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tv   Closing Bell  CNBC  November 6, 2017 3:00pm-5:00pm EST

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competitive offering that they would be expanding globally. >> ve to -- >> all sorts of -- >> we have to wrap it up, brian, i'm so sorry to interrupt. we got 14 seconds left here. thank you so much, brian wieser. >> fascinating deal. thanks for watching "power lunch. >> "closing bell" starts now i bet i know what they're going to talk about during the show, too. our coverage of this mega media deal does continue welcome to "the closing bell," everybody, i'm kelly evans at the new york stock exkachange. >> i'm bill griffeth if you're just joining us, breaking news from our colleague and friend david faber this afternoon, disney h holding talks to buy most of 21st century fox. we have the details and whether any deal like that would be able to go through. that's coming up momentarily here meantime, two frenemies working together, intel and amd are teaming up to take on the high-flying stock of nvidia. we'll tell you what the partnership could look like. and oil prices have surged to a two-year high today amid
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u uncertainty of a number of saudi princes and ministers were arrested over the weekend on corruption charges and of course as you probably have heard by now, that includes prince al waleed bin talal we'll look at what this means for u.s. companies looking to do business in saudi arabia we haven't even gotten to the qualcomm/broadcom story but there's other things to get to now. we have the breaking news now that disney has held talks to buy most of 21st century fox. david faber back again anything new on this is. >> we can advance the story a little bit and refresh it for people, guys 21st century fox, as bill just said, has been holding talks to sell most of the company to walt disney leaving behind a media company that would be tightly focused on news and sports according to people familiar with the situation these talks have taken place over the last few weeks and given their complexity, it continues to be seen as a tough deal to get done by those who've been working on it the two sides are not currently talking at this very moment, but
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given the on again/off again nature of the talks, they certainly could be revisited particularly given what we're seeing as the markets, very favorable response to the deal when we broke the news an hour and a half ago stems from a growing belief amongst its senior management that scale in media is of immediate importance and that there is not a path to gain that scale in entertainment through acquisition. company said to believe a more tightly focused group of properties around news and sports could compete more effectively if the current marketplace. it also made the evidence of its dwindling hopes for buying in the 61% of b sky b that it doesn't already own, remember that deal has been enduring a significant amount of scrutiny from uk regulators now the media landscape has changed considerably, of course, in recent years. giants such as facebook, google, amazon, netflix, they're all changing the way people consume media, dominating the digital
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distribution, digital video content. being able to compete in that changing landscape many people believe requires scale that disney does have, but 21st century fox, well, perhaps it doesn't have for disney, the opportunity to take control of another movie studio and significant tv production assets as it readies a direct to consumer entertainment streaming offering is attractive. as is fox's significant exposure to international markets such as the u.s., germany and italy. it's got that -- of course, its ownership of b sky b, 39%. disney recently announced, by the way, it will pull all of its movies from the netflix platform going to establish to direct to consumer offerings one for sports but the other one includes key franchises such as "star washes cwars." and marvel disney would not purchase all of fox according to people with knowledge of the talks it would not buy the fox broadcast network, not buy fox sports programming assets in the belief combining them with espn would be seen as anti-competitive from an antitrust standpoint would not buy the fox news channel or the business channel. it also wouldn't buy fox's local
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broadcasting affiliates, according to people familiar with the negotiations. in fact, those assets left behind contribute a larger portion of the company's cash flow than the assets that would be sold. now in addition to the movie studio, disney would get star and sky. disney would add entertainment networks such as fox, thnatgeo the price that has been discussed, i haven't been able to figure that out yet officials at both companies decline to comment. >> who calle ed who,? any idea >> i don't know enough to say publicly i have my suspicions. >> it would speak to who it's more attractive to for this case >> regardless of whether they get to the fruition of this potential deal and resume the talks is is that fox is looking at the world differently now that, remember, a few years ago they tried to buy time warner, tried to get that scale. they've been unable to time warner is not going to at&t so we expect still
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and so when they look at the world, they seem to be saying, hey, you know what, a different approach may be needed i think that is certainly important. that would certainly auger for them at least having begun this idea ofd oddest thing to me at first was the crown jewel of the murdoch empire could potentially shrink i wubd wonder what it sees as the next move. the shares have undervalued. not trading at all-time highs. for it to sell and lock in that valuation suggests what? why would they intentionally shrink even if they say it could create a more nimble leftover -- >> they see the competition only going one way and see their lack of scale as being debilitating. i think that would be the answer to a certain extent. and so just because you're shrinking doesn't mean you're ever going to grow again then we have this thing called shrink to grow, which apparently is what they would sort of try to be pursuing slimming themselves down looking for similar like a cbs which by the way, leslie moonves will tell you is on every ott
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platform and the like. >> cbs was -- made the point during their latest earnings that they benefit from cord cutting. why -- i guess what i'm trying to say, do you think the slimdown is the ultimate goal, it is to do something like that, not just to set itself up for different kinds of acquisitions? >> i think you're raising an interesting point, i don't have the answer okay, let's assume this happens, you do sell these assets and take in a good amount of cash, what are you going to do with it >> right. >> do you expand in this chosen area of news and sports? my sense is based on the conversations i've had, yeah, that's a real possibility. by the way, the sky deal was really important for them. but they're willing to let sky go here, the 39% they already own and of course the prospect for buying the other 61% i think that sends a significant message as well. >> does a murdoch come with this deal as well >> no. i don't think so i know some people have wondered about succession bob iger, of course, extended his contract a number of times set to step down as the longtime chairman and ceo of disney in july of '19. my understanding is this is not
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about succession, not about james murdoch stepping into that role. >> david, stay with us let's bring larry into the conversation he's associate portfolio manager of the multimedia trust. he owns disney and 21st century fox, larry what do you think is going on here >> i love the deal i think it's strategically -- >> i'm sure you do look at the prices >> yeah, financially it makes a lot of sense so let's look at it on four plains one is the intellectual property fox has got its paws on avatar disney opened an avatar theme park avatar is probably the one youth-friendly ip that disney now doesn't own. boy, what a stable that would be next to disney, pixar and marvel so sometimes when disney's bought ip like pixar, it's paid for itself in one or two films the profits from "avatar" could be awfully nice for the mouse house. second thing, the television production assets, one of the
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things that's going up dramatically is serialized content. thanks to netflix and hulu and the others and fox has got a huge tv production business that among other things can make serialized content. those assets are only going to be more valuable in the future so that looks very good. third thing is, disney historically likes to buy things on the cheap craig moffitt was on an hour ago. he suggested that cable networks have raised prices for more than the rate of inflation for maybe 30 years i think he's probably correct in that but now because of cord cutting, which jim cramer has highlighted with espn, those cable network assets are very, very undervalued. i think somewhere the right price for cable assets is more or less in the middle and disney is buying these cable assets cheaply and fox's cable assets have a singularly high
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international content. they're very popular abroad. this is something that disney's been underrepresented in and then fourth, the rest of the movie studio is very, very complementary to disney. disney, now most people would say, is the most successful movie studio and the reason is they're making less movies they're only make bing franchise films for pixar, marvel and the disney brand fox is making tradition movies that will lease "murder on the orient express" this week so it's a nice fit. disney gets into a business that it walked away from as kind of a bonus. so four really good reasons for disney to buy these assets i think they could probably pay for the cash flows in the neighborhood of 12 times and the shareholders of disney one of which is us, i think would be very, very happy because these assets are very, very hard to replicate and you get tremendous library value with these and library value only goes up over time
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so great deal for all concerned. somebody's really thinking >> at 12 times, what would that be dollar wise, what are we talking about? the stock is up 8.25% right now. >> oh, i think the stock's probably 25%, 30% undervalued if this deal goes through i think that's the order of magnitude of the mispricing of the fox asset here >> is larry, i wanted to ask you quickly about netflix as you now think their business model is under severe threat from a deal like this? >> yeah, i like that the pacific ocean and the battle of midway, i think another carrier just joined the battle. if disney gets ahold of the fox entertainment assets, they're going off. they're going into the disney streaming service. and i don't understand why people are paying the multiple for netflix which is in now the wrong end of the battle of producing content in that it doesn't own studio assets and has to pay and the prices for
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producing these assets is only going up so i think netflix, there's a lot of problems on the horizon that aren't reflected in the market price >> let's bring steve grasso from stuart frankel into this conversation as well do you like this category, do you like these stocks? what are you doing here? >> i think the previous guest hit it on the head when you're looking at the king of content, it being disney, trying to grow that content and being the ultimate ruler of content, i think that it definitely is a headwind for netflix. we've all talked about that. but we're also talk bing about something that could be a year or two off so things are not being removed from netflix tomorrow. so i think it's premature to sell netflix off this potential deal we don't know. david's been following this very closely. but we don't know any particulars. we don't know if it's going to happen we don't know anything about this this is definitely a content play where you're getting "x men," getting "the avengers. this is a comic book build-out.
