>> in a lot of cases. >> in pepsi, you'd still buy, coca-cola, you'd still buy, viacom, news corp, those are still in the area of a good buy? >> otherwise they wouldn't be the top six holdings in the funds. >> go ahead. >> donald, the names you mentioned all have significant revenues from overseas. how big of a factor is that in your thinking? >> it isn't, although, you know, i mean, that -- that just affects the overoverall cash flows and the valuations. but, yeah, coke makes like 80% of their money overseas. >> yeah. but is that a -- is that part of the motivation? >> no. >> people talk about waiting for the domestic economy, for developed economies around the world to recover, but that's not why you're in these names, is what you're saying in. >> no, no. it just adds to the predictability of the cash flows and adds to the valuation. >> okay. great. don, we appreciate your time this morning. good luck. >> thanks. >>> coming up on -- >> a lot of luck. >> yeah, he does. >>> coming up on "squawk on the street" to hot hands, their secret. >>> when we come back, the man in charge of cleanin

we like viacom, but only on a breakoff basis. we went off the charts and we think chevron is the best way to play a coming oil rally. and then we went over yield. once again, we like federal realty. frt. it's got a 5% yield. talk to us about the diversified portfolio. it's mot actually larger, it's diversified retail with super markets. you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience. hi, may i help you? yeah, i'm looking for car insurance that isn't going to break the bank. you're in the right place. only progressive gives you the option to name your price. here. a price gun? mm-hmm. so, i tell you what i want

can't get a decent bid/ask on viacom. second quarter result were basically in line as far as the bottom line. there's a lot of metrics that people use for viacom, the ibitar cash flow. apples to apples, $3.2 billion versus $3.54 as an estimate. you can see the rebound. shares doubling from some of those lows late last year. coach reporting fourth quarter net of 43 cent, right in line with expectations. again, revenue slightly below. that looks low. you can see from the ask that's about 60 cents below yesterday's close. north american comps were worse than people thought, down 6.1%. the street was looking for down 4%. in japan, sales declined 10% on a constant currency basis. >>> office depot reporting second quarter losses of 22 cent. that's when you back out items. that is wider than the loss that wall street was expecting. looking for a loss of 12 cents. revenue, more or less in line with expectations. $2.82 billion. office depot, as you can see, called a little lower, down 15 cents on the ask. >>> mcgraw-hill, 58 cents

viacom, turner and discovery don't seem inclined to join. apple recordly want to introduce the service next year. >>> arena pharmaceutical submitting an application to the for a new diet drug. >>> that senate health care bill headed to a vote on christmas eve, getting the 60 votes needed to pass this second procedural test a few minutes ago. the latest poll from clear clear politics finds 38.7% of americans are in favor of that plan. joining us this morning, bill is a partner and co-founder of public opinion strategies, dean is ceo of public policy polling. bill, let me start with you. we've seen some polls that suggest support has jumped like six points since the beginning of the month. is this thing tracking backward now, where now that it's closer to being done, people are happier? >> i think dean will agree, most survey has shown a drop from november to december. and the deeper we've gotten into this senate debate, the more this bill's been hurt. and nbc/wall street journal polling, which i do, this has dropped to 34%. this is a good ide

that es why viacom was created. they said the networks could not own more than x percent of content. the world changes. fcc has to come out, put a policy in the next, i think it is, february 17th. i could be off by a day or two, and we'll understand that. time warner cable is a wonderful asset. comcast is a wonderful asset. cable vision is a wonderful asset. satellite is even a better asset right now in terms of pricing. >> you didn't get the answer you wanted. >> no, no, i got it. >> reporter: like governor rendell wearing a skirt. >> i like what you said about the government employees. content is not these cameras, desks and these floors, linoleum, wiring. it's the people. that's what makes up the content. >> if you want me to negotiate for you in your contract -- >> am i right or am i right, becky? >> you're right. >> it's intellectual property, joe. i don't know where you fit in that subject. >> intellectual doesn't go a long way. >> no, it does. it works. in a world in which the united states is leading in tech

comment on some of the reports this morning that indicate you might have looked at things like facebook, viacom, mobile phone company. >> i think the future of broadcast television continues to be a big part of nbc universal. nbc universal's success in cable i don't think would be quite as great and as profound as jeff and the teams have accomplished since partnering with universal where 75% of the company today is cable programming and they have the number one channel. a lot of those shows, a lot of that promotion also is on nbc. so i think being part of a family of content is better than stand alone. >> i was just going to add to brian, brian and i can talk about strategy and all the synergies and i feel really great. i look and say what a bonnie hammer can do with "e" and style. there's lots of synergies. but it's about great content and having good people in the enterprise developing great content. i still think there are ways to be monetized broadly across content. one thing zucker has been good at getting people to perform inside platforms at nbc universal, getting them to do that at comc

