. We'll know today.
BOLDUAN: Now to the chilling calls from inside the mall. When gunfire erupted inside Garden State Plaza Mall Monday, thousands ran for their lives. But some couldn't get out and they were forced to hide anywhere they could stay safe or they thought they would be safe. Now we're hearing from they said to dispatchers in the moments after the shots were fired. Deborah Feyerick is here again with more on that. DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning. As the mall went into lockdown, nobody knew what the gunman's intention was, how many rounds he had on him, how much damage he planned to cause. So they did what anybody would do -- they hid and they waited.
FEYERICK: The sound of sheer panic from inside New Jersey's Garden State Plaza as a shooter, 20-year-old Richard Shoop, fired inside the shopping center on Monday night with hundreds of people trapped inside.
UNIDENTIFIED FEMALE: Somebody is shooting up Garden State Plaza right now.
UNIDENTIFIED MALE: There's somebody shooting?
UNIDENTIFIED FEMALE: Somebody is shooting up Garden State Plaza right now. I'm in the bathroom.
UNIDENTIFIED MALE: OK, stay on the phone with me, sweetheart.
FEYERICK: These are newly released 911 tapes, callers cowering in hiding spots throughout the mall, fearing to for their lives.
UNIDENTIFIED MALE: How many people are in the bathroom?
UNIDENTIFIED FEMALE: Three.
UNIDENTIFIED MALE: Are they in your store?
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: I'm inside the store in the office. I'm scared and I want to get out the mail.
FEYERICK: Some callers so petrified they whispered to the 911 operator, terrified that the gunman was nearby.
UNIDENTIFIED FEMALE: I don't hear any sirens.
FEYERICK: One trapped witness desperate to get out told the operator she was worried about being confronted by police.
UNIDENTIFIED FEMALE: I'm scared and I want to get out the mall. The cops -- I can see the cops from the door. Is there any way I could reach one of them and they can come in and get me?
UNIDENTIFIED FEMALE: I was worried about getting shot. It was dark just like this, so I didn't know if they would have thought I was the shooter. As soon as I get to like, right here, they all line up in front of the glass pointing the guns like put your hands up, please put your hands up. So I got extremely scared like I'm going down. It's a wrap for me. I'm going to die now.
FEYERICK: Thankfully no witnesses were shot or injured in the chaos. But the shooter was found dead outside the mall with a self-inflicted gunshot wound.
FEYERICK: Now, the gunman's family said about the shooting that Shoop, quote, "Intended to harm nobody else but himself." His brother called the tragedy an act of self-indulgence by Richard because he took his own life so publicly. Still for the people in that mall, can you imagine thinking to yourself, it's a wrap, I'm going to die now?
BOLDUAN: You don't know. You don't know his motives. You did not know what was going through his mind.
FEYERICK: That's the fear and the terror and that's what panics and cripples people in these situations. But they all did what they were supposed to do, they hid.
BOLDUAN: Thanks so much. Great to see you.
Michaela is here with more of today's other top stories.
MICHAELA PEREIRA, CNN ANCHOR: Good morning to you at home. Making news at this hour, the CIA reportedly getting help from AT&T on counterterror investigations. "The New York Times" reports the agency is paying $10 million a year to the telecommunications giant for access to its phone database. This arrangement said to be voluntarily and officials insist they're not actively looking for Americans' calls.
The NFL has hired a prominent criminal attorney to investigate bullying allegations against Miami Dolphins suspended lineman Richie Incognito. Fellow lineman Jonathan Martin abruptly left the team after claims of harassment. Many dolphin players are voicing support now for Incognito saying there didn't appear to be problems between him and Martin. Coach Joe Philbin refused to comment on a report that Miami coaches told Incognito to toughen Martin up.
New surveillance video raises more questions about how a Georgia high school student wound up dead rolled up in a gym mat. CNN has been investigating this story from the beginning. In the video, Kendrick Johnson is seen in the gym where he later died. Another more blurry angle later shows the lights out, but a mysterious person can be seen walking towards the mats where Johnson's body was ultimately found. Johnson's family believes he was murdered and there was a cover-up.
