Transcripts For CNBC Closing Bell 20171106 : comparemela.com

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 well look at what this means for u. S. Companies looking to do business in saudi arabia we havent even gotten to the Qualcomm Broadcom story but theres 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 whove been working on it the two sides are not currently talking at this very moment, but given the on again off again nature of the talks, they certainly could be revisited particularly given what were 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 doesnt 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, theyre all changing the way people consume media, dominating the digital 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 doesnt 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 foxs significant exposure to International Markets such as the u. S. , germany and italy. Its 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 anticompetitive from an antitrust standpoint would not buy the Fox News Channel or the business channel. It also wouldnt buy foxs local broadcasting affiliates, according to people familiar with the negotiations. In fact, those assets left behind contribute a larger portion of the companys 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 havent been able to figure that out yet officials at both companies decline to comment. Who calle ed who, . Any idea i dont know enough to say publicly i have my suspicions. It would speak to who its 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. Theyve been unable to time warner is not going to at t so we expect still 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 alltime 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 youre shrinking doesnt mean youre 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 platform and the like. Cbs was made the point during their latest earnings that they benefit from cord cutting. Why i guess what im 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 youre raising an interesting point, i dont have the answer okay, lets 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 ive had, yeah, thats a real possibility. By the way, the sky deal was really important for them. But theyre 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 dont 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 about succession, not about James Murdoch stepping into that role. David, stay with us lets bring larry into the conversation hes 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 its strategically im sure you do look at the prices yeah, financially it makes a lot of sense so lets 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 youthfriendly ip that disney now doesnt own. Boy, what a stable that would be next to disney, pixar and marvel so sometimes when disneys bought ip like pixar, its 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 things thats 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 hes 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 foxs cable assets have a singularly High International content. Theyre very popular abroad. This is something that disneys 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 theyre making less movies theyre 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 its 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 so great deal for all concerned. Somebodys 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 stocks probably 25 , 30 undervalued if this deal goes through i think thats 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, theyre going off. Theyre going into the Disney Streaming service. And i dont 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 doesnt own studio assets and has to pay and the prices for producing these assets is only going up so i think netflix, theres a lot of problems on the horizon that arent reflected in the market price lets 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 youre 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. Weve all talked about that. But were 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 its premature to sell netflix off this potential deal we dont know. Davids been following this very closely. But we dont know any particulars. We dont know if its going to happen we dont know anything about this this is definitely a content play where youre getting x men, getting the avengers. This is a comic book buildout. David, share price reaction of disney listen, larrys been doing this for a long time i was very interested to hear him. Hes embracing a deal like this as are many other shareholders theres a willingness on the part of fox shareholders, okay, these guys are thinking of doing things we might not have expected, theyre somewhat bold and unexpected certainly in their approach and you heard larry outline the positives for disney all of which are there. One thing id 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 larrys point, 12 times, but we dont know exactly what the cash flows are they dont 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 dont know exactly what natgeo, we dont know fx. So its 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, id be doing something else. And it will take a couple years, year and ahalf, probably, to get this done. So were not going to really know what the numbers are, but disney will know what they are if theyre going to buy them and i think youve got very, very low interest rates, so if you say 12 times, thats an 8 cost of capital. Disney is borrowing money somewhere around 2 . So you can drive a truck through the return its very, very accretive to the shareholders the minute they get ahold of these assets, the Free Cash Flow explodes its 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 theyre in a box. They dont have they dont have the scale and theyre 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 cant 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 contents only going up. And youre 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 on infinitum. David, stock up 9 plus as we see there. Whats our parent thinking about this whats cbs thinking, whats time warner whats the competition as you see this. The phones been ringing. Theyre 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 weve been talking about. Theyre all thinking art this new world thats here, that weve 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. Thats what theyre thinking about. Yeah. Listen, this kind of react n reactireaction probably when you hear a guy like larry say he thinks its a great deal, you know, theyre not talking at this very moment, but my guess is they might pick the phone up again tomorrow. Steve, if thats 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, thats what theyre going after, it is kind of odd to me that when we see at t and time warner, that were moving more lateral versus just the going after a Delivery System mechanism versus going after a content play so its shocking to me that theyre 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 well be seeing you again. Sure. Soon. Busy day, hadnt he yes, he has larry, thanks 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. Nasdaqs 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 indepth analysis of the disney talks with fox including what a potential deal could mean for disneys succeacuccession plans. Meanwhile, saudi arabias 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 oilrich 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 email with your thought on this deal that, too. Youre watching cnbc, first in business worldwide excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Can we do that . Rays always been different. 