The majority whip also says disasterrelated aid will be included in a shortterm government measure. Congressional leaders are scrambling to get compromised legislation for a floor vote next week. Vice president michael pence plans to delay his trip to the middle east. Pence plans to leave for egypt on tuesday so that he can preside over the senate during that tax vote. Five years ago today a gunman shot and killed 20 children and six adults at Sandy Hook Elementary School in connecticut. They are observing the day in private reflection. Flags statewide flying at half staff today. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im alisa parenti, this is bloomberg. Bloomberg technology is next. Emily im emily chang and this is bloomberg technology. Coming up the fcc officially , hits reset on the internet. What the contentious vote to repeal Net Neutrality protection means for the internet of the future. Plus, disneys megadeal for a massive chunk of fox. What the worlds biggest Entertainment Company gets for its 52 billion. And what the deal means for the murdoch empire. And orville revenue rises. Their ongoing competition with oracle revenue rises, and their ongoing competition with cloud later amazon. First to our lead. Net neutrality no more. The fcc voted to repeal the obama era protections. The republican Led Commission thed 32 to remove protections known as Net Neutrality. There were many protests, by defenders of the rule. They said it would create an internet of haves and havenots, in terms of accessing content. But the fcc chair heralded the return to what he called a free speech market approach. He said it was time for us to restore internet freedom. We are restoring the light touch framework that has governed the internet for most of its existence. Joining me now, one of the people who earlier voted to repeal Net Neutrality, brandon carr. He was nominated by president trump. Commissioner, thank you so much for joining us. You say today is a great day. Many people say today is an awful day. What dont they understand . Thank you so much for the question and for having me on. It is a great day for consumers, innovation, and freedom. There is a lot of up a full rhetoric. Ryphal rhetoric. Here is the reality. We are voting to go back to the 2015 Regulatory Framework, the title i framework that the commission had in place in 2015 at the 20 years before that. This is not moving toward some mad max version of the internet. Isps will not have complete free reign to dictate your online experience. The 2015 a framework had strong Legal Protections for consumers. Consumers will continue to benefit from that without the harms we are seeing from title ii. Emily a number of organizations say they intend to sue the fcc. Free press says they will sue on the basis of willful rejection of evidence, and absolute disregard of public input. The attorney generals of washington and new york saying they intend to sue. The attorney general saying it is not just an attack on the future of the internet, but an attack on all new yorkers and the integrity of every americans voice in government, and we will fight back. What is your reaction to those kinds of comments . Anytime the fcc takes an action on the space of internet regulation, companies sue over the decisions we make. But here is the reality. The Supreme Court in 2005 took up the fccs authority to classify Broadband Internet access as a title i service. It found the fcc did have the authority. That is the only classification the Supreme Court has ever blessed. Matter as a procedural and substantive legal matter is on extremely sound legal footing. Im confident where we go from here. Emily we also spoke with former fcc chair tom wheeler. He oversaw Net Neutrality protection. Take a listen to what he told us. For the First Time Since 1934, with this decision, the fcc is washing its hands, walking away from that congressionally mandated responsibility. They are only doing it for the most Important Network that will define the rest of the 21st century. It is an inconceivable kind of action. Emily what do you make of this accusation that the fcc is absolving itself of responsibility, rather than taking responsibility . That is simply not the case. We are going back to the same Regulatory Framework that was in place in 2015. I think your listeners and viewers can remember the internet of 2015. It was not a free for all, there were protections. Those protections will be back in place. The ftc will be fully powered to fully empowered for the first time in two years to police isps, conduct with respect to consumers. Stripped 2015 decision the trade commission of its authority to protect consumers against isps. Another come up Online Privacy protections, which consumers cared deeply about. The ftc is the nations premier Consumer Protection agency. They have been prohibited in the last two years because of the fccs title ii decision. Consumers are gaining protection as a result of this decision. This is not going to be a situation where there are no rules in place. Emily comcast has said they will not invoke paid prioritization, but lets say they do. What will happen in that case . Part of what has happened here is a misperception of what title ii did. Right now, title ii does not stop providers from blocking websites, creating fast or slow lanes. The paid prioritization you talk about. There are reasons why that stuff is not taking place today. It is Market Forces regulating that conduct. After our decision, those forces stay in place. I know a lot of people do not believe in Market Forces, and that is fine. There is positive law