Investment, what do youd see as the future valuation for this business within mgm and if they dont get there do you plan to sell your stake . I tell you what on the first question i would not put a number on it but i would say with absolute certainty it is worth more than negative the Online Business is getting a negative in there. Im certain it is worth more than that and that is something that we looked at and considered when we were making this investment and you said your second question i have no idea. Were me in this for the long term and that means that well there r is all kinds of opportunities that may arise from here. And well consider everything. Finally are you looking at anything similar to this given all of the cash that you have . Were always looking at everything that is the fun thing about iac. We have the ability, the flexibility, and the time horizon to do anything that we want to do and were always active in the marketplace. Thank you, we appreciate you taking some time today thank you for having me good morning welcome to squawk alley. Carl and john have the day off markets mixed to start the week on prospects for a new stimulus bi bill it is set to take effect on october 15th kara switsher joins us now to weigh in good morning, thanks a lot. Lets say twitter could find the money or the backing to do such a deal. What happens do you think tiktok will thrive or will it go down like vine it has to be sold to twitter and the white house will have a lot of control over the process whether or not we like it. So you have to wonder if donald trump will weigh in. The same with amazon there is also the financial parts. Theyre linked with silver link. It seems unlikely. It seems like microsoft will be the company to get this. It is the easiest deal to do others might look at it like softbank which i think will not happen, but you might see other investors involved here. Micro soft or twitter, i think they have a lot of money to put to work in a very promising company. But kara, who do you think does the best job with it or does it matter there was an article talking about how the code is so important, right and alex stamos was on to talk about whether or not it will really matter if they are able to continue to momentum. Who do you think is the best combination in that sense . You think of a company like disney, but i think the people in the u. S. That have been running it have been doing a great job. Theyre not going to get the chance to do that. Theyre not going to get the chance to go hub lick. If they would get the security stuff in place, being independent would be the best solution do you think that is an option there has been talk about venture capital. Earlier backers getting together, do you think that is on the table its difficult to process it from the Security Point of view. So that, i think alex talked about that, and many others have and you have a security issue here and a creativity issue. I think the people that created this should be able to run it, but there are National Security concerns raised now and i dont think they can escape what has happened here. They have become a political toy for all of these people. A political football. Kara, i also want today get your take on we chat also. A ban could have further ranking implications for businesses. A top apple analyst said it could affect iphone sales by up to 30 do you think tim cooke is talking to the business or would apple give them a way to go around the app store to download the app . It is politically fraught President Trump says Something Different all of the time and you never know what he will pop off on there is no clear proof of any of this at this point. I think apple is so exposed in so many ways been china and as the tensions focusing on tiktok is small potatoes as far as i can see the exposure in china, and it is a Global Supply chain, and there is more serious things to worry about with china again as i said before here we a are discussing a social video app. Think about the conversation about real 5g. We also want your thoughts on amaz amazon there is talked to turn sears and Jcpenney Stores into fulfillment centers. This likely doesnt come as a surprise to you. What do you think it means for malls and other potential tenants that may see amazon, the company that has hurt their business overtime, move into their space. Well, thats the way life goes, right . Malls have been on the decline for a long time. Its not a new, fresh idea and we predicted, scot scott gallowwscott gallow w ay said why buy jcpenney when you could just buy the space amazon needs more and more spaces to fill its booming business that makes sense they dont have to buy jcpenney, they just have to get the space. What choice to malls have . The big retailers are not coming back, and there will be a lot of struggles as people move to online delivery more and more. Im glad you bring up hole foods. At the same time, amazon has been working to, you know, launch another grocery chain and in that wall street journal report said that amazon may be looking to jcpenny for that new kbros ri store it is a tough market, what do you think about it can it make moves further into the space . Sure, why not there will be a lot available. Jcpenney is interesting because they can buy the space or they can buy the relationship with a lot of clothing e taretailers. It has its pick and that is the thing. As they move into the space, there is a shortcut to going to where they were going anyway they can certainly own pieces of it and buy it for parts and that is what is going to happen here. Kara, do you think amazon can be successful on the grocery front . Have they proven that . It has taken them a very long time to make a dent. Jeff bezos is very patient. Groceries is an area they have shown they can do very well in it just because it is slow doesnt mean it will not be another category if is norm with another category and hard goods. They have mote after mote after mote in terms of delivery, convenience, price, data, this makes sense to get not one, fulfillment centers, bud business thats have some distress as you say, bezos is a patient man. He may see an opportunity here thank you for joining us this morning. Thank you bye. Talk to you soon, bye [announcer] if youve tried college but never finished, snhu lets you transfer up to 90 credits toward your bachelors degree. [woman] it doesnt matter how old you are, you can do it. You can finish. [announcer] finish your degree at snhu. Edu. Record amounts of capital pouring into the cannabis industry 11 companies raised more than 2. 