tausche, or should i say, i'm joining you really? it's good to be here. >> we are excited to have you. >> yeah. >> a lot of fun here, and thankfully, you can be a part of it, too. >> we have to start with hewlett-packard right away. shares up 6%. they started down this morning, but in rally mode. here's the chart. hewlett-packard trading at 33 and change, up almost 6%. the company said it would eliminate between 11,000 and 16,000 jobs as part of its restructuring plan. hewlett-packard posting earnings yesterday, and here's ceo meg whitman talking about the cuts in an exclusive interview this morning. >> so while no one likes to reduce the workforce, this will be good for our customers, and it will be good for hewlett-packard. it will make us a stronger company. and obviously, you know, we will be able to create capacity to invest in the growth engines of this company. >> jon, why are the shares rallying? is it something meg said? >> well, i think, maybe. but it's also a testament to how undervalued hp has been over the past couple of years. keep in mind, even at these

levels, it's at about a $65 billion record cap, expected to do $111 billion in revenue for the fiscal year. cash flow from the p.c. business still strong. that business up 7% year over year when a lot of people had given it up. now, it's not growing, but it's still throwing off a lot of cash, which will help fund the turnaround that meg continues to push. look, they also did this fox rate, that's reminiscent of what blackberry is trying to do on handsets. hp's doing this in servers. so a number of things they're trying to get going. they're going to cut, it will add to eps. you want to see growth here in the longer term, and no signs of it in the key areas that matter in the enter price. >> they seem to be fidgeting with a lot parts of the business. meg has continually used this one line which is, the turnaround remains on track. this is a five-year turnaround. she previously had said we're only a year into a five-year turnaround. this morning, she said we're only two and a half years into the turnaround. we haven't seen revenue growth in any of the quarters in the

two and a half years. at some point during the turnaround, does revenue have to start growing? >> absolutely. >> or do you think investors will wait until the end of the five years and say this is a binary situation in. >> she has already said don't expect revenue growth, but really start expecting to see growth in key areas next year. we've seen another executive, this time the head of software, moved out of that role into more of a strategic role. and more cuts. we've seen this movie before. you want to see them break out of that and get something growing. storage, networking, something. >> it was interesting -- so jim cramer, started off the morning by saying, look, maybe this is a company -- we've heard this from others as well -- saying maybe there needs to be an acquisition, make a workday, probably too expensive at this point. get them into the software as the solution business. is that the right strategy? is hewlett-packard here to correct to double down and stick to their knitting in some ways, jon? >> their knitting really doesn't work that much anywhere. >> ouch, tell it like it is. >> the margins are getting

sucked out by multiple forces, whether it's the decline of the t traditional p.c. business, or the server pressures you're seeing. the high-end server business, high-end hardware, oracle, taking a lot of share there. so they've got to do something. i'm not sure something like concur moves the needle that much, but it would help. she talked about small and medium being the size. >> and also the blockbuster we cover this weekend, talking about ibm and how ginni rometty has put her eggs into the basket, and says nice things about hp compared to ibm, but there are a lot of dogs in this space. >> hp doesn't need the margins that ibm needs based on where the bar has been set. hp could do better. >> the average price target on the street is 35 bucks. it's a little above where shares are treading even after this po. what's coming in the next 24 months is very mind boggling. that's not just somebody from hp, but involved in google.

up next, google is developing a new tablet that can capture 3-d images and plans to develop 4,000 prototypes starting next month. this is part of google's project tango that aims to allow you to create 3-d mapping of any environment with a camera. you could use it to capture the dimensions of a home before buying furniture, turn a hall into a virtual reality game space, say for people that might be disabled, this could help them navigate spaces. the quote i read, from a firm, jon, called movidius. they're involved in the development of these technologies. they're saying this is the new, game-changing space. look what they've done with oculus. >> exactly. this is potentially huge. mapping indoor spaces. it's really hard to do. if you can allow people to navigate a mall or retail store, find the exact product you want, you're able to sort of close that last mile of causality, where maybe i'm looking at something on the mobile phone