Oklahoma prosecutors upgrading charges against the suspect in the shooting death of an Australian baseball player. And 17 year old Michael Jones will now be charged as an adult with felony first degree murder, the same as the other two suspects. The victim, 23 year old Christopher Lane was jogging back in August when he was gunned down. Lane played baseball at East Central University and was entering his senior year.
And talk about embarrassing. Marty Walsh won the Boston mayor's race Wednesday. That's not embarrassing at all. Congratulations to him. Vice President Joe Biden called to offer his congratulations. Problem was he called the wrong Marty Walsh. The vice president accidentally called a former aide to Senator Ted Kennedy who has the very same name. Apparently the mayor of Minneapolis and Debbie Wasserman Schultz, the chairwoman of the DNC, also made the same mistake. The wrong Marty, feeling popular, I'm sure, says he gave the VP the number for the right guy so the congratulations could be made.
BOLDUAN: Nice he had the right number for the right Marty.
PEREIRA: Why are you calling me? I'm the mayor? Really?
BOLDUAN: I had no idea I was on the ballot.
PEREIRA: For two seconds he had power.
CUOMO: That's right, or the illusion of power.
CUOMO: Let's get over to Karen Maginnis, in for Indra Petersons with the forecast.
KAREN MAGINNIS, AMS METEOROLOGIST: Hey, and good morning to everyone. Yes, it looks like wet weather expected across the northeast. We've been tracking this storm system as it moved across the Great Lakes and the Midwest, produced some snowfall there and lower temperatures, which it will do the same thing across the I-95 corridor. With temperatures dropping, probably throughout the day, you start the morning out fairly mild. But once the frontal system moves through and the rain comes in you start to see the winds blow in from the west and northwest behind it, occasional gusts up to around 30, 35 miles per hour.
Most of that precipitation is on the light side. We'll expect on the order of maybe a quarter inch to half an inch, some locally heavier amounts. Right now the bulk of that precipitation is into the eastern Great Lakes.
And what about delays? Well, at LaGuardia also into Philadelphia, 45 minutes to an hour. So enjoy that while you're sitting at the airport, some delays expected there. As reduced visibility, also the wind and the rain interrupting air traffic there. And for Atlanta, wouldn't be surprised if we saw delays later on. I've come back in about 30 minutes. We'll tell you about the super typhoon that is going to lash the Philippines. Back to you guys.
BOLDUAN: Karen, thanks so much for the update.
Coming up next on NEW DAY, the Massachusetts state trooper who leaked the arrest photos of the marathon bombing suspect is now retiring. Was he forced out? Why is he leaving? He's here live to talk about it.
CUOMO: All right, what to do, what to do? One of the world's richest men, check, one of the most important financial companies named after you, check, mayor of the big apple, check. So what else can Mr. Bloomberg do? What's going to follow? He's going to tell us. We're going to tell you straight ahead.
CUOMO: Welcome back to NEW DAY.
Many call Sean Murphy a hero. He is the Massachusetts state police sergeant who shot these photos of a surviving Boston bombing suspect just moments before the suspect was captured.
Then came this cover from "Rolling Stone." Now it wasn't one of Murphy's photos and it was an image that bothered many, including the sergeant. So he leaked the photos that showed the suspect as he thought he suspect should be seen. Murphy was disciplined for that move, a punishment he accepted. But now he's retiring at the age of only 48 after 25 years on the force.
He's joining us this morning along with his attorney, Lenny Kesten, to discuss the situation.
Thank you very much, Counselor.
Sergeant, so why are you retiring?
SEAN MURPHY, RETIRING OFFICER, MASS. STATE POLICE: I've had a great 25 years career with the Mass State Police. I know I'll never be photographing again for the department and it was time to move on.
CUOMO: Time to move on because...?
There's a little bit of confusion about this story of what happened with the process. We use the word charges when we were reporting on it early on.
What was the disposition of punishment?
MURPHY: We came upon an agreed upon disposition. I gave five vacation days back to the force and I was retired with an honorable retirement.
CUOMO: Would you do it again?
MURPHY: The way I see it, Chris, there's no way I couldn't do it.
