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Twitter Opens For Public Trading Today; Three Dead In Detroit Barbershop Shooting; Fort Hood Massacre Site To Be Torn Down; NORAD: Likely Meteor Shower Over California; Media Seek Toronto Mayor's Wiretaps; Florida Holds "Stand Your Ground" Hearing Today; White House To Screen Mandela Biopic; Undercover Detective Resigns After Affair With Drug Dealer; FDA Seeks To Fully Remove Transfats From Nation's Food Supply; Healthcare.gov Official Leaving Post; Report: Abercrombie To Stock Larger Sizes; Blockbuster To Close All U.S. Stores; Reports: Former NFL Greats Marshall, Delamielleure, Also Have CTE Signs
Aired November 07, 2013 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning. I'm Carol Costello. Thank you so much for joining me. Any moment now, shares of Twitter will start trading on the New York Stock Exchange. Twitter executives rang the opening bell with the sign #ring. The initial public offering is priced at 26 bucks a share, but some experts say the price could sky rocket.
Twitter and the stock exchange hope to avoid all those glitches and drama that Facebook's IPO experience last year on the Nasdaq. CNN's Money Tech correspondent, Laurie Segall is at the New York Stock Exchange and CNN's Alison Kosik is live in New York for us. Alison, let's start with you. When will we see Twitter actually begin trading?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: That's a good question. You know, it could be anywhere from minutes to up to an hour when the opening bell rings. As you know, the opening bell rang at 9:30. What's happening now is you're getting the underwriters and traders who are talking, taking in orders and trying to figure out what the best price is for that first price that would hit the ticker on Twitter when it starts trading.
We are getting the first indications of what that price could be. You said $26 at its IPO. Yes, that's what the initial offer price was, $26. Now it looks like the first price that will hit the tape, anywhere from $40 to $44. That's significantly higher. You know why it's higher, because demand for this stock is huge.
Also one thing that Twitter has done -- it's been pretty conservative in the number of shares that it's selling. It's only selling 70 million shares. That's not considered a lot. To give you a comparison, when Facebook went public, it sold more than 400 million shares. We know how that IPO went. Many considered it to be a flop. In part because of huge technical difficulties at the Nasdaq.
Some others thought that Facebook was overreaching with its price. Its initial offer price was $38. It's interesting to see sort of -- to compare the two, Twitter -- although having a lower initial offer price, it's starting out ahead of the gate, possibly anywhere from $40 to $44 a share for the regular investor out there -- Carol.
COSTELLO: OK, so Alison, stick around. I want to go to Lori Segall. She's on the floor. The mood there has to be excitement maybe?
LAURIE SEGALL, CNN CORRESPONDENT: Absolutely, you can hear people yelling behind me, looking at this pricing right now. I mean, walking by. Traders are making jokes about opening up Twitter accounts. There are so many hash tag jokes. You can hear everybody is very excited. One trader just said I just got 1 million Twitter followers. I don't know about that. There's a light-hearted sense here. You get the idea that there's a big, big deal for these guys.
Talking to some of the traders, they're saying this is the biggest IPO of the year and a relatable IPO. A lot of us are interested to see how this company that went from a very small startup will fare on the New York Stock Exchange. Twitter executives didn't ring the bell. Essentially, they brought very prominent users of twitter to ring the opening bell.
Patrick Stewart, you may have heard of him, from Star Trek, and also a little girl that opened up a Twitter account for charity. A lot of millionaires and billionaires are made today. First and foremost, Ed Williams, who is one of the founders of Twitter will make over $1 billion because he has the largest stake in Twitter.
Peter Fenton, he has always been on the board of Twitter. He will make over $800 million off of this IPO. Jack Dorsey, another founder, $600 million. Dick Costolo will make over $200 million. A lot of people will be made very happy today -- Carol.
COSTELLO: Lori, you stick around. Alison, you stick around because we're going to get back to you when Twitter actually starts to trade on the floor. For now we have to move on to other news.
Checking other stories this morning at 4 minutes past, a third person has died following a shooting at a Detroit barbershop. Seven other people were wounded. Police tell CNN affiliate WXYZ that someone at the shop heard a commotion outside, opened the door and the bullets started to fly. Not clear if there was more than one shooter. Of course, an investigation is under way.
