1 00:00:06,240 --> 00:00:10,800 Speaker 1: Welcome to Strictly Business Varieties podcast featuring conversations with industry 2 00:00:10,880 --> 00:00:15,120 Speaker 1: leaders about the business of entertainment. I'm Cynthia Littleton, Managing 3 00:00:15,240 --> 00:00:18,200 Speaker 1: editor of Television for Variety, and today my guest in 4 00:00:18,239 --> 00:00:21,639 Speaker 1: New York is David Faber. David is co anchor of 5 00:00:21,720 --> 00:00:25,119 Speaker 1: CNBC's Squawk on the Street and a veteran business reporter. 6 00:00:25,600 --> 00:00:28,720 Speaker 1: He's broken many big stories on the media beat, most 7 00:00:28,760 --> 00:00:31,960 Speaker 1: recently the bombshell news that Rupert Murdoch was negotiating the 8 00:00:32,000 --> 00:00:35,520 Speaker 1: sale of most of his Fox empire to Disney. Here, 9 00:00:35,600 --> 00:00:37,879 Speaker 1: David talks about the state of media m and A, 10 00:00:38,400 --> 00:00:41,680 Speaker 1: the growing threat posed by the tech giants, and his 11 00:00:41,800 --> 00:00:47,479 Speaker 1: take on what happens next for CBS and Viacom. David Faber, 12 00:00:47,520 --> 00:00:50,720 Speaker 1: thanks for stopping by on what it on a busy newsday? 13 00:00:50,800 --> 00:00:53,640 Speaker 1: But when isn't it a busy newsday? In business news? 14 00:00:53,640 --> 00:00:56,800 Speaker 1: These days things have been busy and then today is 15 00:00:57,080 --> 00:00:59,920 Speaker 1: definitely one of those days for sure. Thanks for me 16 00:01:00,080 --> 00:01:03,160 Speaker 1: in time for us. Um. You have been at CNBC 17 00:01:03,400 --> 00:01:09,200 Speaker 1: since covering breaking tons of news and really distinguishing yourself 18 00:01:09,280 --> 00:01:11,440 Speaker 1: on the media beat in terms of your access to 19 00:01:11,520 --> 00:01:15,600 Speaker 1: influential people and and breaking news The big story that rocked, 20 00:01:15,959 --> 00:01:18,960 Speaker 1: that rocked everybody's world back in November was the news 21 00:01:19,000 --> 00:01:24,160 Speaker 1: that Disney and Fox were in negotiations. I know better 22 00:01:24,240 --> 00:01:26,520 Speaker 1: than to ask you how you got that story, but 23 00:01:26,560 --> 00:01:29,000 Speaker 1: I want to ask you what you're What were your 24 00:01:29,040 --> 00:01:33,119 Speaker 1: thoughts when you first stumbled into this news? Was it disbelief? 25 00:01:33,600 --> 00:01:36,000 Speaker 1: Did you You know? The idea that Rupert Murdock could 26 00:01:36,000 --> 00:01:38,040 Speaker 1: be a seller is still hard for people to wrap 27 00:01:38,080 --> 00:01:41,679 Speaker 1: their minds around. Um, it was, you know, it's funny, 28 00:01:42,000 --> 00:01:45,959 Speaker 1: uh And obviously I won't go through every single bit 29 00:01:46,040 --> 00:01:52,200 Speaker 1: of it. But when I first heard about the possibility 30 00:01:52,400 --> 00:01:59,600 Speaker 1: from somebody I knew, I knew it, I still couldn't, 31 00:01:59,800 --> 00:02:02,160 Speaker 1: you know, I didn't question the source. I couldn't, to 32 00:02:02,200 --> 00:02:06,560 Speaker 1: your point, understand it. The idea that what, wait a second, 33 00:02:06,640 --> 00:02:11,919 Speaker 1: what Fox Fox is selling to Disney was just not 34 00:02:12,440 --> 00:02:14,160 Speaker 1: something that I was able to wrap my head around 35 00:02:14,200 --> 00:02:15,800 Speaker 1: at that point, which, of course is you know then 36 00:02:15,919 --> 00:02:17,840 Speaker 1: simply means you gotta do a lot more reporting. Not 37 00:02:17,919 --> 00:02:20,280 Speaker 1: that I wouldn't have anyway, but in this case, it's not. 38 00:02:20,480 --> 00:02:22,560 Speaker 1: It was not even close. Even though it was an 39 00:02:22,639 --> 00:02:26,639 Speaker 1: unimpeachable source, you start to wonder things like, well, did 40 00:02:26,639 --> 00:02:30,480 Speaker 1: they misunderstand something that they were told, you know. And 41 00:02:31,720 --> 00:02:34,640 Speaker 1: it was through the reporting that I suddenly was like, 42 00:02:35,360 --> 00:02:38,920 Speaker 1: it's true. He is a seller. He has made a 43 00:02:39,080 --> 00:02:42,200 Speaker 1: hyper rational decision. As people will tell you. Rupert Bernac 44 00:02:42,400 --> 00:02:46,480 Speaker 1: is a hyperrational person that now is the time to sell, 45 00:02:46,680 --> 00:02:49,040 Speaker 1: aided to a certain extent by James, I think, who 46 00:02:49,120 --> 00:02:51,520 Speaker 1: also shared in that view at least to the changing 47 00:02:51,639 --> 00:02:56,000 Speaker 1: landscape and Fox's place in it. Um. And it was 48 00:02:56,080 --> 00:03:00,560 Speaker 1: interesting because I had had a previous source who had 49 00:03:00,600 --> 00:03:04,160 Speaker 1: told me there was potentially one big deal yet to 50 00:03:04,240 --> 00:03:08,320 Speaker 1: do for Fox, and I had, of course it's everybody 51 00:03:08,320 --> 00:03:10,040 Speaker 1: would thank thought, oh, what are they going to buy? 52 00:03:10,680 --> 00:03:14,160 Speaker 1: And it was only after the reporting and then really 53 00:03:14,200 --> 00:03:16,680 Speaker 1: digging in and finally nailing it. But then I suddenly 54 00:03:16,680 --> 00:03:20,040 Speaker 1: it was like, of course, it wasn't to buy, it 55 00:03:20,160 --> 00:03:22,720 Speaker 1: was to sell, and it all kind of fit together. 56 00:03:23,440 --> 00:03:27,840 Speaker 1: Mhm um. The the Fox Disney deal is probably the 57 00:03:28,320 --> 00:03:33,519 Speaker 1: largest expression of this, you know, a pervasive fear bear 58 00:03:33,919 --> 00:03:37,320 Speaker 1: bordering on paranoia, it seems to me. In the traditional 59 00:03:37,400 --> 00:03:41,040 Speaker 1: media industry, the heavyweights of the size of Fox and 60 00:03:41,120 --> 00:03:45,440 Speaker 1: Disney and Comcast parent company of CNBC and CBS and Viacom, 61 00:03:45,480 --> 00:03:47,720 Speaker 1: all these all these big companies that we've for years 62 00:03:47,720 --> 00:03:51,320 Speaker 1: referred to as media giants because they were created from 63 00:03:51,360 --> 00:03:56,200 Speaker 1: from previous waves of consolidation. That this expression of this 64 00:03:56,400 --> 00:03:59,520 Speaker 1: fear in the industry of what's become known as the 65 00:03:59,560 --> 00:04:04,720 Speaker 1: fang companies Facebook, Apple, Amazon, Netflix, and Google. Do you 66 00:04:04,800 --> 00:04:07,040 Speaker 1: think is there any chance that some of that fear 67 00:04:07,200 --> 00:04:10,960 Speaker 1: is an overreaction to the threat that as these as 68 00:04:11,080 --> 00:04:15,640 Speaker 1: Netflix and Facebook's really start to amp up their own 69 00:04:15,760 --> 00:04:20,000 