david: what's ahead for viacom? will take a look at the details when "businessweek" on bloomberg television returns. ♪ david: a changing of the guard at cbs and viacom. carol: and an end to sumner redstone's reign over a company that he has controlled for 30 ♪ david: a changing of the guard at cbs and viacom. carol: and an end to sumner redstone's reign over a company that he has controlled for 30 years. david: let's talk about the void that sumner redstone's departure leaves. >> this is the moment that people have been waiting for for a long time. there have been all these rumors, conflicting reports, about sumner redstone's health. he is 92 years old, so finally the moment, where he steps down as chair of cbs and viacom. immediately cbs, no drama, no surprise, les moonves well thought of. he is a ceo elevated to chair. viacom, totally different story. david: why is it a different story? >> basically the last year and a half, two years, viacom has been struggling, cable networks, nickelodeon, falling off a clif

will he give up chairmanship at viacom? straight to the markets desk, where julie hyman is looking at the final read of durable goods orders in a market that seems relatively calm today. julie: relatively calm, that is the key word. ,e are seeing a drop of 5% bigger than the initial reading of 4.5%. that is a little bit larger than the original read. excluding transportation falling by 1%. when these numbers initially shock,t, that created a ,ne of the first pieces of data more of a bumpy one on the economic front. it seems calm her on a relative basis. if you look at the stocks i am moving at the moment, a couple of the big earnings stories. ," telestrating lower. the big story is not just -- conoco phillips trading lower. the big stories not just the earnings report. cutting capital spending after reporting its biggest quarterly loss in almost a decade. and why this is so important is a lot of the oil majors still have relatively high dividend yields. that is one of the things that provides a floor under some of these sto

david: what's ahead for viacom? we will take a look at the details when "businessweek" on bloomberg television returns. ♪ david: a changing of the guard at cbs and viacom. carol: and an end to sumner redstone's reign over a company that he has controlled for 30 years. david: let's talk about the void that sumner redstone's departure leaves. >> this is the moment that people have been waiting for for a long time. there have been all these rumors, conflicting reports, about sumner redstone's health. he is 92 years old, so finally the moment, where he steps down as chair of cbs and viacom. immediately cbs, no drama, no surprise, les moonves well thought of. he is a ceo elevated to chair. viacom, totally different story. david: why is it a different story? >> basically the last year and a half, two years, viacom has been struggling, cable networks, nickelodeon, falling off a cliff. it is not a diversified business. as the ratings have fallen, the stock price has gotten crushed, down more than 50% over the past year, a

david: what is the latest for viacom? david: a changing of the guard at cbs and viacom. carol: and an end to sumner redstone's reign over a company that he has controlled for 30 years. david: let's talk about the void that sumner redstone's departure leaves. >> this is the moment that people have been waiting for for a long time. there have been all these rumors, conflicting reports, about sumner redstone's health. he is 92 years old, so finally the moment comes where he steps down as chair of cbs and viacom. immediately cbs, no drama, no surprise, les moonves, he is well thought of. he is a ceo elevated to chair. everyone is happy. viacom, totally different story. carol: why is it a different story? >> basically the last year and a half, two years, viacom has been struggling. the ratings at their cable nickelodeon, has been falling off a cliff. it is not a diversified business. it is the cable channels, plus paramount pictures. as the ratings have fallen, the stock price has gotten crushed, down more than 50% over the past year, and as all that has happened, investors h

david: coming up what's ahead , for viacom? we will take a look at the details when "businessweek" on bloomberg television returns. ♪ david: a changing of the guard at cbs and viacom. carol: and an end to sumner redstone's reign over a company that he has controlled for 30 years. david: let's talk about the void that sumner redstone's departure leaves. >> this is the moment that people have been waiting for for a long time. there have been all these rumors, conflicting reports, about sumner redstone's health. he is 92 years old, so finally the moment comes where he steps down as chair of cbs and viacom. immediately cbs, no drama, no surprise, les moonves, he is well thought of. he is a ceo elevated to chair. viacom, totally different story. carol: why is it a different story? >> basically the last year and a half, two years, viacom has been struggling, cable networks, nickelodeon, falling off a cliff. it is not a diversified business. it is the cable channels, plus paramount pictures. as the ratings have fallen, the stock pri