and i actually walk up to it and touch it in the aisle. that's where analytics are able to see what's happening through that whole chain of behavior. a great area for google to experiment in. but they need to make sure to make it user-friendly enough that people want to use this feature. >> this reminds me of something like streetview, but for the inside of the house. >> yes. >> that's a great way to put it. it certainly raises privacy concerns. whether we're talking about homes or private businesses, right, they have to be clear whether this is or isn't allowed. >> i guess it's your fault if you post the map of your own house publicly, right? >> yes, exactly. but to see google launching this as sort of a beta product and letting people test it out. we've seen them do this with google glass. it's had mixed results, and now waiting for that product to hit the shelves commercially for years at this point. do you think it's smart to actually show off the technology before it's completely finished? >> in this case, yes, absolutely, because i think what they need to do here is build out a platform for indoor mapping. they need to get partners involved. they need to try to figure out a way to get individual people,

whether they're store owners or just individual people on the street, to map their environments for google's use. but that's the key part, is the use ability. >> and a couple of things involved with the involvement of movidius, at the center of the technology with google. what they've said, first of all, this thing can be a huge drain on battery life, except they've come up with a way to mitigate that, and that's perhaps why we seeing the momentum in this space. and the extent to which you need to get developers in this space, because the technology is ahead of what you can do with it. they're looking, i'm sure, google is looking to some of the firms, and i'm curious to see what comes out of the space, because it's not just gaming, which has been the focus for oculus. we're talking about a revolution in so many different parts of the economy as a result. >> there's a difference, though, between saying, boy, retail would really like this. retailers on the back end would really like this. it's sort of like what we see with paypal and mobile. it would be nice for the retailer if you'd use your phone to pay for things, like a loyalty card. but what's in it for the

consumer? what's in it for the person who has this phone in their hand to map their 3-d environment? they have to figure that out. >> great point. finally, a couple of weeks, still no confirmation of the apple-beats deal. tech crunch says there's now a 70% chance the deal will still go through, that apple isn't buying beats for the technology. what the company wants to be is imv and dr. dre. kara joins us. look, great to see you this morning. so tech crunch saying this is 70% done, but that it almost fell through a couple of times. is that because of the publicity -- so much publicity around this deal before it's tied up? >> no, i think it's a multi billion-dollar deal, everybody always say deals will fall apart. it's a complicated deal. obviously, the publicity around it, and apple hates publicity, but you don't end a deal that's important to you because of publicity. >> this seems important for that reason, jon fortt. the talent that they're talking

about, couldn't you get that talent for less than $3 billion? >> i'm skeptical about this deal, kelly. i think if you get -- if you want jimmy, should you have to pay $3 billion to get him if you really want to come to apple? also, i think there's personality questions. the makeup and cohesion of apple's executive team has shifted post-steve jobs. people with strong personalities haven't fit in as well. and a corporate job for dr. dre. i hasn't even finished that album yet. shouldn't he finish the album before he comes to apple? finish the album, dre'. >> maybe that's on the to-do list. there's so many interested parties, many of them interesting personalities, they're not using advisors. you have two big private equity firms, carlisle on one. then you have apple. then you have beats. and all of the people involved in this. and everyone is probably trying to demand a certain price without some sort of third party. i'm not saying bankers give the

best advice -- >> or the cheapest. >> -- right, exactly. but with a third-party opinion, kara, what do you think about that? >> these are very sophisticated business people. jimmy has been doing deals for years, he doesn't need a lot of help, honestly. it's a question, where you get 70% numbers, 72%, but these are complicated deals. there are plenty of advisors there. and apple is a very sophisticated dealmaker, never uses outside counsel -- i can't remember one in which they used one -- but these are sophisticated people who know what they're doing in that regard. i think it's just a question of the difficulty of doing it and who has what. i doubt dr. dre will have a vice presidency, would be my guess. you know, it's where everybody fits and whether it's the right fit. but people doing the deal, it's not just tim cook. it's eddie cue and others. >> does apple have to do this deal, do you think? >> have to? >> do they have to?