Speaker 1: video strategies. Sure, I mean, I think we've both probably 70 00:04:20,040 --> 00:04:23,640 Speaker 1: been around long enough. Sometimes you you hear things in 71 00:04:23,680 --> 00:04:26,080 Speaker 1: the industry and everybody is reacting to it and saying 72 00:04:26,080 --> 00:04:29,440 Speaker 1: that the sky is falling and it doesn't end up 73 00:04:29,680 --> 00:04:31,880 Speaker 1: a O L. Time Warner. I mean, I can remember 74 00:04:31,880 --> 00:04:35,200 Speaker 1: when that deal was announced, and many of the prominent 75 00:04:35,200 --> 00:04:37,159 Speaker 1: people in the media industry, many of whom are still, 76 00:04:37,160 --> 00:04:39,159 Speaker 1: by the way, in the same industry, tend not to 77 00:04:39,200 --> 00:04:42,640 Speaker 1: go anywhere. We're like, this is it, this is changing everything, 78 00:04:43,279 --> 00:04:47,000 Speaker 1: And of course it changed virtually nothing except for unfortunate 79 00:04:47,000 --> 00:04:50,039 Speaker 1: shareholders of Time Warner in the furrow in case of 80 00:04:50,080 --> 00:04:53,719 Speaker 1: Time Warner employees exactly. Um. But when you do think 81 00:04:53,760 --> 00:04:58,120 Speaker 1: about what, for example, the Murdoch family was considering in 82 00:04:58,200 --> 00:05:01,120 Speaker 1: terms of scale and the way just ttribution is changing 83 00:05:01,120 --> 00:05:06,520 Speaker 1: so dramatically, um, and the unlimited depockets of whether it's 84 00:05:06,520 --> 00:05:08,800 Speaker 1: a Netflix or even more so, if they were to 85 00:05:08,839 --> 00:05:11,120 Speaker 1: actually start to pay for content on Facebook or a 86 00:05:11,160 --> 00:05:15,000 Speaker 1: Google or even an Apple, you do have to wonder 87 00:05:15,080 --> 00:05:19,880 Speaker 1: how it is without scale, really significant scale, and access 88 00:05:19,920 --> 00:05:21,960 Speaker 1: to enormous amounts of capital, you'll be able to play 89 00:05:21,960 --> 00:05:24,360 Speaker 1: in this emerging really kind of we would say emerging, 90 00:05:24,400 --> 00:05:26,720 Speaker 1: but it's really kind of here and you're now, Um, 91 00:05:26,839 --> 00:05:29,760 Speaker 1: so I get it. But yeah, a lot of times 92 00:05:29,760 --> 00:05:31,520 Speaker 1: it does tend to be a bit of an overreaction, 93 00:05:32,520 --> 00:05:34,960 Speaker 1: I think. I mean, the thing that that is so 94 00:05:35,080 --> 00:05:37,320 Speaker 1: striking and talking to talking to people in the industry, 95 00:05:37,400 --> 00:05:40,599 Speaker 1: the thing that is so striking to traditional media people 96 00:05:41,200 --> 00:05:44,400 Speaker 1: is the global nature. The fact that Netflix can push 97 00:05:44,400 --> 00:05:47,320 Speaker 1: a button and it's got a show in two hundred countries. 98 00:05:47,720 --> 00:05:51,400 Speaker 1: Facebook obviously has a big footprint to work from. Amazon 99 00:05:51,560 --> 00:05:53,760 Speaker 1: is starting to get its act together and really get 100 00:05:53,760 --> 00:05:58,440 Speaker 1: more more global. Um, do you think that these companies 101 00:05:58,480 --> 00:06:02,000 Speaker 1: with these big footprints. Netflix is a different case because 102 00:06:02,040 --> 00:06:04,279 Speaker 1: Netflix wants to own television. They will tell you that 103 00:06:04,400 --> 00:06:06,800 Speaker 1: anytime you ask them. But but for a Facebook and 104 00:06:06,800 --> 00:06:10,880 Speaker 1: an Amazon do you detect a sense that video is 105 00:06:10,960 --> 00:06:14,839 Speaker 1: kind of the kind of a a side venture that 106 00:06:14,960 --> 00:06:18,440 Speaker 1: isn't that certainly isn't isn't core to the business of Amazon. 107 00:06:18,480 --> 00:06:22,360 Speaker 1: Do you get the sense that there is less seriousness 108 00:06:22,400 --> 00:06:25,520 Speaker 1: than maybe the traditional media is responding to. You know, 109 00:06:25,520 --> 00:06:27,240 Speaker 1: I wish I could. I wish and I think we 110 00:06:27,320 --> 00:06:29,599 Speaker 1: all wish we really could understand exactly what it is 111 00:06:29,600 --> 00:06:32,960 Speaker 1: Amazon is thinking, or what Bezos is really his plan is. 112 00:06:33,440 --> 00:06:35,719 Speaker 1: Given how much they're spending, it's hard for me to 113 00:06:35,760 --> 00:06:39,159 Speaker 1: imagine it's not an important um effort for them. We 114 00:06:39,200 --> 00:06:40,680 Speaker 1: know it is. What's it going to be this year? 115 00:06:40,680 --> 00:06:43,400 Speaker 1: At least six billion dollars probably that Amazon is going 116 00:06:43,400 --> 00:06:45,719 Speaker 1: to spend number two? Right, I think they're they're just 117 00:06:45,839 --> 00:06:49,120 Speaker 1: they're a touch behind Netflix, so that Netflix is at 118 00:06:49,200 --> 00:06:51,360 Speaker 1: least eight at least that's on balance sheet. But right, 119 00:06:51,520 --> 00:06:54,560 Speaker 1: I mean, these are enormous sums um. But obviously they 120 00:06:54,560 --> 00:06:56,520 Speaker 1: do have a lot of other businesses at Amazon that 121 00:06:56,560 --> 00:07:00,080 Speaker 1: we consider more core, certainly the the retail business and 122 00:07:00,080 --> 00:07:02,320 Speaker 1: then Amazon Web services. But I do think it's a 123 00:07:02,360 --> 00:07:05,159 Speaker 1: real effort. I do think when people talk about them 124 00:07:05,200 --> 00:07:07,839 Speaker 1: bidding on NFL rights, that's not just made up stuff 125 00:07:07,880 --> 00:07:10,520 Speaker 1: by the NFL to try to get CBS really scared. 126 00:07:11,480 --> 00:07:14,680 Speaker 1: I do think there is really something to that. Facebook 127 00:07:14,880 --> 00:07:17,720 Speaker 1: video is their business, but not in the way we 128 00:07:17,800 --> 00:07:20,600 Speaker 1: think about it. It's all user generated content and things 129 00:07:20,600 --> 00:07:23,480 Speaker 1: of that nature, and and and and and obviously taking 130 00:07:23,480 --> 00:07:26,840 Speaker 1: other people's in terms of them actually producing more, really 131 00:07:26,880 --> 00:07:29,680 Speaker 1: paying for it. I don't know if they'll ever get there, 132 00:07:29,720 --> 00:07:32,080 Speaker 1: because this model has worked awfully well. Now there is 133 00:07:32,120 --> 00:07:34,920 Speaker 1: some question right now, in particular about the model itself, 134 00:07:35,560 --> 00:07:40,200 Speaker 1: given um privacy and given what we saw Zuckerberg go 135 00:07:40,240 --> 00:07:44,080 Speaker 1: through a week or so ago in Congress. But but 136 00:07:44,200 --> 00:07:46,400 Speaker 1: Facebook is much more of a question mark to me. 137 00:07:46,440 --> 00:07:48,240 Speaker 1: I mean, Amazon is out there, what do