david: coming up, what's ahead for viacom? we will take a look at the details when "businessweek" on bloomberg television returns. ♪ david: a changing of the guard at cbs and viacom. carol: and an end to sumner redstone's reign over a company that he has controlled for 30 years. david: let's talk about the void that sumner redstone's departure leaves. >> this is the moment that people have been waiting for for a long time. there have been all these rumors, conflicting reports, about sumner redstone's health. he is 92 years old, so finally the moment comes where he steps down as chair of cbs and viacom. immediately cbs, no drama, no surprise, les moonves, he is well thought of. he is a ceo elevated to chair. viacom, totally different story. carol: why is it a different story? >> basically the last year and a half, two years, viacom has been struggling, cable networks, nickelodeon, falling off a cliff. it is not a diversified business. it is the cable channels, plus paramount pictures. as the ratings have fallen, the stock pri

that's 2 1/2 times viacom. there's a lot of reasons why it doesn't make sense, but it show yous how much the value has shrunk. we'll leave it there now for a moment. and brian, there's much more coming up with the "fast money" crew at 5:00 p.m. they're talking to a too many-ranked analyst who will explain what he thinking could drive the next leg of the energy -- >>> and shares down 80% in a year, plus the ten-year treasury yield drawing. could that heat up the housing market? when we come back. cnbc, first in big worldwide. the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained. and in albany, the nanotechnology capital of the world. let us help grow your company's tomorrow, today at business.ny.gov >>> welcome back. seema mody has an earns -- >> 60 -- hired 6 $663.95 billio. and for the fourth quarter up 3%. pizza hut chrks has been a source of concern for investors, that division is seeing same-s

it's inconsistent with viacom. there's a lot of concerns that viacom's board is not independent and i'm sharing a lot of criticism about the way viacom handled the new distribution feature. >> surely in the case of leaving the board not too long ago and reflecting some dysfunction. >> a lot of things to deal with in coming months in terms of mr. redstone's health. in terms of the trust. the trust by the way does have the right to get rid of the board. now that's not something that anybody expects is going to happen. but they can weigh in and nai can remove the board. so whoever controls that stake, that's something else that has to be thought about here. this is finally starting to occur. when i say this i mean the changes that many investors have been waiting for to talk with viacom but whether or not it was actually developed in anything significant. >> strategically for either one of these companies. >> what are they hoping for? >> a break up or others will swoop in and buy up some of these properties that someb

redstone as the chairman of viacom as well. also got a statement from sherry redstone, of course, who is sumner redstone's daughter, the vice chair of both cbs and viacom, and in the statement she makes it clear that while sumner redstone's trust indicated thinks intention that she succeed him as chair at cbs and viacom, she's not interested in doing that. in fact, she says her singular focus is to act as you see there in the best interest of both of these companies and as such she goes on to say that it's her firm belief that whoever may succeed her father as chair of each of those companies should be someone who is not a trustee of my father's trust or otherwise intertwined in redstone family matters, but she says rather a leader with an independent voice. what does that mean? well, if she gets her way at tomorrow's board meeting at voy come it were seem that precludes felipe dem ho n, the ceo of viacom from becoming the trar because he is a trustee in sumner redstone's trust and very much intertwined in those matters being t

anyway, viacom expected to do the same later today. cbs and viacom were split. stock jumping nearly 10% at this hour. joining us now with more, anthony declemente. senior media internet analyst. anthony, i got the same question for you all the time. >> wassup? never gets old. >> you know why? you don't like it. you say it lowers the -- so. >> it raises the tenor of the conversation. >> in the rundown. >> anthony, never let him know your weakness. that's what i've learned over the years. >> just keep it up. it's never going to change. >> doesn't bother me. >> it doesn't? then we're going to stop. so what's up? what do you see happening? >> so the bottom line is sherry redstone had the right to succeed her father as nonexecutive chairman of both cbs and viacom. there was an agreement she struck with les moonves. we suspected all along she's been a fan of les. he will succeed her as chairman of cbs. so really the bottom line is a tale of two different companies. cbs, you have continuity of leadership. les is a well-respected executive. he'll be chairman, president,

david: what's ahead for viacom? will take a look at the details when "businessweek" on bloomberg television returns. ♪ david: a changing of the guard at cbs and viacom. an end to sumner redstone's reign over a company that he has controlled for 30 years. david: let's talk about the void that sumner redstone's departure leaves. >> this is the moment that people have been waiting for for a long time. there have been all these rumors, conflicting reports, about sumner redstone's health. he is 92 years old, so finally the moment, where he steps down as chair of cbs and viacom. cbs, no drama, no surprise, les moonves well thought of. he is a ceo elevated to chair. viacom, totally different story. david: why is it a different story? >> basically the last year and a half, two years, viacom has been struggling, cable networks, nickelodeon, i falling off a cliff. it is not a diversified business. as the ratings have fallen, the stock price has gotten crushed, down more than 50% over the past that has as all happened, inves