viacom reporting 40 cents a share two cents ahead of expectations. revenue slightly below and then motorola first quarter was two cents. that's called higher. it was supposed to be a loss of a penny. it was profitable. that's causing stock to be up a bit. after a three-day senate standoff, the senate agreed to move the wall street reform bill to the floor. the breakthrough came when democrats agreed to drop the proposed $50 billion fund to break out large failing financial companies. here now with congressional reaction, house majority leader steny hoyer. great to see you, leader hoyer. >> good to be with you. thank. >> we have governor corzine. >> good morning, jon. good to be with you, too. >> good to see you again. >> can you give us your side's take on this drama over the past week. we're out here watching this stuff. it just after health care and now this, it's not pretty. more sausage. not made in a pretty way. >> that's probably always been the case with respect to legislation as has been observed. i think what you saw happening here republica

once the technology allowed me to ag gate millions of home for bet, it was sold to viacom in 2001 for $20 million. bet added $150 million of value every year on the basis of this technological shift that allowed cable homes to grow every year. >> bob, i'll flip it around on content. music. if you believe that content broadly, whether it's newspapers or tv is ultimately going the way of music, meaning the margin compression becomes a hit driven business on almost like singles, you could argue it's a tough business now. >> music business -- >> no, no, the question is has that become the model. is that where this all goes? >> the motdel goes like this -- instead of having music companies or record companies, you have individual artists who become their own companies. teak a guy like justin bieber. there were 400 million tickets sold for "titanic" sold world wide. justin viewer downloaded his baby pictures. total viewers, $7717 million. >> how do you monetize that? >> jay-z could become his own record company. >> could he make as much money or more money today given all the different dist

viacom reporting higher quarterly profits. sara lee, the company is in the process of splitting in two. >> and "the scream" set a record last night selling for $119.9 million at sotheby's. that's the most ever paid for a work of art at an auction. wow! joe. >> coming up, we're just minutes away from the weekly jobless claims and first quarter productivity data. take a look at the dow futures ahead of the numbers, which have been trying to get back to sort of the flat line. 14 points. tdd#: 1-800-345-2550 let's talk about that 401(k) you picked up back in the '80s. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and

making headlines, berkshire hackett way adding new positions in gm and viacom. and cutting its stake in chip maker intel by a third. berkshire bofted its position in walmart by 20% just before news broke of the bribery scandal involving the company's mexican unit. >>> coming up, our silvia vlad va. first as we head to break, a look at yesterday's winners and losers. if you are one of the millions of men who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application sites between these products differ. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or, signs in a woman which may include changes in body

>> viacom is absolutely on a roll. felipe demon, who's running it at the moment, is doing a great job. cash flow earnings rise dramatically, there will be added debt. andrew, this is a yummy and sumner is in charge. >> i have never heard a stock being called a yummy. >> well, you've got to pay attention a lot more to people on "squawk box." a yummy. >> is that a "squawk" phrase? >> no, there now is. >> it's a mario phrase. we might adopt it. we'll get the "stock of the day" when we come back. >>> welcome back to "squawk box." it's time for the "stock of the day." >>> stock of the day this morning got to be tgt, target. i don't know if you saw the same-store sales came out,

we'll talk to the president of brigham and women's hospital. >>> he's the head of a media empire, viacom veo philippe dauman will join us on the set. >> "squawk box" begins right now. ♪ [ no audio ] >>> my mike's here. it's here. sorry, hi, i'm becky. it's joe kernen, andrew ross sorkin. counting down to father's day, with patriots owner and kraft group ceo bob kraft along with his sons jonathan and joshua. jonathan is president of the new england patriots and president and coo of the craft group and joshua ceo of the boys and girls group of boston and president of the patriots organization. we've been keeping on eye on the equity markets. the dow futures are up by 8.5 points, s&p futures up fractionally and we'll continue to watch as we get closer, 8:30 is when we'll get a big number. >> three of them, a triple dose of data coming in less than 30 minutes. we have weekly jobless claims, the may consumer price index and first quarter current account deficit all coming at 8:30 a.m. eastern. >> and on our global headline this is morning, moody's investor services cutting its rating on spa

the idea is to follow what was the viacom model when viacom split from cbs to try to hive these off. they would include 20th century, fox news corp. and fox news channel operating the "wall street journal" "the times" of london, the australian newspapers and harper collins. one note we were talking about it earlier the hacking scandal and how this facts things. unclear is ultimately the answer because the murdoch family would still own both so the idea of separating them could make it easier for some of the licensing issues on the tv side but again not clear, since the in your dock family would still control -- >> whether or not it's a buffer. >> whether or not it ultimately serves as the buffer which chase carey who runs the place is pushing for the value they hope to create in terms of separating the papers from being a drag on the other business than this buffer issue but of course that could be another consideration. >> a motivator. >> you bet. >>> in our global headlines, greece named a new finance minist minister. spain and italy holding short term debt auctions earlier today.

