Good tuesday morning, welcome to squawk alley, i am Carl Quintanilla well go to bob backish, viacom ceo. Well start with we were delaying its ipo as you know amid questions over its valuation and Corporate Governance lesley pickers has more back at hq what do we have today . We were convene employees for an all handson deck it is unclear exactly what the purpose of this meeting is but most expect to hear more from the status well bring you relevant details as we get them in the meantime i have been chatting with sources on the deal exactly what happened to cause the delay and told they realized based on feedback from investors they needed to sharpen the story, they were not ready to have those conversations with investors on a formal road setting. This delay would give the company time Third Quarter numbers in the marketing we were saying in a statement that expects the deal to be completed by the end of the year the important thing to note on that timing is that if the ipo does not happen before december 31st or if it does not raise 3 billion, we work with jp more january a morgan expiring. Pushing a deal of 2020 would mean of 9 billion that we need to fund out. It is unclear what the delay at this point much will change in the next few months that would allow us to boost valuation beyond give or take and of course the risk guys that the Market Conditions could turn and investors would bulk even more at a money losing company have not been retested in a recession before guys lesley, you touched on this a little bit given some of the backlash for potential Public Market investors, how much more can it actually change by pulling off on the ipo thats the question valuation is a big question here i am told they did almost done a preroad show where they went to the big Market Center like boston and did this lose meeting with investors kind of gauge interest before launching this road valuation is the key question here if investors feel like they are getting enough of it deal, perhaps they can get big ticket investors to buy in at a decent amount of the ipo. As you mention on the Corporate Governance front, they added a woman to the board of director, after pointing out they did not have real diversity on that board. Additionally they roll back a lot of Corporate Governance. They could initiate more of a single one vote per share class structure. It is unclear whether theyll be going that far morgan well see where this one goes lesley picker, thank you now lets head out to david faber, hes at the conference sitting down with special guest. David. Thank you, i feel like i have been at all 28 at this point very happy to have repoobert b k backish with me. How long, the merger is not a change in control, a lot of people say the regulatories are going to move faster than the typical deal we believe so well close sometimes in december things are moving along. We benefited as you say for common control in the context of emerging process december will be upon us very soon it has been a month since you announced the deal the stock did not react particularly well given the weeks and months and years of speculation and many waiting for a positive response. Were you disappointed in the market response . Clearly we are disappointed of how stocks are reacting i spent the last two weeks talking to investors and making sure they understand the tremendous opportunity ahead of viacom and cvs, you look at the asset of this company unites whether it is paramount picture and the power house cbs and broadcasters and show time which is preempted and a story coming forward in the last five years we think thats a tremendous opportunity. You look at it, a library of 145,000 television series. 3600 films and participations and news and sports on a global bases, it is a tremendous opportunity. It positions us to be a preemptive content provider to the world. Well be focused on maximizing the value of that content both through our own platforms and third partiy. You will see execute that strategy as we close and it is going to accelerate our transition to the next generation platform. We are tremendous excited. You mention speaking to investors which you will be doing as well. I spoken, they were disappointed by the 500. Many pointed to that seems much lower than we anticipated. We are not sure why they chose that number. What do you tell them . That was a topic conversation with investors as well here is what i would say 500 million, it is a synergy number thatll drop to the bottom of the line thats a bankable number i would also, discussions i want to talk about. We have higher number, well look at more opportunity and as we get into this process, i would not be surprised that we didnt find it the revenue side is zero ultimately net 12 to 24 months the reason you do this deal is revenue of synergy. We see substantial distribution revenues in this deal. On closing will be on the Market Leader intelligence market share in the United States that makes us a partner that video distributors need to have as part of their offering. We think thats a substantial opportunity. Like wise in the advertisement space, we are not only 22 of primetime, we are number one on every demographic. You add to that, the advance Marketing Solutions that viacom brings to the table and we as a solution product provider for advertisers are the clear Market Leader we think that leads to substantial synergy in the ads space. This company used to be together and when it was together, it licensed films and Television Product together thats an tuopportunity that we see in the market as well. Thats a place where the combined asset will enable acceleration and substantial process. Right i wonder whether investors will look at the added scales of this hey, you are still in a business thats being eroded