>> no, they don't have to do anything. this is a drop in the bucket. they have, what, $100 billion in cash laying around? and they spit out cash all the time, sure, why not? >> yeah, just curious, so much publization, they usually don't like that. jim at the conference next week. he's joined by sergei, satya nadella, and "squawk alley" will be covering that. so that's, what, wednesday, thursday? >> no, it's tuesday, thursday. it opens up with satya nadella, the ceo of microsoft, and followed by sergei brynn, one of the co-founders of google. and maybe some surprises. and then a whole lineup of jimmy of beats. and uber ceo, the ceo of intel. it's like one big -- it's really a great lineup. and reid hastings from netflix.

so we have a lot of answers, a lot of questions for each of them. >> you guys better get some rest this weekend, because a busy one, it sounds like. >> it is. it will be great. >> good to talk to you this morning. >> thanks a lot. >> tune in next week for the coverage on "squawk alley," including a a sitdown with reed hastings, and ceos of twitter, dropbox, blackberry, that and more next week. you guys have a lot going on. time for squawk on the tweet. a big week for mascots. first mcdonald's launching the toothy, and today facebook's privacy dinosaur is getting "the new york times" treatment, making some unflattering comparisons to microsoft's clippy and twitter's so-called fail well. i like that personally. that brings us to the squawk on the street. tweet us. we'll air your responses later in the show. coming up, russian president vladimir putin not exactly happy

with president obama. here's part of cnbc's exclusive interview this morning. >> translator: who is he to judge? who is he to judge, seriously? if he wants to judge people, why don't he get a job in court somewhere? >> female translator. we'll have more from the russian president, including what he had to say about this weekend's elections in ukraine. and later on "squawk alley," is uber worth $12 billion? behind the car service's massive valuation. plus, elon musk not happy with the air force, and he's airing his frustrations on twitter. the story that's making the tesla ceo so upset. and priceline for movies. the easiest way to go to the theaters without breaking the bank. "squawk alley" will be right back. >> announcer: post 9 is sponsored by fidelity investments, innovative ideas for serious investors. the world, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you

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welcome back to "squawk alley." who's to blame for the crisis in ukraine? not russia, according to vladimir putin. he spoke to jeff cutmore this morning, live in st. petersburg with more. jeff? >> reporter: yes. very interesting conversation with the russian president here. of course, as we go into weekend elections for ukraine to appoint or select its new president, vladimir putin's position on that has been an issue for the markets. and exactly whether he will honor the outcome of that vote

on sunday. a lot of that relates to how he views the ukraine crisis. and i said to him, president obama has described your position as being on the wrong side of history. he came back at that and basically said, who is president obama to judge? >> translator: who is he to judge? who is he to judge, seriously? if he wants to judge people, why don't he get a job in court somewhere? >> reporter: so the president really -- i don't know if this is the wrong use of terminology -- not taking any prisoners when it comes to the ongoing relationship with washington and president obama. the other big issue on the table is impact of sanctions for the u.s. economy and plenty of businesspeople here in st. petersburg have told us that they are starting to bite on their business. again, around this, president putin saying he's very unhappy

with the sanctions that have been imposed and the prospect of further sanctions. let's listen to what he said. >> translator: these sanctions are absolutely illegal and unlawful, and, of course, they decrease -- they make our relations worse. we are now hearing about a third package of sanctions, and i have a question in that regard. why? >> reporter: so president putin, i think, giving us fairly hard-headed responses in our exchanges. he continues to insist that the ukrainians need to pay back for the gas that they have received over recent years. that is a debt that is outstanding. and he continued throughout our exchanges effectively to insist that there is no meeting of minds with the united states currently on the ukraine crisis.

let me send it back to you, kelly. >> jeff, good to see you. thank you. by the way, bill browder's take on all of this, he said putin is in a tough place, the government is full of oligarchs and they're 25% worse off because of his actions in ukraine. was it a frosty or warm reception he's getting there? >> reporter: i think he got a warm reception in the audience. kelly, that's always been the issue here with the ukraine story, because you've got to remember that these are two countries that have a deep, shared history from the end of the second world war. of course, preceding that, they stood side by side fighting fascism here in europe. you have to bear all of this in mind when you think about the context of what has happened. the oligarchs in the room clearly not happy about the impact that sanctions have had on them. but for the time being, i think they're willing to give president putin the benefit of the doubt. >> okay, jeff cutmore, a great

interview and a tough context. jeff, thank you so much. is uber really worth $12 billion? that's tries the market cap of avis. we have new information that says, well, maybe not. and omar epps is an actor and tech investor. he'll tell us which companies he's investing in. you're watching "squawk alley." we'll be right back.

