and good morning, 8:00 a.m. at twitch headquarters in san francisco, california, 11:00 a.m. here on wall street, and "squawk alley" is live.

♪ and good tuesday morning, carl quintanilla is off today, and joining us on "squawk alley", chairman of o'leary funds, investor on "shark tank," plenty of distance between us this time, and with us, john ford and we've got to talk about kevin about tim horton's, but first, we shall get to the tech news today. first up, amazon buying video game gaming site, twitch, for a million dollars after a deal with google fell through.

it's the site used to watch people play games, and we spoke to the cofounder back in june. he wouldn't comment on the deal with google, but what makes twitch so valuable. take a listen. >> i think the reason why people are interested in the company now is that they're surprised when they hear that we have so many people, over 1 million people broadcast gaming every month. we have over, every, on average, engagement around that content is extremely high. about 45 million people who tune in around the world to the content, and that equals about 13 billion minutes of video watched every month. the engagement on a per user base is really high. people are turning in every day over an hour wonchts this ever have passed muster with the tank shark view? watching others play video games? >> i think we would have got it. kelly, makes a lot of sense. if you ever watched the feed, you're watching masters play the game. if you're interested in gaming

and find a game you want to play, you can see strategies and game play live. it's like broadcasting any other contents of interest to people. i think "shark tank" would have liked the joke. not the valuation. i can tell you that. amazon is convinced, these shareholders, monetize this feed in a way no other can, and i believe it. >> conserkevin, this morning, j cramer talked about google investors talking about a billion dollars for this company. what about amazon? does haven't testimony anyway. do you agree? >> amazon is in a remarkable place. i don't own the stock. it doesn't pay a dividend, as you say, doesn't care about free cash flow. to me it's not a real company yet. if looking at it in terms of engaging customers and building a base they can one damon tiz, you're a long-term believer and so far they've been able to pull that off. the only equity i ever owned in amazon was years ago, a share

that paid 12%. getting people to finance their growth. >> if anything, amazon price's cash flow above anything else are able to use the cash they generate immediately to fund their investment in the rest of the business in a way transforming the entire retail space and by the way, their gross profit dollars, the performance there has been impressive, kevin. >> so kelly, send it to me in a dividend. call me when they declare it. show me you respect me, and you k care about me. >> it's not all about -- >> yes, he does. he invests in all the companies that generate cash and pay him a dividend. that's the joke. >> that's true. >> profit understand. dividends matters. the only thing matters in invests, mattered 100 years and and it does now, it's the cash in my jeans. >> kevin, a land grab for your living room, but a peculiar word creeped up. it was eyeballs. amazon is buying eyeballs from

people watching video games and, yes, a veritable community, we'll talk to another streaming executive later on in the hour, but does the presence of the word eyeballs buying eyeballs does that make you take pause? >> well, of course, i remember those days s in '99, measured everything in eyeball it's and it ended badly. they're buying eyeballs with data. remarkable about the service, you know exactly what these people are watching and what they're buying interest might be's you can protect with a fair amount of certainty if they're spending a huge amount of time watching game play of a certain ilk or kind, you can sell them something similar or exactly the same game. that's why it's valuable. i get the joke. i don't like the $1 billion price. if that's what it takes to win, the up side is material. a good move. makes sense to me. >> leave it there for now. next up, a new law in california requiring every smartphone soul to have a kill

switch allowing users to lock and wipe all data on their phone in case lost or stolen. the law signed yesterday requiring every phone manufactured ar july 21, 2015 to have this feature. minnesota passed this earlier but didn't require the kill switch enabled by default. this feels like the right way people are taking technology seriously? >> it's important. i mean, a high number of crimes in new york specifically had to do, with stolen phones. iphone in particular because of high resale value was a target. they're worth upwards of $600, $650 if you have the newest phone. being able to enable a kill switch good, but you've got to be careful with that. what if the phone gets killed by accident? oh, i thought i lost it. it was stolen, actually wasn't, and i've killed it already. there are going to be problemed associated with this. certainly hackers trying to exploit it. but hopefully this brings down the value of stolen goods. >> also, ios 7 has effectively a

