Last night, a couple different issues. This puts them as the second largest tv company in the country. 5. 7 million tv customers at at t, 23. 3 million in the u. S. As becky said, its a 10 premium. It is actually a 30 premium when you look at the price relative to when rumors of the deal first came about. And let me tell you a couple thing that is randall told me last evening. He said mike and i have talked about this deal on and off for quite some time. They have been, quote, trying to assess the regulatory situation as it relates to this transaction. And he said the more we peeled back the onion, quite frankly the better we felt about it. Heres a standalone tv business and we are for all intensive purposes in mobile and broadband business, we are not, and he said this several times, we are not in the standalone tv business and we dont even really sell that product today. He also said they have been talking for years but interestingly enough they stopped at one point. They didnt do the deal sooner because of the antitrust laws. He said, quote, the American Airlines lawsuit caused us to pause. Once that case got settled, it caused us to relax a bit. He also said the timing of the deal was unrelated to the comcast Time Warner Cable transaction. He said that multiple times. Im not sure i believe it. Its a good time to get in. If one deal gets passed, you assume the other will, too. Thats what i said. He said of the regulators, quote, they by rule have to review each transaction on its own merits of the comcast time warner deal, he said, quote, thats a different transaction. We see that deal getting done. He said over and over he sees that deal getting done. He has to say he wants it to get done. There will probably be conditions imposed upon them, meaning comcast, our parent company. He said our deal is a very different deal. We are combining a National Deal paid tv provider with a nationwide mobile Service Provider and a huge broadband provider. So we see them very different. A couple more notes, he said customers want a bundle. People say satellite is a technology, does it have a future . He said, it almost, in this case, doesnt matter. Economically, 2. 6 billion in cash they get off this thing every year. So even ten years from now you believe satellite doesnt have a future, he made the argument that both satellite does have a future because airplanes, they are going to get into the business of there are areas where you just dont have cable anyway. And its the most efficient way in rural areas, but most importantly he said bundles is what we compete in. Comcast is trying to build a wireless now comcast is trying to build a wireless capability building wifi capability. I see vodafone buying cable companies. He suggests that the customer has spoken. The customers told us they like to buy from one player, one provider, they like it to be seamless and like it on one bill and like a one customer counter interface. I definitely feel that way. You feel that way . Yes, i want one bill. A couple things to make clear in the script, that the deal by announcing all this is going to be reviewed by regulators at the same time. People close to this situation saying over and over that actually it is driven by the comcast deal. If you put them on the table at the same time, it will force the regulators to hopefully agree to both. That may not be how regulators look at things, but in reality thats life. Also, one last point. Investors and some analysts have been talking a lot about whether they should have bought dish. People think thats a Better Business in some regards. And perhaps at t would have done that, however, the view inside at t from what i understand and what the sources are telling me is they looked at dish, unclear whether they would sell, but more importantly it would probably botch their options to buy more spectrum. So theres a number of really important options coming up on spectrum. It would have made it really difficult to do that. For dish . Difficult for at t to do that. Now the big question is what does dish do . Citigroup out with a note this morning raising the question, does charlie now try to either jump into this and try to buy directv himself . What does this do to the sprint tmobile deal . Does charlie feel like he has to do something . Well speak to the analyst who points out in a slowing wireless environment, that at t is somehow up 5 on 30. Did you see that chart . I mean, at ts stock has gone up a lot in the last month or two. There it is. This puts them in the video business. But look at that. To be able to do the deal, they needed their currency to be worth i dont think they could do it at 31. Because somehow they have got top stock, i dont know how, but thats one of the analyst that is we speak to i spoke to randall last night, but just a couple of emails, but like the french law, i was uncomfortable even doing emails on a weekend. Right. In terms of you are not supposed to work on weekends. No. No. That doesnt work with the whole m a thing. Did you know the kings you didnt care object the kings and the blackhawks or any of it . I mean, how did you were you typing while he was saying all of this or were you recording the conversation . No. With a notepad . The street, no less. In the street, no less. I was having dinner with the kids. I said congrats, lets talk maybe tomorrow. If we have a chance, but the you are a deal guy. Im glad you are here for this. I couldnt help you with the mergers the week i was gone. No, you werent. Now i can help you with this. What happened with the astrazeneca deal . Its done. Its done. Altman just said no basically. Pretty much. The british rules were to come up with something by may 28th. So the clock was ticking under the deal, lie they were up against a deadline. Did you this will not, i mean, this money, a t t is paying, they still have the pebble beach at t tournament, right . Not only will they have the pebble beach tournament, more importantly, you may we do the show from out there. I dont go out there to play golf. I go out there to do the show. But you also may be able to get the sunday ticket on