what happens to viacom? david faber will have details on that next. >>> welcome back, i'm bertha coombs at the nymex. we are waiting the number from the energy information agency on the withdrawal of natural gas inventories. we haven't seen it here. little bit delayed. down 152 billion cubic feet. that's slightly more than the expectation had been. natural gas had been under pressure this morning, as i turn around, pardon me here. still lower. as expected, it's the midwest where we saw bigger withdrawal. the forecast for balmy temperatures is keeping the lid on natural gas. the east coast is the bigger market. now to sue herera at the news desk. >>> secretary of state john kerry is joining diplomats in london to pledge billions of dollars to syrians affected by war. that will go to economic and educational projects to millions. >>> the bbc is reporting a u.n. panel will rule julian assange's 3 1/2 year stay amounts town lawful detention. the opinion is not legally binding. britain maintains assange jumped ba

yesterday she came out against him becoming chairman of viacom. this morning he was appointed chairman of viacom and now she's going to fight that. looks like we're at the beginning of what could be a battle here over viacom's leadership on the heels of sumner redstone stepping down from the post. >> certainly appears that way. our next guest had a vested interest in the outcome of today's board meeting. >> mario gabelli joins us on the phone in a cnbc exclusive. >> i'm delighted to chat. >> we're delighted to have you. and we believe it's in the best interest of the company and all shareholders. do you agree with that statement? >> first let's deal with the retirement of a visionary and a media mogul. sumner we think he created a fantastic company. and bought himself a period of time to do the following. first take a partner in in pair mount. you have alibaba and amazon and alphabet. three companies could put 10 billion in at jv and you could have an interesting currency to make acquisitions and what they need which is a hit business. take on amc

still ahead, viacom's vulnerability and disney's dilemma. media, money, power, earnings -- after the break. ♪ the conference call. the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voice mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions. i've never felt so alive. make your business phone mobile with voice mobility. comcast business. built for business. ♪ betty: live from bloomberg world headquarters in midtown manhattan you are watching bloomberg television. i am betty liu. nato is considering a mission to monitor refugee traffic. the alliance and defense ministers will discuss the proposal. syria has driven thousands of refugees toward turkey. in hong kong, lunar new year celebrations turn to violence in a clash over it illegal food stalls. rex were thrown and fires set. -- bricks were thrown and fire set. .4 people were arrest

>> well, yeah, turbulence continues at viacom. the stock moving sharply lower today, and some of it might have to do with what the ceo, phillippe debonn, said or didn't say on the earnings call. cnbc's julia boorstin has the very latest there. hey, julia. >> hey, scott. that's right, viacom shares fell as much as 16% on the earnings call. now the stock is down around 15%, with viacom's revenue declining 6% in the quarter and a studio paramount showing a decline in revenue, dauman defended his revenue's stock decline, and despite the stock's drop, dauman got a pay raise to $54 million last year. now, dauman's appointment last week as viacom's chairman drawing criticism from sherry redstone as well as wall street analysts. on the call, dauman said he wanted to address speculation about viacom and our future. >> our outlook and the facts have been distorted and obscured by the naysayers, self-interested critics, and publicity seekers. we will not be distracted or deterred as we build for the bright future ahead of us. my singular obj

viacom, the call has been going on. i was able to listen to it until we started with you this morning. phillippe dauman taking over from sumner redstone and praised his successor as chairman, as you might anticipate he would. >> that's nice. >> went on to say a few other things including we're going to restore our stock to its proper valuation. >> shoot, how much is it going down. >> whatever that may be. >> that was a joke. >> he believes mtv, he admitted, didn't adopt fast enough to change tastes of its audience, but now is deep in a turnaround and headed in the right direction. here's what mar dr. dauman had say about sumner redstone. >> i want to address the speculation about viacom and our future. our outlook and the facts have been distorted and obscured by the naysayers, sell-interested critics and publicity seekers. we will not be distracted or deterred as we build for the bright future ahead of us. my singular objective is to protect and build value for all of viacom's share holders, and in doing so for all the

it is a changing of the guard at viacom. the ceo was just named executive chairman of the entertainment company after sumner redstone resigned from the position. this marks an end to redstone's reign over the media company he has control for almost 30 years. and comes a day after redstone resigned as chairman of ceo. it was met with some resistance. he lacks the support of shari redstone. for more, i want to bring in bloomberg news' chris palmeri in l.a., tracking sumner redstone. also with us is the executive vice president of screen media ventures. david, i will start with you. what do you make of his departure and what will his legacy be? david: it was time for him to go. he is certainly old and he was getting long in the tooth. his legacy -- he built this conglomerate which was an amazing machine during the basic cable heyday in putting together cbs and paramount. he's a media baron, a builder in the truest sense of the word in the media landscape. but as everyone's knows, cbs, viacom have not done very well over the las