kill switch. just up to the owner of the phone to enable it. so it's somewhat bizarre to see -- >> how do you -- is that defined by iphone or -- >> yes. new controls as well that let you remotely disable the phone. but you have to opt in to that. you have to know where to find it, and granted -- >> ios 8? i. thought 7. you could be right. nonetheless, communication could be better. should it be up to the state to make this mandatory when a lot of phones are not produced with this and effectively making it de facto law in every single state? >> kevin whooshgs , what do you? >> two reasons why. as just suggested, i hate when government tells me what i have to have in my consumer electronics products. something wrong with that. it's un-american. number two, unless this feature completely renders the device completely useless in perpetuity, it's not going to work. jon suggested, you it hack the hack. it's not going to work. a kill switch that turns it into

a lump of coal. most data remains up on the web. outsi out there on the cloud. all my contacts on the cloud. all day ta on the cloud. i don't care if it's rendered useless. i recently lot a note 3 in new york, after a copious amount of are wine. it was my fault, at the same time i fretted the fact i couldn't kill the thing and turn it useless. nothing i could to do do that. >> glad you brought up un-american. bringing us to our twitter question of the day. burger king buying tim hortons with the help of buffett. providing $3 billion in financing. this morning the squawk on the tweet, just like starbucks what should the combined king horton's name amp warren buffette? the buffett -- blank? tweet us at "squawk alley." we'll air responses later in the show. kevin, just thoughts here. there's discussion about the motivation of this deal.

is it about saving taxes for burger king or about burger king akwaiing one of canada's national champions and worrying there might be blowback? >> i think here's where this deal sits. and i speak now as a tim horton shareholder. i am so relieved that this is happening to me, because my holding in this company has been mired by the fact that it can't grow. it wasn't growing dividends fast enough for me. there was no more places in canada to put another tim horton's. yet when the company tried to expand into the northeast, particularly in massachusetts, where my boston home is, they got slaughtered by dudunkin' do. finally, i'm off the hook. a huge lift in value because of the warren buffett euphoric affect on this deal. this company is a second tier company, and so is burger king. you've got two dogs coming together trying to turn it into

a winning hit. i don't know if that will happen but i'm so happy today as a shareholder i'm willing to glow in the warm and fuzzy feeling of having made such a fantastic lift in a short period of time. this wasn't an taxes. people forget in canada, federal rate, 15%. in the province of on tairia, a massive tax. up to 23%, 24%. they're not saving anything on taxes. >> kevin, though, you say this is a deal to buy growth. burger king, same-store sales only grew half of 1 m% in the mt recent quarter. we'll see if that happens. owned by a fast food company before and that didn't work out well. >> by the way, kevin, before we go, let us draw your attention to the fact dow jones industrial average here just hit a new intraday trading high. 17152 now. >> also i am in a good mood. kelly, my point on this, and kayla, we talked about it recently as well. watching pe expansion. earnings haven't changed much. still on tractor a buck 15 on

the s&p and we just had gone through the second quarter earnings and look on track. if you're a believer the rest of the year will make it there the only thing to draw this market further pe expansion. we're having that hoappen right now. geopolitical risk aside, expansion on the way 20 times. thank you very much. >> kevin o'leary, a tim horton shareholder, "shark tank" extraordinaire. thank you for joining us as the dow jones industrial average kayla, now trading at 17148. both it and the s&p 500 here this morning setting new intraday highs. >> of course, 152 is that number to watch. that is that dow train day high. the s&p sitting at its intraday high at 2004 now. seeing nasdaq up by 11 points too. mixed data this morning. home prices not as good as expected, but consumer confidence for august, the best print in nearly seven years. that after durable goods order soared largely on the back of aircraft purchases. all of that in addition to

expectations of further dovish actions by central banks. all of that a mid-level volume. we should note, pushing to record highs. shares of best buy slipping. revenue and same-store sales falling at best bimore than expected. ceo also saying store traffic continues to decline. that stodogged down nearly 5%. meantime, that's not the story for all retail shares. dfw railing. topping analysts expectations on the top and bottom line. a cramer pick as well. if you got in when cramer said to buy you are up 23450nicely o the pooft couple of weeks. reports said spacex, values over $10 billion. he denied those reports. we'll ask a tesla investor steve jurvetson in a moment.

plus about the switch deal at the top of the hour. is the live video industry finally mainstream? , and old guys are fighting back? what netflix goose egg at the emmys could mean for the streaming video service. "squawk alley" is back in two. u. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted fruit. mmm. amazing. yeah, i get that a lot. alka seltzer heartburn reliefchews. enjoy the relief.