. >>> the point here is that when you looked at viacom stock, great to overlay what happened with viacom when they did the split, there was an initial bounce the news and then there was a real flat line and people were worried, they said this really means nothing, just a lot of financial engineering shuffling the decks but if you look at cbs and viacom independently you would argue there was some value. >> this was a $9 stock two years ago. rich greenfield, very well respected analyst came out with a note saying he's raising his price target on newscorp to 30 bucks a share. because of the split. he likes what he sees for the results. 30 bucks. >> there it is. about 7.5 bucks to go. so some money to be made if he's correct. >> of course we're watching what's happening in europe today. leaders gathering for yet another summit today. they pointed out this is the 20th significant summit. traders are reluctant to make any big moves ahead of the summit. david, good morning. the euro is below 1.25 for several days in a row at this point. what i don't understand if we think europe is on the verg

viacom and directv ended the blackout, reaching an agreement to restore viacom networks, 20 million subscribers. >>> and marisa mayer getting $70 million pay package. that's a drop in the bucket. i don't know if you can multiply that by a billion but it's not -- the package includes salary, bonuses, restricted stock and stock options over five years. checking u.s. equity futures which have been weak most of the morning, gotten weaken down about 71 points. >>> our next guest making waves on main street then in awashington so far his taxation protection pledge has signatures from 238 representatives and 41 senators, grover norquist, president of americans for tax reform. >> hi. >> and it's good to see you. i called you super grover, that's because of your name. i'm not making value judgments. you probably have seen there's grover and super grover when he puts on the cape. you know, the one question i might ask you, grover, is you know, even back when reagan and tip o'neill got things done and in the past where we've seen parties work together, sometimes, even doing what one party will still think

at the moment you essentially can go in and buy a company like viacom and look at the fact that i'm buying paramount studios for free. that's how corporate america and private companies are looking at this. >> thank you. we'll have more with you coming up. >> up next, we'll talk to glenn hubbard, dean of the business school. and don't miss two hours with st. louis fred -- squawk will be back in two. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 trade at charles schwab for $8.95 a trade. tdd#: 1-800-345-2550 open an account and trade up to tdd#: 1-800-345-2550 6 months commission-free online equity trading tdd#: 1-800-

i was going to talk quickly just about, we're -- thanks, john about viacom. remember we heard about spongebob and ratings are down across the board. their solution is run a lot more ads to get -- >> or? >> because revenue are down because of ratings. does that -- that's like a state that doesn't have money -- isn't it? >> yes. drive viewers away. >> 9% more ads. that's weird. all of a sudden scary. it scared me. womaning up much more on isaac including a report from the gulf coast where they are bracing for impact. another victory for apple pap jury awards the company a billion dollars from samsung. i got it. i didn't mean to talk. will this push the stock above $7 haun share. you be the judge next on "squawk box". machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things..

viacom from underperform to market perform, the target stays 50. so that means the analyst was looking for 50, now it's at 55. so he's actually -- i guess he -- maybe he had a buy and maybe got to his target, now it's above his target, now he's going to an underperform. the target remains at 50. >>> tyco neutral from outperforming, crest suisse, maybe a spinoff or something. >> what is that? >> i think it's right. probably the company is a spinoff. what i like is the target price was increased by credit suisse to $30. the old target was $29.48. so they're so good at credit suisse they no longer think $29.48, they now think 30. there's another 52 cents the analyst think is likely in terms of stock price. z zynga downgraded to neutral, the target is $3. denim maker true religion apparel said it was evaluating strategic alternatives which could include a possible sale of the company. never have understood, you know, these companies design a pair of jeans that cost like $400. how does that work? just because you want to -- >> a lot more every minute. >

. >> but what happened in cable over the last year, at viacom, at cnn, headline news. you look at the way numbers are trending. are people going to digital outlets to get all the same information? >> yeah. i think what's the challenge for cable, as i said before, is the whole question of ail al la carte per bundle. the price will always go up. the question is, how much are people willing to pay and how do they access it. >> how have b.e.t. ratings been bee been -- >> it's great. >> they're not down? >> no. >> because you keep adding more choices, more device, people can see it in different places. >> does digital make up for -- >> that's a -- >> digital pennies for analog nickel. >> exactly. >> quarters. >> no. the digital doesn't make up for it, but the point is, you can't put the genie back in the box. digital is here to stay. those companies with content find ways to adapt -- >> because production costs have to go down because talent -- we shouldn't talk about talent costs. i mean -- >> we're not the problem there. >> whoa, whoa, whoa. >> i'm just trying to understa

they have a tie-up with viacom and paramount, a distribution deal that makes it harder. >> there are raiders of the lost ark rides. >> at the mgm studios down there, is that possible? >> i don't know. >> your kids are -- >> we will do that. >> you will. >> see it all. >> orlando, it's amazing. that's why it's there, sort of, because of all these. >> it is. he snuck around and bought all the orange grove farms without telling anybody what he was doing and put this together. >> among a lot of things he did in this diabolical. he's still around. he's coming back. he will and he will preside over this. >> he's not on ice, we all think he is. >> if i read it -- >> anything in the newspapers must be true. >> he's telling us to go. >> it is going to be business getting back to usual today. lower manhattan's going to be returning to life somewhat slowly, but the nyse is set to ring the opening bell today after being closed for two days. scott joins us from lower manhattan, this could take a little while. we've been seeing there aren't any lights down there. the exchange is lit up and a great