6 billion in the last two years combined clear leaps, an International Cannabis company is expected to close later this year. I have the ceo of clever leafs joining us it is seemingly a different world, senator dashall lets talk about legalization federally. Im wondering about states desperate for revenues i dont think there is any question about it. We have seen a dramatic increase in utilization and especially as a result of covid. As a result of covid states have declared cannabis dispensaries as essential facilities. So it is yet another indication of the role that cannabis is playing across the country so youre seeing increased pressure to find ways of which to utilize cannabis and i think youll see more legalization kyle, over to you now, to your decision to go the back route, how will it change your approach in terms of running the business, if at all. I dont think anything changes from the day to day. I think being able to access the nasdaq is amazing. We are the First Company to export legal cannabis, but having that currency on exchance,exchancge i think we can speed up our specialization internationally hey, kyle, when you were on in december, you said that you were targeting Free Cash Flow bostive by mid this year where do those plans stand now you raised money in april now where does that stand . Were a little behind covid caused a little commercial interruption they stopped air cargo flights for columbia were a little behind the pace if we look back to our canopy contract we announced a very big opportunity. Working with us, one of the lowest cost producers in the world and hopefully that means great things for 2021. You mentioned more rationality coming in. You mentioned it a couple years after it was a gold rush the excitement over decriminal skbags and legalization across the country. Are we waiting for basics to be set in place for the industry to make good on those ambitions it seems like a lot has happened before it has become fully main stream and available everywhere. I think i have always taken a long term approach to this a lot of companies have missed sec filings. We wanted to make sure we did it right. I think were in the second inning of a nine inning baseball game we have not proven to the world, no one has seen a use federal legalization produced in columbia and portugal, now were seeing what they can do. We have to take advantage of you being with us to ask a question about the ongoing negotiations between senate republicans, the administration and the house. I know youre a private citizen with only the access that we have, but what is your tense to goat a deal potentially . I dont think there is a sense. Going to states, localities, hospitals, working people from just about every sector is you have to get a deal if you have to find a way to resolve your differences. Come to le to the table and compromise i appreciateboth of you joining us on this busy news day. Thank you. Youre welcome. Thank you and the ceo of Royal Caribbean joins us in a few minutes exclusively off of the fresh earnings cl. Al dont go anywhere, were back in two minutes. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. A major gas explosion demolishing homes in baltimore one woman is reported dead, two others in serious condition. The tsa reporting more than 830,000 travelers went through their check points yesterday that is the most in nearly five months they also say more guns are are showing up in those check points they found 15 guns per million travelers and that is triple the rate of last july. And a government minister is resigning over last weeks deadly explosion that is our cnbc news update for this hour. Squawk alley continues after this bling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. Coming into the bottom of the hour, the s p just below the flat line. This rotation once again coming out of our big high flying tooks. You see the dow is still up 200 points in that context lets get now it seema moody thank you, michael. Fresh off of the Earnings Call thank you for joining us today on cnbc. Thank you for having my back. Tough revenue, richard, but the market seems to be fix sates help us understand who is booking a cruise for next year who is it welco, richard . I think people are frustrated being at home and being isolated what were seeing, particularly is the people that know us, they know what we offer and theyre looking forward to being able to come back again next year. So i dont think that is a surprise and think i everybody is looking forward to seeing the industry come back into full operation. You also said that china, potentially australia, could see cruise line operations return. When will we see it return here in the u. S it makes up with majority of your revenue first it was july, then august, now october 31st are you confident that you will see your ships return to sea . I think we are seeing some movement in other countries. We have seen targeted up in germany. Looks like in mid august you will see some starting up in italy. We are hopeful that things will improve and that well see movement in australia and china. But every place is looking at it independently. And were learning were learning throughout this process. And we are very pleased with our blue ribbon panel. We are working with them to come up request what we think are the best protocols but one of the big determinants will be what is happening in the broad broader society. If they are locked down youre not going to see trcruising comn back were talking the time we know were out of service for awhile, is to is a time to learn and improve. When we do start to come back one of the points we made on the call is we dont expect it to be a light situation. Switch. It will be a