Site of the carnage at Fort Hood, Texas, will be torn down, according to CNN affiliate KXXV, the building where Major Nidal Hassan killed 13 people back in 2009 is slated to be demolished. The Fort Hood massacre is the worst mass shooting ever at a U.S. military installation. Hassan was convicted in august and sentenced to death.
Was that a meteor that flew over Southern California last night? Well, probably so. NORAD says the fast moving stricken light was most likely a meteor shower. There were sightings as far away as Arizona, Utah and Nevada. Now you know.
In Toronto, the heat gets turned up on an embattled mayor. Yes, street protests popping up, calling for Rob Ford's resignation. It comes after the mayor admitted to smoking crack cocaine during a drunken stupor. As you know, Ford is refusing to step down despite relentless coverage and at least one collision.
Mayor Ford has not been charged with any wrong doing, but that has done little to soothe the concerns of those in Canada's largest city. Paula Newton has more for you.
(BEGIN VIDEO CLIP)
PAULA NEWTON, CNN CORRESPONDENT (voice-over): The city is still reeling from the confessions of Mayor Rob Ford about the use of crack cocaine. But it doesn't matter what kind of reaction he is getting, Mayor Rob Ford says he is staying on the job. We even saw him engage in a tour with 14-year-olds. It was bring your child to workday. He showed them around the office.
But he then blew a kiss to the media. Watching him do all this, many people, though, are saying this isn't so cute anymore. That includes many counselors here at city hall that would like to strip him of his powers. Despite the mayor saying, look, I have nothing else to hide, that there is more incriminating evidence out there.
JOHN FILION, TORONTO CITY COUNCIL: You just know there's more coming out. We know there's another video. We don't know what's on it, but we know there are wire taps, more documents that were redacted, but will be coming out. And more crazy stuff keeps popping up.
(END VIDEO CLIP)
NEWTON: Trying to get new wire tap information released. It had been heard in secret, in court. That could be released as early as next week. Many here believe that this scandal will continue to grow and that Mayor Ford's confessions have done absolutely nothing to, in any way, shape or form, restore his reputation or take this entire drama down a notch. Paula Newton, CNN, Toronto.
COSTELLO: Thanks, Paula.
Still to come in the NEWSROOM-- now follow me. A police officer in Arizona lost her job because she slept with a man she was investigating. The sordid story of her rendezvous with a drug dealer and her brand new reality show. That's next.
(COMMERCIAL BREAK)
COSTELLO: Checking our top stories at 11 minutes past the hour, Florida considers repealing its controversial "Stand Your Ground" law today. A state house subcommittee has set aside five hours to hear arguments today. WOIA says the law is likely to remain in place since Democrats don't have the votes to repeal it.
President Obama hosting special movie screening at the White House tonight, showing the Nelson Mandela bio pick, "Mandela: Long Walk to Freedom." Mandela's two daughters will join the president for the screening, along with the film's stars.
Take a look at this you don't see this very often. This happened in Naples, Florida and you'll see a chimney. Yes, a guy tried to go down the chimney to burglarize the house and, of course, he got stuck. This is one of the few times we got to see the man actually stuck inside the chimney.
His foot is actually dangling out of the fireplace as firefighters arrive. It took them a very long time for them to get the guy out of the fire -- out of the chimney, rather. After they got him out, he went to jail, along with his alleged accomplice.
Now to a shocking story out of Arizona, a female officer has been accused of having an affair with a drug dealer, blowing her own cover and giving up undercover cops. She has resigned but could face charges. Stephanie Elam is live in Los Angeles with more on this story. Good morning.
STEPHANIE ELAM, CNN CORRESPONDENT: Good morning, Carol. It does sound like something off of television, but they believe that this detective did not do this by accident.
(BEGIN VIDEOTAPE)
ELAM (voice-over): It sounds like something out of a made-for-TV movie, an undercover detective sleeping with a suspected drug dealer. That's allegedly what former Tempe, Arizona, Police Detective, Jessica Dever-Jakusz did, seen here in a European reality show called "Trading Places" where she swapped jobs with a Swiss officer, her behavior compromised a five-month investigation, police say.