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♪ in case you missed it, morgan freeman inhaling a helium balloon in the name of science. so the famous voice transformed for the science channel pretty effectively. take a listen. >> in unusual situations -- [ inhale ] -- you don't always get what you expect. but sometimes, unusual

situations lead to new insights. to find the truth about gravity, physicists are studying it in a place where they expected to -- [ inhale ] -- act very strangely. >> as they say on the internet, this is the best thing you'll see all day. at least for one day only. >> absolutely. i mean, you guys should try that, too. >> i've tried. i can't actually do it. i don't think i inhale it the right way or something. >> don't try this at home, though. >> you're so good, kelly. you can't inhale even if you tried. let's move on to more serious matters, kayla. can you give us an update on the valuation of uber? >> speaking of things that rise. there have been reports about uber in talks for a new round of financing.firmed term sheets ar due.

there's a lot of money on the sidelines from some of the sophisticated investors like blackrock, fidelity, wellington, and we'll be covering more of them on this show. but this $500 million round, this would value uber in the realm of $12 billion. remember, a couple of weeks ago they were talking about a valuation of $10 billion. but here's what that would look like. so $12 billion valuation. that would be little more than 3x, what it was valued a year ago. they did the most recent financing last july. it would be 7% lower than the $13 billion roughly market cap of hertz, the rental car company, that had $10.77 billion in sales last year. now, this story points out that uber has -- or is expected by some of the investors to have projected net revenue of $1.5 billion in 2015. that sort of speculation at this point. always the projections, sometimes the pie in the sky projections. and of course we'll have to wait and see about that company.

but $12 billion, 8x, speculated 2015 number, it wouldn't seem to be too crazy. when you compare it to hertz, you think $11 billion in revenue for hertz, $1.5 billion for uber. where is this coming from? we'll see what the financing round pans out to be. a lot of people are telling me some of the valuations are driven by the supply of money for these companies than the actual balance sheet of the companies. >> just goes to show why go public if you can stay private? >> yeah, that's a good question. >> all right. >> all right. in the meantime, we want to bring in simon hobbs as we're awaiting the european close across the pond. simon, what are you watching today? >> if you look at the map, you can see greece is doing reasonably well. italy is higher. news overnight, upgrade on greek and spanish debt which has pushed the yield on the debt below 3%. what people seem to be talking about is efo survey, which is still high. it's fallen back down to the lowest level for the year, and talk the german economy is

slowing as you see others within the euro zone in difficulty. a lot of notes out about what the european central bank will do in two weeks -- two weeks from yesterday when it meets, and the euro is down for a fourth day on the back of the idea that they will move to negative interest rates. though interestingly, the president of the bundsbank has been out, saying buying the euro zone is difficult, because each country is develop, and how do you do it evenly. the euro is trading close to its -- below its 200-day moving average, $1.36-38, so we're watching the euro. the wild card this weekend is the ukrainian elections, which i know jeff has been speaking to vladimir putin about, and we'll come back to that later in the show. there'll be a lot of noise from the anti--e.u. parties, but they're not national elections.

it is a wild card. we'll come back to it at the start of next week. just wanted to mention one more corporate, which is, of course, general electric, has now extended its offer by three weeks for alstom. the french are trying to hammer out some deal. jeffrey inmelt is trying to do a broader deal in france, with the likes of potentially a riva, a big nuclear operator, as siemens awaits with a potential rival offer, broader offer for alstom in the wings. incidentally, guys, monday is the deadline for astrazeneca and pfizer as well. >> so not a long weekend for them, for pfizer. no holiday. >> no, they'll think about it later in the year. >> or maybe in a different sense. simon, thank you. have great weekend. elon musk isn't happy with the air force, and he's airing his frustrations on social media. we're going behind the tirade. plus, a big week for mascots.