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. Thats the power of and. Traders theyre always looking for advantages. The smart ones look to fidelity to find them. We give you research and datavisualization tools to help identify potential opportunities. So, you can do it this way. Or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just 4. 95 per online u. S. Equity trade. Fidelity. Open an account today. 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 . Thats okay deals, deals, deals. Thats whats going on. Meanwhile, saudi Arabias King Salman and muhammad bin salman launching this Qualcomm Broadcom<\/a> story but theres 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<\/a> 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 whove been working on it the two sides are not currently talking at this very moment, but given the on again off again nature of the talks, they certainly could be revisited particularly given what were 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<\/a> 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<\/a> 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 doesnt 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, theyre all changing the way people consume media, dominating the digital 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 doesnt 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 foxs significant exposure to International Markets<\/a> such as the u. S. , germany and italy. Its 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<\/a> 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 anticompetitive from an antitrust standpoint would not buy the Fox News Channel<\/a> or the business channel. It also wouldnt buy foxs local broadcasting affiliates, according to people familiar with the negotiations. In fact, those assets left behind contribute a larger portion of the companys 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<\/a> such as fox, thnatgeo the price that has been discussed, i havent been able to figure that out yet officials at both companies decline to comment. Who calle ed who, . Any idea i dont know enough to say publicly i have my suspicions. It would speak to who its 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. Theyve been unable to time warner is not going to at t so we expect still 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 alltime 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 youre shrinking doesnt mean youre 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<\/a> will tell you is on every ott platform and the like. Cbs was made the point during their latest earnings that they benefit from cord cutting. Why i guess what im trying to say, do you think the slimdown is the ultimate goal, it is to do Something Like<\/a> that, not just to set itself up for different kinds of acquisitions . I think youre raising an interesting point, i dont have the answer okay, lets 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 ive had, yeah, thats a real possibility. By the way, the sky deal was really important for them. But theyre 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 dont 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 about succession, not about James Murdoch<\/a> stepping into that role. David, stay with us lets bring larry into the conversation hes associate Portfolio Manager<\/a> 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 its strategically im sure you do look at the prices yeah, financially it makes a lot of sense so lets 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 youthfriendly ip that disney now doesnt own. Boy, what a stable that would be next to disney, pixar and marvel so sometimes when disneys bought ip like pixar, its 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<\/a> assets, one of the things thats 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<\/a> was on an hour ago. He suggested that Cable Networks<\/a> have raised prices for more than the rate of inflation for maybe 30 years i think hes probably correct in that but now because of cord cutting, which jim cramer has highlighted with espn, those Cable Network<\/a> 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 foxs cable assets have a singularly High International<\/a> content. Theyre very popular abroad. This is something that disneys 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 theyre making less movies theyre 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<\/a> this week so its 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<\/a> with these and Library Value<\/a> only goes up over time so great deal for all concerned. Somebodys 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 stocks probably 25 , 30 undervalued if this deal goes through i think thats 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<\/a> is under Severe Threat<\/a> from a deal like this . Yeah, i like that the Pacific Ocean<\/a> and the battle of midway, i think another carrier just joined the battle. If disney gets ahold of the fox entertainment assets, theyre going off. Theyre going into the Disney Streaming<\/a> service. And i dont 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 doesnt own studio assets and has to pay and the prices for producing these assets is only going up so i think netflix, theres a lot of problems on the horizon that arent reflected in the market price lets bring steve grasso from Stuart Frankel<\/a> 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 youre 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. Weve all talked about that. But were 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 its premature to sell netflix off this potential deal we dont know. Davids been following this very closely. But we dont know any particulars. We dont know if its going to happen we dont know anything about this this is definitely a content play where youre getting x men, getting the avengers. This is a comic book buildout. David, share price reaction of disney listen, larrys been doing this for a long time i was very interested to hear him. Hes embracing a deal like this as are many other shareholders theres a willingness on the part of fox shareholders, okay, these guys are thinking of doing things we might not have expected, theyre somewhat bold and unexpected certainly in their approach and you heard larry outline the positives for disney all of which are there. One thing id 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 larrys point, 12 times, but we dont know exactly what the cash flows are they dont break that out. Fox, we can guess, but Fox News Channel<\/a> is part of the Cable Network<\/a> division, the largest single contributor, right, larry, but we dont know exactly what natgeo, we dont know fx. So its 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, id be doing something else. And it will take a couple years, year and ahalf, probably, to get this done. So were not going to really know what the numbers are, but disney will know what they are if theyre going to buy them and i think youve got