we were the number one platform media company in the world, more channels than viacom and time warner. we had one great channel, discovery and the mission we've gone on over the last six years is to become a great content company. today we make over $2.1 billion of our 13 channels we started investing about $500 million in content. this year we invested over $1 billion but our market share is almost 10%. >> from 4. >> and our content works around the world so when you look at discovery, science, animal planet, investigation discovery, we took that content around the world, so this year we'll make more money outside the u.s. than we did as an entire company five years ago. >> you invested in content. why were cable operators so scared? for so many channels for so many years, bravo or what have you, it was a repeat business, just buying content that had already been and repurposing it. five, six, seven years ago people decided we have to change the game. >> there's two ways to make money, one is to cut costs, streamline your business and figure out where you spend your dollars to be mor

marathon, novartis, viacom and western digital. might want to flip that so you people can see what i just said. marathon, novartis, royal dutch, viacom and western digital. five on each page. the fiscal cliff dominated the sunday talk shows. senator dick durbin on "meet the press" yesterday saying no deal on the debt without a tax hike on the wealthy. >> i can tell you i don't want to do it, the president doesn't want to do it but we need to solve the problem. we cannot allow their reckless position to drive this economy into another recession. >> and senator bob corker argues it might be better to agree with what the president wants to do now on taxes, and then fight later on spending. >> if we were to pass, for instance, raising the top two rates and that's it, all of a sudden we do have the leverage of the debt ceiling and we haven't given that up. >> joining us now house majority whip kevin mccarthy. not everybody, i don't know, depends on where you're sitting i guess, congressman, "the wall street journal" says republicans sho

companies like viacom get accurate. companies provide netflix with most of its content in a kids' focused section. the journal says at some point the suppliers will probably want to charge netflix more or they might even stop selling to netflix. that's been a huge problem for them when it comes to contend more broadly. >> time for the global markets report. kelly evans standing by in london. you rise above over there, kelly. is it vienna, bernanke? what is most -- what do you think is most important to you? it has to be what -- it's what's happening in washington, isn't it? >> no. i say it's up there, top thee, but also on the top three is what's happening with italian politics. of course, mario monti saying he was going to resign as italy's prime minister. that paves the way for flesh elections to be called in the beginning of next year. yesterday, we saw the negative reaction. sylvia berlusconi wants to make his return on the political scene. today, we saw a bounce back. if you can see see bind me, the bank stocks in

., viacom, that have double the free cash flow yield. so i think from our perspective there's still areas where you can find companies that actually have free cash flow. if you go globally ntt has the same dividend that verizon has but it has half the cap ratio and the business in japan looks like the u.s. business from three or four years ago. it's really starting to turn and stabilize. when you look globally or look across other sectors you can find places where people haven't paid for safety. i think the other places you want to look is real structural change. for example shipping is a great business globally. it's been a disaster the last couple of years. so as an example the stock smart guy a norwegian billionaire has made a fortune in the drilling business and basically he's been, front line basically is buying up ships on the cheap to go and really capitalize on shipping. and it's always good to be someone coming in on a low capitalized basis buying as the -- >> was it just an over build out? >> basically weak economy, massive bui

deal with fox yesterday or the day before yesterday and a deal with disney before that and deal with viacom as comcast cable and we've broken new ground with those companies in terms of how we will distribute the content on the platform and new devices we think is good for both. if you look at symphony, and results, whether local broadcast stations working with movies we come out with, promoting new shows or taking something like the olympics, was maybe the single best example of the whole company working together, we had the best olympics in nbc's recent history and maybe the best television event ever and it was on more platforms and more available. comcast cable had something like 15 million on demand olympic sessions during the olympics. we would never have done things quite like that had we not been one company. the there's many benefits. at the same time, it's only been two years and we're not satisfied we figured it all out and delight we're now 100% one company and make it's easier for the conversations as we go forward. >> i saw the leverage was clear at nbc in primetime. it triple

>> joining viacom board of directors. do you think one of us could go on the comcast board? doesn't that seem weird that deborah norville is going to be on the board of directors at viacom? i mean, it's great but i'm feeling better about myself. >> she has a syndicated show. >> i hope this won't offend you, but are you going on the board of comcast? the answer to that would be no. >> maybe g.e. maybe it would be a good thing to write. i don't want to be on a board that would have me as a director, actually, now that i think about it. uh, yeah. lulu lemon maybe. i want more sheerness in the yoga pants. i want more see through. anyway, comments, questions -- i'd make some bad decisions fiduciarily. e-mail us at squawk@cnbc. up next, the clock is ticking in cyprus as bank lines grow longer. the latest on talks to beat a monday deadline when the ecb is threatening to cut off funding. and harvard upset number three seed new mexico. 68-62. one of the ones i lost. i was asleep, though. crimson's first ever ncaa tournament win. the loss could be a bracket buster. we have our own bra