first, mcdonald's launching the toothy happy meal box. shades of microsoft's clippy here perhaps. the squawk on the tweet, what would you give the dinosaur? tweet us @squawkalley. the responses later on. es challr business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

welcome back to "squawk alley." shares of hp seeing a strong rebound today, up nearly 6%

right as david faber had an interview with meg whitman. the company, after announcing earnings yesterday, saw stock fall 2%. it also announced it would eliminate between 11,000 and 16,000 additional jobs as part of its ongoing restructuring. that brings the total count to as many as 50,000 employees who have seen their jobs cut since the restructuring began. ceo meg whitman sat down with david and jim this morning. they discussed the hp turnaround strategy and much more. david asked whitman to respond to critics says it is to slow to innovate as some of the large competitors. >> we're a very big company and we compete against big companies and little start-ups. what big companies have to do is we have to make scale work to our advantage. we have to make our go-to-market work to our advantage, supply chain. and then we have to make sure where we are focused we are

innovating. i would argue, actually, that our printing business is one of those areas where we are excellent innovators, and we're now transferring that to our ser server, storage, networking, our sas business, so we have to innovate but use scale to our advantage. otherwise, big companies will always fall to small companies, and listen, i think there's a real role for our customer relationships, our service capability, all of the things we do really well as an organization. >> right. you mentioned printers. i know this quarter there was some concern, particularly in terms of toner sales, i think overall revenues down 4%, although margins were up. it was profitable and grew in terms of profits. but to this point on innovation, explain to me, then, how it is that the toner sales, for example, are not doing as well as some had thought. supply sales perhaps not quite up to speed. >> yeah. >> and yet you're talking about this unit actually accelerating. >> yeah, so, remember, it is a

razor and razorblades business. you'll recall when we first met that hp had been out of the new part of the laser jet market, the multifunction printers. remember, we'd been out for almost seven years, and we introduced the end of last year and this year a whole line of multifunction printers. those are taking hold. we expect that toner will rebound. probably not for the end of 2014, but '15 and '16, you'll see toner do better than it has for sure. >> let's stick with printers for a second, all right? you have a terrific 3-d printer operation in israel. there are a lot of start-ups, you mentioned, coming in and taking different areas. why don't you crush them, crush everybody in that business? >> well, we're focused on business 3-d printing, not consumer 3-d printing. we'll announce a 3-d printing technology at the end of this year. and we think there's a real opportunity here. but this is an acorn that we're planting that will become an oak tree in the future. this is a business we need to be

in. it's very consistent with our heritage. but we're doing that in a lot of businesses. you know, innovation, you have to plant the acorns before they become oak trees, and you have to have patience in terms of development cycles. you've got to be able to continuously and consistently invest in r&d. >> the market, of course, hoping there are many oak trees where they are planting their investments, kelly. the market may have questioned the numbers yesterday. today, undeniable that when they watch that interview, they believe hp is on track for the turnaround. >> they kept pressing on where is the long-term growth, but they seemed to like her answers there, up about 6% still. elon musk, none too happy with the air force. he's airing his grievances on social media. eamon jabbers is live in washington with the story. >> reporter: elon musk with a series of tweets last night that really raised eyebrows here in washington, d.c. remember, that elon musk's company space-x has made a lot of inroads with nasa rocket

launches, but they want to make inroads with military and spy satellite launches. they've been largely locked out of that business. a lot of those, the bulk of the launches, have gone to an outfit ula, a joint venture between lowing and lockheed martin. here's what elon musk tweeted last night, voicing his displeasure about how washington works, saying air force official awards $10 billion contract, uncompeted, and then takes lucrative job with funds recipient, and follows up with another tweet, very likely air force official roger cornell was told by rocket dine a job was for him. the reason i believe this is he first tried to work at space-x, but we turned him down. our competitor, it seems, did not. now, what's going on here is that elon musk is trying to bring silicon valley style disruption to the beltway bandit business. the military industrial complex that eisenhower first warned