everyday yes, it is great to be 20 of the market that market is getting smaller and smaller in terms of what we have dealt with for many years streaming is sort of where they want us to focus in terms of potential Growth Opportunity yes, you may grow synergies, are you facing a declining market overall . No. What we see is a Consumer Market segment. We have seen that for the last couple of years. Still majority of consumers today in the United States are big bundle consumers they are going away we have smaller bundles have opened up. At the high end, over the top bundles that are substantially thats a growth segment in aggregate and below that you have players like netflix which is also a growth segment, one we are supplying directly through our studio production. We have the Market Leader. We see that segment in the marketplace, we are focused on a company thats different than other companies focusing on the widest assessable market consumer perspective you look at us today of the big bundle and small bundle segment. You look at us supplying the space, we are major supplier of original content to that we are making hits every single one of the services that are in the market today are announced or doing business with us on a traditional production bases, we are in clear demand as other people cut back from that. Again, we think the free space is substantial opportunity what you see is the growth path there taking a tremendous content asset which includes both assets in the library as well as new production, maximizing the value across the poll distribution what about the investment i ask that because todd younger, you have brought him in and explained things to him. He came out of that and continue to say viacom and cbs must take one of two neither scenario, the stock is going to under perform because it is going to cost so much darn money if you have to invest. Look, if you look at this scale of spending combined viacom and cbs, we are spending 13 billion. That scale spending puts you in a club where you have a flow that ensures that you have state of the art capabilities in terms of content and a flow of talent in terms of wanting to work with you. Viacom and vbs gets you that the other thing is you look at how you spend that money we spend it across film and television the film space we are on a nice trajectory at paramount. Theyll have 16 films in 2020 starting with gemini and terminator and the next two months very excited about that Television Space very substantial ongoing production and we are going to focus on again through our own operated product. Where you put new production and importantly how you feel partner dema demand we spent the last three years working closer and closer with our Distribution Partners and this Distribution Partners are important over the top space as well thats where we see the substantial opportunity going forward. Todd is certainly entitled to his opinion. I talked to him quite a bit about this notion, i am 100 on vinced that the viacom strategy will get us to the market and enable things like mobile. That unlocks extraordinary values for this company. There are still those who says the scale is not enough, having heard all the scales that you have, theyre saying you are still too small to compete overall. Whether it is with a robust streaming service or the point you are making and hitting all the different area i assume you disagree with that. What do you say when others say you are not big enough to compete with disney or some of the other giants that are out there. I disagree with it. I think there are a number of things of the streaming space. We do you can bring in the widest assessable number you got all access on cbs side and pluto yes, we are lunching bet plus later this week. We think that integration is a tremendous attractive. Well see how the portfolio particularly on the pace side evolve overtime. Peacock is taken overtime i heard it this morning point one is it is a hybrid of free and pay point two is look at the content of collection in it. Not only scripted but unscripted we are a leader in both. We have news contents. We have sports content all of that is national content. We have local content. By the way, we serve every demographic. Well bring substantial content, breath and depth to this space the third thing is this notion of partnership i fundamentally believe in partnersh partnership. I think it is missing the market opportunity. Look at what we did with pluto, no one understood that now theyre working. On some levels it is and some levels it is we are working today with comcast and cox. Is that real programming on pluto that a lot of people want to watch on . Absolutely. When we announced the deal in january, we had 12 million monthly after users. Our Third Quarter in august, thats 18 million monthly active users. 50 increase in six months u. S. Only. If you look at times spent per active user, it is growing faster you got 160 contents including the nfl on the platform and we are rolling internationally. It is tremendous demand and we start to monetize it aggressively in the market that play is tremendously valuable and a piece of our streaming strategy we are running out of time. You mention the nfl. The contract is still a bit away are you confidence that cbs is going to keep the nfl . I am confident we have a high commitment with the nfl. Cbs, broadcast breach. The nfl, thats important. Second thing people dont talk about is high Quality Production cbs produces multiple games per week in the season thats the way their product is exhibited to the American Consumer they care deeply about that and viacom you got two other things that are important to the nfl you got young audience breach. We have both linear and on demand and so as you look at viacom and cbs, four things