MURPHY: Well, because what "Rolling Stone" did was wrong. That image hurt a lot of people who are still hurting. And I knew that the image I had was the true face of terror. It was the true image of that day.
CUOMO: Now, ordinarily, when you are taking photos on the job, you know they're part of a case file. You know they may be evidence. You wouldn't do this. But the situation here was different. MURPHY: Absolutely. I was not in the capacity of a crime scene photographer that day. The images I took were never part of the case. They didn't have a case number. So they were part of public relations.
CUOMO: Because, Counselor, that was the pushback, right? We have an investigation going here. We have to make sure the case is done the right way. This guy is letting these photos go, they could be valuable. We have to come down on him.
What did you make of that allegation?
LEONARD KESTEN, ATTORNEY FOR MURPHY: It was ridiculous. It was ridiculous then and it's ridiculous now. They were never part of the case. These photos were released to other places. They were not kept secret, they were not in the file, they were not part of this case.
Sergeant Murphy would never have done anything to jeopardize the case. And the guy was captured on live TV. So the notion that the release of these photos would have done anything with the case was -- never made any sense whatsoever. And I think everybody knew that.
CUOMO: Now and then the corollary to the story, what happened afterwards seemed to be fairly one-sided in terms of where the support was here.
What did you find out when it went viral when it went online? What kind of support did you see?
MURPHY: Well, the support has really been overwhelming. It's truly humbling. A lady, Lisa, set up one of the Facebook pages, which 67,000 people signed on and showed support. It's absolutely just been truly humbling.
CUOMO: The department didn't back off, though.
Why? They could have. They've been a little tight-lipped about it, they hoped the story would go away.
Were you surprised they didn't, in the aftermath, and how people saw it, kind of back off and say, let's just leave this alone and stay on the job?
MURPHY: No. As far as the job, I'm not surprised that they didn't back off. They had to do something. I have nothing but high respect for the Massachusetts State Police, the men and women that I've worked with for 25 years.
CUOMO: They put you on the midnight shift, right?
MURPHY: They did.
CUOMO: What is that message?
MURPHY: Well, I mean, I've worked the midnight shift for years and what they did was put me back in uniform patrol with a cruiser. I was transferred from headquarters to a remote location working the midnight desk.
CUOMO: How did the other men and women on the job treat you?
MURPHY: Just fine. Absolutely no problems.
CUOMO: How do you think your client should be seen?
KESTEN: I mean, you know, the word hero is overused. There are people who risked their lives. He risked his life for 25 years for the commonwealth. This is a man who felt the pain of the victims. That's why he did it. He felt their pain. He had photographed funerals, photographed the funeral of the MIT officer. He knew what this was doing to the victims, that picture. He wanted to help them and he did.
CUOMO: You wouldn't be retiring but for the situation. I know you say it's an OK accommodation. You're all right with it. You get full pension.
But, but for this, you'd still be on the job, right?
MURPHY: Yes, I'd still be working.
CUOMO: Do you have regrets?
MURPHY: No. Absolutely not.
CUOMO: Even though it ended this way?
MURPHY: No regrets whatsoever.
CUOMO: What are you going to do next?
MURPHY: I'm not sure. I'm not sure.
CUOMO: When you look at those photos, when you remember those moments, what is it that you take with you?
MURPHY: That was the real deal. It was as real as it gets.
CUOMO: What do you want people to know about the scene you came upon that day and what the reality of the situation was?
MURPHY: Well, again, that was the reality. The image of that guy in the boat was the true face of terror, not the one that was fluffed and buffed for the cover of "Rolling Stone" magazine.
CUOMO: Well, Manny, we're grateful to you for doing it. It was a punishment and the price that came along with it. But if you're OK with it, I guess everybody --
MURPHY: I'm great.
CUOMO: -- as well. Thank you for joining us. (INAUDIBLE) good luck going forward.
Manny Kesten, thank you for being here as well. Thank you for not objecting to anything I said.
CUOMO: Good luck to you going forward.
Kate, over to you.
BOLDUAN: Thanks, Chris.
Coming up next on NEW DAY, red flags after a "60 Minutes" report on Benghazi, a security contractor tells one story about where he was in Libya that deadly night but an incident report tells another.