about. he is very frustrated with this very tight, revolving door that goes on here in washington between the pentagon and the defense contractors. we should say that it's not necessarily an indicator of corruption just because correl took this job with rocket dyne. there is something that correl could have checked all of the ethics boxes and still taken the job. we need to know more about the situation involved here, whether he went to the ethics office and got approval for this, at what time he had the negotiations with the company, and on and on. a lot of the questions unanswered. >> eamon jabbers following that story for us this morning. thanks. coming up, you might know omar epps from the world of movies and television, but did you know he's also a big tech investor? and he'll tell us where he's putting his money. first, rick santelli, as stocks flirt with all-time highs again, what are you watching today? >> yeah, we're flirtin' with

them again. we kind of did around november. we did around december. but what i'm going to look at is how all of that affects interest rates and the big number today for 10-year rates, 87. what's 87, you ask? yeah, i heard you. you'll have to come back after the break, and we'll explain that and much more, everything you want to know about 10-year rates but were afraid to ask, after the break. today is friday today, we greet you. treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power,

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♪ well, coming up at the top of the hour, with the vix at a 14-month low, we're looking abroad for money-making opportunities. but are the areas work the risk? investors are piling into penny stocks. no, it's not a movie script. it's really happening. you cannot afford to miss what the traders have to say about it. and then divya knows a thing or two about what investments work. he's talking all things silicon valley, plus a new investment tournament you may want to get in on. it's straight ahead on "the half." now to dominic chu with a "flash." dom? >> all right. developing, breaking news here with regard to what's happening with the l.a. clippers situation. nbc news -- nbc sports' matt zimmerman has learned via sources that donald sterling has

ceded control of the clippers franchise to his wife, shelly sterling. shelly has agreed to voluntarily sell the team according to the sourcesment again, the sources say there is no truth to the rumor that her camp is suing the nba in any way, shape, or form with regard to this situation. so again, nbc news has learned matt zimmerman has learned through sources, that donald sterling has given control of the clippers to his wife, shelley sterling, that she has agreed to voluntarily sell the team and there's no truth to the rumor that her camp is selling. another interesting development in that case with the clippers and we know that dick parsons is still the acting interim ceo of that franchise. back over to you. >> a big move at that, because shelley sterling had planned to hold onto the clippers, we'll see who ends up bidding. thanks. in case you missed it, we finally got more cowbell. last night, will farrell and red hot chili peppers' brad smith.

will farrell was saying that many people thought it was him drumming for the rhcp. here's how it went down last night. ♪ ♪ >> they do look amazingly similar. let's get to the cme group. rick santelli joins us with the "santelli exchange." good morning, rick. >> you girls are having too much fun out there. all right. i know there's a lot of fibbing that goes on. there's a lot of pinocchios in

newspapers. but there's one form of fibbing that i actually like, and it's not a bad thing. it's retracements. we've gone through a litany combinations of retracements on the "santelli exchange," but maybe none will be any more important than what we're doing today, especially in light of what's going on with the euro versus the dollar, and ultimately the june 5th ecb meeting. and even though it is about foreign exchange, interest rates, differentials, will figure prominently into how it turns out. all right. let's go to the charts. this is roughly a chart going back to may 2013 on 10-year note yields. and the key highlights are that we settle just below 3 and just above 3, so you have the double top. the most recent double top was new year's eve of last year, at 3.03. so it makes it pretty easy on a number of levels, because we have the 1.63, which is our key metric from the february 1st, 2013.