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>> david, share price reaction of disney -- >> listen, larry's been doing this for a long time i was very interested to hear him. he's embracing a deal like this as are many other shareholders there's a willingness on the part of fox shareholders, okay, these guys are thinking of doing things we might not have expected, they're somewhat bold and unexpected certainly in their approach and you heard larry outline the positives for disney all of which are there. one thing i'd add is hulu. another platform, ott platform, that they would take a larger control stake of given they own it with us, that being comcast, fox, and of course disney. so there are a lot of potential attributes here. these are always very difficult deals to do. and to larry's point, 12 times, but we don't know exactly what the cash flows are they don't break that out. fox, we can guess, but fox news channel is part of the cable network division, the largest single contributor, right, larry, but we don't know exactly what natgeo, we don't know fx.
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so it's harder to know the exact cash flow number i was interested to hear 12 multiple, though, larry, being a fair one >> yeah, i think -- you know, i look at trailing, david, because if i could predict the future, i'd be doing something else. and it will take a couple years, year and ahalf, probably, to get this done. so we're not going to really know what the numbers are, but disney will know what they are if they're going to buy them and i think you've got very, very low interest rates, so if you say 12 times, that's an 8% cost of capital. disney is borrowing money somewhere around 2%. so you can drive a truck through the return it's very, very accretive to the shareholders the minute they get ahold of these assets, the free cash flow explodes it's a wonderful, wonderful deal for all concerned. >> larry, you laid out a number of reasons why this makes sense for disney why does it make sense for fox >> i think they're in a box. they don't have -- they don't
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have the scale and they're involved in content distribution the british government is putting through a tremendously difficult time on the bskyb which if they could get ahold of it would enhance their cash flow remember, they own 39% of it but they can't really touch a dime of the cash flow so the money that rupert can get control of is much less than the combined market price of the stock. the market in valuing fox is valuing the bskyb asset. i think the handwriting is on the wall for these people. the cost of playing in this game is only going up the cost of producing content's only going up. and you're in a situation where you can get a much, much better price than the market is willing to give you, so why not take it? particularly since next year or so might be very difficult for them especially as this merger goes
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on infinitum. >> david, stock up 9%-plus as we see there. what's our parent thinking about this what's cbs thinking, what's time warner -- what's the competition as you see this. >> the phone's been ringing. they're wufocused on this close. somewhat unexpected fox would be willing to consider doing this, what it means for entertainment assets, consolidation of those and the scale we've been talking about. they're all thinking art this new world that's here, that we've been waiting for it for years. cord cutting is real these new distribution platforms are in ascendance, more and more of them all the time everybody is trying to understand exactly what their role is going to be in this new ecosystem and the power of programming and how they distribute it. that's what they're thinking about. >> yeah. >> listen, this kind of react n reactireaction probably when you hear a guy like larry say he thinks it's a great deal, you know, they're not talking at this very moment,
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but my guess is they might pick the phone up again tomorrow. >> steve, if that's true, if disney is shopping around for deals to bulk up, is there anybody else you think investors are going to pounce on thinking -- >> you saw the whole space, kelly, not just to point out one of them. every player in the media space ran off of this headline that basically we broke so i would think that anything media related, anything what content play, that's what they're going after, it is kind of odd to me that when we see at&t and time warner, that we're moving more lateral versus just the -- going after a delivery system mechanism versus going after a content play so it's shocking to me that they're going after content still. especially a behemoth like disney that would make any other play, any other media play in play so to speak >> so to speak all right, gentlemen, thank you. david, maybe we'll be seeing you again. >> sure. >> soon. >> busy day, hadn't he >> yes, he has >> larry, thanks
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appreciate your insight. >> thanks a lot, bill. >> steve, thanks see you later. okay 44 minutes left in the trading session. the dow up 32 points that puts us in record territory. nasdaq's higher. >> that was helped by disney, by the way. the 2% pop added 15 points >> and the s&p and the russell are also higher right now. coming up, much more in-depth analysis of the disney talks with fox including what a potential deal could mean for disney's succeacuccession plans. meanwhile, saudi arabia's surprise arrest of more than a dozen princes and officials sending shockwaves across the financial markets. as investors scramble to find out what is going on in the oil-rich nation. ahead, a pair of experts to help make sense of the news and what it could mean for your money. we want to hear from you >> boy do we want to hear from you. >> twitter, facebook, sent us an e-mail with your thought on this deal that, too. you're watching cnbc, first in business worldwide
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shares of teva jumping nearly 10% on israeli media reports that billionaire businessman could be looking to acquire a $3 billion stake in the pharma company has notable investments across real estate, chemicals, need me and technology no comment from the parties involved but teva is popping on that report. >> teva. >> teva. thank you. >> did i say that twice? >> that's okay deals, deals, deals. that's what's going on. meanwhile, saudi arabia's king salman and muhammad bin salman launching this anti-corruption committee resulted in the arrest of billionaire investor prince al waleed bin talal of kingdom
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holdings and a dozen others over the weekend. >> you heard about this. it could cause ripple effects into u.s. businesses joining us now for more on this, dennis ross, former special assistant to president obama currently at the washington institute. and fred kemp from the atlantic council who joins us live from riyadh thank you, both. dennis, just to begin with you, q what do can you think the implications are for u.s. businesses >> there will be a concern about whether or not there's stability in the kingdom or not and raise questions about is this a good time to be investing my own sense is what we're seeing is a dramatic effort to consolidate the power of the crown prince so he can actually carry out the reforms that he's serious about producing. he wants to transform the kingdom. i was there last year. one of the leading ministers said to me, welcome to our revolution disguised as economic reform i think in the end the economic reform will actually be quite good for investors i also think transforming the kingdom is something that's necessary. >> fred, understandably, since you're in riyadh, we have a long
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audio delay, so we'll be patient with this. i'm curious, how is this all playing out in saudi arabia? what is the mood in riyadh this evening? >> yeah, i'll get to market forces in a moment, but let's first talk about what's going on in history there's really a sense that since crown prince bin salman came to power in june, a country that's been moving very slowly has been on overdrive. there is geopolitical impact, a geoeconomic impact, and a georeligious impact. don't forget, this is the place of mecca, the center of global islam. and this is a leadership that's trying to move toward modernity and moderation so what you've got now is a situation where over the short term you're going to have a lot of investor nervousness. you have the -- you have oil going up today but if this 32-year-old reformer
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stays in power, can actually change the kingdom, i agree with dennis, he could be in power for 30, 40 years and this could be an amazing long-term play >> dennis, i understand that everybody's talking about him as a reformer, they are doing some things like letting women drive and maybe attending sporting events but is that just a disguise? i mean, there's one uk analyst, market watcher, who's saying there are some predicting a more repressive and theocratic ascendency as a possibility. his behavior certainly not in line with the country moving toward democratic pluralism. >> well, in a sense, what he's trying too do is carry out a revolution from the top, not from the bottom but he also recognizes you got to transform the kingdom if it's going to become more modern also recognizes 70% of the population is under the age of 30 bear in mind some of what he's doing right now in terms of the anti-corruption campaign is both to appeal to that larger population that feels they've been left out and prove he's
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showing a dynamic change being able to take on, this type of change, probably had to be engineered from the top. we shouldn't look at it as something that's going to be a democracy any time in the near future, that's not what they're trying to do what they are trying to do is modernize the country so it's stable over time i think what fred and i are saying, if he succeeds, this is important. there's been no successf fuful modern development in the arab world. you see groups like isis appear, there hasn't been a successful model. this potentially could be one. >> fred, before we go, i'm almost out of time, just a few seconds left what happens to the princes and others who were arrested over the weekend like prince al waleed do they go into exile? what happens to them >> well, who knows this is an opaque place, but i talked to a saudi official today and he was saying, look, there
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are two ways to go forward with modern islam one of them is reform and modernization, which has not actually had the momentum. the other way is radicalization in the digital world of islam right now has been radicalization and isis. so what you have now is a real chance to go in another direction. he now has shown that he wants to consolidate power who knows, maybe he saw the forces coming against him and he took care of them preemptively we don't know that but i don't think we know whether they'll be arrested, whether they'll be tried, but my guess is he means business and he wants to send a message across the kingdom so i think we will have -- we will have some prosecutions >> wow dennis ross, fred kempe, thank you. more coming on that story. i know and we have a little bit more than 30 minutes to go until the close. the dow is up 28 points. disney about half of that right now. the s&p is up five the nasdaq is up 23. having a nice session once again. russell is up four. coming up, we have much more
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on today's blockbuster news. the talks between 21st century fox and disney we have analyst reaction about what a merger coulme f td anorhe media landscape. coming up. certain world? pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.