very, very low interest rates, so if you say 12 times, thats an 8 cost of capital. Disney is borrowing money somewhere around 2 . So you can drive a truck through the return its very, very accretive to the shareholders the minute they get ahold of these assets, the Free Cash Flow<\/a> explodes its 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 theyre in a box. They dont have they dont have the scale and theyre involved in content distribution the British Government<\/a> 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 cant 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 contents only going up. And youre 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 on infinitum. David, stock up 9 plus as we see there. Whats our parent thinking about this whats cbs thinking, whats time warner whats the competition as you see this. The phones been ringing. Theyre 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 weve been talking about. Theyre all thinking art this new world thats here, that weve 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. Thats what theyre thinking about. Yeah. Listen, this kind of react n reactireaction probably when you hear a guy like larry say he thinks its a great deal, you know, theyre not talking at this very moment, but my guess is they might pick the phone up again tomorrow. Steve, if thats 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, thats what theyre going after, it is kind of odd to me that when we see at t and time warner, that were moving more lateral versus just the going after a Delivery System<\/a> mechanism versus going after a content play so its shocking to me that theyre 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 well be seeing you again. Sure. Soon. Busy day, hadnt he yes, he has larry, thanks 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. Nasdaqs 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 indepth analysis of the disney talks with fox including what a potential deal could mean for disneys succeacuccession plans. Meanwhile, saudi arabias 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 oilrich 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 email with your thought on this deal that, too. Youre watching cnbc, first in business worldwide excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Can we do that . Rays always been different. 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<\/a> to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Traders theyre always looking for advantages. The smart ones look to fidelity to find them. We give you research and datavisualization tools to help identify potential opportunities. So, you can do it this way. Or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just 4. 95 per online u. S. Equity trade. Fidelity. Open an account today. 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<\/a> 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 . Thats okay deals, deals, deals. Thats whats going on. Meanwhile, saudi Arabias King Salman<\/a> and muhammad bin salman launching this Anticorruption Committee<\/a> resulted in the arrest of billionaire investor prince al waleed bin talal of Kingdom Holdings<\/a> 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<\/a> 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 theres stability in the kingdom or not and raise questions about is this a good time to be investing my own sense is what were seeing is a dramatic effort to consolidate the power of the crown prince so he can actually carry out the reforms that hes 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 thats necessary. Fred, understandably, since youre in riyadh, we have a long audio delay, so well be patient with this. Im curious, how is this all playing out in saudi arabia . What is the mood in riyadh this evening . Yeah, ill get to Market Forces<\/a> in a moment, but lets first talk about whats going on in history theres really a sense that since crown prince bin salman came to power in june, a country thats been moving very slowly has been on overdrive. There is geopolitical impact, a geoeconomic impact, and a georeligious impact. Dont forget, this is the place of mecca, the center of global islam. And this is a leadership thats trying to move toward modernity and moderation so what youve got now is a situation where over the short term youre going to have a lot of investor nervousness. You have the you have oil going up today but if this 32yearold reformer 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 longterm play dennis, i understand that everybodys 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, theres one uk analyst, market watcher, whos 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 hes 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 its going to become more modern also recognizes 70 of the population is under the age of 30 bear in mind some of what hes doing right now in terms of the Anticorruption Campaign<\/a> is both to appeal to that Larger Population<\/a> that feels theyve been left out and prove hes showing a dynamic change being able to take on, this type of change, probably had to be engineered from the top. We shouldnt look at it as something thats going to be a democracy any time in the near future, thats not what theyre trying to do what they are trying to do is modernize the country so its stable over time i think what fred and i are saying, if he succeeds, this is important. Theres been no successf fuful modern development in the arab world. You see groups like isis appear, there hasnt been a successful model. This potentially could be one. Fred, before we go, im 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 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<\/a> 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 dont know that but i dont think we know whether theyll be arrested, whether theyll 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 on todays 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 ecommerce 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<\/a> management businesses of prudential. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. 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<\/a> there. The companys ceo joseph swedish will be stepping down as of november 20th. Well continue those executive chairmen through may of next year as a Senior Adviser<\/a> through may of 2020. That stock today up 1. 