HARRY HOUCK, RETIRED NYPD DETECTIVE: Of course, it's shocking. She crossed that blue line. Once you become a police officer, you cannot cross that blue line, all right? If you do, you're in jeopardy.
ELAM: Dever-Jakusz he began investigating her alleged drug dealing lover in June. Soon after that, the police report claims she began sleeping with the suspect and eventually the pillow talk turned to confessions, police says, she not only told him she was a cop. But that he was the subject of her investigation and she also allegedly outed some other undercover officers.
HOUCK: She put other officers' lives in danger as a result of her actions. These police officers could have been killed.
ELAM: In October, Tempe police got an anonymous tip about Dever- Jakusz's relationship. When approached by police about the investigation into her activities, Dever-Jakusz, who is married, chose not to speak and was placed on administrative leave. A week later she resigned, ending her tenure with the police department.
Tempe Police Chief Tom Ryff claimed that she resigned for personal reasons writing, "Additionally, I can confirm that an active criminal investigation related to the crime of hindering prosecution based upon evidence discovered."
(END VIDEOTAPE)
ELAM: Now the case is in the hands of the Maricopa County attorney who will decide what charges, if any, will be filed against her. We did try to contact yesterday, Carol but to no avail.
COSTELLO: Unbelievable. Stephanie Elam reporting live from Los Angeles this morning.
Still to come in the NEWSROOM, cowboy's great, Tony Dorsett, suffering the effects of concussions on the field. He is now forgetful, violent, suicidal and sometimes remorseful, his story, next.
(COMMERCIAL BREAK)
COSTELLO: We have surprising news regarding your health. The FDA has just taken a step toward potentially eliminating transfats from our food supply. Senior medical correspondent, Elizabeth Cohen joins me now with more. Actually, I think this is a smart thing because transfats are the bad fats that raises your bad cholesterol.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: And lowers your good cholesterol. There's nothing good about transfats from a health perspective. There's no such thing as a safe amount of transfat that is you can eat. That's according to the head of the FDA just spoke on this issue. They're saying look, we're taking the first steps that in the end could ultimately mean -- will ultimately mean that transfats will come out of the food supply. Consumer groups ask the FDA to do this nearly a decade ago. Many people think that the FDA is late coming to this party, but better late than never. Those transfats ought to come out.
COSTELLO: We won't know it as an immediate change, but the change is definitely coming?
COHEN: Well, I hate to use the word definitely. There's a bureaucratic thing where we have to put in comments. I suppose it could derail. It's quite unlikely so it's a first step in a process. It would take a while. They have to allow the companies to reformulate their products. It's not going to be immediate.
COSTELLO: All right, Elizabeth Cohen, many thanks to you.
Still to come, a question for you, take a look at this, magazine cover. Question, is this a cheap shot? Talk to a political reporter from "Time" magazine next.
(COMMERCIAL BREAK)
COSTELLO: Checking our top stories at 24 minutes past, leaving his post, Tony Trenkle was in charge of technology at the federal agency that developed the healthcare.gov web site. He will be retiring to take a private sector job. No word on whether he was pushed out.
Teen retailer, Abercrombie and Fitch is doing an about face saying it will begin to stop -- wait for it -- larger sizes for women. They were in hot water for touting the brand's, quote, exclusionary sizing. Customers can start to expect to see those larger sizes by next year's back-to-school season.
Blockbuster says it will close its last 300 retail stores in the United States and end its mail order services by January. Digital streaming by brands like Netflix and Red Box -- Blockbuster's streaming service, along with Blockbuster at home will both continue.
Any moment this morning, shares of Twitter will start trading on the New York Stock Exchange. The initial public offering priced last night at 26 bucks a share. Although today we are hearing that price could jump as high as $46 a share. CNN's Alison Kosik broke that bit of news a short time ago. She is at the New York Stock Exchange. Good morning.
KOSIK: Good morning to you, Carol. This is the biggest IPO of the year right here at the New York Stock Exchange, a big moment for this exchange. The NYSE even rehearsed and prepped for this in anticipation of high demand for Twitter shares. But anyone buying in is buying in to an unprofitable company. The big question is, can Twitter turn its popularity into profitability?