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all right. quick check on other movers. there have been plenty of them today. shares of anthem higher on the heels of some management changes there. the company's ceo joseph swedish will be stepping down as of november 20th. we'll continue those executive chairmen through may of next
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year as a senior adviser through may of 2020. that stock today up 1.9% semiconductor stocks marvell tech and cavium higher on reports they're in advanced talks about a merger sources say a deal could be announced in the next few weeks and if combined, it would create a chip maker worth about $14 billion. both stocks higher up more than 9% on marvell and cavium is up 11.37% who is not talking deals >> that's another major chip deal we're following. time for a cnbc news update, let's get over to sue herera. >> hello, kelly, hello, bill here's what's happening at this hour, everyone, assistance from good samaritans helped bring sunday's mass shooting at a texas church to an end the suspect, devin patrick kelley was chased from the scene of the shooting by two men the driver who gave chase says he was just doing what he thought was right. >> i did what i thought i needed to do, which was -- they said there was a shooting
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i pursued and i just did what i thought was the right thing. argentine president mcrae placing fires at the new york city bike path where eight people including five from his country died in last week's rampage by a man driving a truck. he was accompanied by new york city mayor bill de blasio. former new york congressman anthony weiner reporting to prison today in massachusetts to begin a 21-month sentence for sexting with a 15-year-old girl. the facility is 40 miles west of boston and has more than 1,000 inma inmates. you are up to date that's the news update at this hour kel kelly, bill, back downtown to you. >> sue, thank you, see you in it a bit. shares of disney and 21st century fox rallying today sources telling david faber disney held talks to buy most of 21st century fox what would a deal like this mean for media companies? let's bring in j.j. from td ameritrade on set with us here
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and tuna amobi what do you think the significance of a deal like this would be >> kelly, i think it's fascinating to be talking about in a deal like this, it really illustrates how much of a change that the investor sentiment has shifted in the media landscape and the redefinition of who the competitors are, not just netflix and amazon and a traditional media company, but got the major technology companies now jumping into this race so the idea that disney is even going to contemplate a deal like this, i think it's fascinating i think you see the way the shares are reacting. there seems to be palpable excitement that the sector is really need of a major catalyst. given the pressures in traditional businesses, whether subscriptions or advertising impression so overall i think this deal could be revolutionary and redefine the way -- another wave of content, you know, deals. >> j.j., what have your customers been doing with this
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sector >> well, so first of all, disney is the 13th most held stock at td ameritrade on our imx which we're reporting today. one of the things i'll say, if you look at disney's revenues, 26% of revenues came from espn, so -- last quarter compare this to 18 months ago, it was 34% of the revenues and you guys know, you do every day, content is king they are buying a lot of great content here if this deal were to go through. i think at the end of the day, that's what actually matters you know, another day investors are happy. >> are they trying to look at life beyond espn they're probably sick of being dogged by every ratings concern about espn. >> absolutely. if you think about, like, national geographic channel is in there, how well does that play into the disney umbrella? you know, here's something -- think art the movies they make, et cetera. grandparents, parents and kids could all watch them together. same type of thing so, you know, maybe some of the
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fx channels aren't exactly to that model overall, they have things people can watch together, fits so nicely into the mantra >> tuna, according to david, these talks sort of have ended for now. they're just not talking could this restart them again and what do you think other companies are thinking about this now in that category? >> i really think, bill, they could reekindle, you know, a ne wave of discussions across the land landscape. i think really when disney sneezes, you know, you got to, you know, the whole landscape has got to take notice i think the fact they are contemplating such a major deal could provide a catalyst it's no coincidence that media shares have really lagged, you know, this year, on those concerns so i think investors are kind of scratching their heads and wondering what's going to be the next catalyst. right? so m&a -- you know, in terms of content, you know, m&a, i think we've seen discovery now helping
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to, you know, kind of continue that conversation. i think disney, obviously, they've got this great track record of acquisitions >> yeah. >> any company can pull this off, i think investors really will be betting on this company. >> tuna, since you're calling this a catalyst, and a transformative deal, i mean, what kinds of further actions might it unlock across the media space? give us a sense of what you're imagining this could change. >> you know, so i think we are talking about a major horizontal merger here. right? which is very different in terms of dynamics from a vertical acquisition such as, you know, time warner, at&t. when you've got two major players here on a content, you know, space, coming together, talking, you know, i think, you know, even more so than discovery and scrips, right, you're talking about the pree t preeminent player, you could see really far-fetched deals that
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were previously inconceivable start to happen. got any number of other companies out there that will be looking at this very closely whereas the mantra has been acquisitions in the past, now you're going to be probably looking at more sizable, you know, whole acquisitions that could really be, you know, on a level we really have not witnessed for a long time. >> all right we have to go at this point. tight on time with all that's going on today j.j., tuna, thank you both for joining us appreciate it very much. 24 minutes left in the trading session here we got records going here. i mean, we've had eight weeks of gains for the dow. six weeks of gains for the nasdaq both will be in record territory. same thing for the s&p as they move higher today. >> here we go again. up next, rival chip makers intel and amd are putting aside their differences and teaming up to take on competitor nvidia we've got the details of these tech frenemies who've found love in a hopeless play ♪ found love in a hopeless place ♪
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the dow, the s&p and the nasdaq in record terror troitorh
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gains today. the russell closed but no cigar. shares of intel and a mamd, possibly merger. jon fortt will break that down. former netflix executive mitch lowe tells us whether a disney/21st ntceury fox deal could hurt the streaming giant whose shares have been struggling since we broke that news stay with us
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advanced micro devices is teaming up with intel to create a new product to rival nvidia. look at amd shares up measuore n 7% jon fortt has the details. >> kelly, this is a small segment of the pc market you get the feeling it's actually about a lot more than that it is. intel and amd getting together to develop a thin and light h h high-performance laptop chip that has intel processors and amd graphics chips stuck together it caught a number of people in the tech world by surprise because a decade ago, intel and amd were each other's primary rivals back then pcs and enterprise server sales were both primary drivers for intel. amd was the primary threat to both what does this have to do with nvid nvidia well, now amd is trying to gain share in mainstream pc chips an area that intel dominates but doesn't really care that much
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about. on earnings calls, intel highlights its growth in non-pc businesses, what it calls data-centric businesses like cloud data centers, artificial intelligence those are now 45% of intel revenue, up from 30% five years ago. in that area, intel's main focus is fighting nvidia, among others so in the meantime, intel would like to maintain its presence in the sliver of the pc market it does find strategically important. high-end powerful pcs. and nvidia and amd are the two major suppliers of graphics chips for that segment so intel's going, of course, with amd the term's length, revenue associated with this relationship between intel and amd, not yet clear, but potentially significant, especially for amd, as a smaller one here >> and you can see the share price reaction intel not doing too shabby lately, either. >> yeah, lately it's been -- stealth rally here wonder if that has something to do with it here. >> brian, i was talking to him in san francisco a couple weeks ago about nvidia he doesn't really like the fact that jim cramer named his dog
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nvid nvidia couldn't even get one and name it intel i said, well maybe a cat, because cats live longer so maybe he'll get a cat named intel. but the point he's been making is that intel's very much in this game of machine learning, artificial intelligence as well. after that last earnings report, investors seem to perhaps get that hint that he was trying to give, anyway >> be tough to call your animal amd. it would never come. i just think thank you, jon see you later. 15 minutes to go until the close. dow hanging on to a 26-point gain here. s&p up four. russell up four. the nasdaq up 24. up next former netflix executive mitch lowe will tell us how disney's talks to acquire most of 21st century fox could affect h fmeisorr company and the rest of the streaming industry after this. le options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service
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breaking news this afternoon. disney held talks to buy most tof 21st century fox that from david faber. julia boorstin, it's her beat as well what have you been hearing and how complementary do you think the assets would be in this case? >> well, it's interesting, bill, when you think about what disney ceo bob iger has talked about, how he's really interested in taking his content direct to
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consume and the value of disney content, you have to look at what value fox could provide for that disney con tempt antent ant what the big fox assets are. of course there's fx and national geographic. national geographic content might be complementary to some of the disney nature movies that have been out there. they could fold that into the new disney direct to consumer service. you is have to look at the movi studio "avatar. disney is already partnering with "avatar" for a land at disney world, pandora, land at disney world built to look like the "avatar" movie they have some partnerships there and of course there ar the superheroes. bob iger, of course, bought marvel for disney, but some of those marvel characters including the x men and dead pool are licensed to fox that means that they're the ones who have been making those movies logan was one of the biggest movies that fox has had in the past year. and that's based on the wolverine character.
