WEBVTT - Mediatech's Bibb: Moonves Best Option to Run CBS-Viacom (Audio)

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<v Speaker 1>Global business news twenty four hours a day. It's Bloomberg

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<v Speaker 1>I'm Charlie Pallet. Energy shares rally the most in eight

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<v Speaker 1>time in eight years. West Texas Intermediate crewed up four

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<v Speaker 1>point seven percent, up two oh seven of seventy five,

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<v Speaker 1>up six tents of one percent, Gold down three ninety

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<v Speaker 1>the Ounce to drop there of three tents of one percent,

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<v Speaker 1>CBS up four percent, Viacom up two point six percent.

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<v Speaker 1>I'm Charlie Palett. That's a Bloomberg business flash. You're listening

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<v Speaker 1>to Taking Stock with Pim Box and Kathleen Hayes on

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<v Speaker 1>Bloomberg Radio. We are broadcasting live from Bloomberg Most Influential

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<v Speaker 1>Summit at our world headquarters. I'm Pim Fox. My co

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<v Speaker 1>host Kathleen Hayes. Uh, let's think the Walking Dead, n

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<v Speaker 1>c I S and the Big Bang Theory to my

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<v Speaker 1>next guest. I put the question if Viacomm and CBS

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<v Speaker 1>we're going to be a television program, what would it

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<v Speaker 1>be closest to? Porter bib is managing partner Media Tech

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<v Speaker 1>Capital Partners, and he can be followed on Twitter at

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<v Speaker 1>quarter three quarter go ahead, Well, let's keep it within

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<v Speaker 1>the network. The Walking Dead works best for vehicle from

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<v Speaker 1>the Big Bang theory, I think for CBS, tell Us

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<v Speaker 1>walk Well LESMNVS is probably the most capable manager in

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<v Speaker 1>the media business right now, and he's since he's been

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<v Speaker 1>a standalone company for the last ten years. He's doubled

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<v Speaker 1>the market value of CBS. And he's the only real

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<v Speaker 1>linear television network executive who has figured out how to

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<v Speaker 1>transition to digital effectively and profitably. For these kind of stories,

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<v Speaker 1>just they make my head hurt. My dot com what's

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<v Speaker 1>spun off from CBS ten years ago? Yes, six, Sherry

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<v Speaker 1>Redstone's daughter is in favor of recombining the two under

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<v Speaker 1>the leadership of CBS CEO Less Moon. Does I mean

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<v Speaker 1>does it? How much difference does it make? How important

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<v Speaker 1>is this to to whom? To the shareholders? The shareholders,

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<v Speaker 1>I guess first and foremost because ultimately the company, but

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<v Speaker 1>that's what the share of the shareholders are going to benefit.

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<v Speaker 1>How much it means a lot to both CBS shareholders

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<v Speaker 1>and to Vehicom shareholders. Vehicom has lost sixty seven percent

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<v Speaker 1>of its market value in the last couple of years. CBS,

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<v Speaker 1>on the other hand, is going through the roof under

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<v Speaker 1>Less Moon does so there's a lot of tension. Less

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<v Speaker 1>is not particularly enthusiastic about taking the reigns of a

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<v Speaker 1>failed company. What's wrong with why they fail well badly?

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<v Speaker 1>Leadership under under Dolman and Dooley. Dooley is going at

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<v Speaker 1>the end of November, and they've been looking around everywhere

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<v Speaker 1>for somebody to come in. They tried to get Tom

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<v Speaker 1>Freston to come back. He refused, And it's a leaderless

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<v Speaker 1>ship right now. But it's got terrific assets and a

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<v Speaker 1>lot of development potential. And I say that they will

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<v Speaker 1>end up coming together. When Redstone split them, he thought

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<v Speaker 1>one and one could equal four or five. What he

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<v Speaker 1>got was one in one equal one and a half.

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<v Speaker 1>And he's he's the real key factor. Sherry Bradstone does

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<v Speaker 1>not want to run either company. She wants to protect

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<v Speaker 1>the value of the estate and the assets that the

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<v Speaker 1>National Amusement has and she'll do everything she can to

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<v Speaker 1>increase the value. So the only way you can really

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<v Speaker 1>do that in a recognizable way has put less monos

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<v Speaker 1>in charge and let him do his thing this, which

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<v Speaker 1>I think he will. You know, it's interesting that you

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<v Speaker 1>described less moons and a digital transformation because I think

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<v Speaker 1>that leads into something that is coming up in Washington.