your at t mobile device. Right. That is actually pretty cool thing. You mean watch something other than xfinity. I dont know what you are talking about now. Watch something other than comcast . You just complicated things. I would never watch anything that doesnt come through my comcast system. Why, do you . No. I would never. I would never. But on your mobile phone, which is you are an at t man . Can i say yes . I dont know what they have up here. Do you know . I have one of each. Yeah. Okay. Lets get more on the mega media lets get more on the let me try this, the broadcast news, this is where i get nervous with the illiterate mega media merger between at t and the company, joining us is kevin smithen, Senior Telecom analyst. Theres something to be said that we have not mentioned yet in latin america. Latin america is huge. 18 million subscribers. Doesnt that lower the amount of free cast flow that at t has to spend on maintaining the dividend, too, kevin . We think the primary reason for the deal was that it secures the dividend for next several years. I think the concern that we had had and that many investors had had was that the payout of their Free Cash Flow, which was estimated at 11 billion this year, the dividend was about 9. 5 billion, it was kept very tight, especially given tall wireless speck strum they have to buy in the auction over the next couple of years and they have to build that out. And wireless usage is growing at almost 100 for year on at ts network. So very capital intensive and was tight into the dividend coverage. So this deal is doubledigit on Free Cash Flow per share. Almost immediately. And we think that that is going to protect the dividend and secure Randall Stevensons legacy here. Thats the primary reason people own at t stock with the dividend now secure, we think thats really important. The second thing is that it drives video usage on mobile devices. You know, not only are they getting content savings, which i think we have been surprised in the market of how much a difference in content costs. We initiallilly estimated 5 to million per month, but i think it will be more than that to what applies 10 plus per month in content energies. And i think that the video is what is really driving usage in mobile with pricing coming down in mobile, you need to drive up the usage running 2 gigabytes per sub and highdef video in sports is really the way to do that. And directv, thats really going to be important for them on the mobile side to have that content, to have the sports, and to have that video, which theyll be able to access over your at t tablet, as as you said, the connected car and all the partnerships with the auto eoms in play, which is more of the east market, but distributing that content anywhere you are, and at t will be really in a good position to do that. But do those same contracts stand when the deal goes through like this . I would think that all the franchises from all the sport franchises would get paid more with more access to their information or to their sporting events. Theres going to be amendments for overthetop content in mobile. That remains to be done. I mean, for example, today verizon has the mobile rights to the nfl. Thats coming up for renewal. Given directvs position in the nfl, i would expect at t to bid aggressively on the new nfl contract. So it will be a good time to be the content owner in this period, but that being said, the leverage that they have now with over 25 million subs is a lot better than the leverage they had, which is 5 million subs. Kevin, randall goes to a great length and told andrew and actually says that the deal, this deal was not even similar in this view to comcast and time warner. I mean, is that is that a fact that these deals are not similar and shouldnt they be looked at at the same time . And do you think either deal has a problem . I mean, thinking to let the free markets work is usually the way we do things, but i dont know, in this administration, i wouldnt assume anything at this point. Well, we actually dont think theres going to be significant regulatory opposition to the at t directv deal. At t is a relatively small player in the video market. There could be some new verse subs of directv subs within the uverse region, but thats not going to be a deal blocker here. So i think it is very different than the other transaction, which i dont want to comment on, but we generally think that at t and the directv deal will get Regulatory Approval with minor concessions that wont the early impact the value of the transaction to at t. All right. Okay. Kevin, thank you. A lot of other stuff going on today, but well revisit this every hour on the hour. On the hour. Im sure well talk about it quite a bit. I think that astrazeneca has to do something. Who is left . Isnt it like theres no chairs left, the music has stopped . You go buy sprint. Yeah. You go buy tmobile, i dont know. Yeah, right. Thats all you got left. You can go buy a Cable Company or charter. You could. I dont know, it all seems all right. Well, well youre saying that randalls contention is this is all about watching tv on your phone . Content wants to bundle. But this is a mobile video. This is mobile video, multistream video, this is how it all works. How much more people are using mobile video every single year, how much faster and how much more stuff needs to be done that way. He made the point that directv has amazing carriage deals already of most of the content providers between cable and satellite, they have a lot of longterm deals with most of the big networks already and most of the Cable Operators already are locked in for a particular amount of time. Even with a change of ownership. Now it is unclear to me, for example, if i said, will you be able to see the sunday ticket on your phone, i assume at some point you will, but i assume you pay for more that, but at least they would already be under the tent in the way they are not now. The content providers are going to love this because it will drive up the bidding when you have verizon and at t. Netflix is not, i would doubt, to come out