welcome back "squawk alley." the dow hitting all-time high

moments ago boosted by strong consumer data currently trading up 171953, up 17 points. and followed by jpmorgan, also pfizer and merck, collaborating on a study evaluating potential lung treatment and united health group. another good day for the blue chips. and meanwhile, back to tech. early investor of companies like spacex and tesla, our next guest has a pulse on the future of technology. let's take a closer look where the investment opportunities are right now. let's get to steve jurvetson, managing director of draper fisher jurvetson and joined by our own josh lipton. good morning to you both. josh, take it away. >> good morning, kayla. so let's welcome steve jurvetson, managing director of dfj, and, steve, i want to start just with your current portfolio of investments, because when you look at that, steve, one theme that very quickly jumps out is

elon musk. you know, kayla mentioned, an early backer of tesla. the first to own a tesla, in fact. also a big fan of spacex. why the big bet, steve, on elon musk? >> he's a remarkable human being. may go down in history as the most important entrepreneur and when you meet him he thinks differently. sees the world and future in a clear way and executes unlike any we've seen. whether it's tesla, spacex, solar city he helped form with his brothers, and more success in more industries than any entrepreneur i know of on the planet. a remarkable person. you'd want to support just about anything they. >> tesla, the broader electric car industry, steve, you've been a big fan from the beginning. when you think, though, about the chewiallenges of that indus, price or the relatively limited driving range, how do you as an

investor think about those challenges, steve? >> sure. with any major change. think about moving from internal combustion cars burning gasoline to a fully electric future. inevitable that all vehicles are electric. it's not easy. the biggest challenge price and range. so tesla's taken one approach at solving that. start with a car people really want. the best car you could possibly buy and address the long-range issues. so i've driven electric vehicles six years and haven't needed to charge anywhere at home because i start with a full tank, if you will. make a loop and each day haven't driven the full length. when you actually drive one of these, range into a problem. it's a perceived problem. addressing that with super-chargers around the country and world. if you really want to road trip around the country, do it for free. comes to price. a slower story playing out five to ten years eventually becomes affordable for all. today, a model s, entry range, costs the same as a ford taurus,

if you want it seven years, look at the cost savings in energy, maintenance. mid-range and eventually, gem 3, afford fab car for all. >> kayla, a question for steve? >> i did. i want to ask a little about spacex, steve, because where tesla is an established company, spacex feels likes a start-up and reports spacex has been raising capital at a $10 billion valuation potentially with you putting more mrn into the company. wondering if there's anything you can speak to on that topic? >> sure. so i can't speak about financing events that haven't happened yet. personally i think the company is spack tech lar and that valuation isn't nearly as high for the company, if you wait a few years. the reason the following. they have over $5 billion worth of business. billion with a b, a private company. profitable six years in a row. look to be the future of the u.s. space program. not only bringing cargo to the space program but the future of carrying astronauts to space.

intend to colonize mars. if the company realizes aspirations truly a breathtaking example of american entrepreneurship. compare that to an average internet company with a similar valuation, you might say, hmm. seems it will change the world for the better. >> how far -- >> the company needs a lot of capital, steve. >> sorry. >> and how much capital does it need to continue investing and what's the availability of that capital from the investing community with some of its commercial developments so long off still at this point? >> that's a great question. so to date, the company has been funded first by elon musk personally. quite remarkable. then nasa contracts that actually are good business for nasa. they get launch services from spacex as a lower court than alternati alternatives. that's paying the bills for the first few years. today largely commercial customers. people who want to launch satellites into orbit and fay large sums to do it. it's a lucrative business. profitable six years implies they're generating not losing cash. looking forward, big, programs,

reasons space programs, put astronauts in space or customer, satellites in space, paying as they go. take that coupled with, frankly, investing community including folks like ourselves, enthusiastic about investing. this company has never put together an investing pitch, what every other company does which is a solicitation for investment. they get continuous inbound offers from third parties saying i'd like to please invest in the company. that's a great place to be. >> what about competition? in the spice? do you see richard branson as knowledgeable about space technology as elon musk is? >> that's a leading question. let's just say elon musk knows a lot about what he's doing. as an engineer, goes deep. other approaches in the development phase. unusual looking spacecraft. none has yet sdemdemonstrated t.