namedpe delmont has been chairman of viacom. there were questions whether he was going to gain the chairmanship the same way les moonves did at cbs. take a look at where shares are trading after the news came out -- a plunge there in viacom stocks when you look at the charts. reacting negatively to this news but sumner redstone at 92 years old is handing the reins over to his protege. stocks areore on how trading. bloomberg's julie hyman has more at the market desk. julie: just to say a word about viacom, i don't think that was entirely unexpected. actuallyey have underperformed to some degree. they are still higher on the session, but as you mentioned, a sharp leg lower. stocks have had a germanic turnaround to the upside as we have headed throughout the session. if you look at my bloomberg, we have looked at this chart so frequently. this is the s&p 500 versus oil. oil has been higher for much of the day and stocks are only now catching up. an entire correlation? that could be up for debate. we have come down just a little bit

viacom,rman of cbs and longtime ceo ascends to the top position. show assure is rising to turnaround. how long will investors give him? and as we had to break, you look at the trade on the dow. and hasd 149 points given up most of the gains as you can see. ♪ betty: good afternoon and welcome back. i'm betty liu. markets trading right now. it has been decidedly a volatile day, but one without a lot of direction. you can see the s&p has pre-much different in and out of positive territory. it is the same thing you could say for the dow, up triple digits early in the morning. finally, the nasdaq has been solidly in the red for a while. is stillee it essentially trying to balance off the low of the session but still off to the red. time for a look at some of the biggest business stories in the news right now. sports authority preparing to file for bankruptcy. faces a debt payment due in 10 days. capital management deal to reorganize. mapping out a plan to close as many as 200 of its 450 stores. southwest airlines says it will with -- thect pilots reje

now to a developing story on viacom. the ceo making some surprising comments about the future of the media giant's assets. cnbc's julia boorstin has the details. julia? >> reporter: that's right, melissa. viacom is making gains and giving most of them up on news that the company is exploring selling a significant minority stake in paramount pictures. ceo hand newly appointed chairman announcing in a jeffrey's conference today that the company has been approached by several strategic investors and the deal could come by the end of june. >> pursuing a transaction with a strategic minority investor, that is someone would take a minority equity interest in paramount, would be of great benefit strategically and financially to both paramount and viacom. >> reporter: activist investor said, quote, bringing in a partner to help monetize paramount is an important step and something we've specifically urged the company to do. the positive reaction in share price illustrates the support we have among shareholders. the stock had bee

at viacom headquarters in new york city. it's 11:00 a.m. on wall street and "squawk alley" is live. >>> welcome to "squawk alley" for a tuesday, jon fortt, kayla tausche and myself at post 9 along with investor jason who we're going to check in with in just a moment. some moderate chop as a pilot might say, dow is down about 97 points. we're going to get to jason in a second. first morgan brennan with some breaking news. >> carl, that's right. railroad headlines for you. canadian pacific planning to abandon its proxy fight for norfolk southern according to dow jones, also mulling proxy revolutions to push norfolk into takeover talks. in other words canadian pacific considering a potential shift in strategy to push the eastern railroad to engage in these takeover talks. this, of course, comes on the heels of three rejected offers over the past few months. the most recent being in december. and it really -- it's a bit unclear about how cp's ceo hunter harrison, the street fight, the strategy is now going to shift. but again, hearing that it i

also changes at viacom could be next. and pharma bro martin shkreli will appear at a hearing this morning on drug pricing, but he's vowing not to answer lawmakers' questions. it's thursday, february 4th, and "squawk box" begins right now. >>> live from new york, where business never sleeps, this is "squawk box." >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we've been watching crude prices. they've been extending their gains this morning after yesterday's 8% rally. that's right, 8% gains yesterday. late yesterday, venezuela's oil minister said six oil producing countries support convening an emergency meeting between opec and non-opec members. that's according to a report from iran's oil ministry's news agency. crude oil getting a boost also from the weaker dollar. andrew? >> okay. a couple top stories to tell you about this hour. here's what's going on. the ecb president mario draghi speaking at an event in frankfurt overnight. among the he