come to the table. That package is very hard. Although Something Else they care about is this sure theyll want a bigger check and you can pay it bob, we are out of time today. Look forward to talking to you again in the future. Good luck or so. Thank you for taking some time bob backish, president of viacom and cbs david, thank you. A big day for Media Industry news dom chu has those details back at hq as we focus on the rates the Federal Reserve took steps to stabilize u. S. Dollar lending and barrowing markets. What happens was the u. S. Fed conducted an over night repo operation. That was an effort to bring down borrowing rates that was affected the last couple of days the move were driven by shortage of dollars available in the Financial System it was caused by the timing of things like corporations needing cash to make some payments and bond dealers and positions with certain clients. The new york fed ended up closing a 53 operation to put cash in the system to solidify that over night lending rates. The focus of tomorrows big fed meeting. That rise in dollar funding rate spiked a lot which sent effective borrowing rate at the feds higher as well. It may flow through to other parts of the overall credit market which may in turn lead to credit market getting tighter and causing stress on certain corporate borrowers or hedge funds or other Financial Institutions no signs of contagent yet. Thats why so many folks are paying atextention to it. Looks like for now it is contained. Good explainer, dom thank you for bringing that to us Big Bang Theory on hbo and seinfield, nbc explaining more is coming. Dow is down 38 points. Ayitusst wh i dont know whats going on. Ive done all sorts of research, read earnings reports, looked at chart patterns. Ive even built my own historic trading model. And youre still not sure if you want to make the trade . Exactly. Sounds like a case of analysis paralysis. Is there a cure . Td ameritrades trade desk. They can help gut check your strategies and answer all your toughest questions. Sounds perfect. See, your stress level was here and i got you down to here, ive done my job. Call for a strategy gut check with td ameritrade. Welcome back to squawk alley. Nbc universal streaming service in the works are calling peacock and it will launch in april of next year with more than 15,000 of contents and combinations of news and sports and live tv series and as well as new original. There is no word on pricing. I am hearing it will be less than 12 a month originally reported when the Services First announced. Now in addition to the office, peacock will be the exclusive home of cheers, saturday night live, will and grace and among others its library will include classics such as et and jaws and films from fast and furious franchises. It will have new original comedies from Lauren Michael and jimmy fallon and seth meyers along others this announcement is the latest in the content war of these new services get ready to take on netflix. Also today at t announced it struck a deal for the Big Bang Theory after 12 years on cbs. Warners paid half a billion dollars to stream the show five years on hbo max and another 100 million to air reruns on tbs. Net fli tbs. Seinfield reportedly paying 500 million for that deal worldwide. The fight for the popular tv show of the past several decades is turning out just as pricey and competitive as what we have seen for deals with big content creators that are being snapped up in a land grab for the content thats going to vote the draws and keep subscribers on various platforms. It is going to be a fun fight to watch after the break, 30 jobs up for grabs today. It is prime day for jobs amazon is posting a nationwide career day a lot of report omq is xt, stay with us dmothers docto. We can do the screening at her house. Hi. This is the man thats going to check your eyes grandma. Cognizant ai solutions are helping Healthcare Companies advance diagnostics and prevent blindness in patients with diabetes. Everything looks good. You have beautiful eyes. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu amazon is hosting a career day in six cities across the United States. Hoping to fill 30,000 jobs at the site of hq 2 deirdre bosa reporter well, first of all, these are not just warehouses. Amazon is looking to fill marking and i. T. And engineering and operations as well amazon moves beyond its core business of ecommerce, it has become the number two largest employer in america after walmart. Guys, while 30,000 jobs are a large number and a nice headline it represents less than a 20th of amazons global work force. Look at this, the start of 2018, amazon work force for 60 year over year. At the start of this year, it grew 12 year over year. It is also reflective of amazon slowing growth and online sales here in north america. Amazon is moving into new businesses from groceries to advertising devices. When you look at their career website, take a look at behind me on the website there are nearly 12,000 open positions and another team where amazon is hiring aggressively, this one right besides me although there is not anyone here this is the amazon alexa this may tell us where amazon wants to go. As it struggles to replicate that growth overseas back to you. What has it been like in terms of traffic into these booths reporter it has been extremely busy the first person to line up was at 5 30 this morning the lineup, there are many people waiting outside i was at amazons career day a few years ago, i felt like there was a lot more people there and lines around the block a few years ago. Deirdre bosa, thank you seema mody hello, morgan the move today enlarge part due to the knee jerk reaction. Energy stock being the best on monday to one of the worst performing group in europe today. How