they just buy? 138 00:07:48,240 --> 00:07:51,600 Speaker 1: The cultures? They just I mean the studios in l A. 139 00:07:51,760 --> 00:07:55,680 Speaker 1: And they they are, They are an enormous influence right 140 00:07:55,720 --> 00:07:59,200 Speaker 1: now today in terms of at least developing content and 141 00:07:59,240 --> 00:08:01,800 Speaker 1: obviously distribt in it. They are planting a big flag 142 00:08:02,120 --> 00:08:05,480 Speaker 1: for sure. Yeah, um do you think? I guess the 143 00:08:05,480 --> 00:08:08,040 Speaker 1: other side of that question is a lot of people, 144 00:08:08,080 --> 00:08:09,600 Speaker 1: you know, I'm sure you hear. You know, people in 145 00:08:09,640 --> 00:08:13,160 Speaker 1: traditional media complain about Netflix can write these big checks, 146 00:08:13,480 --> 00:08:17,280 Speaker 1: big eye popping checks, and they don't have to it 147 00:08:17,360 --> 00:08:19,320 Speaker 1: doesn't have to show up on the net income line 148 00:08:19,360 --> 00:08:22,360 Speaker 1: at least at this point. What do you think, What 149 00:08:22,440 --> 00:08:25,840 Speaker 1: do you get the sense of investors, appetite or patients 150 00:08:25,840 --> 00:08:28,400 Speaker 1: for Netflix in terms of really turning around real profits. 151 00:08:29,000 --> 00:08:32,080 Speaker 1: I think it's fairly unlimited right now because everybody seems 152 00:08:32,160 --> 00:08:35,600 Speaker 1: very much focused on growing the subscriber base um and 153 00:08:35,679 --> 00:08:38,920 Speaker 1: we saw Netflix report earnings earlier this week when we're 154 00:08:39,760 --> 00:08:42,560 Speaker 1: talking here, and they were incredible numbers. They were far 155 00:08:42,600 --> 00:08:45,440 Speaker 1: above what people have anticipated in terms of subscriber growth, 156 00:08:45,440 --> 00:08:48,120 Speaker 1: and their guidance was even above that. To your point, 157 00:08:48,160 --> 00:08:51,960 Speaker 1: they're growing globally at a very rapid pace, and the business, 158 00:08:52,080 --> 00:08:54,640 Speaker 1: the operating leverage is actually going in the right direction. 159 00:08:54,760 --> 00:08:57,480 Speaker 1: They're increasing their operating leverage in part because they're just 160 00:08:57,920 --> 00:09:00,600 Speaker 1: the footprint keeps growing and the costs not that much 161 00:09:00,640 --> 00:09:03,640 Speaker 1: greater other than doing more marketing. But even with that, 162 00:09:03,720 --> 00:09:06,440 Speaker 1: operating leverages going up. So I think they have a 163 00:09:06,480 --> 00:09:09,440 Speaker 1: good deal of patients yet to come from investors. As 164 00:09:09,480 --> 00:09:12,200 Speaker 1: long as that subscription role continues to grow at a 165 00:09:12,280 --> 00:09:15,199 Speaker 1: rapid pace, then everybody's going to feel like the thesis 166 00:09:15,280 --> 00:09:17,800 Speaker 1: is in place. And I know it's very frustrating for 167 00:09:17,840 --> 00:09:20,959 Speaker 1: those who are measured by different metrics, whether it's a 168 00:09:21,040 --> 00:09:24,160 Speaker 1: Disney or anybody else. And it is somewhat reminiscent of 169 00:09:24,160 --> 00:09:28,440 Speaker 1: Walmart's complaints for years against Amazon. Well, they're just measured differently. 170 00:09:28,679 --> 00:09:31,040 Speaker 1: They don't ever get penalized for not making any money, 171 00:09:31,080 --> 00:09:35,320 Speaker 1: and we therefore can't make the kinds of investments that 172 00:09:35,440 --> 00:09:38,280 Speaker 1: we would want to. Um is a complaint that you 173 00:09:38,280 --> 00:09:41,520 Speaker 1: would hear. It's also something here with Tesla, which for 174 00:09:41,559 --> 00:09:43,720 Speaker 1: a long time, although that may be changing a bit, 175 00:09:43,760 --> 00:09:45,400 Speaker 1: it takes us off of course, I know a little bit, 176 00:09:45,440 --> 00:09:48,160 Speaker 1: but again I had to higher market value than GM 177 00:09:48,200 --> 00:09:51,640 Speaker 1: for a time, barely makes any number of automobiles. But 178 00:09:52,160 --> 00:09:55,680 Speaker 1: some of these companies are just treated differently. Yeah, I think, 179 00:09:55,840 --> 00:09:59,439 Speaker 1: certainly for Netflix that the clear evidence that even a 180 00:09:59,520 --> 00:10:02,600 Speaker 1: price high, you know, a gradual price hike, isn't slowing 181 00:10:02,640 --> 00:10:05,360 Speaker 1: that torrid momentum. I think that got a lot of 182 00:10:05,400 --> 00:10:08,040 Speaker 1: people's attention. Yeah, the ability to to, as they say, 183 00:10:08,080 --> 00:10:11,800 Speaker 1: take price while you're growing in subscription roles and increasing 184 00:10:11,840 --> 00:10:15,720 Speaker 1: marketing spending, but getting operating leverage going in the right direction. Well, 185 00:10:15,760 --> 00:10:18,600 Speaker 1: that's why the market cap of Netflix is what about 186 00:10:18,679 --> 00:10:20,920 Speaker 1: hundred and forty five billion dollars. It's not that far 187 00:10:20,960 --> 00:10:23,600 Speaker 1: away from Disney. No, they're right, They're right. And Netflix 188 00:10:24,120 --> 00:10:27,040 Speaker 1: and Netflix is this tiniest of the fang of the 189 00:10:27,080 --> 00:10:30,640 Speaker 1: fangs as Apple, you know, flirts with the trillion Apples 190 00:10:30,640 --> 00:10:33,720 Speaker 1: that were over eight hundred billion, and and an Amazon 191 00:10:33,760 --> 00:10:35,959 Speaker 1: over seven. So yeah, the size of these of these 192 00:10:36,040 --> 00:10:38,720 Speaker 1: organizations is enormous. To your point, Netflix not really in 193 00:10:38,800 --> 00:10:42,440 Speaker 1: terms of its its market cap. Um. I think in 194 00:10:42,480 --> 00:10:44,719 Speaker 1: some ways this argument that we're going to continue to 195 00:10:44,760 --> 00:10:48,160 Speaker 1: hear more and more about about market power and and 196 00:10:48,160 --> 00:10:51,640 Speaker 1: and the size of an Apple or an Alphabet or 197 00:10:51,679 --> 00:10:55,400 Speaker 1: a Facebook or an Amazon in particular. I don't know 198 00:10:55,440 --> 00:10:58,360 Speaker 1: that it's going to go anywhere in terms of regulatory action, 199 00:10:58,640 --> 00:11:00,480 Speaker 1: but you're hearing it a lot more, and I think 200 00:11:00,520 --> 00:11:03,120 Speaker 1: that will only grow. So that's the one thing the 201 00:11:03,160 --> 00:11:07,000 Speaker 1: media companies can hope for. I guess exactly, Um, do 202 00:11:07,080 --> 00:11:10,360 Speaker 1: you think Netflix could could use that stock for currency 203 00:11:10,440 --> 00:11:13,080 Speaker 1: right now? You know, you mentioned the AOL Time Warner deal, 204 00:11:13,120 --> 00:11:17,360 Speaker 1: and that has been such a cloud hanging over hot 205 00:11:17,400 --> 00:11:20,040 Speaker 1: shot digital hot shots that come into the market. But 206 00:11:20,280 --> 00:11:22,760 Speaker 1: you know, based on the most recent earnings report, that 207 00:11:22,840 --> 00:11:27,240 Speaker 1: sure looks real. It's funny. I hadn't thought. You know, 208 00:11:27,320 --> 00:11:31,000 Speaker 1: he's never talked about being acquisitive recase things at all. 209 00:11:31,880 --> 00:11:34,760 Speaker 1: I think you have a hard time finding somebody who's 210 00:11:34,760 --> 00:11:39,920 Speaker 1: willing to take that take that paper, at least large scale. Um, 211 00:11:39,960 --> 00:11:42,720 Speaker 1: and I'm not aware of anything. Everything they've done, they've 212 00:11:42,760 --> 00:11:45,560 Speaker 1: built for the most part, in the talent, they've just 213 00:11:45,640 --> 00:11:49,680 Speaker 1: paid for the talent um. That'd be really interesting. I 214 00:11:49,679 --> 00:11:51,880 Speaker 1: hadn't even it's funny for a for a long while. 215 00:11:51,880 --> 00:11:55,199 Speaker 1: As you well know, people always would speculate what Apple 216 00:11:55,240 --> 00:11:57,320 Speaker 1: ever try and make a move many years ago. Of 217 00:11:57,320 --> 00:12:00,800 Speaker 1: course it was Amazon who some thought before they got 218 00:12:00,800 --> 00:12:02,920 Speaker 1: into the business would want to make a move on Netflix. 219 00:12:02,960 --> 00:12:05,520 Speaker 1: But rarely, if ever, have I actually thought about Netflix 220 00:12:05,559 --> 00:12:09,320 Speaker 1: doing another acquisition. Although I guess buying buying a studio 221 00:12:10,000 --> 00:12:11,760 Speaker 1: might help them, I guess or not, you might, you know, 222 00:12:11,880 --> 00:12:14,400 Speaker 1: more than I would. There's there's some people in Hollywood 223 00:12:14,400 --> 00:12:18,600 Speaker 1: with big dreams about that, about that right now, um 224 00:12:18,640 --> 00:12:20,880 Speaker 1: anything you know. Of course, media m and A has 225 00:12:20,920 --> 00:12:24,320 Speaker 1: been We've had waves of it, you know. Twenty years ago. 226 00:12:24,600 --> 00:12:27,839 Speaker 1: It was driven by a deregulatory push under the Clinton 227 00:12:27,880 --> 00:12:32,360 Speaker 1: administration that brought a lot of people together. Obviously, the 228 00:12:31,640 --> 00:12:35,400 Speaker 1: the the looming specter of the tech sector is driving. 229 00:12:35,400 --> 00:12:38,160 Speaker 1: But anything else stand out to you is unusual this 230 00:12:38,200 --> 00:12:40,640 Speaker 1: time around. We're in one of those moments of everybody's 231 00:12:40,679 --> 00:12:43,560 Speaker 1: talking to everybody. Well, I what I would say, and 232 00:12:43,600 --> 00:12:46,080 Speaker 1: I talk a lot about this on CNBC right now, 233 00:12:46,320 --> 00:12:49,440 Speaker 1: is the rules of the road when it comes to 234 00:12:49,480 --> 00:12:52,880 Speaker 1: regulatory and anti trust are in a bit of a 235 00:12:52,960 --> 00:12:56,839 Speaker 1: muddle right now. Uh. We currently have a t and 236 00:12:56,920 --> 00:12:59,800 Speaker 1: teen Time Warner in court against the Department of Justice 237 00:12:59,800 --> 00:13:02,119 Speaker 1: are doing that their deal will not be any competitive. 238 00:13:02,600 --> 00:13:06,640 Speaker 1: Many people have wondered why that case was brought, and 239 00:13:06,679 --> 00:13:09,920 Speaker 1: some have ventured to say it's really because the president 240 00:13:10,000 --> 00:13:12,000 Speaker 1: right now doesn't like CNN, which of course is owned 241 00:13:12,000 --> 00:13:18,200 Speaker 1: by Time Warner. Um. You have questions around some large 242 00:13:18,240 --> 00:13:21,880 Speaker 1: technology deals right now because they're wrapped up in the 243 00:13:22,040 --> 00:13:26,240 Speaker 1: growing trade tensions with China. This morning, I spent a 244 00:13:26,240 --> 00:13:30,040 Speaker 1: lot of time talking about Qualcom and chip company called 245 00:13:30,120 --> 00:13:32,920 Speaker 1: n XP. But I mentioned it because right now it's 246 00:13:33,000 --> 00:13:35,840 Speaker 1: very difficult to know if you are a media company 247 00:13:35,880 --> 00:13:39,320 Speaker 1: considering consolidation, how you're going to be viewed from an 248 00:13:39,360 --> 00:13:42,040 Speaker 1: anti trust lens, and that can make things a little 249 00:13:42,040 --> 00:13:44,600 Speaker 1: bit more difficult. Questions that might not have been asked 250 00:13:44,600 --> 00:13:46,880 Speaker 1: in the past, such as well, will this be a 251 00:13:46,960 --> 00:13:48,880 Speaker 1: story that ends up on the front page of the paper, 252 00:13:49,200 --> 00:13:52,760 Speaker 1: is featured on the Fox network in terms of the 253 00:13:52,760 --> 00:13:57,120 Speaker 1: president getting getting his attention in all seriousness, as it 254 00:13:57,200 --> 00:14:01,080 Speaker 1: takeaway jobs or add jobs? Does it involve any foreign 255 00:14:01,120 --> 00:14:04,680 Speaker 1: companies in any way? These are all questions that are 256 00:14:04,880 --> 00:14:07,760 Speaker 1: vital importance now, I am told by the experts who 257 00:14:07,840 --> 00:14:10,600 Speaker 1: try and advise, And it's really hard if you're a 258 00:14:10,640 --> 00:14:13,520 Speaker 1: CEO considering doing something to make a decision you feel 259 00:14:13,600 --> 00:14:16,360 Speaker 1: is is going to be the right one in terms 260 00:14:16,400 --> 00:14:18,200 Speaker 1: of a deal. So that's that's one thing to keep 261 00:14:18,240 --> 00:14:20,800 Speaker 1: an eye on. Yeah, And so if you do actually 262 00:14:20,840 --> 00:14:23,240 Speaker 1: get what would be an unexpected result here, namely the 263 00:14:23,280 --> 00:14:26,080 Speaker 1: government winning, that will have a chilling effect on a 264 00:14:26,120 --> 00:14:28,760 Speaker 1: lot of deals, including you know, things that might take 265 00:14:28,760 --> 00:14:34,640 Speaker 1: place in the media industry, right right, Um, you obviously 266 00:14:34,640 --> 00:14:38,440 Speaker 1: you cover sectors beyond media. What what is it about 267 00:14:38,720 --> 00:14:40,800 Speaker 1: is it? Is it? What is it about media that 268 00:14:40,800 --> 00:14:45,000 Speaker 1: that makes it such a vibrant sector, such a such 269 00:14:45,040 --> 00:14:47,040 Speaker 1: a sexy sector. Is it just the fact that these 270 00:14:47,080 --> 00:14:49,680 Speaker 1: are you know a lot of these companies are household 271 00:14:49,760 --> 00:14:52,120 Speaker 1: names people, They come into people's homes. What is it 272 00:14:52,160 --> 00:14:55,400 Speaker 1: that makes media sort of unique as a sector to cover. 