new at noon, we want to show shares of viacom once again. up 375% on news that julia boreston brought us within the last 15 minutes or so, which says that the company has been approached by investors for a stake in pair mound. you may recall that mario go belly on this program has suggested that viacom make such a move with paramount and others perhaps to become more competitive. he is one of the largest shareholders, mr. go belly telling us just moments ago the following, he pish wishes that the ceo and chairman of viacom should take paramount, do a joint venture with alley baba, use the asset for acquisitions to buy a content producer such as amc, then create a digital distribution platform such as netflix. telling us that just moments ago as we continue to follow that developing story. viacom shares are up 3.5%. let's go under the radar before we go. the trades you may be missing. christine short tops us off today with a look at tech. >> we like the enterprise tech space. when you look at the end of this week we have got splunk reporting

it is a changing of the guard at viacom. executives just named chairman of the entertainment company after sumner redstone resigned from the position. this marks an end to redstone's reign over the media company he has control for almost 30 years. redstone a day after resigned as chairman of ceo. it was met with some resistance. he lacks the support of sherry redstone. for more, i want to bring in bloomberg news, chris paul mary in l.a., tracking sumner redstone screw. also with us is the executive vice president of screen media ventures. david, i will start with you. what do you make of his departure and what will his legacy be ? david: it was time for him to go. he is certainly old and he was getting long in the tooth. his legacy -- he built this conglomerate which was an amazing machine during the basic cable heyday in putting together cbs and paramount. a builderia baron, in the truest sense of the word in the media landscape. knows, cbs,yone's nos viacom have not done very well over the last couple years. cbs is number

viacom, on the other hand, saw a return of roughly 3%. here's the interesting part, moonves only saw a .2% increase in compensation, dauman saw increase of 13%. what's going on here? charlie gasparino is here along with mario gabelli, big investors in viacom. charlie, first to you. >> i would say that kind of underplays the gross anomaly between share price and how much these guys are making. we have a short chart, we should put it up. philippe dauman made 80 million dollars last year. we should show their salaries. i can't imagine he produced $80 million worth. liz: right, the blue line is viacom. >> look at the salary. that's the salaries, and the one on the right, and this is -- that's not -- is that the salaries? >> it says 44 million for the five year compensation but doesn't take into account the stocks. >> i'm saying we are talking huge, huge amounts of money here. liz: does this outrage you mario gabelli? >> the stock is a loaded laggard, there's 400 million shares, the stock is selling rough numbers $50. 20 billion, 4.2 billion o

let's get more on viacom now. paul sweeney joins us. you've been writing about this potential deal even before today. paul: this is a stock that has been under pressure. the weakest performing of the big media stocks. aty've had a lot of weakness their core cable network business and the paramount studio has had a couple of years of really underperformance. we can see that in the market share. by thef underperformance operations of this company. management is taking the brunt here and there has been building to doure on them fo something. it,l: people are tired of he estimates in quick moves to get investors back on his side. paul: the media business is littered with exceedingly well paid ceos. couple that with the underperformance of the business the management- team is clearly under pressure. the fact that they've said that they've been approached and they look to do a deal by as quickly as the third quarter suggests that maybe they are far along with some discussions here. majorunt is one of the hollywood studios. a great brand and t

eastern time here on cnbc. >>> viacom under major pressure. one investor saying the media giant should throw in the towel. he's here to make his case right after this. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. ♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. >>> shares of viacom dropping more than 47% in the last year. now one leading wall street analyst is

>> i think this is getting back to basics for viacom. it all comes down to programming in ratings, both of which have been a challenge, and they have weaknessal ratings breed there is a long-term concern, or is it because they have not invested in their programming as much, and is probably a lot of both, so the company is reinvested with their programming, a lot of new shows. actually, their ratings have started to turn. we will see if that is a long-term trend. they believe they will start to see real improvements in their cable networks by the end of the year into next year. unfortunately, investors are looking to's this sooner. david: you look at comedy thosel, rebuilding networks, how far does disney have to go to make that turnaround happened? paul: their late-night programming with colbert and st ewart, they have to try. they have to develop new programming. we have seen it time and time again. the ratings come and go. you have a hit show, and every thing is great again. they need another "jersey shore ," as an example. it is not a

viacom reported a profit of $1.18 a share. revenue fell. we'll talk to a viacom analyst at the bottom of the hour. retailer sears is projecting fourth quarter and full year 2015 revenue that comes in below street estimates. it sees a 7.1% drop in fourth quarter comparable store sales saying the holiday season proved challenging. as a result sears is accelerating the closing of unprofitable stores. dow component coca-cola reporting earnings of 38 cents per share. that's one cents above estimates. revenue coming in above street forecasts. worldwide case volume was up 3%. >>> markets obviously off to a rough start to the year with a sell off in technology and dragging down the nasdaq by 15% already in 2016. tom chu joins dom chu joins us. >> reporter: any guess where the markets go if tech leadership doesn't in fact try stieblize at least for some time here now. if you take a look so far in 2016 the reason it's a big deal technology is the single biggest sector. when it goes down a lot of weight is put on the town side. look at the s&p technol