dimmer, well learn more, and gradually biuild back up you raised more debt. You have about 4 billion in liquidity, where do discussions stand with the forecast government where do they stand with the trump add might be strags and are you willing to change where youre incorporated from liberia to the u. S. To increase the chance of getting Financial Relief were not having discussions about supporting the cruise industry we started with a strong Balance Sheet. We have take b a lot of steps to bring our costs under control if is a very pain profl access that we have gone through were doing that without relying on the u. S. Government were doing that on our own and i think that is the process that we would expect to continue. Are you confident that if sails resume that you can control the virus . What kind of experience does that look like for your customers . You know, i think that is a terrible time to not be able to sail, but it has given us the time to really talk to the experts. Im really in awe of this caliber of panel we have been looking at it very closely. Were learning a great deal and were not going to come back until were confident that we have the right protocols in place and yes, it will take awhile and yes we will learn at each stage as we go through the process. Now the cruise lines have special characteristics. There are reasons why it is more difficult to do this on a cruise ship the other thing is they have control over much of their environment than in so many other areas. So kre, i think we will be coming back. We will only do it if we can do it in the right way, and as i said it will be a slow, gradual return it will not be someone blowing the trumpets and all of the ships start out. Well start casuutiously probably with shorter cruises, with fewer people on board and as we learn and as the prevalence of the disease reduces well start to improve on that. Richard you mentioned you added to your liquidity, how long can that last you at this pace of cash push . Well, we have not specified a special date what we have been doing is we have very clear on what our monthly burn rate is were talking steps to constantly improve our liquidity. So i think it gives us a lot of difficulty for run way but were, you know, the old expression you can never be too rich, too thin, or too liquid. And that is what were trying to be cruise lines provide a lot of tourism dollars. How concerned are you about the economy in florida where youre sitting right now . I think everybody has to be concerned about the economy everywhere i do think that in the cruise industry it is such an important contributor. When we get back to work that will help the economy. And the other thing is we have seen this were in difficult times. The great reception of 2008. We have seen that the cruise industry does well it is a good vacation that people really want, and it is compa cheap. We have a Good Business model. Were dealing with an incredible crisis unprecedented proportions, but a lot of progress is being made to see us through it. There is one european cruise line. Yes, our own joint venture has started operating two, i think, 2. 5 weeks ago now it is operating with a joint venture. So far very successfully testing is likely to be a component of whatever we end up doing. We dont feel a need to say this is what were going to do on every piece. We want to get our whole act together we are using innovation. Testing is one another one that i was very pleased about is we recently announced our new program that is a totally new way of mustering. It eliminates large crowds of people and i think we will see more and more innovation like that when we start to come out with our protocols. Have you heard of robinhood the trading app . No. Okay, it is a popular trading app that is geared towards my len y millennials. Your stock is one of the most popular. Im story, i figure my job is running a cruise line. Ill leave it to you guys and the street and others to figure out how the shares should price themselves but i think im very opt misic about the future were making Real Progress on therapies. People are beginning to wear masks, and do a better job of isolating, and vaccines seem to be on the near who ri gone so im hospital mystic about the future richard, thank you very much. Thank you very much seema, thank you for bringing that interview to us. Keep your eyes on shares on pinterest this morning taking its price target up to 44 saying it koud be as high as 06 aneyre currently up 35 and chge dont go anywhere, were back in just a minute. Tmobile, we have more towers, more engineers, and more coverage than ever before. And now you can get an Awesome Network at an amazing price. Get four lines of unlimited for just 25 bucks a line with 5g access included. Thats right. Unlimited and nationwide 5g for just 25 dollars per line only at tmobile. Hey. [narrator] she takes two prescriptions. Kates son jack, takes one too. Kate works hard, and thought she had good insurance. But she still pays too much. Thats no good. So kate downloaded the goodrx app. Now she can compare prescription prices, to find the best discounts. She even beats her insurance price. Good for you kate, good for you. Goodrx, stop paying too much for your prescriptions. Download the free app today. Welcome back to squawk alley. Mike santelli, there is a few Different Things going on. Prospects for that stimulus bill what do you think will be driving . Or the next catalyst for these markets . What is going on in the markets today is a move away from the reliable big tech stocks you would think it is the kind of move that would indicate higher hopes for fiscal stimulus or some kind of acceleration in the economy. What really seems to be going on is a reallocation of portfolios as the s p gets within 1 of its old peek. It seems like people are assuming it is time for a move into those laggards. People are pointing to the fact that the forecast for earnings, for the Current Quarter and for 2021 have gone higher. Maybe that indicates that people think that the earnings come back story as oppos foes oppd to the big tech earnings, but i think it requires us to mention that some of these