(BEGIN VIDEOTAPE)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: I'm going to make history as the first president to live tweet.
UNIDENTIFIED FEMALE: This movement was started on Facebook and Twitter and then took on a life of its own.
UNIDENTIFIED MALE: People that I work with will not shut up about Twitter.
KOSIK (voice-over): It's the most hyped tech IPO since Facebook. Twitter began trading here at the New York Stock Exchange instead of the Nasdaq after Facebook's famous flop there.
UNIDENTIFIED FEMALE: The messy debut plagued by technical difficulties.
KOSIK: But today, call it an about face, as Mark Zuckerberg and friends celebrate shares near record highs. Twitter's financials aren't as strong. The company is losing money, unlike Facebook, which was already earning $1 billion a year when it went public. Facebook also had 900 million users. Twitter has far fewer.
RICK SUMMER, SENIOR EQUITY ANALYST, MORNINGSTAR: How did they get to half a billion? How do they get to a billion? Ultimately we're believers in that story. That's going to be the biggest challenge.
KOSIK: A challenge Twitter insists it can overcome.
UNIDENTIFIED MALE: We've seen tremendous organic growth in our users, particularly internationally.
KOSIK: When it comes to social media it pays to be popular.
SUMMER: Advertising always closer to where the eyeballs go.
KOSIK: So far, advertisers are flowing in and they're buying mobile ads. That's the Holy Grail. UNIDENTIFIED MALE: So it is your sacred task to seek this grail.
KOSIK: Twitter gets 70 percent of its total ad revenue from mobile. Facebook only 3 percent when it went public, can Twitter keep the momentum going?
NATE ELLIOT, VICE PRESIDET, FORRESTER: It has improved the value of the platform. They're going to ask people to come and spend money on the site and ask companies to come and buy ads on Twitter. They have to show its value.
KOSIK: Some are optimistic that there is big money to be made, 140 characters at a time.
SUMMER: We don't think it's actually a question of whether they make money, but a when they will make money question.
(END VIDEOTAPE)
KOSIK: It looks like demand for this stock is huge. We know that because now we're hearing the range that these Twitter shares could hit the tape at, anywhere between $43 and $47 a share, higher than we reported, what, 15 minutes ago? The drama is building and building for Twitter -- Carol.
COSTELLO: Look at all those people on the floor just waiting. Not so patiently.
KOSIK: I can really feel the excitement. Everybody just crowding around, that's the trading post where everybody is trying to figure out what the best price is going to be when it hit that is ticker.
COSTELLO: All right, Alison, we'll get back to you. Thanks so much.
Let's talk a little football right now. Running back, the great Tony Dorsett, hall of fame career on the NFL, avoiding tacklers on the way to scores is retired now, but he has been unable to shake the consequences that came with the game's hard hits. Dorsett has been diagnosed with signs of CTE, the disease associated with repeated brain trauma.
And a story first reported ESPN's "Outside the Lines," Dorsett underwent brain testing at UCLA. He suffers from memory loss, depression and thoughts of suicide. He also says he unleashes angry outbursts at his family.
(BEGIN VIDEO CLIP)
TONY DORSETT, NFL HALL OF FAMER: It's painful, man. For my daughters to say they're scared of me. Man, it's painful.
(END VIDEO CLIP)
COSTELLO: That's just heartbreaking. Another NFL hall-of-famer, retired lineman were also involved in the UCLA testing and they, too, have been diagnosed with signs of CTE. UCLA has tested nine players with signs of concussions, eight results are in. All of them positive for signs of CTE.
Jamal Anderson joins me now. You know, I love Tony Dorsett during his playing days. It just hurt me to see that.
JAMAL ANDERSON, FORMER RUNNING BACK, ATLANTA FALCONS: No question about it, Carol. You couldn't have played my position and made it to the NFL and not adored Tony Dorsett, the way he played the game, his size, his attitude, his toughness, his speed. He was a fantastic player for the Dallas Cowboys, one of the greatest cowboys of all time.
That's saying a lot, one of the most popular franchises in the NFL. It's heartbreaking. I played that position, Carol. You know, when I hear things like that, I have daughters. I have children and it breaks your heart.