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so by buying those assets from pox fox, disney would really own all of those very valuable marvel characters, giving them even more power in that superhero universe guys >> julia, in that case, you make it sound like this deal really is per pefect for disney in ters of what it would be buying a lot of people are questioning -- >> i wouldn't say perfect. yeah but kelly, i think it's not necessarily perfect. here's the thing disney has really been focused on big brands, family-friendly brands and fox is a much more eclectic company. and in fact, if you look at the fact that fox made "dead pool," in its w this was a very successful r-rated superhero movie. disney was happy not to have that movie i interviewed bob iger after the success of "dead pool" and asked him would you want to be making r-rated comedies, versions of your superhero movies? he said, no, we'll leave that to them it would be very much o departure from their focus on
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big family-friendly brands and really moving a different direction. i wouldn't say it's naturally a fit. it would be interesting, and you could see how some of these assets would work well, but in other ways, it would be a departu departure. you know, fx, it's another cable channel. disney's been trying to, you know, move away from focus on those cable channels as media networks have struggled. yeah, sure, they could dpofocusn the fx direct to consumer product but it's not necessarily obvious. it could be interesting but i don't think it's a sure thing. >> all right julia, thank you julia boorstin joining us on that >> and what are the implications for the media space? and what about streaming disrupters like netflix? joining us now on the phone is mitch lowe, he's netflix's co-founder, he's currently ceo of moviepass mitch, what do you think >> wow you know, this is serious. this is the battle for content has just ratcheted up another round. this feels to me like the referee just blew the bell on
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the opening round of a battle between probably the two best content creators and acquirerers, netflix and disney. >> well, initially shares of netflix fell they've come back a bit. what do you think the impact -- i guess some of it is the increased competition that this would pose in that category, but, and maybe the cost fer netflix in programming goes up as they try to compete what do you think the impact is on your former company >> well, you know, the cost of content is continuing to go up you know, this is kind of a renaissance for the content creators but you can never count netflix out. their understanding of what consumers want and their ability to connect with them is second to none. so, you know, i can imagine the first reaction, but the reality is these are two of the best
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content creators and marketers and acquirers of content >> mitch, once upon a time, people would talk about disney buying netflix you know, they're pretty serious now it sounds like about beefing up against this competitor and is it just about these 21st century fox assets or no, do you think? >> yeah. i -- you know, i was a little bit skeptical about disney's announcement to go it alone. i thought it was a little bit of an incomplete offering this makes it more complete, and it definitely is a much more serious competitor you know, consumers are kind of moving away from linear tv and this, i think, is just one more reason why over time, people, more and more people will move to streaming. >> we just showed reid hastings. what do you think he thinks about this he's a pretty savvy guy. very, very competitive what do you think he makes of this possible deal and how would he respond
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>> this just -- he's not afraid of this kind of competition. it just makes him better and smarter and tougher. and, you know, you just showed ted serandos, one of the most knowledgeable people in content. they're never going to shy away from competition like this >> does he have to go out, make an acquisition of his own beyond what he's already done to create content for netflix? >> you know, i wouldn't be surprised if there's some further acquisitions you know, there are some great content creators out there small ones but so far, netflix has been able to do a great job identifying individual pieces of content, either resurrecting them or producing them so i'm not sure they're going to be as motivated as maybe disney might still be >> all right mitch, thank you appreciate it. >> thank you
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>> mitch lowe, now with moviepass. co-founder of netflix. we'll come back with the closing countdown. we got records all around. didn't take much this is one of those days where it's much more interesting on an individual stock basis >> yes it still will be maybe a history -- historic one, when we come right back. you always pay
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about 2 1/2 minutes left here with the dow up 14 -- what an interesting day so many movements. so many deals going on what is going on with the deals here we can talk more about what this means in the big picture, but let's just give you a rundown what happened. first the dow. any gain is another record high. and right now, that's what we have right now the big gainer for the dow today, inside the 30 components, disney, you know what's going on there. verizon was the big decliner down about 5% on today now let's do this in chronological order. got up this morning, we found out that the t-mobile/prisprint deal was dead. sprint went lower as a result. there it goes. so there's one then we heard as we had expected that broadcom had made a $70 offer for qualcomm $103 billion up goes qualcomm as it had on friday when we first got word of that now late today, we hear from david faber that disney had been
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in talks with fox, 21st century fox, to buy most of their assets up goes the stock. all kinds of deals going on here one more thing to tell you about, wti oil going sharply higher it's more than a two-year high right now. i got courtney reagan here with me. >> yeah, that's right. >> with the situation in saudi arabia this is getting serious now. >> it is. >> concerns about oil supply, the biggest oil producer up another 3%. we're at $57 and brent is going much higher as well. >> that's right, 3.1% for crude oil. that led the energy sector higher that was a leading sector. >> chevron was the big gaine for the dow for a while. >> which we didn't get a chance to talk about but a of all the other deals you were talking about. >> exactly. >> even further in that chip space, you had jon fortt on talking about the amt/intel potential partnership there. also marvell technologies and cavium shooting higher both of those stocks as well as the semiconductor index, hit an intraday high today. so many deals even within the chip space we didn't get to today. >> what is going on? >> it's quite a day. it's quite a monday here for the
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new york stock exkang. >> i have a theory we'll get to that later. a lot of earnings coming your way as well here as we head out with records for the dow, the s&p and the nasdaq stay tuned for that and all these earnings and more on what the disney/21st century fox talks might be all about coming up on the second hour of "the closing bell" with kelly evans and company. see you tomorrow, kell thank you, bill. welcome to "the closing bell," everybody, i'm kelly evans it's another record day on wall street here's how we're finishing the dow up ten points on the bell again, that's a record close 23,549 s&p 500 up three points to 2,591, a new high. the nasdaq a strong performer today. 6,786. new high water mark for the nasdaq russell 2000, gaining three points, closing below 1,500 and
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still below their all-time high of 1,512 we have a slew of earnings after the bell results coming our way from priceline, trip adviser, truecar, avis, weight watchers, amc, etsy, red robin they will all release quarterly results. we will bring them to you as soon as they do cross. now, joining me, michael santoli, cnbc senior markets commentator. nancy tangler next to him from heartland financial. john from huntington bank joins us, too. appreciate you guys all being with us. let's take a look at the markets with the biggest dow winner being disney today the biggest loser being verizon. all of this on deal news we're about to get to. the big story of the day, our david faber sitting right over there reporting that disney held talks to buy most of 21st century fox. 21st century fox closing higher nearly 10%, david. interestingly, it started higher only 4% to 5% on your report it's doubled that throughout the afternoon. i wonder if that's as people say even though you said the talks are not now active, the share
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price reaction in disney, and so much of the supportive commentary from shareholders since may indicate it still could be attractive for disney. >> i think, listen, both sides are going to look closely at today's market action and certainly may respond to it. it is a difficult deal to get done without a doubt, as we indicated, of course, it's mono all the assets of fox. it is many of those assets, though, frankly the key cash flow producing assets would stay at fox under this proposed transaction. again, as kelly said and as we reported, they had been talking -- i think they started talking, sources would indicate, let's call it, in early october, early second week in october continue those talks but havelys of this moment when you sigh thee that reactio the stock market, it certainly might get people to say, well, maybe it's worth revisiting. and that certainly was raised as a possibility to me by the people who are close to the situation. they did not seem to indicate that this was dead in and of
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itself, simply that it was inactive for the moment. when i was talking to them at this very moment in terms of trying to learn more about it. again, just to go over the assets that would not be sold are fox news, fox business news, the fox broadcast network, the fox affiliates and fox sports. there you have it, that's great. i love when we do that on the other side on that left side of your screen, that's all the stuff that would be sold to disney of course, key question is structure, price i don't have that at this point. but it certainly would be complex. and also it sheds a little light on the likelihood of another deal happening, that namely the continued attempts by fox to buy the 61% of bskyb it doesn't already own. british regulators have have been giving that a very hard time and i am told that their willingness to consider this deal is predicated in part on their lack of confidence in getting the other deal done. >> and on getting the british deal done. >> the bskyb deal done.