he was followed by disney's iger, mark parker from nike, and dauman, viacom. as far as megan average pay for these 100 ceos, the total compensation up 3% last year to $14.1 million. total average compensation of 10% to $16.9 million. one thing to note, one thing a lot of compensation firms -- or compensation committees look at is they try to taipei to total shareholder return on average. this was up 17%. lastly, we would like to check on the financial space in large part because this has been the group highly criticized. the top earners, american express, $28 million. capital one, fairbanks, $22.6 approximately. john stumpp of wells fargo, gerald hassell, bank of new york and michael corbat of citi. they would not have been in the top five of all the top 100 paid ceoss. >> they had to file by the end of march. >> we know what their pay was. it still wouldn't put them in the top five of the top 100. the top five of the financials. >> i know somebody that came out after the end of march definitely in the top five. i love him and he deserves it. but i'm not going

merck, mastercard, cbs, viacom. the adp reports. this might be more important than the jobs report on friday. and that's the comcast, right? >> that's right. >> say it loud and proud. >> comcastic? we'll see. ceo brian roberts is going to join us live at 7:15 eastern to talk about that. god, i hope they're good, now that i'm talking about him. we'll see. actually, i don't care whether they're good or not since i'm a journalist. the consummate journalist is the word i like to use. after the bell, we'll hear from facebook. the social network is expected to earn 13 cents a share on revenue of $1.8 billion. mobile, all about mobile and mobile advising growth, end user numbers and we'll talk more about facebook with barclays internet and media analyst at 6:40 eastern. >>> right now, it's time for the global markets report. ross westgate is standing by in london. ross, good morning. >> hi, good morning to you, becky. not so global today with the markets report. as you know, it's the may day, may the 1st, so that means it's international w

., viacom, cbs, time warner, even google or facebook. this is the future, warren. i know sometimes you think you don't understand technology. but what makes you hesitant to do something that's so ubiquitous. and as we get more advanced as a culture media gets bigger and bigger as a percentage of where we spend our leisure time doing? >> no question it's going to get bigger. i just don't know if i look out 10 years which of those companies you named will be doing the best. it is an industry subject to a lot of change. it's much easier for me to predict it will be doing well in 10 years. some undoubtedly outperformed. it's just i don't know which ones. >> if you don't know, how is anybody else supposed to know? do you think you are like an old dog with new tricks or something? does someone know how this is going to work itself out? anyone on the planet that knows how it's going to -- >> sure. >> really? >> sure. there are all kinds of people a lot smarter about those companies than i am. that doesn't bother me. as long as i can make money with ketchup and coca-cola a

for the larger cable conglomerates, time warner is really a cable network company at this point as is viacom which has world war z coming owl the follout the foll weekend. that's a bet wearter way to ben from the strong box office we're seeing. >> so cinemark, things like imax. >> cinemark, imax, coinstar, a couple of names we like now. at the conference today, three themes we're looking at really, first is the growth in the international box office. second is consolidation with the industry. the industry is very fragmented so you've seen a couple of deals recently that will be highly creative. and then premium products, 3-d, arch format and imax, which adds additional revenue to ticket sales. >> all of the theater chains out there potentially ripe for consolidation or some form of takeover. who do you put at the top of the list? amc taken over by the chinese earlier -- >> it is hard to see. there are four big guys. amc was one of them, taken over by wanda. tough to see regal, cinemark or carmike, the other three, being taken over. rather, the consolidation story of them consolidating smalle

but, you know, you saw a similar situation with viacom and detect tv. ultimately the parties came to the table. that was the turnbling point whereby you began to believe there is a real risk here that it could be a signaled blackout. again, this is a new world order for retransmission consent. . that's what we have 18 over the last 12 to 18 months. >> thank you for joining us. >> my pleasure. thanks for having me. >>> coming up, a jewel heist in cannes, france. we will bring you a live report. do you like cannes or cannes? >> i said it beth before. >> with your vigilantes. >> i think cannes. >> i don't know, either. truck makers will be reporting before the bell tomorrow at the top of the hour, we will tell you what to expect from the quarterly numbers from merck and pfizer. ning a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive d

viacom one of the big movers. reported third quarter profit of $1.29 per share. investors paying more attention to a doubling of the company's stock buyback program as well as better than expected revenues. coming up next, we'll get the last word from our guest host when we return. y sales event and experience the connectivity of the available lexus enform, including the es and rx. ♪ this is the pursuit of perfection. [ male announcer ] it's time. time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. >>> well, tgif, everybody. it is friday. that means it is time for the weekend and the latest edition of the talking squawk blog. see joe as the n