let's look at viacom. she is talking about. the chairman and ceo saying in a conference the company has seen buyers intentionally approach for a stake in paramount studios, if not feel studio. viacom for- leicester earnings support, revenue down 15%. you can see the shares spiking on that news. much as 6%y as earlier. look at the other media companies, too. they have been struggling. they are suffering from issues with cord cutting and declining film revenue as well. other media companies are not seeing a lift today. also market share. of that is important to point out about paramount. paramount is the last of the big some companies. here you see 20th century fox, buena vista, and paramount at the bottom with 12%. some of theates issues. the viacom has, by the way, to sell thattners stake. alix: let's check out more of the news this afternoon. mark crumpton has more from our news desk. hi, mark. the u.s. justice department has asked that apple unlocked iphones at least nine times since october. earlier on cbs this morning, atto

viacom is facing unique issues, both secular and cyclical. i think the company is much more vulnerable than other large media companies in this rapidly shifting landscape. >> why? >> because younger consumer are, you know, basically driving the shifts in the media landscape in terms of the consumption of video. i think viacom has not been responsive as it might have been. and now it is trying to play catch up where as some other companies, actually, i think, you know, got out in front and just kind of tried to take the digital initiative, which viacom just started to do. >> so you're basically saying that it is -- the channels that it has, that cater to children, like nickelodeon, have suffered but disney has been able to hold on to them. >> yes. >> disney has a different business. >> that's right. the portfolio, asset mix of the two companies are radically different. i also have to say that disney has been cut up in this -- what i might call the overall recalibration of expectations across the industry. obviously subscriber issues have becom

we just heard bernstein talking about viacom. they have been saying, they need to split themselves up because viacom's networks like mtv and nickelodeon are losing their value every single day. no, says the head of the international head of viacom. he has been focusing on the growth could cash in on. have a listen. andeast significant growth we were talking about the mobile world. provides tremendous opportunity. is the media business involving? yes. is pay-tv going to grow? absolutely. is it going to be different than it was five years ago? absolutely. i guarantee there will be more subscribers in the coming years. the head of viacom outside of the united states, prevalent here in europe. he was really trying to big up the growth story in his company as the share price continues to dwindle. doesn't know if the u.s. will have to sell some of their assets. he is hoping they maintain them. and they managed to see the growth in the explosion in video content we heard mark zuckerberg speak so passionately about. mark: thank you, caro

there will be a board meeting with the viacom board tomorrow to decide what happens with the chairman role. there's a lot of speculation that sumner will lead and somebody else will get amped up. emily: shareholders already coming out saying not to point -- not to appoint moonves. what do you make of that? >> so did sherry redstone, she issued a statement saying she didn't think anyone who is a trustee should also be the chairman of viacom. that would disqualify both sherry and philippe. what it all comes down to tomorrow is who has the votes on the board. the board of directors will decide who is the next chairman. if philippe has enough people loyal to him, then he can stay. it's hard to know until you know the loyalties of these different people. emily: how much actually changes? >> not much with cbs. any time i had to write a story in the past few months or years about the whole succession at cbs, they try to say les is in control, the board likes what he is doing, so leave us out of all the lighting and let it continue at viacom that seems to be what happened here. les moonves is

there's, you know -- liz: even if they don't own viacom. >> well, even if you do or don't. you have to worry about the corporate governance. do boards of directors have any say over their ceos and their chairmen when they're sick? and maybe not mentally able to perform the job and maybe led astray, potentially, allegedly, possibly by other -- by the people under them who are getting paid a lot of money? we should point out that philippe due monday get be -- dumong gets paid a lot of money. i think it was something like $40 million last year. that's a lot of money. the question is, is sumner redstone mentally viable to make the determination that he's worth that much money? and that will be set in lawsuits and court suits. i'm just going to read some of the highlights of these documents that were filed. redstone, 92, was examined by a ucla psychiatrist who came at the behest of redstone's former caregiver who was fired and filed a lawsuit demanding that his mental competency be challenged. liz: who was he being paid by? psychiatrist? >> i believe it was the former girlfriend