9 Semiconductor Stocks<\/a> marvell tech and cavium higher on reports theyre 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 thats another major chip deal were following. Time for a cnbc news update, lets get over to sue herera. Hello, kelly, hello, bill heres whats happening at this hour, everyone, assistance from Good Samaritans<\/a> helped bring sundays mass shooting at a texas church to an end the suspect, Devin Patrick<\/a> 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 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 weeks rampage by a man driving a truck. He was accompanied by new york city mayor bill de blasio. Former new york congressman Anthony Weiner<\/a> reporting to prison today in massachusetts to begin a 21month sentence for sexting with a 15yearold girl. The facility is 40 miles west of boston and has more than 1,000 inma inmates. You are up to date thats 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<\/a> held talks to buy most of 21st century fox what would a deal like this mean for Media Companies<\/a> . Lets bring in j. J. From Td Ameritrade<\/a> on set with us here and tuna amobi what do you think the significance of a deal like this would be kelly, i think its fascinating to be talking about in a deal like this, it really illustrates how much of a change that the Investor Sentiment<\/a> has shifted in the media landscape and the redefinition of who the competitors are, not just netflix and amazon and a traditional Media Company<\/a>, but got the Major Technology<\/a> companies now jumping into this race so the idea that disney is even going to contemplate a deal like this, i think its 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 sector well, so first of all, disney is the 13th most held stock at Td Ameritrade<\/a> on our imx which were reporting today. One of the things ill say, if you look at disneys 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, thats what actually matters you know, another day investors are happy. Are they trying to look at life beyond espn theyre probably sick of being dogged by every ratings concern about espn. Absolutely. If you think about, like, National Geographic<\/a> channel is in there, how well does that play into the disney umbrella . You know, heres 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 fx channels arent 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. Theyre 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 its 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 whats going to be the next catalyst. Right . So m a you know, in terms of content, you know, m a, i think weve seen discovery now helping to, you know, kind of continue that conversation. I think disney, obviously, theyve 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 youre 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 youre 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 youve got two Major Players<\/a> here on a content, you know, space, coming together, talking, you know, i think, you know, even more so than discovery and scrips, right, youre talking about the pree t preeminent player, you could see really farfetched deals that 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 youre 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 thats 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, weve 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 weve got the details of these tech frenemies whove found love in a hopeless play found love in a hopeless place listen up, heart disease. You too, unnecessary er visits. And hey, unmanaged depression, dont get too comfortable. Were talking to you, cost inefficiencies, and data without insights. And fragmented care, stop getting in the way of patient recovery and pay attention. Every single one of you is on our list. At optum, were partnering across the Health System<\/a> to tackle its biggest challenges. At optum, were partnering across the Health System<\/a> throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right financial advisor, life can be brilliant. Ameriprise the dow, the s p and the nasdaq in record terror troitorh 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 stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders<\/a> connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. 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 its actually about a lot more than that it is. Intel and amd getting together to develop a thin and light h h highperformance 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 others 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 doesnt really care that much about. On earnings calls, intel highlights its growth in nonpc businesses, what it calls datacentric businesses like cloud data centers, Artificial Intelligence<\/a> those are now 45 of intel revenue, up from 30 five years ago. In that area, intels 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. Highend powerful pcs. And nvidia and amd are the two major suppliers of graphics chips for that segment so intels going, of course, with amd the terms 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 its been stealth rally here wonder if that has something to do with it here. Brian, i was talking to him in San Francisco<\/a> a couple weeks ago about nvidia he doesnt really like the fact that jim cramer named his dog nvid nvidia couldnt even get one and name it intel i said, well maybe a cat, because cats live longer so maybe hell get a cat named intel. But the point hes been making is that intels very much in this game of machine learning, Artificial Intelligence<\/a> as well. After that last Earnings Report<\/a>, 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 26point gain here. S p up four. Russell up four. The nasdaq up 24. Up next former netflix executive mitch lowe will tell us how disneys 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 its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Breaking news this afternoon. Disney held talks to buy most tof 21st century fox that from david faber. Julia boorstin, its her beat as well what have you been hearing and how complementary do you think the assets would be in this case . Well, its interesting, bill, when you think about what disney ceo bob iger has talked about, how hes really interested in taking his content direct to 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 theres fx and National Geographic<\/a>. 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 theyre the ones who have been making those movies logan was one of the biggest movies that fox has had in the past year. And thats based on the wolverine character. 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 wouldnt say perfect. Yeah but kelly, i think its not necessarily perfect. Heres the thing disney has really been focused on big brands, familyfriendly 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 rrated 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 rrated comedies, versions of your superhero movies . He said, no, well leave that to them it would be very much o departure from their focus on big familyfriendly brands and really moving a different direction. I wouldnt say its 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, its another cable channel. Disneys been trying to, you know, move away from focus on those cable channels as Media Networks<\/a> have struggled. Yeah, sure, they could dpofocusn the fx direct to Consumer Product<\/a> but its not necessarily obvious. It could be interesting but i dont think its a sure thing. All right julia, thank you Julia Boorstin<\/a> 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, hes netflixs cofounder, hes 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 the opening round of a battle between probably the two best content creators and acquirerers, netflix and disney. Well, initially shares of netflix fell theyve 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<\/a> 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 content creators and marketers and acquirers of content mitch, once upon a time, people would talk about disney buying netflix you know, theyre 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 disneys 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 hes a pretty savvy guy. Very, very competitive what do you think he makes of this possible deal and how would he respond this just hes 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. Theyre never going to shy away from competition like this does he have to go out, make an acquisition of his own beyond what hes already done to create content for netflix . You know, i wouldnt be surprised if theres 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 im not sure theyre going to be as motivated as maybe disney might still be all right mitch, thank you appreciate it. Thank you mitch lowe, now with moviepass. Cofounder of netflix. Well come back with the closing countdown. We got records all around. Didnt take much this is one of those days where its 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 your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual<\/a> wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you\u2122 Liberty Mutual<\/a> insurance. Show of hands. Lets get started. Who wants customizable 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 its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. 