they think that companies like viacom and comcast, they said comcast has room for 20% gain because of some of these issues. some of the ones that don't have broad band don't. >> we talked to rich greenfield last week about this. it's a higher margin business to provide broadband solely and not provide this content. >> content is expensive. >> content is expensive. >> broadband is just the garden state parkway. >> utility. >> if you're just utility there's also a problem. there's this balance every cable provider is trying to figure out. how do you provide that low margin utility without becoming a completely low margin player. >> do we know what cbs is charging? time warner is saying it's an outr r outrageous sum. >> they said it was 500% more. >> the number is hard to come by. >> listening to the arguments back and forth. >> are useless until you know exactly what the numbers are which i don't. >>> "newsweek." i don't know if you know this company. ibt media is buying income income from iac interactive. barry diller's firm took over "newsweek" back in 2010. it stopped that print edit

we had two major players, the report last week cbs viacom, solidfriends trenso sol -- solid trends. the lone ranger, they need to take a write down on that movie and get detail on when that occurs. >> do you believe ultimately cable, take comcast out of this, they own the pipes as well as the content at cnbc and everything else. you heard others talk about it, ultimately, they get rid of the tv business, they say, we are broadband, that's the business, it's a higher margin business. everybody can run their stuff over us, we're just going to take that piece of the pie? >> you know, it's a great question. it's relevant to a lot of things going on. what i would tell investors is, i look at the world at best from kind of a three to five-year time horizon, it's really difficult to see what's going on beyond that in this evolving technological landscape. do i see that happening in the next three to five years? probably not. beyond that. >> flip it around. do you think and case kerry, news corporation on fox suggested maybe fox and others maybe at nbc and abc and others get off of the wire

i like viacom a lot. that's an underdog incredibly attractively valued. i like disney, and in the midcap space, we like amc networks. >> can you explain why cbs' ratings have not fallen as precipitously as some would imagine given the blackout with time warner cable? >> i haven't looked at the blackout, i haven't looked at the nielsen numbers, but i would imagine it is because time warner cable's distribution is relatively small percentage of the entire pie of the footprint. so, i mean, i think it is harder for that to come through in the nielsen ratings. i think the dispute is generally centered around not only price per subscriber for cbs' service, but also digital rights. the price of show time, video on demand and content on cable, can cbs go direct to consumer with some of that content? i think some of the dispute revolves around mobile viewership of cbs content. and so, you know, it is a water shed time and we'll see how that contract works itself out, but i think folks in the industry are looking at it closely. >> who do you think has the upper han

sony and viacom reached tentative deals. a deal with sony and their play station so you will actually be able stream live, they will start streaming live programing, nickelodeon, mtv, straight to your play station. >> straight to your play station. over broadband. this is the beginning, maybe the beginning of the end, ala carte pricing. >> the beginning of the cable box. how do you get it? i don't understand. >> it's exactly like netflix. you have the channels streamed through the box. i mean, you are effectively, a lot of these game consoles have become the equivalent of an apple tv or the box. >> you have to pay the cable company? >> you have to pay the cable company, only for broadband. >> if you take it over the internet. >> if you have netflix, you could have, you could get still mtv and nickelodeon, the question is other companies, viocom will start to do this. will is a number of -- >> you can only get viacom. >> and only play station, nickelodeon, mtv. those are the channels that people that have a play station will

but if you look at previous disputes, if you look at direct tv/viacom, dish network, am cnet work, the distributor can do a very good job of sustaining chush which you were by in-seincentii subscribers to stick around. have you you called up and asked for a it is cout discount? >> i might after this show. have you made that phone call? >> i've been over the air broadcast antenna which i haven't been able to get to work. but that might just be me. >> we'll see if i can get a free month or two of cable service. let's talk about cbs. on the flip side, what's happening to ratings, what's happened to advising dollars? >> the impact to ratings for the cbs broadcast network has been quite modest. and that's because the new york and l.a. markets are only about 3% of their total audience. the impact to show time is potentially much greater because time a warner cable represents about 10% of all show time subs. and as you know, show "timtime launching a new program called rayd donova donovan. oftentimes you never get the viewers back. so i think the pain is more acute at showtime. >> and local o

time warner, down 50%, secondly, newscorp dropping stock, viacom shrinking substantially. recovery, each of these stocks because of the rising middle class around the world and the notion of having that mobility in their hand and want content, you'll see the stocks double. >> hold on, time warner. >> i like all four of them. >> newscorp, viacom and discovery. >> they'll all crumble. >> okay. >> in five years -- >> cbs? >> i like what he's doing but for a different reason. in the broadcasting area, like consolidation, media general which has already tripled this year will again double in the next three or four years. >> media general's going to double. hold on, now we've got five. >> oh, i give you more. >> these are all going to double. time warner, newscorp. >> total return of 14% gives you a double in five years. so combination of dividends and cash flow and the stock prices in part driven by the use of cash flow to buy back stock. another one, when a management change, you talked about ohio. i'll give you one from akron and canton, ohio. a management change. this is no