273 00:14:55,640 --> 00:14:57,440 Speaker 1: I think part of it is just it's something that 274 00:14:57,480 --> 00:14:59,360 Speaker 1: so many of us are familiar with. So there are 275 00:14:59,440 --> 00:15:03,200 Speaker 1: brand names we're familiar with. Broadly speaking, many people are 276 00:15:03,200 --> 00:15:07,800 Speaker 1: familiar with the actual product itself. Um, and it's in 277 00:15:07,960 --> 00:15:10,840 Speaker 1: everybody's lives. So it would always appeal to me in 278 00:15:10,920 --> 00:15:13,960 Speaker 1: part because of that. It's just something you could actually 279 00:15:14,040 --> 00:15:17,440 Speaker 1: understand because you were dealing with it, whether it was telecommunications, 280 00:15:17,440 --> 00:15:19,360 Speaker 1: which I also tended to focus on through the years, 281 00:15:19,440 --> 00:15:22,400 Speaker 1: or media itself. I also think that you do. You 282 00:15:22,480 --> 00:15:24,120 Speaker 1: did have for a period of time a lot of 283 00:15:24,160 --> 00:15:28,600 Speaker 1: controlled companies and outsize personalities running them, and in some 284 00:15:28,720 --> 00:15:32,680 Speaker 1: of my red Stone Rupert Murdock, Brian Roberts, even Brian 285 00:15:32,760 --> 00:15:35,560 Speaker 1: Roberts to a certain extent John Malone, people who are 286 00:15:35,560 --> 00:15:37,920 Speaker 1: willing to speak their minds and not afraid to do so, 287 00:15:38,760 --> 00:15:45,480 Speaker 1: in part because they didn't have to worry about shareholders control, 288 00:15:46,080 --> 00:15:48,960 Speaker 1: and so that always made it very dealer. Um. That 289 00:15:49,000 --> 00:15:51,440 Speaker 1: always has made it fun and interesting. Just that the 290 00:15:51,600 --> 00:15:55,360 Speaker 1: personalities that tended to be congregated in this particular area, 291 00:15:55,440 --> 00:15:57,840 Speaker 1: not that there aren't other CEOs who actually are willing 292 00:15:57,840 --> 00:16:01,440 Speaker 1: to say something sometimes it's interesting or be you know different. 293 00:16:01,640 --> 00:16:05,240 Speaker 1: Elon Musk comes to mind. But you know, think about 294 00:16:05,600 --> 00:16:09,120 Speaker 1: think about these guys versus like Jeff Bezos, who is 295 00:16:09,280 --> 00:16:13,520 Speaker 1: arguably the most impressive and powerful businessman in the country. 296 00:16:13,840 --> 00:16:16,160 Speaker 1: You never hear from him, You never, you don't What 297 00:16:16,160 --> 00:16:18,680 Speaker 1: do you know about him? Really? What has he ever 298 00:16:18,760 --> 00:16:24,360 Speaker 1: shared hardly anything versus Ruper Murdoch or Sumner Redstone or 299 00:16:24,560 --> 00:16:26,440 Speaker 1: or or so many you know, or back in the 300 00:16:26,520 --> 00:16:29,239 Speaker 1: day Eisener, even even though he wasn't a controlling shareholder. 301 00:16:29,480 --> 00:16:33,200 Speaker 1: Still sort of these outside personalities, right, is it? From 302 00:16:33,200 --> 00:16:35,360 Speaker 1: time to time, of course, you have to cover things 303 00:16:35,400 --> 00:16:38,240 Speaker 1: that involve Comcast and evolve NBC Universal and in the 304 00:16:38,240 --> 00:16:40,680 Speaker 1: past involved General Electric. Is it touchy? Is there a 305 00:16:40,680 --> 00:16:45,440 Speaker 1: particular process for covering your own company? It's a great question. Um, 306 00:16:45,560 --> 00:16:49,760 Speaker 1: I will say, through the years, Ge and now Comcast thankfully, 307 00:16:50,160 --> 00:16:53,320 Speaker 1: and Brian Roberts and Steve Burke who runs NBC, you 308 00:16:53,360 --> 00:16:56,680 Speaker 1: have never once and I'm happy to say never once 309 00:16:57,680 --> 00:17:01,280 Speaker 1: ever indicated said done any thing to interfere with my 310 00:17:01,360 --> 00:17:05,400 Speaker 1: reporting in any way, shape or form. That said, there, 311 00:17:05,440 --> 00:17:08,000 Speaker 1: you know, you try to let the viewer know without 312 00:17:08,000 --> 00:17:11,879 Speaker 1: a doubt I'm an employee of this company. And by 313 00:17:11,880 --> 00:17:13,479 Speaker 1: the way, we're not allowed to own any stock at 314 00:17:13,480 --> 00:17:16,399 Speaker 1: the NBC, but I do own Comcast because it can 315 00:17:16,400 --> 00:17:20,439 Speaker 1: be part of some people's compensation as of mind, and 316 00:17:20,520 --> 00:17:23,399 Speaker 1: so we do tell people that. UM. But you know, 317 00:17:23,760 --> 00:17:27,080 Speaker 1: this morning, I was on being I wouldn't say critical 318 00:17:27,119 --> 00:17:31,560 Speaker 1: of Comcast, but um laying out what we all saw 319 00:17:31,600 --> 00:17:35,240 Speaker 1: on the background to the transaction for Disney Fox that 320 00:17:35,480 --> 00:17:39,800 Speaker 1: just came out into filing last night, and Comcast, you know, 321 00:17:39,840 --> 00:17:42,119 Speaker 1: it wasn't necessarily in their best interests in terms of 322 00:17:42,119 --> 00:17:44,000 Speaker 1: at least some of the things we're reporting. There's never 323 00:17:44,200 --> 00:17:48,080 Speaker 1: any been any backlash whatsoever. I treat them like I 324 00:17:48,080 --> 00:17:50,040 Speaker 1: treat every other company. I know people may find that 325 00:17:50,080 --> 00:17:52,480 Speaker 1: hard to believe, and unfortunately they treat me the same way. 326 00:17:52,560 --> 00:17:55,680 Speaker 1: So I never, like, I never get a scoop on Comcast. 327 00:17:55,760 --> 00:17:59,000 Speaker 1: I mean, I'm always the dream Works deal and like, guys, really, 328 00:17:59,359 --> 00:18:02,360 Speaker 1: I mean, I can go on and on never So 329 00:18:02,600 --> 00:18:04,440 Speaker 1: if that maybe that can be at least some evidence 330 00:18:04,480 --> 00:18:07,800 Speaker 1: that I'm really not getting, you know, favorable or favoritism 331 00:18:07,800 --> 00:18:11,560 Speaker 1: at least I hear you. Um, you have a great 332 00:18:11,560 --> 00:18:14,640 Speaker 1: relationship with John Malone. You you do almost an annual 333 00:18:14,680 --> 00:18:18,120 Speaker 1: interview with John Malone? How did how did that develop? 