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>> mike, we haven't had a chance to hear there you yet. >> look, i think so many angles on this, one of them marketwide is that media has been part of what you would consider the disrupted basket right? you have the a large minority of stocks are down on the year including a lot of media this sort of showed the market that maybe there's a sense of urgency in trying to scale up and play a better kind of defense and basically have options in this new world. that's why you saw across the board all these content assets rallying pretty hard one small element of it, as if i read that graphics wall correctly, that fox's stake in hulu would be part of this disney also an owner of, co-owner of hulu so basically a lot of the sort of new streaming world being bundled in, you have options i think is the idea here >> and nancy, we're watching the share reaction of netflix today. looks like it did manage to close just a touch higher. to quote mitch lowe, co-founder, who spoke with us a few moments ago, he said for netflix this makes everything for challenging, more expensexpensi,
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higher cost paid for content just the beginning of this to unfold what are the implications for you? >> yeah. i think disney has to do something, i think everyone agrees about that. even this baby boomer has cut the cord i don't like it. i don't like the cost. i don't like the inconvenience i think netflix still has that they still have the millennial base and the subscribe base. so i think, yeah, it's harder, but they'll react with the right response and they'll make a similar acquisition. i suspect. >> i wonder what that would look like there's been another big deal, though, we want to -- especially, david with you here -- mention. shares of sprint were plunging today after merger talks with t-mobile were called off the company saying they were unable to find mutually agreeable terms. there's sprint down 11.5%. t-mobile down 6% one of worst performers. broadcom officially pitching its deal to buy qualcomm for $103 billion.
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broadcom shares up fearnearly 1% qualcomm thad a big move, about 1% higher. let's start with sprint and t-mobile not entirely unrelated to the content, you know, media thing that we're meanwhile talking about. what options, strategic options, does this leave for sprint and t-mobile if it needs them now? >> t-mobile are not as concerned, done such a good job in terms of being competitive in the u.s. market. sprint, i think it is more of a concern. as i reported this morning, softbank as we know, as we previously reported, had made overtures to try acquire charter communications they hadn't gotten that far with charter's management led by tom rutledge but they did make inroads with liberty broadband, liberty media, liberty broadband, which has a significant stake and of course is overseen by john malone and ceo greg mcfay. that is a possibility of a deal happening, at least talks that could come to fruition again softbank certainly would be willing to reengage. i reported if, in fact, they felt as though management --
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management at charter was willing to do so that remains very much unclear though they do have a potential partner in talking as theyliber. they frankly offered a very big number a complex transaction. day talked about it with liberty. not really getting to the point of being able to really hash it out with charter, itself it was a big number. about 540 bucks in stock and cash it would have had liberty broadband rolling in their stran stake. it gets complicated. not worth getting into now, except answer to your question, you can't rule out masa san's continued desire to expand in the u.s. he didn't want to give up control of sprint in part because he has a strong sense that the internet of things, the communications will be an important component of his overall global strategy for the next 300 years don't forget, it's 300 years, kelly. >> which is impressive maybe he thinks he'll be alive to see it. i know we have to let you go david, thank you so much.
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>> sure thing. >> good stuff all day. david faber. let's briefly get to results out now. trip adviser and priceline reporting. seema mody. >> trip adviserfalling in afte hours trades 36 cents adjusted. it is a miss on revenue. $439 million versus the wall street estimates of $454 million. now total revenue of $439 million, that's an increase of $18 million or 4% year over year definitely a miss when it comes to revenue growth. trip adviser you can see now down about 7%. the conference call is tomorrow morning. we will look for additional comments on earnings growth, and a separate story that has put trip adviser in hot water. that involves sensoring or deleting reviews it deemed not family friendly. let's pivot, though, the discussion to priceline. the world's largest travel operator reporting earnings that beat the street on its bottom line $35.22 adjusted on revenue of
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$4.43 billion. but here's the story revenue guidance earnings guidance. excuse me. is weak. weak q4 earnings guidance. that seems to be hurting the stock here, now down more than 6% here in afterhours trade. additionally, priceline sees room nights booked up between 8% and 3% the analyst estimate was for 15%. although i will point out gross bookings for q3 did beat street expectations still the stock is down about 7% i will also point out this follows a separately a disappointing report from expedia about one week back. back to you, kelly. >> tauhank you, seema, that's exactly what i was looking for to be reminded, a double-digit percent decline. now you have priceline and trip adviser. john, i mean, does this have air bnb written all over it or what? >> potentially maybe it has some hurricanes written all over it. also maybe it has some tougher comps for the fourth quarter for priceline. that was something on our mind
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at our shop moving into this earnings report. so it might have a different -- a few different things built into it. >> nancy, how would you approach this >> i think we need to see some consolidation in this space. i mean, you got a huge differential in terms of size and pricing power. trip adviser pales in compareson to priceline i would say that's really where we are is at it's more competitive. and there's a lack of branding that people are just not seeing where to go. they just shop price. >> fair point? trip adviser down 8.5% after hours. 6.5% decline for priceline. breaking news on salesforce to get to, though. let's get over to joshlipton what is happening there, josh? >> well, kelly, some big news here, actually, in the cloud wars salesforce just now announcing its new partnership with google cloud. some of the highlights there, one, salesforce, kelly, is going to now start using google cloud for infrastructure expansion of its core services. so that's data storage, computing needs.