., auto nation, harley davidson and viacom. and after the bell, techs will take center stage. amazon and google are the two headline names. as for today's economic calendar, at 8:30 been we have weekly jobless claims which may be a little more important after that last tepid report we saw on that first friday or i think it was that second friday, wasn't it? >> yeah. >> and a first read on fourth quarter gdp, pending home sales, forecasters expect a fourth quarter gdp of 3.3% for the -- that we're looking for. and the fed announcing plan toes trim its bond purchases, as you know, joining us is drew mattes, deputy chief u.s. economist at ubs and thomas teaser, director and head of fixed income at strategis. should i ask you whether you're speccing it or, you know, your calls about the last taper, you didn't think -- >> oh, man, we made one mistake in september and -- >> did you think they were going to taper this time? >> taper the taper? we did think we were going to taper this time. i think if you look at the "wall street journal" report earlier, with the ground shifting benea

we tend to professor viacom over disney here. but that stock has outperformed disney. everyone wants contents. contents is still going to be needed as you go into this new world and making the wrong decision can be disastrous in this area. so i think it's really important to have the best management out there and pay is going to be a function of that. >> tony, real quick, i understand disney passed through a price increase on its theme parks and had higher rev fle ee. did more people go to the parks because the weather was lout lousy in other part of it is country? >> the bigger driver is all the investments they've put into mrai. in the east coast, the magic kingdom has added a facially substantial area that's still being broadened out. in technology, i don't think that makes sense. we're constantly looking at the pricing and it continues to be favorable for these guys. we are hearing that $100 price point. >> we will watch that price point. tony, thank you for vepg us preview it this morning. >>> mohamed el-erian is now tweeting. the former ceo of pimco will be sendi

>> i would choose fox and viacom are my two -- probably two top picks in media. >> there was a big story in "new york times" over the weekend about warner and what they're doing. where's time warner? they're dong a lot of movies this summer. >> absolutely. that being said, none of them are big franchise movies. which typically if you make the first movie in a series, typically more risk associated with those. if you have a captain america coming out -- >> is there a chance one of them is the next "despicable me" and we just don't know it? >> that's the purpose. >> for frozen? >> the disney movie which was fantastic for that studio. >> this new guy, i was amazed at the accolades that it gave him in that piece. is he the real deal? >> he seems to be delivering. so pixar -- >> has he had a huge hit yet. >> "frozen." >> is that his at warner. >> we were talking about the warner piece. >> sorry. the warner piece. to be determined. for the studio warner they've had a couple key franchises, harry potter, dark knight, man of steel did okay and hopefully that reboots the d.c. franchise in a simil

if you think about it, cbs and "the daily show" -- or rather comedy central is viacom properties. if you are effectively redstone up here, you have to -- jon stewart is -- >> we'll take the lesser star because we don't want to destroy -- >> yes, absolutely. >> comedy central? >> jon stewart is comedy central. >> but if you do a really good job, you should get the next job. >> he gets paid more money than god. i'm not sure. he's not upset about it at all. >> it's a fraction of the potential audience you'd get on cbs. he does well with 18 to 24, which is where your mind is most of time. >>> the major concerns hanging over the markets, joining us now, david joy, chief market strategist at ama mameriprise financial. >> i don't think so. i think what we saw yesterday is still in the realm of what i'll call collateral damage for the broader market. that is very much localized still in the biotech internet, these momentum plays that are washing out. the one thing that makes me a little bit concerned is that we did break through the 50-day moving average. i'm not willing to say the downdr

also out today, t-mobile, viacom, dominos pizza, beazer homes and generac. this came out of nowhere, didn't it? cinderella story with as many times as people have lost power, quite a little system they have. someday if you ever are in the burbs. >> i may have to get generac. >> unless you want to go to a hotel for three weeks when the power goes out. >>. >>> "the wall street journal" is reporting that coke is responding to warren buffett's decision to abstain from the shareholder vote, a topic he talked about with becky quick on april 23rd. >> we abstained because we didn't agree with the plan. we thought it was excessive. and i love coke. i love the management. i love the directors. but -- so i didn't want to vote no. kind of unamerican to vote no at a coke meeting. i didn't want to express any disapproval of management but we did disapprove of the plan. >> here's where it gets interesting this morning. we've obtained exclusively a new letter that activist investor david winters sent to coke's board of directors. he's cc'd is to warren buffett. this letter

america" disney's got "guardians of the galaxy" and "ma live sant" a new take on "sleeping beauty" and viacom, fourth installment of "transf m "transformers" expected to post big numbers here and china where it shot certain scenes and the last one pulled in $1 billion worldwide. my personal favorite -- >> oh, no, no. whoa. chill. just a mask. >> okay. that's "teenage mutant ninja turtles" one of the most li lucrative franchises. sold more alsoed toys last year than "star wars." back to you. >> okay. >> all right. thank you very much. i guess we're done. we got to go. the director of "godzilla" protecting the planet against global warming. >> we got to run. have a great weekend. join us on monday. "squawk on the street" begins right now. >> did you know that? ♪ >>> good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. looking for some relief from yesterday's tumble. worst day for the dow in five weeks, futures are stable on the back of a good beat in housing starts. consumer confidence this morning. ten-year