only viacom reacted. is there any doubt this deal will actually happen or it will be a benefit to whoever becomes the minority shareholder? >> i think viacom has been such a different situation than the other media companies. viacom has so much exposure to what's going on in the cable bundle. and exposure to the younger viewers, the cord nerves and the cord schaeffers because of mtv and comedy central and all of those cable networks. what the ceo was saying on this call right now at the jeffries conference was that he thinks that pairmount is really undervalued. last year pairmount didn't have a great year. not one movie in the top ten. ranked fifth or sixth in terms of market share for all the studios but dauman thinks it is undervalues because it has franchise films coming. i think it is likely to happen in part because investors really think it needs to. >> i was going to ask, my recollection was that paramount didn't have a good year, a dry spell. but as you said they may have some things in the pipel

it was discovery, it was viacom most especially. talk to me about those two. >> well, interestingly on viacom, you know, yesterday when they reported, they actually reduced their guidance for affiliate fee growth for the remar remiainder of 2016, it was a hih single digit growth figure, it's now a mid to low single digit growth figure. there are actually some reasons behind that which may make sense. foreign exchange. and they include otts sales to netflix and the like in that g figu figure. so that may rebound actually next year. time warner, though, talked about 5% growth figure at turner in the quarter which is maybe just a little bit light, but they've got double digit, they've got low teens growth in affiliate fees, into 2016 and 2017. so i think there is some legitimate anxiety, but, you know, there is still growth. certainly maybe not as high as it was, but time warner has some nice built-in growth. don't forget, we're talking about the traditional bundle that has been under pressure, but there are some alternative options. d

nicole: long time chairman of viacom is out. sumner redstone is out despite objections from his own daughter. lauren: earnings beat wall street expectations at linked in. we'll tell what you went wrong at career networking site. nicole: get ready for football. broncos and panthers take their final practices. lauren: weil show you some of the more bizarre ads you will see. including one called, monkey, puppy, baby. welcome to "fbn:am." latest breaking news and what to expect for your friday ahead. nicole: flying to a second place new poll in new hampshire. the poll says rubio gets 18% support in the granite state. donald trump holds the lead with 29%. ted cruz has 13%, followed by john kasich at 12%. the battle for second place between rubio, cruz and kasich remains with the margin of error plus or minus 6.8 percentage points. in interview with greta van susteren, new jersey governor chris christie talking about a report that he is teaming up with jeb bush to target rubio. >> complete baloney, greta. more "new york times" baloney

cbs and viacom. it is not clear what will happen to the chairmanship in viacom. will findiliar say we out today what happens in viacom. we also have earnings from conoco phillips today -- actually, you can see shares trading down right now even though oil is trading up. ell, on the other hand, trading up, after a drop in those shares yesterday. finally, go pro earnings, a real disappointment. it is down 14% and phillip morris down 3.1%. fors go to vonnie quinn first word news. officials suspect a bomb caused the explosion on the somali airliner. american officials tell the new york times a bomb maybe the work of a militant islam group. the senior u.s. commander in afghanistan is taking issue with president obama's proposal to cut american troop levels to 5500. army general john campbell says there would be too few soldiers left. campbell thinks the afghans will not able to independent sustain security forces until 20 24. in greece, workers are holding a one-day strike against alexis pension reform plan. the proposal calls for higher taxes to plug a deficit. prote

and viacom deepens leadership, quarterly profits fell to $449 million as revenue in viacom's business declined 3.5%. former viacom executive chairman cuts former champion as well. also the move deprives $70 million, the other part of it and coming the battlefield new hampshire and john kasich pools out surprise showing. >> the light overcame the darkness of negative campaign. [applause] >> and you made it happen. lauren: we will recap of the winners and losers as they head to south carolina and have tough analysis of how they got the votes. lauren: in sports 1 million fans showing of to celebrate the denver broncos super bowl win. we will tell you what a million fans looks like. checking stock-index futures dow futures rally in 119 points, s&p futures up 17, you are watching "fbn a.m." this wednesday morning, first look at morning markets and breaking news. i think it landed last tuesday. one second it's there. then, woosh, it's gone. i swear i saw it swallow seven people. seven. i just wish one of those people could have been mrs. johnson. [dog bark] trust me, we're dealing with a hi

there will be a board meeting with the viacom board tomorrow to decide what happens with the chairman role. there's a lot of speculation that sumner will lead and somebody else will get amped up. emily: shareholders already coming out saying not to point moonves. what do you make of that? redstone, shery issued a statement saying she didn't think anyone who is a trustee should also be the chairman of viacom. that would disqualify both sherry and felipe. what it all comes down to tomorrow is who has the votes on the board. the board of directors will decide who is the next chairman. peoplepe has enough loyal to him, then he can stay. it's hard to know until you know the loyalties of these different people. emily: how much actually changes? >> not much with cbs. storye of had to write a in the past few months or years about the whole succession at is inhey try to say les control, the board likes what he is doing, so leave us out of all it continue and let at five, p that seems to be what happened here. les moonves is running that company and he will as long as he wants to. his contract