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 lets just give you a rundown what happened. First the dow. Any gain is another record high. And right now, thats what we have right now the big gainer for the dow today, inside the 30 components, disney, you know whats going on there. Verizon was the big decliner down about 5 on today now lets do this in chronological order. Got up this morning, we found out that the tmobile prisprint deal was dead. Sprint went lower as a result. There it goes. So theres 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 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 its more than a twoyear high right now. I got Courtney Reagan<\/a> here with me. Yeah, thats right. With the situation in saudi arabia this is getting serious now. It is. Concerns about oil supply, the Biggest Oil Producer<\/a> up another 3 . Were at 57 and brent is going much higher as well. Thats right, 3. 1 for crude oil. That led the Energy Sector<\/a> higher that was a leading sector. Chevron was the big gaine for the dow for a while. Which we didnt 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<\/a> 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 didnt get to today. What is going on . Its quite a day. Its quite a monday here for the new york stock exkang. I have a theory well 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, im kelly evans its another record day on wall street heres how were finishing the dow up ten points on the bell again, thats 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<\/a> for the nasdaq russell 2000, gaining three points, closing below 1,500 and still below their alltime 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<\/a>, 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<\/a> joins us, too. Appreciate you guys all being with us. Lets 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 were 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 its doubled that throughout the afternoon. I wonder if thats as people say even though you said the talks are not now active, the share 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 todays Market Action<\/a> and certainly may respond to it. It is a difficult deal to get done without a doubt, as we indicated, of course, its 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, lets 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 its 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 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, thats great. I love when we do that on the other side on that left side of your screen, thats all the stuff that would be sold to disney of course, key question is structure, price i dont 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 doesnt 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. Mike, we havent 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 theres a sense of urgency in trying to scale up and play a better kind of defense and basically have options in this new world. Thats 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 foxs stake in hulu would be part of this disney also an owner of, coowner 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, were watching the share reaction of netflix today. Looks like it did manage to close just a touch higher. To quote mitch lowe, cofounder, who spoke with us a few moments ago, he said for netflix this makes everything for challenging, more expensexpensi, 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 dont like it. I dont like the cost. I dont like the inconvenience i think netflix still has that they still have the millennial base and the subscribe base. So i think, yeah, its harder, but theyll react with the right response and theyll make a similar acquisition. I suspect. I wonder what that would look like theres been another big deal, though, we want to especially, david with you here mention. Shares of sprint were plunging today after merger talks with tmobile were called off the company saying they were unable to find mutually agreeable terms. Theres sprint down 11. 5 . Tmobile down 6 one of worst performers. Broadcom officially pitching its deal to buy qualcomm for 103 billion. Broadcom shares up fearnearly 1 Qualcomm Thad<\/a> a big move, about 1 higher. Lets start with sprint and tmobile not entirely unrelated to the content, you know, media thing that were meanwhile talking about. What options, strategic options, does this leave for sprint and tmobile if it needs them now . Tmobile 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<\/a> they hadnt gotten that far with charters management led by tom rutledge but they did make inroads with Liberty Broadband<\/a>, liberty media, Liberty Broadband<\/a>, 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 Management<\/a> 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<\/a> rolling in their stran stake. It gets complicated. Not worth getting into now, except answer to your question, you cant rule out masa sans continued desire to expand in the u. S. He didnt 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 dont forget, its 300 years, kelly. Which is impressive maybe he thinks hell be alive to see it. I know we have to let you go david, thank you so much. Sure thing. Good stuff all day. David faber. Lets 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, thats 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<\/a> 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. Lets pivot, though, the discussion to priceline. The Worlds Largest<\/a> travel operator reporting earnings that beat the street on its bottom line 35. 22 adjusted on revenue of 4. 