we are putting in place too. ,there is also antitrust law. It prevents isps from entering agreements that unfairly block throttle or would create anticompetitive paid prioritization. There will be rules and legal standards out there that are going to be able to police any misconduct that people are talking about. Emily what about the fake comments in the Public Comment section . Doesnt that give you any pause . A million comments were written, potentially by a robot, to counter the vast majority of comments that were against this repeal. It does not give me pause. Heres why. We have run an open and transparent process. The administrative procedure act is clear on how an agency like us runs our rulemaking. We have an open record. Anyone who wants to file a comment can file a comment. We dont require identification. We got over 24 million filings in our proceding. I think that shows the passion that people have in this issue. Our decision is based on the substantial record evidence that we developed. Emily but the vast majority of those comments were against this repeal. There was a wide range of views expressed. The question we have to confront is a threshold legal matter. Did congress when they set up title i and title ii of the communications act, did they intend the internet to be in one or the other . When we look at the legal determination that we have to make as commissioners at the agency, it is clear to me that this is a title i information service. Emily when will we see lawmakers actually enact this into law . Our decision today goes into effect as soon as the omb and other Government Agency rule the transparency rule we adopted. Itll take affect shortly after that. That is the timeline. Emily how do you see the internet five years from now being different . Already it seems like so much power is consolidated in the hands of a few very powerful companies. Many of those companies were against this repeal. How does the internet look different to you in five years . It is a good question. Thats why this is such a great decision. Title ii is a monopoly style regulation. A heavyhanded regime. A lot of debate is about at t, verizon comcast and the big , isps. I think they have been negatively impacted. But they also have an army of regulatory lawyers that can wade through the title ii. When i talked to consumers, what they want is more competition. That is where title ii heads in the wrong direction. There are thousands of smaller isps out there that either trying to provide service for the first time, or provide competition to some of the larger providers. Those are the ones hurt worst by this position. I look forward to, when we repeal this title ii, those providers will have a easier time competing. Competing, getting money. Consumers will benefit as a result of increased competition from repealing title ii. Emily fcc commissioner brendan carr. Thank you for joining us. We will have more on todays Net Neutrality decision later in the show. We will be speaking to the reddit ceo who says the battle is not over. Oracle and adobe reporting earnings after close today. , rising to adobe 9. 60 billion. Also Beat Estimates in the fourth quarter, with revenue coming in at 2 billion. We will have more on the results later this hour. Coming up, the mouse eats the fox. Disney takes a big chunk of Rupert Murdochs empire. How the deal came about. Well tell you everything you need to know. This is bloomberg. Emily a mega media deal has been announced after weeks of speculation. Disney is snapping up a large chunk of 21st century fox assets in a deal of more than 52 billion, the biggest acquisition of disney to date. Jonathan sparrow caught up with disney ceo bob iger in l. A. He explained of the deal came about. Thisyear ago i did not see coming, not six months ago. Rupert and i have known each other for a long time. We have a lot of respect for each other. We occasionally get together and muse about the business. In a get together this summer, we were talking about the Disruptive Forces we were seeing. And the relative position of our companies. I left thinking there might be an opportunity for us to do something with him. I thought about it for a few weeks, called him after and suggested maybe we get together and talk about it, and we did. We spent some time analyzing whether there is something to be the Value Proposition might be for shareholders of both companies. We rolled our sleeves up and got into negotiation. Here we are today. What we are doing is creating a great company, but the great global opportunity for consumers to not only consume great content from both entities, but to consume it under circumstances that are innovative and compelling and much more userfriendly. That is what the consumer of today demands. We have learned a little more about your future. Whats the future for James Murdoch . James and i have talked a lot about a potential role for him. He will be integral for planning the integration process. We will continue to talk about where there is a role for him at this company. We have had a Good Relationship and he has been extremely helpful in this process. A lot of people are thinking about a succession plan. Maybe James Murdoch could be part of that plan. Is that something you could see happening . I am now extended through 2021. The board of the company will have ample time to consider its options in terms of my succession and to reengage in a planning process for that. It is premature to speculate. Ultimately it would be a board decision. Emily disney ceo bob iger, with bloombergs jonathan ferro. Here to discuss everything we need to know