galactic, starting with tourism. little short hops up and down. not into orbit. a 25 x simple letter problem. takes 25 less energy. >> one final question i want to ask. a question we get here a lot in this community. whether there's another bubble. i talked to other vmpcs, your colleaguings. they say this time is differ. is that your perspective? >> depends which part of the economy we're talking about. technology in general across the myriad areas, seeing more diversity to this boom than ever before. meaning, it's not like it's a set of dotcom kinds of companies coming and going. we have incredible things going on in sin theek biology, drone, rockets, cars. if if all the different industries that weren't available for entrepreneurship are becoming software-driven businesses. when they become that, the pace of innovation feels like that of a computer company and it is a

wonderful time. any one sector may come, go, have booms and busts. the average, seems to us part of that ongoing mega trend, technology is eno vating and revolution eisinger avenue. >> back to you in new york. appreciate it. thanks for that, josh. fascinating stuff. wei could talk to him all hour and hope he'll come back. >> steve jurvetson. mtv, still has an award show for music videos even though they no longer show music videos. that's like network tv holding an award show and giving all of the trophies to cable and netflix. >> tv exec. turned online content creator who is winning the battle between network, cable and netflix. we'll be right back.

so european markets shutting up. the fact fresh records on the s&p and dow in this country lifted west european equities further despite the fact, in addition to the fact of sharp gains yesterday in the wake of what draghi said at jackson hole friday. london playing catch-up after yesterday's public holiday. one big trade again working in europe in addition to this. the bond market. the bond market continues to gain in europe driving yields down for multi, or record lows across the board for many of those countries now for a second day. jpmorgan put a note out suggesting they believe the european central bank will ease next week. it will ease by changing the rules. softening the rules of that big chunk of cheap cash it's going to make available to the banks in the middle of september. so that they will be able to better lock in four-year lending at an interest rate they say potentially of 0.05%. rbs says if you're waiting for asset purchases they may come

but not from the european central banks, they say, until december at the earliest, because of so many other things to get through. record lows on the spanish ten year. record lows on the italian ten year. obviously, the peripheral banks are sitting on a lot of sovereign debt. never broke the link between the banks and sauv rinse. achlt them are rising because of the value of assets on balance sheet is gaining and potentially can load up more cheap cash. thinking about all that, about a tax change on the rules in greece to bolster their balance sheet, why national bank of greece and others in athens have done well again today. meantime, the real business of business continues on some of the industrials, active today. ubs went from sell to hold on a number of the big steelmakers around, and you may know the others in austria and the big copper producer in negative territory, guys. disappointed on earnings today. back to you. >> simon, telling for people looking at trading levels wondering what was it about

today that pushed us there? well, this call on europe coup you part of 9 reason? >> call from jvp morgan. >> more quantitative easing. expectations are high. got to follow through. a big deal. >> always show yield going lower. people are making money on bonds. people buy treasuries for price increase. it is a winning trade, a major winning trade that continues to win. >> great reminder. simon hobbs, thank you. um next, according to cisco, in three years over half the internet traffic will be video. does that make amazon the billion dollar purchase of twitch a better value? we try to answer that. and burger king buying tim horton's with $3 billion in financing from warren buffett. tweet us at "squawk alley." which of the combined king/horton's named after buffett? your answers later in this hour.

touch pico, turning into a hand-held or smart device into ain 80-inch touch screen. table of everything from videochats, netflix streaming to business presentations. the campaign's goal, $55,000. it's reserved over $570,000 in funding from more than 2,000 backers. scan wireless. a mouse that can scan anything to your laptop or tablet, with a click of a button, documents, photos and any stex sent right to a user's device. it also allows for direct editing of newly scanned documents. the campaign's goal, $30,000. to date, it's raised more than $100,000 in funding. who should be this week's tech crowd lead jer vote now at cnbc.com/techcrowd.

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alley." best august perform innocenance years. leading the way higher, asset management company affiliated manager's group, oil services number nabors, oil and gas, amazon and halliburton. big question, can s&p close above 2,000, first time ever? stay tuned for the day.

kayla, back to you. >> watching 17,138 for the record dow close. our eye on both targets for now. thanks, morgan. amazon, meanwhile, confirming it bought the video game streaming site twitch for $970 million. that news coming several months after google was reportedly close to a deal with the company. twitch co-founder justin kahn was on "squawk alley" back in june. here's what he said. >> the reason people are interested in the company now is that they're surprised when they hear that we have so many people, over 1 million people broadcast gaming every month. we have over, every, on average, engagement around that content is extremely high. 45 million tune around the world to the content and that equals about 13 billion minutes of video watched every month. the engagement on a per user basis is high. people are turning in every day for over an hour. >> so how does twitch add value to a company like amazon? the ceo of ustream, a video