43 billion. But heres 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, thats exactly what i was looking for to be reminded, a doubledigit 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<\/a> for priceline. That was something on our mind at our shop moving into this Earnings Report<\/a>. So it might have a different a few Different Things<\/a> 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 thats really where we are is at its more competitive. And theres 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. Lets 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 thats data storage, computing needs. Also google is going to offer gsuite licensing at no costs for up to one year for salesforce customers new 2g suites. For example, perhaps over time see more Companies Using<\/a> gmail 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 doesnt break out its cloud revenue. It includes that in that socalled 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 moneys 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 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 gmail at work, i dont know if thats going to be the next big growth thing for google but its 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, theres plenty of opportunity in the cloud. So i agree with you, michael, i dont think anybodys too nervous about this googles got a lot of catchup to do in the cloud. Lets get back to earnings truecars results comie ining through. Kelly, one stock that investors, traders are not liking right now, maybe if youre short the stock, you are. Truecar shares down about 22 in the afterhours trade on about 217,000 shares of volume this after the Company Reported<\/a> earnings per share of 2 cents, beats the average analyst 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<\/a> revenues theyre 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<\/a> revenue as well. A company like truecar, a lot of expectations built into this stock, a stock thats 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 were still in the Global Growth<\/a> story. All right thats supportive for a lot of the individual stories weve been discussing, too thank you, everybody john augustine, nancy tangler, appreciate it today. Salesforce shares are higher after the Company Announced<\/a> a partnership with google. Mad moneys 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. Well discuss what that means for disneys succession plans coming up. We want to hear from you, contact the show on twitter, facebook, or over email 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<\/a> to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. Just, uh one second voice guy. [ bloop ] huh . Hey . I paused it. Bam, family time. So how is everyone . Find your awesome with xfinity xfi and change the way you wifi. Just moments ago salesforce announced its forming a new Strategic Partnership<\/a> with google and salesforce shares up about 2. 25 . Jim cramer is out in San Francisco<\/a> today at the annual Salesforce Dreamforce<\/a> event. He sat down with salesforce Ceo Marc Benioff<\/a> 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 its important to be able to be more agnostic Amazon Web Services<\/a> has been a Great Customer<\/a> for marc and vice versa. To be lined up with google means you got a much further reach i think the stock is correctly 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<\/a> benioff talked to me about right in front of the Salesforce Dreamforce<\/a> setting. You look to google, see this incredible world of information. You see the advertising, but you also get Google Analytics<\/a>. And Google Analytics<\/a> coupled with salesforces sales and service and marketing means both of our customers are going to have Customer Insights<\/a> that theyve never had before that is really exciting. Yeah, to me, what this means, kelly, you know how theres so much Artificial Intelligence<\/a> involved with when you buy something on amazon, a lot of customers are crying out for the same Artificial Intelligence<\/a>, if they can find anything on google and google did not have this goog googles got really Good Technology<\/a> to me the idea of placing an ad on google knowing exactly who it goes to is what youre going to get from salesforce. Amazon has it by itself. If youre competing against amazon, youre 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, its really interesting. Im glad you emphasized that because looking at amazon shares afterhours see if theyre selling up theyre not moving too much. Youre saying this is salesforce and google, two huge companies, putting amazon on notice i think thats 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. Im 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 i think noosthats 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 dont know if thats what youd read in terms of whats happening with disney and 21st century fox. Amazon is in there, too. Theyre everywhere. Youre 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 theres so much advertising going to google. You know what, you need the analytics, need to be able to know why youre advertising, who youre reaching. Thats what salesforce does. I know that fox, i saw their booth this morning for salesforce, theyre trying to figure out how to reach directly to consumer. Everyone wants to get to the consumer and they dont 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 cant 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 hours in these earnings, too, all trying to figure it out. Well 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<\/a>. Catch jims 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, thats 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 streets 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 theyre 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 ceos post said theyre focusing on everyday value, also 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<\/a> companies. Yes. Following in expedias wake priceline, trip adviser down big after hours. Truecar down big, red robin down huge. Its been the story of this and last earnings season which is if you miss, have light guidance, youre going to be punished hard. Especially with red robin, in a group, a lot of skepticism about casual dining. A small cap. Theyre talking about reducing their pace of store expansions so all of itis not the greatest plus this is the group thats also pressured by labor short amg shortages. I was spurprised shake shack seems like theres a lot of potential macro things moving against them and the burger space says exactly how compact shake shacks footprint is right now. Theyre starting from a very small base theyre still a boutique operator here. Theyre not kind of in, you know, a bunch of different malls the way red robin is at least not yet and i think shake shack ceo can address this, himself. Moo hell be on fast money next hour looking forward to that. Thats red robin as we mentioned a big decliner today. Truecar down 22 the Online Travel<\/a> companies, i should say, down after hours as well lets get back over to dom chu with another Earnings Report<\/a> uhoh, what now . We got a triplicate of things, a trio lets start to Weight Watchers<\/a> whose shares with up about b 7 , 8 , off their aftermarket highs right now. Weight watchers, the Weight Management<\/a> 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<\/a> estimate revenue coming in better, 324 million. Estimates for 319 million they also made a significant boost to their fullyear earnings per share guidance. 1. 77 to 1. 83 analysts were looking for 1. 