viacom will start selling ads through snapchat. the multiyear deal is an effort to connect with millennials and for snapchat to beef up revenue. the company's ceo is expected to expand on the deal on the quarterly earnings call later today. t funny they announce it the day after we join snapchat. >> viacom needs to be cool again. hardest hit media stock last year. >> do you think by us joining snapchat we become cool? >> we tend to set trends. this is just the beginning of the potential for snapchat. we're trying to learn it. i still kind of don't get it. oscar nominees will definitely not go home empty handed this year. the goodies in the $200,000 gift bag include a ten-day first-class trip to israel, a year worth of unlimited audi rentals, a 15-day walking tour of japan, and a lifetime supply of skin creams. >> this is crazy. now i'd be like, who cares if you lose? >> only actors in the best acting and best directing categories. >> probably the people who won't even use those potential gifts. >> it's ridiculous. >>> monica lewins

let's go to viacom. second largest shareholder. >> let's give you the facts. 400 million shares when they spun off cvs. two blocks from here was where viacom known as viacom created in 1973. sumner bought cbs, milking the company to buy back stock. they lost some financial flexibility. and we have a company with 400 million shares selling at market cap of 16 billion with 12 billion of debt. this is a company that has financial resources, is extraordinarily cheap and can change fairly quickly. my observation was simple. if you go back to the 1950s there were seven movie companies. there's one right now called paramount that has a certain library, a certain critical mass. can you sell a piece of that? now i can figure out whether you sell it and bring cash up to the parent or whether you drop knit to a joint venture to unlock that. i would need to understand the tax basis of paramount on the books. they bought paramount somewhere around 94. so there was a tug-of-war for that entity. then what i would do is

viacom's paramount drew just six oscar nominations and is lagging at the box office. it was last among all the major studios last year with just 6% of box office market share. one reason that viacom just put it on the block. it's in talks with some strategic investors. theatrical success and oscar claim don't always line up. universal which is also owned by comcast, cnbc's parent company, dominated the box office last year with 21% of u.s. market share but this year at the oscars it has only four nominations, but oscar wins can actually drive box office success. a new study by ibis world estimates best picture winners estimate $10 million in additional box office following their victory while nominated films that didn't win, they average an extra $4 million afternoon the awards show. now the smaller a film's box office going into the awards show, the bigger the potential impact of all this attention of all the red carpet and the awards. melissa, back to you. >> julia, thank you. >>> well, in the spirit of the oscars we here asked the traders to give you some oscar wor

shares of cbs rose in initial after-hours trading as did shares of viacom where she's also chairman. viacom's board will reportedly meet tomorrow. >>> gopro slings to a fourth-quarter loss and issues a disappointing revenue forecast. the action camera maker lost 8 cents a share. analysts were looking for a break-even quarter. revenue also fell short at $437 million, a decline of 31% from year ago. the result sent shares lower after initially rising in after-hours trading. but as josh lipton reports the real fmission is whether the company has a strategy of being more than a camera maker. >> reporter: gopro, the company went public in summer 2014, investors bid up the stock that fall but since then it's suffered a wild ride like one of the company's famous action-packed videos. gopro's big mistake, last year it introduced its newest camera, hero 4 session. gopro billed the camera as its smallest and lightest camera to date but the company grossly mispriced the product. the original price of $400 was slashed twice down to $200. on top of that, gopro's ceo nick woodman says the company

to put her in a fight maria with felip at viacom. both companies should not be the trustee of my father's trust. that board meeting is today. a big showdown between sherry redstone. >> maria: jo, how do you see it? >> there's a lot of properties that are at stake here. big brands where their direction is very crucial to their survival, right, what do they do digitally? whoever does become the leader has a lot of responsibility. >> cheryl: it's up to the board now. what's interesting with cvs and viacom is both of the stocks have been under pressure. now, remember cvs has the super bowl this weekend what you talked, of course, a lot about, the revenue situation at cvs may be changing to the positive thanks to the big game and advertising attach today that but on viacom side, mtv, paramount pictures and they've had missteps. >> maria: the entire industry. people worry about core cutting. if you look at all the media stocks, you see a similar chart as that. >> jo ling: he has pushed and supported digital very much so at cvs news and cor