334 00:18:18,240 --> 00:18:21,120 Speaker 1: Is it just from professional contacts or was there some 335 00:18:21,280 --> 00:18:24,720 Speaker 1: personal backstory to how you you know, I've spent time 336 00:18:24,760 --> 00:18:27,600 Speaker 1: with him. It's been twenty years, I think. Um. I 337 00:18:27,640 --> 00:18:29,600 Speaker 1: can remember the first time I ever went up to 338 00:18:29,680 --> 00:18:32,000 Speaker 1: him years ago when he was the CEO of t 339 00:18:32,119 --> 00:18:36,440 Speaker 1: C I and and it was a gaggle of people 340 00:18:36,560 --> 00:18:38,440 Speaker 1: he had they I think they had had their annual 341 00:18:38,840 --> 00:18:40,960 Speaker 1: analyst day or maybe was our annual meeting, I don't 342 00:18:41,000 --> 00:18:43,080 Speaker 1: remember which. And I went up to him and I 343 00:18:43,160 --> 00:18:47,440 Speaker 1: was Mr Malone, and I asked him some complicated question 344 00:18:47,560 --> 00:18:49,679 Speaker 1: that I thought was very impressively and he looked at 345 00:18:49,680 --> 00:18:51,639 Speaker 1: me and he's like, I don't know what you're talking about. 346 00:18:52,560 --> 00:18:54,960 Speaker 1: It's like I don't understand what it is you're actually 347 00:18:55,040 --> 00:18:58,080 Speaker 1: asking me. I said, well, I'm trying to I don't 348 00:18:58,119 --> 00:19:01,679 Speaker 1: even remember exactly with something fairly technical about you know 349 00:19:01,720 --> 00:19:05,720 Speaker 1: what wireless was just starting then, and cable and wireless anyhow. 350 00:19:06,200 --> 00:19:11,520 Speaker 1: But uh, I kept at it, and and through the 351 00:19:11,600 --> 00:19:14,160 Speaker 1: years he fund you know, he agreed to be interviewed, 352 00:19:14,160 --> 00:19:16,040 Speaker 1: and I think he appreciated the fact that I spent 353 00:19:16,119 --> 00:19:19,280 Speaker 1: a lot of time and effort to really understand the 354 00:19:19,359 --> 00:19:23,359 Speaker 1: company in the industry. And you do that once or 355 00:19:23,359 --> 00:19:25,359 Speaker 1: twice a year for twenty years, you start to get 356 00:19:25,400 --> 00:19:27,480 Speaker 1: to know each other a bit. You're certainly have developed 357 00:19:27,480 --> 00:19:32,479 Speaker 1: a rapport um and so you know, he's comfortable with 358 00:19:32,520 --> 00:19:36,080 Speaker 1: me and I'm comfortable with him. And yeah, it's become 359 00:19:36,160 --> 00:19:37,879 Speaker 1: kind of an annual tradition. I wish it was a 360 00:19:37,920 --> 00:19:39,720 Speaker 1: little bit more because I think there are times we'd 361 00:19:39,720 --> 00:19:41,400 Speaker 1: like to hear from him. Although you can hear from 362 00:19:41,480 --> 00:19:43,000 Speaker 1: I don't need to bring them on to get a 363 00:19:43,040 --> 00:19:46,000 Speaker 1: hold of them. But but it's been a really interesting 364 00:19:46,040 --> 00:19:48,560 Speaker 1: relationship for me and one I hope will continue for 365 00:19:48,600 --> 00:19:52,600 Speaker 1: many years to come. They're always there are always good interviews. 366 00:19:52,840 --> 00:19:54,920 Speaker 1: Thank you. What do you think, in just in general 367 00:19:55,040 --> 00:19:57,680 Speaker 1: about the volatility of the Dow right now? Where a 368 00:19:57,800 --> 00:20:01,919 Speaker 1: historic highs you know, sudden you know, nowadays a three 369 00:20:02,000 --> 00:20:04,760 Speaker 1: hundred point swing either way doesn't even It almost seems 370 00:20:04,800 --> 00:20:07,600 Speaker 1: to it's like you've got to be sub five before 371 00:20:07,600 --> 00:20:10,320 Speaker 1: people really stand up. Does that do you think? Is 372 00:20:10,359 --> 00:20:12,359 Speaker 1: this is there a big correction coming? Is a lot 373 00:20:12,400 --> 00:20:15,560 Speaker 1: of people have speculator, I have no idea. Um, Yeah, 374 00:20:15,600 --> 00:20:18,119 Speaker 1: the dow points people shouldn't focus on it is. You know, 375 00:20:18,119 --> 00:20:20,119 Speaker 1: it's just percentages. At this point, when you get up 376 00:20:20,160 --> 00:20:23,120 Speaker 1: to twenty four thousand, we're not talking about a lot, 377 00:20:23,160 --> 00:20:24,760 Speaker 1: even though it feels like a lot because of those 378 00:20:24,760 --> 00:20:27,280 Speaker 1: of us who remember when the Dow was two thousand 379 00:20:27,680 --> 00:20:31,040 Speaker 1: two points feels like an awful lot. Um. I tend 380 00:20:31,040 --> 00:20:32,840 Speaker 1: to focus more in the SMP, which is sort of 381 00:20:32,880 --> 00:20:36,399 Speaker 1: a broader reflection of the of the of the market, 382 00:20:37,000 --> 00:20:38,840 Speaker 1: but we do have a lot of folatility this year. 383 00:20:38,920 --> 00:20:40,840 Speaker 1: We got lulled into a kind of a sense of 384 00:20:40,880 --> 00:20:43,800 Speaker 1: complacency because last year the market was there was no 385 00:20:43,880 --> 00:20:47,679 Speaker 1: volatility at all. It was a great year, and it 386 00:20:47,760 --> 00:20:49,879 Speaker 1: was sort of just every day we kind of went 387 00:20:50,000 --> 00:20:52,960 Speaker 1: up I don't know, twenty five basis points or whatever 388 00:20:52,960 --> 00:20:55,239 Speaker 1: it might have been. I'm exaggerating, but it was just 389 00:20:55,280 --> 00:21:02,440 Speaker 1: a relentless climb higher. Um. There's a lot of worries 390 00:21:02,480 --> 00:21:05,639 Speaker 1: about exogenous events, for lack of a better term, right, 391 00:21:05,680 --> 00:21:10,960 Speaker 1: whether it's North Korea or the current disputes with China, 392 00:21:11,040 --> 00:21:14,639 Speaker 1: which is really of importance, or even things in the 393 00:21:14,680 --> 00:21:17,560 Speaker 1: Mid East which may have a tendency to push up 394 00:21:17,640 --> 00:21:20,960 Speaker 1: the price of oil, which can have an impact beyond 395 00:21:21,080 --> 00:21:23,760 Speaker 1: even just US focusing on the fundamentals of the underlying 396 00:21:23,840 --> 00:21:26,879 Speaker 1: US economy and whether interest rates are going to go 397 00:21:26,960 --> 00:21:28,719 Speaker 1: up and buy how much they're going to go up, 398 00:21:28,760 --> 00:21:31,800 Speaker 1: and how long we've had the bull market. So it's 399 00:21:31,840 --> 00:21:34,760 Speaker 1: kind of more return to normalcy, I think in some 400 00:21:34,800 --> 00:21:37,240 Speaker 1: ways as volatility as opposed to anything else. But there 401 00:21:37,240 --> 00:21:39,120 Speaker 1: are a couple of things we haven't had to deal with, 402 00:21:39,480 --> 00:21:41,760 Speaker 1: not to mention that, just the day and day outsaga 403 00:21:41,800 --> 00:21:43,840 Speaker 1: of the of the White House right now and the 404 00:21:43,920 --> 00:21:48,560 Speaker 1: unpredictability there. Yes, exactly gotcha. Um. You know, our world 405 00:21:48,680 --> 00:21:53,080 Speaker 1: is a wash in information, instantaneous information. You know, twenty 406 00:21:53,160 --> 00:21:55,560 Speaker 1: years ago it was revolutionary that CNBC was on the 407 00:21:55,560 --> 00:21:57,960 Speaker 1: air on a in a real time basis. Now there 408 00:21:58,080 --> 00:22:01,560 Speaker 1: is so much information at