about the deal, we are joined by Chris Palmeri. First, walk us through, bob iger said he did not see this deal happening, though there was speculation about a for some time. Walk us through the nuts and bolts of the deal and what it means. The bulk of what we know of fox is most of its entertainment assets are going to disney. The fox studio, the fx channel, the National Geographic channel, a lot of international assets. Sky in europe, star of india. It is a massive chunk of fox merging with disney. Emily what do you think of the idea that James Murdoch could be igers successor, even if it is years from now . There was discussion he would be named in a senior role in disney. The surprise today was that nothing happened. Neither side rolled it out. Bob iger, you heard him say he expects them to have an advisory role in integrating the two companies. Nothing clear yet. So, bob saying now he is going to stick around for four more years. Its hard to say at this point that James Murdoch has any real clear path to ceo at disney. Emily this is disneys biggest acquisition ever. How does this fit in the context of their prior m a . Previously it was about content. They made it Smaller Technology deals, but it was mostly about bringing all these wonderful marvel,rs, pixar, lucasfilm, into the division. Here it is a much broader play. It is a doubling down on the film and tv business at this Pivotal Moment where things are changing so rapidly. A lot of exciting things out of disney from a technology standpoint. Bob igers catch of a multipronged strategy. He will have an online version of espn next year. A Disney Channel in 2019. It will have marvel and star wars content. And hulu, which they now have control of by 60 stake. It is the adult version of what they are trying to do. That is where fox comes into play with this programming. They are trying to create an online choice for everyone. Emily what do you think how do you think this will impact the bigger media and Entertainment Industry . I think if you are netflix, you have to be nervous. Netflix is losing the disney movies in 2019. Bob iger today suggested that a lot of the fox stuff they have a new movie deal with hbo. But there are tv shows that go to netflix. So, we are seeing everyone taking their programming inhouse and in disneys case, through their own distribution pipeline. We will see a similar reaction. Cbs has already had that with its all access. We will see a lot of other deals in the wake of this. Emily bloombergs Chris Palmeri there in hollywood. We will be digging into this deal and the streaming battle a bit later. One of the most popular Cryptocurrency Exchanges has added a big name in tech to its board. Head of Facebook Messenger is joining the board of coinbase. They said his knowledge of the mobile space will guide them in creating a truly open Financial System to bring opportunity to people across the globe. Coinbase has seen an explosion of user growth in the last year as the value of bitcoin sores. Coming up, more on oracle and adobes earnings. The biggest highlights and mrs. This is bloomberg. Emily tech investor Shervin Pishevar resigned from sherpa capital. He was accused of Sexual Assault and harassment by multiple women in the tech industry. In a statement the company said , we are deeply committed to our culture of integrity, inclusion and respect. We will continue to put these values into action over all of sherpa capitals activities. Including the founders and companies we support. Onsays he plans on focusing the ongoing legal actions against those who were unjustly launching a Smear Campaign against me. He has denied all allegations. Oracle and adobe out after the bell. Oracle reported adjusted revenue for the Second Quarter that met analyst estimates at 9. 6 billion. Adobe at to talk about all in 2 billion. More detail, we bring in cory johnson. We start with oracle where it is all about the cloud. Absolutely, it is a story all about the cloud. As oracle tries to make its move from the dominant seller of Enterprise Software in the database to a cloud seller, everyone is focused on their Cloud Business as they should be. The results from oracle cloud are fantastic. Ita yearoveryear basis, was a very impressive quarter. The stock is down. I will get to that. The stock being down in afterhours trading is a sign of how High Expectations were for oracle. Every quarter they are talking cloud, cloud, cloud. Investors expect to see lots of cloud and guiding up. When they just do what they said they would do its not enough , for that market that wants to see them beat and praise. Emily lets talk about how far long oracle has come. For so long they had not caught up with the cloud. Now that they are there what , remains in terms of continuing to fight the battle and fend off the competition. I think the salesforce loves to say they were first and they are doing bigger jobs in the salesforce software. Indeed they have done quite well. Oracle has largely attacked every other piece of the cloud. The most interesting thing they are doing is not just database in the cloud. They are doing all kinds of applications, whether it is hr applications to compete with work day, some crm to compete with salesforce. Some erp stuff and they are the leader in erp in the cloud. The biggest areas of software, they are there in size. The cumulative result, oracle is doing very well in the lots of areas. They are going right after amazon and offering infrastructure as a service, whether it is compute or storage. Theyre Building Data centers and bringing lots of their customers into their own the cloud. It makes sense wi