Also ahead, Mayor Bloomberg about to be Citizen Bloomberg. But he has more plans for retirement than you may think. He talked about it to CNN. He talks about 2016 and much, much more. That story ahead.
MICHAELA PEREIRA, CNN HOST: Welcome back to NEW DAY. Here are some of the stories making news this hour.
Health and Human Services Secretary Kathleen Sebelius facing some pointed questions from frustrated lawmakers, including Democrats over the ObamaCare website rollout.
Sebelius acknowledging there are hundreds of fixes necessary. So far, enrollment has indeed been low. The head of technology at the agency that developed healthcare.gov is now stepping down.
#IPO, Twitter set to begin trading on the New York Stock Exchange this morning. It set a price of $26 a share for its initial public offering; that twice values Twitter at more than $18 billion, despite never turning a profit in seven years of existence. Twitter is the most anticipated IPO since Facebook's debut last year.
Why would someone intentionally drive a car into a church, causing thousands and thousands of dollars in damage? That's what police in Spokane, Washington, want to know. A car smashed into Life Center Four Square Church at 4:00 am Tuesday. It landed more than 50 feet inside, the force so great, a baptismal pool was shoved into the middle of the auditorium.
The driver fled on foot and has not been located.
HD computer monitors for $9, treadmills slashed from $600 down to $30, what a steal, that can't be right. It wasn't. It was a technical glitch from Walmart's website. Walmart will not honor any of those sales. Customers who thought they were getting those drastic discounts will instead get a $10 gift card.
And a reminder to never ever lose hope. A Nebraska man is getting back a bicycle -- a motorcycle, rather, stolen from his Omaha yard 46 years ago. Donald Duval reported the black and blue 1953 Triumph Tiger 100 stolen back in 1967. U.S. Customs and Border Protection said it was headed to Japan when it was recovered last week at the Port of Los Angeles.
Oh, my, they find some interesting tidbits at the Port of Los Angeles.
CUOMO: They really do.
PEREIRA: Including a bike. Can you imagine? You would have long given up hope. Even like four or five months later.
BOLDUAN: (INAUDIBLE) even a couple weeks later. There's still hope for that bike with the banana seat that you had way back when.
PEREIRA: (INAUDIBLE) fringes? Yes --
PEREIRA: I had one of those. Good times.
CUOMO: So if you've been following the political news recently, you'll know that Bill de Blasio is New York City's new mayor, a victory he cruised to, based mostly on his criticisms of the last guy, a man you may know named Michael Bloomberg.
Now that's left the fate of many of Bloomberg's policies in doubt. But one thing is for certain, Bloomberg is moving on, something he told Jake Tapper in a CNN exclusive.
MICHAEL BLOOMBERG, FORMER MAYOR OF NEW YORK CITY: Twelve years ago when I got elected there were a lot of people that said, oh, he could never keep us safe the way Giuliani did and, in fact, Rudy brought down crime dramatically and we took that and we brought it down dramatically again, more.
And so you never know. I'm optimistic. I'm sure everybody's not going to be happy with every decision that Bill de Blasio makes and they're not happy with every decision I make.
If you think about this, Virginia is the home state of the NRA. That's where their headquarters are, south of the Mason-Dixon line. If I, 20 years ago, said to you that a Democrat who was F rated by the NRA, and unabashedly in favor of common sense gun checks, background checks, if I told you he could win governor, you would have laughed me out of the room.
Truth of the matter is this is a phenomenal victory. The people of Virginia have spoken and the people of Virginia will be safer because of this.
JAKE TAPPER, CNN HOST: What role do you think you'll be playing in the 2016 elections? I have a tough time imagining you just going softly into that good night.
BLOOMBERG: Let me guarantee you two things. Number one I will vote and number two I won't be running. In terms of something in the middle, it depends who's running and whether I want to support them, whether I want to get involved. I have got a lot of things to do. I'm looking forward to starting January 1st.
I'll take a quick vacation and already I've got more things to do going forward than I can handle. In fact, I've got to start learning how to say no to new things.
CUOMO: All right. So what's going to be his legacy?