those fingertips, and you know, 409 00:22:01,840 --> 00:22:04,800 Speaker 1: markets will react in a nanosecond and you'll see you know, 410 00:22:05,040 --> 00:22:08,240 Speaker 1: major swings one way or another on good news, bad news. 411 00:22:08,359 --> 00:22:11,760 Speaker 1: You know, Um, do you is that is that? Does 412 00:22:11,760 --> 00:22:15,680 Speaker 1: that influence that media coverage can have on a company, 413 00:22:15,720 --> 00:22:20,040 Speaker 1: on a on a headline, on interpretation one analyst report, 414 00:22:20,200 --> 00:22:21,840 Speaker 1: you know, with an upgrade or down grade? Do you 415 00:22:21,960 --> 00:22:23,600 Speaker 1: is that something you think about before you go on 416 00:22:23,640 --> 00:22:26,159 Speaker 1: air with something? In terms of the potential impact on 417 00:22:26,200 --> 00:22:28,560 Speaker 1: a market. You know, I are a company. Yeah, I mean, 418 00:22:28,600 --> 00:22:30,080 Speaker 1: of course I always think about it, and I used 419 00:22:30,080 --> 00:22:32,080 Speaker 1: to think about it back twenty years ago as well, 420 00:22:32,200 --> 00:22:35,120 Speaker 1: when when they're still was everybody's just reading the newspaper 421 00:22:35,160 --> 00:22:38,000 Speaker 1: in the morning. Um. But I in a weird way, 422 00:22:38,040 --> 00:22:43,560 Speaker 1: I think I've benefited from still sticking with my old 423 00:22:43,640 --> 00:22:47,280 Speaker 1: standards of not rushing things to air and taking time 424 00:22:47,320 --> 00:22:49,920 Speaker 1: and taking a deep breath and making sure you make 425 00:22:49,920 --> 00:22:52,760 Speaker 1: the extra call and just trying to make sure you 426 00:22:52,840 --> 00:22:55,639 Speaker 1: understand things and present it with context as opposed to 427 00:22:55,720 --> 00:22:59,720 Speaker 1: rushing on which I think. There's just so much competition 428 00:22:59,760 --> 00:23:04,159 Speaker 1: now out and the sources of information are not quite 429 00:23:04,240 --> 00:23:06,639 Speaker 1: as reliable as they had been in the past. I mean, 430 00:23:06,640 --> 00:23:08,080 Speaker 1: there was a time when if you read it in 431 00:23:08,119 --> 00:23:10,000 Speaker 1: the journal in the morning, you knew without a doubt 432 00:23:10,080 --> 00:23:13,040 Speaker 1: it was absolutely true. And the journal still does great reporting, 433 00:23:13,119 --> 00:23:16,640 Speaker 1: don't get me wrong, But but there is a tendency 434 00:23:16,640 --> 00:23:18,800 Speaker 1: to your point, because things are moving so quickly for 435 00:23:18,840 --> 00:23:23,879 Speaker 1: people to rush or to feel competitive pressure. And I 436 00:23:23,920 --> 00:23:25,879 Speaker 1: guess that's one benefit, at least of having done this 437 00:23:25,960 --> 00:23:28,080 Speaker 1: for so long. If I not that I don't like 438 00:23:28,320 --> 00:23:30,760 Speaker 1: to lose a scoop. I hate it drives me crazy, 439 00:23:30,800 --> 00:23:33,800 Speaker 1: but I'm willing to accept it for the for the 440 00:23:35,280 --> 00:23:38,480 Speaker 1: you know, for not getting something wrong. It's better to 441 00:23:38,560 --> 00:23:41,840 Speaker 1: me to just well, I missed it or a lot 442 00:23:41,920 --> 00:23:44,240 Speaker 1: of times now you can actually follow up because the 443 00:23:44,280 --> 00:23:46,480 Speaker 1: story wasn't right to begin with, whatever might have been 444 00:23:46,520 --> 00:23:50,160 Speaker 1: half broken. So that's an ongoing frustration in some ways 445 00:23:50,200 --> 00:23:52,760 Speaker 1: in terms of getting deeper into journalism here, there's so 446 00:23:52,760 --> 00:23:55,160 Speaker 1: many stories that are reported that are not quite right, 447 00:23:55,240 --> 00:23:56,880 Speaker 1: but there's a part of it that's right, and people 448 00:23:56,920 --> 00:23:58,800 Speaker 1: are just willing to go with it. It must be 449 00:23:58,800 --> 00:24:00,560 Speaker 1: hard when you're on the area around the air from 450 00:24:00,600 --> 00:24:03,800 Speaker 1: nine am to eleven am live Monday through Friday, and 451 00:24:04,119 --> 00:24:07,520 Speaker 1: you must are things coming into your ear, into your 452 00:24:07,560 --> 00:24:10,320 Speaker 1: email and you're juggling. Yeah I am. Now, I'm lucky 453 00:24:10,359 --> 00:24:12,040 Speaker 1: I have Jim Kramer. Next, You're spending a lot of 454 00:24:12,040 --> 00:24:15,879 Speaker 1: the time talking, so I'm able to multitask uh people do. 455 00:24:16,000 --> 00:24:17,800 Speaker 1: I get tests from c e O S, which is 456 00:24:17,840 --> 00:24:20,320 Speaker 1: always interesting. That's how they know to communicate with me. 457 00:24:20,400 --> 00:24:22,720 Speaker 1: Usually I'll take a call if I can during a 458 00:24:22,800 --> 00:24:26,600 Speaker 1: break um an email. So yeah, there is a lot 459 00:24:26,640 --> 00:24:29,280 Speaker 1: of communication going on during the course of the show, 460 00:24:29,359 --> 00:24:31,520 Speaker 1: particularly as it involves a story that I may be 461 00:24:31,560 --> 00:24:34,320 Speaker 1: in the midst of reporting on CBS. Viacom comes to 462 00:24:34,320 --> 00:24:37,480 Speaker 1: mind most recently for as an example of that talk 463 00:24:37,520 --> 00:24:41,920 Speaker 1: about crazy. Yeah, I mean you can't write a more. 464 00:24:42,400 --> 00:24:45,840 Speaker 1: You know, if you were trying to write this, somebody 465 00:24:45,920 --> 00:24:48,119 Speaker 1: might say, you know, tone that down. I mean. The 466 00:24:48,160 --> 00:24:52,320 Speaker 1: personality is the character, the Shakespearean aspects of you know, 467 00:24:52,560 --> 00:24:57,439 Speaker 1: family dynamics and person you know, personality classes, clashes. Do 468 00:24:57,600 --> 00:25:00,200 Speaker 1: you have a do you have a guest? It is 469 00:25:00,240 --> 00:25:01,840 Speaker 1: to where that heads in the next cup, in the 470 00:25:01,880 --> 00:25:03,760 Speaker 1: next week or so. You know, I've been reporting on it, 471 00:25:03,800 --> 00:25:08,880 Speaker 1: You've been reporting on it. Um I my last real 472 00:25:09,000 --> 00:25:11,080 Speaker 1: full story on it. I did something today, but it 473 00:25:11,160 --> 00:25:13,159 Speaker 1: was more. It was minor in the sense that they 474 00:25:13,160 --> 00:25:16,040 Speaker 1: are trying. They're making some progress a little bit on 475 00:25:16,080 --> 00:25:19,159 Speaker 1: the economics and the back and forth between the special 476 00:25:19,160 --> 00:25:22,960 Speaker 1: committees of both companies. But the intractable issue is this 477 00:25:23,000 --> 00:25:26,119 Speaker 1: idea of who's going to manage the combined company. And 478 00:25:27,320 --> 00:25:29,120 Speaker 1: your guess is as good as mine at this point 479 00:25:29,119 --> 00:25:31,640 Speaker 1: as to where that ends up. I could imagine a compromise, 480 00:25:31,760 --> 00:25:34,360 Speaker 1: you could a third wave. It feels like there's got 481 00:25:34,440 --> 00:25:37,159 Speaker 1: to be right and that's why you have advisors who 482 00:25:37,240 --> 00:25:40,119 Speaker 1: will try and try and try again to get Shari 483 00:25:40,200 --> 00:25:43,040 Speaker 1: Redstone and Leslie Moonves to a place where they can agree. 