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also google is going to offer g-suite licensing at no costs for up to one year for salesforce customers new 2g suites. for example, perhaps over time see more companies using g-mail at work. bottom line, win for diane green busy building the partnerships in the cloud also saw the recent partnership she announced with cisco of course, google doesn't break out its cloud revenue. it includes that in that so-called other revenue line along with hardware and google play in its last reported quarter, revenue in that division jumped 40% to $3.4 billion. kelly, back to you >> all right josh, thank you. salesforce shares up a little bit after hours. "mad money's" jim cramer sat down with the ceo over at dreamforce earlier today jim will join us with more on this news coming up. michael, some thoughts >> not seeing microsoft or amazon shares get hit too badly. interesting how the players are
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kind of orchestrating their digit competitive sets in this new world. i do think that salesforce is at an interesting kind of crosspoint for all these trends and so, you know, more g-mail at work, i don't know if that's going to be the next big growth thing for google but it's interesting. >> nancy, do you own shares of salesforce >> we own shares of oracle, this is bullish for oracle in a sense. little bit of a surrender for salesforce i like this for the stocks we own and, again, there's plenty of opportunity in the cloud. so i agree with you, michael, i don't think anybody's too nervous about this google's got a lot of catch-up to do in the cloud. let's get back to earnings truecar's results comie ining through. >> kelly, one stock that investors, traders are not liking right now, maybe if you're short the stock, you are. truecar shares down about 22% in the after-hours trade on about 217,000 shares of volume this after the company reported earnings per share of 2 cents, beats the average analyst
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estimate of a penny per share. revenues come in slightly light. $82.4 million. average analyst expectations for $87 million. we also have guidance on current quarter revenues they're saying between $81 million and $83 million. on average, wall street analysts were looking for closer to $84.2 million. miss on the guidance for current quarter revenue as well. a company like truecar, a lot of expectations built into this stock, a stock that's already run 30%, and run 55% over the last 12 months this case, a narrow miss on expectati expectations, led to what is right now a 22% drop in the stock. back over to you. >> dom, thank you very much. jon, quick thought before we go? >> quick thought is markets continue to levitate upwards we were impressed today with the commodity market we're still in the global growth story. >> all right that's supportive for a lot of
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the individual stories we've been discussing, too thank you, everybody john augustine, nancy tangler, appreciate it today. salesforce shares are higher after the company announced a partnership with google. "mad money's" james cramer spoke with salesforce ceo mark beniof and joins us with the highlights. sources say disney has held talks to buy most of 21st century fox. we'll discuss what that means for disney's succession plans coming up. we want to hear from you, contact the show on twitter, facebook, or over e-mail share your thoughts with us. yoreatincn, first in business worldwide last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and.
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just moments ago salesforce announced it's forming a new strategic partnership with google and salesforce shares up about 2.25%. jim cramer is out in san francisco today at the annual salesforce/dreamforce event. he sat down with salesforce ceo marc benioff and joins us now with more. jim? >> kelly, thank you so much. i mean, this is important because marc benioff and salesforce really link with amazon and it's important to be able to be more agnostic amazon web services has been a great customer for marc and vice versa. to be lined up with google means you got a much further reach i think the stock is correctly
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up in aftermarket trading in part because this is something that no one really expected. let me just cut into a sound -- a little something benioff talked to me about right in front of the salesforce/dreamforce setting. >> you look to google, see this incredible world of information. you see the advertising, but you also get google analytics. and google analytics coupled with salesforce's sales and service and marketing means both of our customers are going to have customer insights that they've never had before that is really exciting. >> yeah, to me, what this means, kelly, you know how there's so much artificial intelligence involved with when you buy something on amazon, a lot of customers are crying out for the same artificial intelligence, if they can find anything on google and google did not have this goog google's got really good technology to me the idea of placing an ad on google knowing exactly who it goes to is what you're going to get from salesforce. amazon has it by itself.
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if you're competing against amazon, you're going to want to go to google tied up with salesforce this may be the logical way for anyone, say, walmart, trying to figure out how to beat amazon in its own game >> jim, it's really interesting. i'm glad you emphasized that because looking at amazon shares afterhours see if they're selling up they're not moving too much. you're saying this is salesforce and google, two huge companies, putting amazon on notice >> i think that's right. i mean, i think marc spoke very positively about amazon. i think what it really is is for someone who feels beleaguered, and just feels like, you know what, i get a good service with amazon, but i really want to compete with them head to head, i want someone to be in there fighting for me. i think you go over to google, say, listen, amazon, i want a price break. i'm going to google, going to you. before this, even though google is a great company, google has great accelerated revenue, i do think google is at a disadvantage to amazon
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i think noosthat's no longer the case. >> everybody is at a disadvantage to amazon these days, right? every industry is trying to bulk up and compete with them i don't know if that's what you'd read in terms of what's happening with disney and 21st century fox. amazon is in there, too. they're everywhere. >> you're absolutely right they are trying to figure out how to reach the consumer no one can reach the consumer better than amazon with the exception of perhaps google which is why there's so much advertising going to google. you know what, you need the analytics, need to be able to know why you're advertising, who you're reaching. that's what salesforce does. i know that fox, i saw their booth this morning for salesforce, they're trying to figure out how to reach directly to consumer. everyone wants to get to the consumer and they don't understand the consumer because the consumer is a millennial who is not easy to figure out not like us, we do what our parents told us to do. these new consumers, they can't be found so you need both salesforce and google or salesforce and amazon to find them >> yeah, we got more, you know, a lot more decliners, jim, after
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hours in these earnings, too, all trying to figure it out. we'll let you you. >> they are. >> you have a ton of stuff coming up. jim, thanks for joining us. >> tauhank you. >> jim cramer out of san francisco. catch jim's interview with marc benioff tonight on "mad money" at 6:00 p.m. eastern. red robin is out with its earnings kate rogers has those numbers. kate >> hey there, kelly, that's right. this is a messy quarter for red robin gourmet burgers. across the board they missed marngs reported eps of 21 cents the street looking for 29 cents. revenues of $304 million versus the street's estimates of $309 million for the quarter. comps also dedegr degrecreased . street had been looking for an increase of 1% they lowered their guidance for q4 which is why they're down around 20% the last time we looked over here they now are guiding with an eps range of 45 to 60 cents. it was previously estimated to be at more than $1 the ceo's post said they're focusing on everyday value, also
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pausing their unit growth for year end 2018. as you can see, that stock continues to fall down nearly 25% now. back over to you >> ouch. kate, thank you. mike, so we have first of all the online travel companies. >> yes. >> following in expedia's wake priceline, trip adviser down big after hours. truecar down big, red robin down huge. >> it's been the story of this and last earnings season which is if you miss, have light guidance, you're going to be punished hard. especially with red robin, in a group, a lot of skepticism about casual dining. a small cap. they're talking about reducing their pace of store expansions so all of itis not the greatest plus this is the group that's also pressured by labor short amg shortages. >> i was spurprised shake shack -- seems like there's a lot of potential macro things moving against them and the burger space -- >> says exactly how compact shake shack's footprint is right now. they're starting from a very small base they're still a boutique operator here. they're not kind of in, you know, a bunch of different malls the way red robin is
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at least not yet >> and i think shake shack ceo can address this, himself. moo he'll be on "fast money" next hour looking forward to that. that's red robin as we mentioned a big decliner today. truecar down 22% the online travel companies, i should say, down after hours as well let's get back over to dom chu with another earnings report uh-oh, what now? >> we got a triplicate of things, a trio let's start to weight watchers whose shares with up about b 7%, 8%, off their aftermarket highs right now. weight watchers, the weight management company, coming out with anymornumbers here total t beat the estimates 65 cents a share in terms of earnings handily beating the 51 cents per share estimate revenue coming in better, $324 million. estimates for $319 million they also made a significant boost to their full-year earnings per share guidance. $1.77 to $1.83 analysts were looking for $1.47.
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the reason why shares maybe aren't up as robustly as you thought may would be, this is a stock already up 291% year to date also because they say that most of that earnings beat that we've seen this past quarter is what's driving that forecast gain for the full year. so a lot of that may be already priced into the forward-looking guidance weight watchers shares up by about 8% 199,000 shares of volume now to avis budget, those shares down about 5% now on 172,000 shares worth of volume askris budgvis budget a more mit saying revenues at $2.75 billion, narrowly missing estimates for $2.78 billion. earnings per share slightly better $3.10 versus estimates for $3.04. see full year 2017 earnings, $2.45 to $2.65 that falls shy of the average $2.68 analysts were looking for. we'll finish off with amc, the theater operator been in the news a lot lately.