47. The reason why shares maybe arent 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 weve seen this past quarter is whats driving that forecast gain for the full year. So a lot of that may be already priced into the forwardlooking guidance Weight Watchers<\/a> 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. Well finish off with amc, the theater operator been in the news a lot lately. A loss of 33 Cents Per Share<\/a>, less than the loss of 37 Cents Per Share<\/a> 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 60some 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<\/a> winners look at the implicit rationale behind disney and fox, it really is kind of tv. Its 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 theyre 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 ceos succession plans. Sprint and tmobile calling off their merger talks the future of those o tw companies and the rest of the Telecom Industry<\/a> stay with us i was playing golf days ago. Love golf. I used to love golf. Wait, what, what happened . I was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. No. Yep. Did it help . It completely ruined my game. Well, the truth is, that advice was never meant for you. I like you. You want to show me your swing . Its too soon. Get advice thats right for you. Investment Management Services<\/a> from Td Ameritrade<\/a>. Welcome back time for a cnbc news update with sue herera hi again, sue. Hi again, kelly, hello, everyone heres whats happening at this hour diplomats and activists gathering in germany to iron out Technical Details<\/a> of 20915 paris accord, aims to lower Global Warming<\/a> 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<\/a> structure is fully operational, that its impact can be enhanced. Florida State University<\/a> has indefinitely suspended its fraternities and sororities. It follows the alcoholrelated death of a freshman pledge and cocaine charges for a member of another frat the University President<\/a> 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. Youre up to date. Thats the news update this hour kelly, back downtown to you. Sue, thank you very much. Our sue herera. Lets take a look at how we finished on wall street today. It was small gains but still a recordsetting 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<\/a> and the priceline truecar Conference Call<\/a> started a couple of seconds ago 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, lets get you up to speed with todays rapid recap. 21st century fox has been holding talks to sell most of the company to walt disney leaving behind aMedia Company<\/a> 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 Putins<\/a> sonsoninlaw. 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 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 progrowth 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 pentup demand potentially for deals. I mean, weve kind of all remarked on the fact its been largely absent during this phase of the bull market it seems as if theres enough technological regulatory chains getting to a critical level and seems like all these things fit 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 theyre responding. If they dont, somebody else you mentioned how foxs shares are up 10 . This is a stock that has a founding control family. The murdochs. You cant 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 its interesting. Lets talk more about this now with bill smid, ceo of smid Capital Management<\/a> 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<\/a> that dont have a history and have loads of money to spend are squandering theirs by just throwing it at the wall jeff, theres 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 dont think theres a succession agenda behind this at all. I think its highly unlikely that bob igers successor is going to be imported in from the 21st Century Fox World<\/a> this is entirely what bill says it is, which is an incredible deal that the markets, analysts were hearing from are telling us its still 30 undervalued if this thing goes through. That the content, the distribution opportunities, the consolidation, and iger, theres no better media titan alive today and perhaps hell be one of those two or three greatest in history in terms of what hes woven together but also what hes been able to execute. So thats what its all about, and we often see people at this point in their career pull off some of their biggest and best deals. Theres 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 its antifaang 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<\/a> or manufacturing movies and Television Shows<\/a> over the decades, just ask coca cola and their columbia pictures unit how easy that is to do for a nonexpert and somebody that doesnt have it in a wellorganized manufacturing operation. Youre right. Theres no doubt about just to get at that a little bit more, i dont know if the market is saying that these proven creators of content are now disadvantaged because theyre not faang, theyre saying the distribution model, the way theyve 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<\/a> 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 thats all that is exactly right. This is not all about pipeline bill is exactly right. Theres an awful lot here about content, but on the technology side, these guys arent i mean, bob was obviously quite close to thats right. Iger is quite close to apple. Hes got jack dorsey on his board, of course, from twitter hes got john chen from blackberry hes got Sheryl Sandberg<\/a> of, you know, from facebook. Its 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, hes 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 arent these Companies Like<\/a> apple and google and facebook and amazon, why arent they buying up these cheap content assets right now 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, its 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 igers been alive. Wow thats a crazy thing to think about. Thank you, guys, both. We have etsy earnings just wanted to get to here with Courtney Reagan<\/a>. Howd they do, court hi there, kelly etsys Third Quarter<\/a> headline earnings of 21 cents not comparable at this point to analyst estimates. The headline earnings, 21 Cents Per Share<\/a> for etsys Third Quarter<\/a>. Revenues coming in slight sli higher than analysts had been looking for. See shares reacting after hours. Moving sharply higher. Etsy also reiterating its fullyear guidance for the gross Merchandise Sales<\/a> as well as the revenue. They see revenue growing 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<\/a> as opposed to 30 at this time last year with 32 million buyers, thats up almost 17 year over year and almost 2 million sellers, thats up about 11 year over year. Kelly, back over to you. Thank you, courtney etsy shares up, that makes it and Weight Watchers<\/a> bucking the trend of other decliners after earnst th earnings this afternoon. Take for the takeaquai discounts brought to you by Amazon Companies<\/a> 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. Whats the use of having dominant scale if you dont use it in this way when you say alienating the other sellers, thats amazons competition will it alienate the thirdparty sellers if it creates more volume they should be agnostic as to which platform they get their sales from it seems to me its the big player exerting whatever leverage it can going into the holiday season. Imagine well see more of that. Next, cvs will start delivering prescriptions next year the Company Announced<\/a> today it will be nextday delivery for some stores and samedelay delivery in washington, San Francisco<\/a>, boston and miami. Again, michael, can they fend off amazon. Heres the area where amazons power is only kind of notional and feared. Not really if place yet. We dont really know specifically what theyre 