viacom has content. if i look at companies with great fundamentals, why didn't discovery announce a 2-1 split. they are preparing for the next dynamic. >> the next dynamic is a deal? >> yeah. they will do something whether it's scripps network or somebody with content and distribution. in the united states you have a reasonably mature market with regards to distribution. the question i thought you would ask if i didn't interrupt you was the notion of all the mergers of the distribution companies is that good for the content? >> i was going there next. and what's the answer? >> i was like gretzky. i was anticipating where you were going. in that regard, i think that over the top, hulu type, netflix, google is coming in, they will be bidding on content. and you have secrete buyers. so i still believe content is still king, particularly if you can make it here and go gobel. >> would you let the deal happen, time warner cable, at&t? if you were the regulator. >> the free market -- >> do you know who is a fre

one viacom the other discovery. i think there is a strategic value looking at the discovery. i this i the strategic and financial value of having a pbs merge with the viacom, the reality of these distributors, whether it be at&t, directv or comcast, time warner are getting beggar. you will just be a continued chain reaction and balance of purchasing power on both sides. >> okay. tony, we want to thank you for helping us through this, this morning. we will be continuing to cover this story all day. >> i saw a 20th century fox movie yesterday. "dawn of the apes" "planet of the apes" have you seen this yet? . >> i have not. >> i am focused on "law and order" reruns. >> nbc property. >> thank you. >> the eight movies before guys if rubber masks. this is like real animals ceasar won andsome ape to tell you the lead ape and koba the bad guy is scary looking but awesome. >> all right. when we come back, one of the rock stars of the "delivering alpha" leon cooperman, he is giving us this two years now running every stock he gave has gone up. plus, finding some big time opportunities

>> and is there -- but is there a deal for them to do, either viacom or cbs? >> there are going to be deals for everybody to do. the question about what happens to cnn -- >> jim, when bezos you mentioned him when he bought "the washington post" i remember some columnists, one was for fortune but i read this piece and i just had to laugh but it side, bezos has expressed some libertarian sentiments. before he's allowed to buy "the washington post," he needs to declare politically where he stands. what's that guy's name, allen -- oh, my god. anyway, how much of what you're saying now, and you just said -- >> -- who i like -- >> well, it was the most preposterous -- it was so sanctimonious and pompous. but how much of this right now is about working under someone perceived to be perhaps too conservative for hollywood? too conservative? you're looking at antitrust or are you really looking at a conservative guy having so much clout? >> well, i think that's going to be an issue. how can it not be? i mean should it be an issue? i don't think we should have a politica

viacom -- viacom. >> you know sumner as well as anybody else as a former viacom man. >> as growth rate for these companies slows, then the ceos of these companies get the urge to merge. and so i wouldn't be surprised if news corp. doesn't come back but i also wouldn't be surprised if somebody doesn't come out of left field and make an offer. >> to make an offer for time -- i mean if it was cbs for example, les moonves can't buy time warner has to be a reverse situation. then the question becomes is there a succession issue at time warner? you love jeff. >> i think there's a lot -- he's a young guy, 61. sumner is 93. moonves is about the same age. but that doesn't matter. look at -- >> not 93 but closer to 61. >> there was always a question of michael eisner. so you know there's a lot of talent out there. >> you shouldn't have looked to these businesses as there's one guy, there's one star running these businesses. reality is what the brands that matter, their content, their shows, whether it's 24 or house of cards -- >> let me ask you a question about that. how important is rupert murd

emerson electric, viacom, lowes. among the winners you did have 20 s&p stocks reaching a two-week high. including coca-cola, pepsico, home depot, cvs and altria. >> research in -- in addition to looking at whether there's buyback activity or not and to the supply and demand of stocks i don't know how you decided on this. one of your predictions now is this exit by the fed which we're all waiting for is not going to go necessarily as early or as smoothly as planned. at this point they're going to feel the need to either stay in or re-enter? >> well, they're ending this month. and one of the things -- the most dangerous thing on wall street is what you don't know you don't know. so it has some of the quantitative easing. some of the buying of bonds -- some of that leaking into the stock market. and the absence of that is exacerbating the volatility could be there's no real way of knowing that unless you're tracking the actual order flows. there's no way i know of tracking that. that could be what's exacerbating the dow

with viacom -- >> do you think sony would ever do that? >> would do cbs first and put that together again? that's what makes speculations. if i knew it, i would share it with you. but i don't think anybody has ever talked to me. independent of what, why not? if you're sony, you just got a billion shares, the stock is $17 billion market cap. that's a minnow. and they can sell them insurance assets for mark to market for $4 billion and in addition to that you've got music, movies. and then they have to deal with all electronics. with abi running japan, layoffs are happening. >> we'll continue and have much more with mario throughout the program. >> and we'll talk about the canada chaos yesterday. questions today after a lone gunman kills a soldier outside of canada's parliament. then at 8:30 this morning, weekly jobless claims. that means leisman's probably in the house. "squawk box" will be right back. . an unprecedented program that partners businesses with universities across the state. for better access to talent, cutting edge research,