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a loss of 33 cents per share, less than the loss of 37 cents per share analysts were looking for. $1.18 billion in revenue, slightly better than the $1.16 billion. they also see a 2017 earnings per share loss of between $1.20 to $1.35 versus estimates for $1.14. now those shares were up in the premarket trade. now amc shares are down by about 4% mind you, amc, the theater operator, down 60-some percent year to date, guys back over to you, kell. >> dom, thank you. amc shares dow michael, interesting one especially in light of the big deal possibly, discussed between disney and 21st century fox. this weekend we had a box office hit. amc has been struggling big time. >> it has. the whole group has lost, the benefit of the doubt, they have a way of making it work in the absence of a consistent stream of good box office winners look at the implicit rationale behind disney and fox, it really is kind of tv.
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it's really not about studio releases. >> people watching them on their labtops at home. >> watching it forever if you really think the future -- netflix has a studio and you can call them movie, call them series, whatever they're kind of blended. going to be touch for amc. by the way, all three of the stocks dom just mentioned very heavily shorted battleground stocks avis just fought its way back from up to the recent highs from 21 to 41 now maybe giving some of that back. >> doing a lot better than truecar after hours. weight watchers is the only one that can manage a gain for the time being in the after hours session. up next, we will discuss how the talks could impact disney c ceo's succession plans. sprint and t-mobile calling off their merger talks the future of those o tw companies and the rest of the telecom industry stay with us i was playing golf days ago...
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welcome back time for a cnbc news update with sue herera hi again, sue. >> hi again, kelly, hello, everyone here's what's happening at this hour diplomats and activists gathering in germany to iron out technical details of 20915 paris accord, aims to lower global warming to 2.5 degrees fahrenheit >> this conference really needs to make a very step forward so that we can say in one year time that the paris agreement structure is fully operational,
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that its impact can be enhanced. florida state university has indefinitely suspended its fraternities and sororities. it follows the alcohol-related death of a freshman pledge and cocaine charges for a member of another frat the university president who made that announcement did not say how long that suspension will last. and a california auction house says a guitar prince used in the late 1980s has been sold for $700,000 it was expected to sell for between $60,000 and $80,000. the musician died in 2016 from an accidental drug overdose. you're up to date. that's the news update this hour kelly, back downtown to you. >> sue, thank you very much. our sue herera. let's take a look at how we finished on wall street today. it was small gains but still a record-setting day the dow up nine points the s&p up three the nasdaq up 22 all of those new record high closes the russell up three but still shy of its high water mark and the priceline/truecar conference call started a couple of seconds ago
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we have big decliners after the bell it includes those names. priceline down red robin down 27% avis down nearly 10% of all of this after reporting earnings earlier this hour. if you missed big other stories from the day, let's get you up to speed with today's rapid recap. >> 21st century fox has been holding talks to sell most of the company to walt disney leaving behind amedia company tightly focused on news and sports according to people familiar with the situation >> wilbur ross is now defending his interactions with a shipping company that, itself, had business relationships with a company that was connected to vladimir putin's sonson-in-law. >> the company not under sanction is just like any other company, period. it was a normal commercial relationship and one that i had nothing to do with the creation of it. >> a major purge of powerful
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princes and businessmen coming over the weekend in saudi arabia the wave of officers arrests in familiar name for investors around the world prince al waleed bin talal. >> want a dramatically more pro-growth tax code, one, companies whether local and global, can compete and win anywhere in the world including here at home. >> broadcom this morning put out an unsolicited takeover bid to acquire qualcomm for cash and stock. >> qualcomm combined with broadcom gives those companies a little leverage versus apple and samsung. >> michael, this afternoon, a lot of the oxygen has gotten sucked up by disney and 21st century fox. >> it has. without a doubt. also along with the theme of this pent-up demand potentially for deals. i mean, we've kind of all remarked on the fact it's been largely absent during this phase of the bull market it seems as if there's enough technological regulatory chains getting to a critical level and seems like all these things fit
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into that theme. whether something happens out of disney and 21st century fokx, te market thinks something is on the move in media the way they're responding. >> if they don't, somebody else -- >> you mentioned how fox's shares are up 10%. this is a stock that has a founding control family. >> the murdochs. >> you can't actually force them and put them in play but the market says they ought to be if play. they basically almost put themselves there >> all right >> it's interesting. let's talk more about this now with bill smid, ceo of smid capital management and disney show holder. jeff sonnefeld glad you both could join us. bill, are you a fan of this deal, potential deal, if it does happen >> well, yeah, reminds me a lot of comcast buying dreamworks, right? the companies that have a history of successfully manufacturing content are bur bulking themselves up while the technology companies that don't
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have a history and have loads of money to spend are squandering theirs by just throwing it at the wall >> jeff, there's been some speculation that this would be about bringing, you know, a ceo into disney who could take over right now. is that something that you think is in play here? >> no. i don't think there's a succession agenda behind this at all. i think it's highly unlikely that bob iger's successor is going to be imported in from the 21st century fox world this is entirely what bill says it is, which is an incredible deal that the markets, analysts we're hearing from are telling us it's still 30% undervalued if this thing goes through. that the content, the distribution opportunities, the consolidation, and iger, there's no better media titan alive today and perhaps he'll be one of those two or three greatest in history in terms of what he's woven together but also what he's been able to execute. so that's what it's all about,
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and we often see people at this point in their career pull off some of their biggest and best deals. there's a lot of misinformation swirling around among analysts out there suggesting that people rarely do these swan songs >> content -- >> yeah, go ahead. >> go ahead. make your point. >> content creation is woefully undervalued because it's anti-faang the assumption is that content creators were being attacked by the immense muscle of the frightful five and in reality, you know, creating local news through a network affiliate or manufacturing movies and television shows over the decades, just ask coca cola and their columbia pictures unit how easy that is to do for a nonexpert and somebody that doesn't have it in a well-organized manufacturing operation. >> you're right. there's no doubt about -- just
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to get at that a little bit more, i don't know if the market is saying that these proven creators of content are now disadvantaged because they're not faang, they're saying the distribution model, the way they've been getting paid is a little bit too skewed toward this cable bundle which nobody really knows what the next phase of it is. >> scarcity creates value. if -- if you create a hit television show like "this is us," you are going to coin it for a long time. "modern family," i think -- syndicating "modern family" in the middle of the night in tanzania right now so the bottom line is, everyone thinks that the technology and the distribution is the most important thing in the game, and the truth of it is, great content is what matters the most >> that's all -- that is exactly right. this is not all about pipeline bill is exactly right. there's an awful lot here about
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content, but on the technology side, these guys aren't -- i mean, bob was obviously quite close to -- >> that's right. >> -- iger is quite close to apple. he's got jack dorsey on his board, of course, from twitter he's got john chen from blackberry he's got sheryl sandberg of, you know, from facebook. it's technology, not to mention, consumer reach, that the he has with the ceo of nike and former ceo of starbucks this is an incredible board and at this point in his life, he's doing the kind of thing that -- you think leonard goldenson, the cap cities/abc deal tom murphy when he sold cap cities to -- >> all right >> you know, dow/dupont. bank of america. did this great swan song to create bank of america at this point. >> i always wonder -- >> make an interesting point -- last word, bill. quickly. >> why aren't these companies like apple and google and facebook and amazon, why aren't they buying up these cheap content assets right now
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especially the ones that have ridiculously overpriced common stock currency to use. >> i think they hired some of the fox executives even over at facebook or one of the places. anyway, it's a good point. thank you, both. bill, jeff appreciate you guys talking to us about the biggest potential deal -- >> thanks a lot. >> -- of the day. >> iger is only 67, by the way murdoch has been ceo longer than ige, a iger's been alive. >> wow that's a crazy thing to think about. thank you, guys, both. we have etsy earnings just wanted to get to here with courtney reagan. how'd they do, court >> hi there, kelly etsy's third quarter headline earnings of 21 cents not comparable at this point to analyst estimates. the headline earnings, 21 cents per share for etsy's third quarter. revenues coming in slight sli higher than analysts had been looking for. see shares reacting after hours. moving sharply higher. etsy also reiterating its full-year guidance for the gross merchandise sales as well as the revenue. they see revenue growing
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somewhere between 18% and 20% that is tabout in line what analysts are looking for we should point out the adjusted margin is the highest since the company was publicly traded. they continue go grow internationally. 34% of the sales are now coming from international markets as opposed to 30 at this time last year with 32 million buyers, that's up almost 17% year over year and almost 2 million sellers, that's up about 11% year over year. kelly, back over to you. >> thank you, courtney etsy shares up, that makes it and weight watchers bucking the trend of other decliners after earnst th earnings this afternoon. take for the takeaquai discounts brought to you by amazon companies are slashing prices on products other vendors sell on its website to make sure it has the lowest price on the key merchandise. it alienates the very brands amazon is trying to lure onto its site.