484 00:25:44,240 --> 00:25:46,080 Speaker 1: But you know, I've been pretty close to this in 485 00:25:46,200 --> 00:25:48,600 Speaker 1: terms of my reporting, and I have a hard time 486 00:25:48,680 --> 00:25:52,520 Speaker 1: seeing how either one of them backs off of what 487 00:25:52,560 --> 00:25:56,120 Speaker 1: they want, um, which is moon Vest doesn't want Bob 488 00:25:56,119 --> 00:25:59,439 Speaker 1: back Ish anywhere near this company. Basically, I've said this, 489 00:25:59,760 --> 00:26:03,120 Speaker 1: and Shari Redstone wants him he's currently the CEO of Viacom, 490 00:26:03,119 --> 00:26:07,520 Speaker 1: to be the number two. Previously, uh, there may have 491 00:26:07,600 --> 00:26:12,399 Speaker 1: been there was conversation between Moonves and Redstone that she 492 00:26:12,520 --> 00:26:14,399 Speaker 1: was willing to not have him be number two, but 493 00:26:14,440 --> 00:26:16,960 Speaker 1: she always wanted him involved. But now it's been number two, 494 00:26:16,960 --> 00:26:20,480 Speaker 1: c CEO, president and a board member. Can they figure 495 00:26:20,520 --> 00:26:24,040 Speaker 1: that out? Absolutely? Will they figure that out? I have 496 00:26:24,080 --> 00:26:26,960 Speaker 1: no idea. And the very public nature of it all 497 00:26:27,320 --> 00:26:29,960 Speaker 1: all being spelled out in so many reports also adds 498 00:26:30,080 --> 00:26:32,600 Speaker 1: certainly adds a challenge. Yeah, and then and then the 499 00:26:32,640 --> 00:26:37,200 Speaker 1: governance issues. She's the controlling shareholder. She she can do 500 00:26:37,280 --> 00:26:39,840 Speaker 1: what she wants. She could toss board members and then 501 00:26:39,840 --> 00:26:44,080 Speaker 1: she could have Leslie Moonvest fire. It can absolutely happen 502 00:26:44,080 --> 00:26:46,840 Speaker 1: will she end up in court and Delaware most likely? 503 00:26:47,320 --> 00:26:49,520 Speaker 1: Will that be just a complete mass? Yeah? Does she 504 00:26:49,600 --> 00:26:53,200 Speaker 1: want that? No? But you know she's a Redstone, don't 505 00:26:53,240 --> 00:26:55,400 Speaker 1: forget that. I mean I know her dad pretty well 506 00:26:56,200 --> 00:26:58,800 Speaker 1: and wow, I mean he's still with us, but he's 507 00:26:58,840 --> 00:27:01,760 Speaker 1: not obviously the man he was. And let me talk 508 00:27:01,800 --> 00:27:08,280 Speaker 1: about tough and stubborn. That DNA runs very deep. Absolutely, 509 00:27:08,920 --> 00:27:11,919 Speaker 1: last question before I let you go, Um, private equity 510 00:27:12,119 --> 00:27:14,080 Speaker 1: is kind of interesting in the right now in the 511 00:27:14,119 --> 00:27:17,000 Speaker 1: media sector. It's land of the giants, so it doesn't 512 00:27:17,000 --> 00:27:19,320 Speaker 1: seem like we're seeing a lot of influence there. But 513 00:27:19,400 --> 00:27:23,639 Speaker 1: do you see do you see um opportunities sort of 514 00:27:23,640 --> 00:27:26,760 Speaker 1: on the margins for for people out there. I keep 515 00:27:26,840 --> 00:27:29,040 Speaker 1: hearing that there's a lot of money out there looking 516 00:27:29,080 --> 00:27:32,320 Speaker 1: to park itself and content, but the marketplace is so 517 00:27:32,320 --> 00:27:34,600 Speaker 1: scattered that nobody quite knows where to bat. Is that 518 00:27:34,840 --> 00:27:37,240 Speaker 1: your sense? Yeah? You know, private equity used to be 519 00:27:37,280 --> 00:27:40,880 Speaker 1: the story in mergers and acquisitions ten years ago, when 520 00:27:40,920 --> 00:27:43,679 Speaker 1: they were Pan eleven, twelve years ago, when they were 521 00:27:43,680 --> 00:27:46,320 Speaker 1: doing amongst the biggest deals out there and the biggest 522 00:27:46,359 --> 00:27:48,960 Speaker 1: deals by far that had ever been done. Most of 523 00:27:48,960 --> 00:27:51,680 Speaker 1: those big deals were bad deals and they pulled back 524 00:27:51,760 --> 00:27:54,520 Speaker 1: dramatically in terms of their ambitions. But to your point, 525 00:27:54,520 --> 00:27:57,159 Speaker 1: they do they have they still have raised vast pools 526 00:27:57,160 --> 00:27:59,280 Speaker 1: of money that they have to put to work. I 527 00:27:59,280 --> 00:28:02,360 Speaker 1: don't hear that much in in in media. I mean, 528 00:28:03,320 --> 00:28:05,359 Speaker 1: there there are some cases that you could do a 529 00:28:05,400 --> 00:28:08,400 Speaker 1: smaller roll up as a private equity firm that then 530 00:28:08,480 --> 00:28:11,440 Speaker 1: you would sell whatever it is you've put together to 531 00:28:12,160 --> 00:28:15,399 Speaker 1: a bigger one of the big players. Um, which is 532 00:28:15,440 --> 00:28:18,919 Speaker 1: sort of the playbook for private equity. But um and 533 00:28:18,960 --> 00:28:20,920 Speaker 1: it wouldn't shock me if you did see some of that. 534 00:28:21,640 --> 00:28:24,320 Speaker 1: But you know, I can also remember some private equity 535 00:28:24,320 --> 00:28:26,760 Speaker 1: firms picking up all the local newspapers because they thought 536 00:28:26,800 --> 00:28:28,200 Speaker 1: that was you know, they were going to be able 537 00:28:28,200 --> 00:28:31,400 Speaker 1: to figure out a way to gain efficiencies and scale, 538 00:28:31,480 --> 00:28:34,760 Speaker 1: and that ended in bankruptcy. So I think they're they're 539 00:28:35,400 --> 00:28:37,520 Speaker 1: being duly cautious when it comes to sort of the 540 00:28:37,560 --> 00:28:41,720 Speaker 1: media companies or what maybe out there to amass. Well. 541 00:28:41,760 --> 00:28:43,840 Speaker 1: It will be interesting to see all of these all 542 00:28:43,840 --> 00:28:46,760 Speaker 1: of these threads play out over the next couple of months. David, 543 00:28:46,800 --> 00:28:48,840 Speaker 1: thank you so much for coming in and spending time 544 00:28:48,840 --> 00:28:50,640 Speaker 1: with us. Great to be here. Thank you for having me. 545 00:28:52,920 --> 00:28:55,520 Speaker 1: Thanks for listening, be sure to join us next week 546 00:28:55,560 --> 00:28:57,600 Speaker 1: for another episode of Strictly Business