streaming platform with monthly visitors of 51 million. brad, good morning, good morning. thanks for having me. >> good to have you. we've become familiar with the social media nomenclature for facebook and twitter. talk about unique visitors. 55 million for twitch. how significant is that for the company and where does that naught in the overall landscape? >> well, it's very significant. an example. some of the broadcasts on twitch or video platforms like ours on uchltstre ustream, reaching audiences like broadcast television. millions nun to watch. sony playstation 4 press conference a couple months ago. it had over 8 million people tuning in to watch it in a two-hour period. i don't know what the nielsen rating would be on that, but starting to be the sizes of very, very large audiences, and that's getting appeal of companies like amazon and the other tech titans out there.

>> brad, five years ago i went into your offices and met with you guys. twitch didn't even start until tw two years later. you guys had pivots, leadership changes. what have you done wrong and what are you getting right now? are you going to have a similar exit to this, do you think, in the future? >> you know, who knows what the future holds, but part of what you do when you build a company is you're looking for market opportunities. and ustream no different. twitch no different. started off a company called justintv. smartly, really focused on the gaming industry. ustream is similar. tens of millions and millions of people using or platform. what we're excited about over the last few years we've seen major enterprises using our platform, sort of becoming media companies. companies like facebook. companies like salesforce. intu-iit intuit. using ways to engage with their

audience, recognize the value of connection that emotional connection that video brings. so the enterprise sector is exciting for us, but we work with major media companies like the ufc with discovery, and focuses on how can we use video? help businesses deliver amazing experiences and connect with people. >> brad, that's -- kelly here. sorry. what i'm trying to understand, because you guys have had this amazing growth in the enterprise space. why isn't that commanding the flights in term of the akwaiers? advertising dollars? a different thing than being in the consumer space, seems twitch best embodies right now. why aren't things as exciting in enterprise? >> they actually are exciting. so last year in the enterprise alone, over 1 billion hours of just live video consumed in the enterprise. this is a very rapidly growing market. in fact, some projections prit by 2017, talking about a $5 billion to $10 billion

marketplace. the business model is different. whereas twitch is -- act more like a media company. monetize through advertising. we've moved into becoming a sass company. softwares and service company. we charge enterprises on an annual basis for technology and given technology tools to use those tools that connect with their customer, connect with employees and use engaging ways. just as exciting and has high if not higher margins in the exact amount of growth. >> brad, we'll wait with bated breath to see when and how amazon rolls this out via twitch and watching uch ing ustream to you go. thanks for joining us. when we come back, use agopro got a lot harrier. we're explain. first, rick santelli what are you watching today? >> you know, i was there. i brought out the consumer confident number this morning. the best number i believe sis,

what, october of '07? and the market's didn't move much in the interest rate complex. but i think i have the answer as to why. just think -- what happened not too far after october of '07? we're going to discuss that. after the break. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. virtually all your important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com we put the law on your side.

this guy could take down your entire company.h? stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm. coming up at the top of the hour, jeremy siegal says they're not overvalued.

declining sales at best buy continue to push that stock lower. however, we've got a bull who says it's exactly why now's the time to buy. then, are you in the market for a job? well, tiger woods might be posting a help wanted ad soon. who could handle that gig? that and much more coming up on the "half time show" from post nine. >> looking forward to seeing you, scott. from a dog's eye view, becoming a reality, because of gopro. called fetch, priced at $59.99. you can see there, two possible mounting locations for your pet, according to the companies website, also currently out of stock. oh, by the way today is national dog day. i saw one of these jon fortt in boston. saw it on bug dog and thought someone had an idea. didn't know it was a thing. >> it's for your pet, they say, face it. it's for dogs. cat will say, get that away from me. >> say it's for dogs but really for your kids. >> they have one for kids. a chest mount.

yeah. i have it. >> why taser, chest-mounted used by the police will about huge business. used across the country. i don't understand, why do people want to know the world from a dog's -- is that the point? see things from your dog's view? >> think of all the butts sniffed? >> surveillance, pay a dog walker, watch the video, your dog sat inside all day, taken out for a quick business trill, i don't know. >> it's brilliant and scary. you're right. out to the cme group. rick santelli when do you strap on a gopro? >> well, listen, i'm not sure about gopro. to me, i like to watch things in the first person for myself. you know? too many people live through their pick k34ers and images. i like to live life in the first person. listen, i'd like to ask all three of you, i'm not a big fan of battery cars. they were a big deal at the turn of the century. the last century.