that's when all of the retracement measurements start. whether you go from 1.63 to 3 here, or 1.63 to 3.03 here, and you'll see why, it shows you something interesting. so you subtract 3.03 from 1.63, you get 140 basis points. now get out the calculators. there's your fib. okay. that number comes out 53. well, if you take 53 off, you end up with 2.50, right on the nose. so whether it was this one or this one, the beauty of the retracement is that these two measurements are virtually the same. look at how nice that worked out. what's the big number today? yes, 87. not 1987, although maybe that's a freudian slip. it's 87 basis points. because the 1.40 for your 62% retracement is 87 basis points. so you shave 87 basis points from 3.03, dah, dah, dah. the big number now is a yield of 2.16.

now, does that mean you're going to take a bee line right there? absolutely not. there are a number of important levels on the way. but on the big retracement, 87 off 2.16, this is what your ghost should be if you're looking for the big move on higher prices and lower 10-year note yields. kelly and kayla, k and k, back to you. >> thank you, rick santelli. up next, go to the movies without breaking the bank. we talk to the man behind the company best described as a priceline for movies. you'll want to hear more about it when "squawk alley" comes right back. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy.

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you are looking at the new "x men," one of the big blockbusters opening this memorial day weekend that hollywood studios are placing big bets on ahead of the key summer season. but while box office sales have seen gains as average u.s. ticket prices reached an all-time high, $8.13 just last year, theater admissions have been on the decline, empty seat as troubling sign for any business. so queue l.a.-based deal flix, partnering with theater owners to offer reduced price tickets and lure moviegoers back to the box office. joining us is the ceo sean why cliff, who first joined us in march of last year. sean, good to see you again. >> great to be on. thanks for having me. >> what sort of difficulty are you expecting to see this memorial day weekend, which is always big for new releases. >> well, dealflix, it will be a

big weekend, as it usually is. summer is big for us. in fact, all of the months are big for us, because we focus on offering movie ticket deals for empty seats and people always love that. >> so i'm wondering how does this work at the movie theaters? what kind of equipment do they need in order to take advantage of this? >> yeah, that's a great question. we're able to be flexible with the theater partners. some want direct tie-ins to the point of sale systems, and others do it in a manual sense. we have five, six different ways to integrate logistically, but as a consumer, it's very easy. >> you've been clearing 24,000 tickets a month. are these for movies already in the theater for sometime? are these new releases? how do you look at the mix of things that consumers are buying at a discount? >> that's a great question. we have a. >> tom: -- have a great question. it's kind of a mix of both

depending on the theater. >> is this like hotel tonight for movies? i mean, when's the best time to get the best deal to see that movie? is it right before it will start and they know they haven't sold enough tickets? >> yeah, most of our users, in fact, purchase deals on dealflix within a few hours of showimtoo. it is a hotel tonight for movie tickets, especially with the new iphone app we came out with. >> sean, i'm curious, there's a couple of different models developing in the movie business. you are one of them. movie pass is another, an it's almost the more netflix model where you pay a monthly fee and can see as many as you want. it feels like yours is potentially a lot of work for the consumer. do you have to pick each movie? how are you going to try to put something out there that you think people widely will be able to use and respond to? >> that's a great question. so far, it's been working well on the consumer side. we're now up to 350 movie theaters across the united states, and that number is

growing really, really fast. we've seen 35x growth in ticket sales. things are going well. it's simple. if you download the app, you can see movies and theaters near you. and you can see the deals available. make a click. the next thing you do is click one more time and you can check out. >> sean, are there any sort of keys we could glean for the studios? if you saw an overabundance of "frozen" tickets, i know it's a block bust other, but just using it as a discount, would that be a bad sign for disney? is there any connection? >> yeah, that's a great question. we have a lot of data we've been able to collect. what people are buying, not buying, what they're watching trailers for, what they're not, and what day of the week they're seeing things. we're still in the process of compiling that data. we have been in talks with many studios, because they're interested in this data and how they can use it for forecasts. >> i know there's no consumer that hates a bargain, so, sean, thank you so much for joining us. i'm sure a lot of people will be

going on dealflix over the weekend. >> thanks for having me. meanwhile, we're watching reports of uber's $12 billion valuation. we were talking about it earlier in the show. bankers saying the huge valuations driven by the bubble in money, not only from vcs, but sophisticated wall street money managers, if not necessarily the fundamentals. well, famed venture investor mark andreesen responded via twitter says bankers are upset the companies are not going public instead, and that maybe that is why they are criticizing some of the valuations. we will see how this ends. but always nice to see that he's watching our show and weighing it. >> people here at the stock exchange probably feel the same way. >> that's true. >> want to direct more of the business this way. >> that's true. mcdonald's launching the toothy, the happy meal box. there it is. the dinosaur getting some unflattering comparisons to microsoft's clippy and twitter's