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<v Speaker 1>This has to do with a vote by the FCC,

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<v Speaker 1>the Federal Communications Commission, and it has to do with

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<v Speaker 1>just that very thing about who's got access to your house,

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<v Speaker 1>how much they charge you for access, or how much

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<v Speaker 1>they're charging for entertainment and programming, and who supplies all

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<v Speaker 1>these bits and pieces, not just the software, not just

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<v Speaker 1>the programming, but the actual box. It's the it's the

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<v Speaker 1>decoding box that that translates the digital signal into your

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<v Speaker 1>TV set. And the f SEC, in all likelihood, is

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<v Speaker 1>going to make the cable industry stop forcing cable subscribers

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<v Speaker 1>to rent for anywhere from six to eleven dollars a

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<v Speaker 1>month the set top box that they provide and give

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<v Speaker 1>you free access. And you don't really need one now

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<v Speaker 1>because the television set industry is making it uh sets

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<v Speaker 1>that have all of this the ingredients of a set

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<v Speaker 1>top box built in including streaming capability on the Internet.

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<v Speaker 1>So if it is the SEC probably will they will. Yeah.

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<v Speaker 1>So then in terms I'm a shareholder, I'm an investor.

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<v Speaker 1>What is as for me? Well, it's going to be

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<v Speaker 1>a twenty billion dollar loss of business to the cable industry.

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<v Speaker 1>So Comcast, Time, Warner Cable or Charter Are and other

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<v Speaker 1>cable operators are going to suffer a little bit, not

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<v Speaker 1>too much, because they probably will get it back by

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<v Speaker 1>raising the rates in the broad pan distribution that they

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<v Speaker 1>give you cart off, that's correct. But the other losers

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<v Speaker 1>are going to be the set top box manufacturers and

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<v Speaker 1>basically Toshiba's Scientific Atlantic and the two or three others,

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<v Speaker 1>and they are going to be out of business right

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<v Speaker 1>now because we don't need set top box anymore. Apple

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<v Speaker 1>is in a sense a set top box, you bet well,

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<v Speaker 1>so is Roku. So as Amazon. Wait wait till you

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<v Speaker 1>put your your Amazon Echo uh in your living room

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<v Speaker 1>and you voice activate what you want to watch on

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<v Speaker 1>the internet or on television. That's a half step away

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<v Speaker 1>right now. So when I get all this fancy stuff

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<v Speaker 1>set up, and I'm going to be um tweeting as

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<v Speaker 1>I watch things are streaming Thing Live and is it

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<v Speaker 1>gonna is I'm gonna be as a shareholders saying I'm

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<v Speaker 1>so happy that Disney bought Twitter. Is that going to

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<v Speaker 1>go through? I'm not sure it will. I don't I

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<v Speaker 1>don't see the logic of it um And the problem

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<v Speaker 1>that Disney has if they, if they ever did own Twitter,

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<v Speaker 1>is that their their media company, and ABC and ESPN

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<v Speaker 1>and the other broadcast entities that they have are going

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<v Speaker 1>to scare away all of the competition. And that's what

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<v Speaker 1>Twitter needs more than anything else. So I think it

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<v Speaker 1>might be a non deal, non non deal it would

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<v Speaker 1>be a good fit for Twitter. I think bankruptcy really.

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<v Speaker 1>I think that they have failed to construct a monetization

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<v Speaker 1>plan and the only people who are going to buy

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<v Speaker 1>it are somebody who has no concern about profit and

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<v Speaker 1>loss and wants wants to see if they can roll

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<v Speaker 1>the dice and create a platform. Could Mark Zuckerberg turn

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<v Speaker 1>it around without question, without question? But he's he's got

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<v Speaker 1>his hands ball right now. I wouldn't be surprised. But

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<v Speaker 1>I think you might consider as as I mentioned Amazon

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<v Speaker 1>a minute ago, their their voice activated echo U is

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<v Speaker 1>it terrific medium for Twitter? Very interesting Porter Bib, you

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<v Speaker 1>always make us think when you're on the show. We

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<v Speaker 1>appreciate you joining us so much. Managing Partner Media Tech

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<v Speaker 1>Capital Partners, thank you for joining us today in our

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<v Speaker 1>special live broadcast at the Bloomberg Market's most Influential Summit

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<v Speaker 1>at Bloomberg World Headquarters are producer Sam Lango, Reggie Basil,

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<v Speaker 1>our technical director Mark Sillis cauchy directing as well. This

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