against Something Like this. You would take looking at the landscape, which is so uncertain and daunting and prices, you know, you would think then in a free market economy that there would be no problem with either one of these deals, but can we count on that at this point . I dont count on anything anymore. The question is who comes out against it . So usually when a deal this size happens on a sunday night. A competitor, you mean. A competitor shows up, consumer groups come out. Your paper will definitely show up. Deal or no deal, your paper is going to write an editorial. Dont you think . I dont know. In fact, i would argue that now both of these deals happening at the same time could make it more likely for deals to happen. I looked today already. I dont usually open this paper in the morning, but its a beautiful look at those pages. Thats artwork. This couldnt have happened to a nicer group of people. We read the New York Times every day. I have to. I read i need to know what all the papers are saying. Every mother jones, too. I read the i lied. Okay. But im aware of whats going on. As we mentioned, british drugmakers s astrazeneca reject the offer from pfizer. First up, do you think its a final offer . Socalled final offer. You mentioned earlier the deadline at tend of may under british takeover law. So pfizer is saying this is the final offer. And its not going to go hostile with shareholders, but saying in its offer today that it raised the bid by 15 . Offering 45 in cash, 55 democrat the stock. A much higher percentage than it offered before in cash, but also saying encouraging friendly shareholders of astrazeneca to come to the table to encourage astrazenecas board to engage. Now this comes after a long weekend of discussions. Pfizer and astrazeneca talking on friday and apparently pfizer put on the table 55. 3 Pounds Per Share or about 113 billion. Astrazeneca saying they needed 10 more than that to engage. But at least they put the number on the table of where they would engage. Now pfizer not quite meeting that coming back in with the 117 billion. So the question now is, do astrazeneca shareholders try to convince the board to start negotiatie negotiating. We just looked at the astrazeneca shareholders, that could give the shareholders the push against the board there. That could be what pfizer is counting on. The floor is pretty low for where shares could go if they dont accept the offer, so trying to get the shareholders to say, hey, guys, we need to Start Talking. At least open your books and let pfizer look at them. But they are saying this is a final offer, but there could be wiggle room. That may 26th date, though, by which the time they need to Start Talking. I dont understand the rules. May 26th, what has to happy then . Pfizer has to make the final offer and they have to start it seems like they have to have an offer on the table. That astra okayed . Astrazeneca has to say, we may okay this offer. I read theres a sixmonth period which pfizer cant come back to Start Talking about against astrazeneca waves that. Is that a poison pill for all British Companies where you dont have people continually coming through to pushover companies . Such a better rule. It comes under the cadbury craft. It makes all the rules very transparent. If you have a bid, it cant sit out there forever. If there are rumors in the marketplace, you have to publicly disclose that you are in talks. And it puts deadlines on things so that you can actually hopefully the idea is that the market can see whats happening. It is more transparent of a process as opposed to back and forth in the u. S. Some people think what they do is okay. It looks like pfizer is aggressive in the bid. Raising the bid 18 over the course of that. But since they have to make it public, it seems more aggressive than it would seem if they didnt have to disclose they were in talks. So it kind of changes the dynamic a little bit when everything is out on the table. Okay. Meg, thank you. Tell me about this its a notebook . Its a reporter notebook. You flip it. You do. Come on. I kid you not. With a pen . How do you do that . He was at dinner, so he was scribbling down. I put the thing in my pocket and knew i was going to talk to you at 5 45. Actually, im wrong, i put headphones on. I had my apple headphones on. You just have one reporter . Do you have like a valerie jarrett, so when she calls do they get mixed up when the Administration Calls . I have a pile of them. I had already used a lot of it and was looking for blank pages. You have more than one so it can get confused. I have stuff on one side and valerie on the other. There was no space, and then i started riding on the hard i mix, which is half the problem, as you can see. Youre right. Coming up, everybody i have never owned one of those. Well have to get you one. Could California Chrome be the first triple crown winner . His chances could be squashed by nasal strips. Like the breathe right. I saw the clip. I took the one that finished third. I forget the name. Have you used breathe right nasal strips . No, i have not. Okay, we are back in a moment. Security solution to ker Information Safe secure. Century link. Your link with whats next. Carstheyre why we innovate. Century link. Your link with whats next. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Time to take care of business with century links Global Broadband network and Cloud Infrastructure. We constantly evolve to meet your needs every day of the week. Welcome back. Disneyland announcing increases to the park prices. The park hopper to enter two parks in california rose 9. 5 to 150. The price to visit just one park rose more than 4 to 96. And nielsen is adding demographics to tv ratings. They hope this gives advertisers a better idea of who to reach through tv ratings. 80 of those who tweeted about the nfl were men but the ads were targeting 50 female. The voice tweets reached an audience 43 male with many of the ads for women. Once you get the demos i still cant figure out how much to take away from twitter. In terms of what value add there is . The value add but how represe