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welcome back to "squawk alley." i had a chance to catch up with omar epps in new york for internet week. here is epps on the golden age for content from an actor's perspective. >> well, there's more, meaning that there is more because there's more outlets to serve, to cater to as a content provider. but there's less in a sense because it's spread out. you know? so you really have to go chase it now. whereas before, you know, in the '90s, you had so many studios, and you didn't have the internet and all of the ancillary ways -- all of the ancillary outlets. but now, it's a part of the game. we'll see if google and apple are able to really take advantage of that in terms of being content providers and not just distributing content. and if they become formidable up against, you know, the big studios and the networks. >> so resurrection. >> yeah. >> big show on a network. you're getting that going. you have 1.7 million twitter followers.

>> trying to get to two. >> hey, every little bit helps, right? how does that come into play when you're launching a show? do you get twitter feedback to drive that to the show? how do those conversations go? >> yeah, well, it's definitely something that the studios try to leverage. how they do that, you know, it's still a work in progress. for me, again, i keep it simple. i love having the interaction with my fans. obviously, it's a platform i can promote. the project "resurrection." to me, it's less about the promotion and more about the engagement. more about the feedback and going back and forth with the fans, because that's something that didn't exist before. you had a static thing like this, and they had the sound bite. so it's really, in that sense, they've become a part of the story behind the scenes, and they've become a part of the project as a whole versus just being, you know, a linear experience for a fan watching the product. >> right. talk to me as an entrepreneur and businessman, have you -- do

you consider yourself good with money? and have you always been? >> definitely haven't always been, and i don't quite consider myself good yet. you know, it's like -- being an entrepreneur is like a gambler in vegas. there's a certain amount of science to it, and then a whole lot of gambling luck. it's something i'm passionate about. tech is something i'm passionate about. i try to get behind projects and product that, you know, i can connect to and that i think can shift things in a big way. >> you have fun stuff going on. what are you investing in? >> i'm part of a board of a company called thin air. i'm an investor in rock live. we have an app called shots if you want to check it out. >> what's that do? >> shots is a selfie app. >> okay. >> we have a lot of great people on that. i'm a partner in plus capital, a venture firm, actually. and so, i've got my own start-up i've been putting together, won't reveal it yet, but we'll be putting that together, that

deals with social brands and selects. >> when you do that, come on down to the stock exchange, "squawk alley," and do the unveil. >> i hope it's big enough to do the unveil. >> you're big enough to come down and do the unveil. >> all right, thank the, man. >> the brother is social media savvy. we caught up with daren mccaul, on content engagement. >> it's really for brands to connect with consumers. so many channels. so many opportunities. and our message is really about creating experiences using technologies as a platform. brands can't just broadcast content, and people will enjoy it. they have to build the relationship and engage in a connecting way. >> all right. let's get to it. time to squawk on the tweet. this morning, we've been asking you what nickname would you give facebook's new privacy dinosaur. guys, plenty of people saying,

do we really want to go the dinosaur route? really? is that the message? thanks for letting me ride along on "squawk alley" today. >> thanks for being here. it was fun. too much fun. >> i know. as we hit noontime on the east coast, that does it for "squawk on the street," and now time for "the half." >> all right. have a great weekend. here's today's playbook. a familiar face. he was classmates with mark zuckerberg, teamed up with the winkle vike, and now he's here exclusively. packard's gut punch. with packard cutting jobs, how should you play the stock? a debate is straight ahead. penny pinchers. why investors are piling into the riskiest companies at a faster pace than ever. we do begin with the unofficial kickoff to summer, and one of the hottest markets on the planet.