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 thats what theyre all positioning to prepared for. Finally stitchfix announced its ipo terms today. Plans to raise 190 million by offering 10 million shares in a price range of 18 to 20 bucks. At the midrange that gives the company a 2 billion market cap. A lot of highprofile 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<\/a> 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 dont know it falls into that category this is not blue apron for clothes. Theyve certainly been disciplined in it terms of amount of thats helped keep it from all the deals that really did flop had one fatal flaw at the ipo everyone was talking about whether its snapchat, blue apron, attrition, ability to hold onto customers. I dont know if theres 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 shares of sprint and tmobile after they called off their merger talks well 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. Dont know if you can hear me, but [monica] whats 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 months lease payment on select models during the season of audi sales event. Whats that, broheim . I switched to geico and got more. More savings on Car Insurance<\/a> . Yeah brofessor, and more. Like renters insurance. More ways to save. Nice, brotato chip. Thats not all, brotein shake. Geico has motorcycle and rv insurance, too. Oh, thats a lot more. Oh yeah, im all about more, teddy brosevelt. Geico. Expect great savings and a whole lot more. We are the driven. The dedicated. The overachievers. We know our best investment is in ourselves. We dont take no for an answer. We fight for what we want. Even for the things that were once a given. Going to college. Buying a home. And not being in debt for it for the rest of our lives. But were only as strong as our community. Who inspires and pushes us to go further than we could ever go alone. Sofi. Get there sooner. Tmobile and sprint dragging down the whole Telecom Space<\/a> today. See the declines there tmobile 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 dont see good Strategic Alternatives<\/a> for sprint. Why was the ceo so determined on having control over this company and what options do they have now . So im not really sure, kelly, i think its 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. Its 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 tmobile is going to need capacity from somewhere else now that theyre not doing this deal with sprint there are few options for them dish would be a good option. Cable would be another good option its, you know, i think its going to take a while before any additional deals come out of this for sprint, its a little bit more difficult its theyve been trying really hard to get a deal done with cable companies, and they havent been able to get anything done except this deal with altese which is great in a way bougut its in a tiny piecef the country. Gives them a cable partner in 6 of the country which really doesnt amount to all that much. They spent two months talking to comcast and charter and didnt 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<\/a> to the failure of these deal talks, it seems as if the conclusion is, well, its 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 thats exactly the correct assessment were stuck in a four carrier market, going to five. For the foreseeable future means its 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, tmobile is the best position. Theyre the ones with the most operating momentum theyve been taking share. Theyve got expandi ining margi. Its going to be a much tougher space Going Forward<\/a> for sure. Jonathan, at t shares were only down about 1 today verizon was down 4 . Im curious why verizons hit harder and whether if at ts content deal for time warner goes through, if thats the kind of deal making we could see more of from at t and verizon so, verizons 100 exposed to wi wireless its sort more or less a Wireless Company<\/a> which is why theyre down more. At t for better or worse has exposure to paid tv through the directv deal and soon hopefully if their deal goes through, content through the twx deal so im not surprised by the relative performance of those. Ive said on this show before all of at ts businesses are under pressure for different reasons. Its just today its the wireless business thats taking it on the chin and i that makes sense. As for other deals yeah, you know go on. If disneys going after if disneys going to do a deal with fox which i think makes tremendous sense amount of sense for those two companies, i dont know whats 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<\/a> taking their red pens to the process today what could change in that plan coming up. Ahead on fast money shake shack ceo will explain how hes 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. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Theextreme risk of burstd a pipes and water damage. Y. Soon, Insurance Companies<\/a> wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. Up next, the House Ways Means Committee<\/a> marking up the tax bill. What changes could be in the works and whether it will be enough to get some skeptical republicans, maybe democrats on board, when we come back the classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders<\/a> connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. 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, thats 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<\/a> to two years. Another change potential increasing the limit this republican caps that at 500,000 i talked to peter ross cam, he doesnt there changes that can be made of course, thats the nature of a markup, but getting into this process so far, this has been years in the making, so i dont think theres anything in this bill thats necessarily a surprise to anyone reporter the democrats have tried to delay the bill, they havent 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 back over to you were 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 well look ahead to the Conference Call<\/a>s closing bell will be right back whoo woman class, lets turn to page 136, recessive traits skip generations. molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. so what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan<\/a> and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Allow you to take advantage of growth opportunities. With a level of protection in down markets. So you can head into retirement with confidence. Brighthouse financial established by metlife. These earnings movers. Priceline and tripadviser both down, and its now negative by just a fraction. Weight watchers it continue toss move higher. That call starts in a few minutes. Ets kicks off too. Youve 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 thatsic going on, theres a lot of new lows cropping up. Its been oddly calm on the surface. The entire story is being told underneath the surface yeah, youve got to look below the surface. Thats 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 citys 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,","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800401.us.archive.org\/18\/items\/CNBC_20171106_200000_Closing_Bell\/CNBC_20171106_200000_Closing_Bell.thumbs\/CNBC_20171106_200000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240629T12:35:10+00:00"}