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>> what's the use of having dominant scale if you don't use it in this way when you say alienating the other sellers, that's amazon's competition -- >> will it alienate the third-party sellers -- >> if it creates more volume they should be agnostic as to which platform they get their sales from it seems to me it's the big player exerting whatever leverage it can going into the holiday season. >> imagine we'll see more of that. next, cvs will start delivering prescriptions next year the company announced today it will be next-day delivery for some stores and same-delay delivery in washington, san francisco, boston and miami. again, michael, can they fend off amazon. >> here's the area where amazon's power is only kind of notional and feared. not really if place yet. we don't really know specifically what they're going to do in pharmacy. cvs has to get a little more like what the potential threat is like amazon if they want to compete here of course, tair trying with aetd all the rest it. i think that's what they're all positioning to prepared for. finally stitchfix announced its ipo terms today.
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plans to raise $190 million by offering 10 million shares in a price range of 18 to 20 bucks. at the mid-range that gives the company a $2 billion market cap. a lot of high-profile ipos, stitchfix is one of them, struggled. the more under the radar names have done quite well. >> they have i do think that high expectations out of the gate have been, i think, a little bit of an issue. inflated private valuation is also been a headwind this one i don't know it falls into that category this is not blue apron for clothes. >> they've certainly been disciplined in it terms of amount of -- that's helped keep it from -- >> all the deals that really did flop had one fatal flaw at the ipo everyone was talking about whether it's snapchat, blue apron, attrition, ability to hold onto customers. i don't know if there's a necessary one, how often are people going to reup for this curated box of clothes >> unless amazon announces something tomorrow. >> could happen. investors hanging up on
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shares of sprint and t-mobile after they called off their merger talks we'll discuss where these two companies go from here and if another telecom could swoop in and buy either one of them stay with us accumulations up to 8 inches... ...don't know if you can hear me, but [monica] what's he doing? [lance] can we get a shot of this cold front, right here. winter has arrived. whooo! hahaha [vo] progress is an unstoppable force. brace yourself for the season of audi sales event. audi will cover your first month's lease payment on select models during the season of audi sales event. what's that, broheim? i switched to geico and got more. more savings on car insurance? yeah bro-fessor, and more. like renters insurance. more ways to save. nice, bro-tato chip. that's not all, bro-tein shake. geico has motorcycle and rv insurance, too. oh, that's a lot more.
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down the whole telecom space today. see the declines there t-mobile down about 6% sprint down 11.5%. this coming after they abandoned their merger plans is there any move for another potential buyer to jump in now jonathan chaplain, managing partner at news street research. jonathan, you said previously you don't see good strategic alternatives for sprint. why was the ceo so determined on having control over this company and what options do they have now? >> so i'm not really sure, kelly, i think it's a real pity they let this deal fail. there was a tremendous amount of value to be created here somehow these management teams failed their investors by not figuring out how to split up the value. it's a great pity. the options for another deal amongst the four wireless carriers i think is zero there are other deals that could come out of this t-mobile is going to need capacity from somewhere else now that they're not doing this deal with sprint there are few options for them dish would be a good option. cable would be another good option
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it's, you know, i think it's going to take a while before any additional deals come out of this for sprint, it's a little bit more difficult it's -- they've been trying really hard to get a deal done with cable companies, and they haven't been able to get anything done except this deal with altese which is great in a way bougut it's in a tiny piecef the country. gives them a cable partner in 6% of the country which really doesn't amount to all that much. they spent two months talking to comcast and charter and didn't manage to get a deal done with them and if they had, that could have been something that could have really, really moved the needle for them. >> jonathan, if you look at the market reaction to the failure of these deal talks, it seems as if the conclusion is, well, it's still go iing to be a messy competitive field in wireless right now and everyone kind of dou downgrading the profitability of the entire industry for the moment is that the correct assessment, do you think >> i think that's exactly the
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correct assessment we're stuck in a four carrier market, going to five. for the foreseeable future means it's going to be a really tough competitive environment for the next several years i think that makes it really tough for everybody involved principally for the incumbents for at&t and verizon who have been losing share. amongst this bunch, t-mobile is the best position. they're the ones with the most operating momentum they've been taking share. they've got expandi ining margi. it's going to be a much tougher space going forward for sure. >> jonathan, at&t shares were only down about 1% today verizon was down 4%. i'm curious why verizon's hit harder and whether if at&t's content deal for time warner goes through, if that's the kind of deal making we could see more of from at&t and verizon >> so, verizon's 100% exposed to wi wireless it's sort more or less a wireless company which is why they're down more. at&t for better or worse has exposure to paid tv through the
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directv deal and soon hopefully if their deal goes through, content through the twx deal so i'm not surprised by the relative performance of those. i've said on this show before all of at&t's businesses are under pressure for different reasons. it's just today it's the wireless business that's taking it on the chin and i -- >> that makes sense. >> as for other deals -- yeah, you know -- >> go on. >> if disney's going after -- if disney's going to do a deal with fox which i think makes tremendous sense -- amount of sense for those two companies, i don't know what's left for verizon to do in the content space. >> there we see at&t shares down 10% over the past year verizon as we mentioned down 4% today. jonath jonathan, thank you so much for helping to explain a lot of this jo john. the house ways & means committee taking their red pens to the process today
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what could change in that plan coming up. ahead on "fast money" shake shack ceo will explain how he's planning to heat up sales. interesting especially after big decline on red robin shares on their earnings more "closing bell" right after this my experience with usaa has been excellent. they always refer to me as master sergeant. they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people
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the house has started its process of marking up the gop tax plan ylan mui has more. >> they want to vote on it by thursday, that's basically warp speed here in want especially because we know there will be changes. kevin brady said one things he wants to change the holding period to two years. another change potential increasing the limit this republican caps that at
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$500,000 i talked to peter ross cam, he doesn't -- >> there changes that can be made of course, that's the nature of a markup, but getting into this process so far, this has been years in the making, so i don't think there's anything in this bill that's necessarily a surprise to anyone >> reporter: the democrats have tried to delay the bill, they haven't had time to digest the 400 pages of lettive text. they pointed to an analysis that came out today that showed by year 2027, 28% ofpeople will actually see their tax bills rise and many will be low income so kelly, there are still some flash points to work through, but this bill is widely expected to pass out of the committee
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back over to you >> we're all focused on all these changes. ylan, thank you very much. up next, we get another check on the names moving. there are some biggies, and we'll look ahead to the conference calls "closing bell" will be right back whoo! ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations. ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.
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these earnings movers. priceline and tripadviser both down, and it's now negative by just a fraction. weight watchers it continue toss move higher. that call starts in a few minutes. ets kicks off too. >> you've sees this space of earnings, which obviously are not the well weather, but the theme has been ifs miss, you get hit hard i think it feeds into the other theme that'sic going on, there's a lot of new lows cropping up. >> it's been oddly calm on the
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surface. the entire story is being told underneath the surface >> yeah, you've got to look below the surface. >> that's your vix below 10 story. >> thank you, mike real. that does it for "closing bell." "fast money" does begin right now. "fast money" starts right now. overlooking new york city's times square, your traders a ere here crude to the highest level in than two years the top technician says the rally has just started you could be buys this chip rip. >> and attack of the shack shake shack out with a new item,


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