i am a big fan of space, and elon musk really gets me excited. did steve give any reason as to what happened to that spacex aircraft that blew up friday? is this a setback or is this something that we shouldn't be concerned over? regarding space travel in the future? >> he sounded -- guys, correct me if i'm round. sounded bullish on the future and didn't eastern mention that incident. >> at the top, think about some of the technologies. makes me nervous. i wanted to know the full picture. when edison invented the light bulb, no secret. 50,000 mistakes before he ended up there. as for the markets, the santelli exchange, i was shocked when we had a robust number. a solid number. look at the chart for consumer confidence. here's where i find it -- maybe the same is true with the discussion i just had with the gang. that what happened after those record numbers we had in '07 and

part of '08 with consumer confidence, well, we saw what happened. the credit crisis. sometimes we need to look at things too good, and think, maybe we need to start being a little bit more contrarian in our thinking at the very least, and also, there is a huge disparity between what's going on in date to day life and a lot of these surveys. be frank. when it comes to surveys. i've done santelli exchanges from a statistical perspective, rising equity certain pushes rising surveys. it's -- they lead more than they are responsible. in other words, consumer confidence isn't necessarily responsible for the equities. equities are more responsible for consumer confidence. you know, i'm not going to weigh in on the details. the dividend, warren buffett, what's going on with canada, burger king but i am weighing in on the word patriotism. makes me upset when the only time i've heard it the last several years outside of my

circles in the following way. a cudgel. i'll leave with the final words of retired senator alan simpson on using patriotism to defend bad tax policy on the screen. just tell all, the congressmen to get patriotic, so they don't screw the corporations that give people are churkin. a patriot or a panderer. if you're a panderer get out of the race. >> it's wrong to moralize this issue. it's an economic choice, but hard to tell that to everybody. we'll see how the debate shakes out. rick santelli, thanks, as always. netflix shut out of the emmys yesterday but still on everyone's mind. >> streaming made a huge impact with netflix nominated for 31 emmys. [ applause ] and no one is happy dwroer see streaming services take nominations away from cable than network television. not very nice when someone younger comes along, is it,

cable? and turning online video guru rob barnett, what happens next in the fight between network, cable and netflix. stick around. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*? has this kind of passion, this kind of innovation, engineering, design and performance... been available... for this kind of price.

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comcast business. built for business. 31 nominations, seven wins, be no top wins for net flicks last night. does any matter to a company already disrupting old hollywood

anyway? rob barnett, now founder and ceo of omnivision entertainment. rob good to have you here. welcome, and were you surprised netflix went home more or less empty-hand empty-handed? >> a tough night as far as statues go but netflix is winning something a lot more important than statues. they're winnering a position in people's minds now after all of these amazing original series have come out, and obviously we saw what happened to their stock on monday where the company is just way ahead where they were a year ago. so i think all things are pointed up, and let's face it. pretty tough competition last night from "breaking bad" in the brahma categodrama category. >> rob what is happening behind the scenes? how important is it netflix now has a reputation as an engine for talent? are people really eager to work with netflix versus some other options there is and how does that body for netflix' future? >> i had a chance to meet ted

sorrentos. i put my damn channel on the air several years ago. he said i know you guys. are you knowing it to be nice or do you know us? he said i know what you've done. i said i think the baseball game has been in the first inning quite a long time and it isn't until netflix really broke up through with these stareries th people understand great original content can come not just from the majors but from the disrupters and that's a story a lot of companies like ours have been outside there working on for about eight years. >> rob, netflix is hardly an overnight success. people talk about it like they're surprised they burst on the scene, reid hastings talking two years about besting hbo. plugging a lot of money into this. work, their butts off to create this content. wondering how much longer you think it takes for netflix to see this bet pay off in terms of real awards and really earning the badge of honor that it

really challenges some of these networks? >> well, they did pick up awards. so let's just, for the record, i think a total that far out passes what they did last year. i think next year at the emmys, to answer your first question, when you see some of these huge legacy shows like "breaking bad" no longer in their way, you'll see more wins. but this is happening not just at netflix now. you're seeing a lot of major media companies realize that there's a powerful opportunity to reach viewers in the online space, and to do it in ways that are much more immediate and powerful, and social. so you're seeing a lot of new investments made in the sector. you're also seeing a lot of acquisitions starting to happen where majors for the first time since '06 and '07 are starting to look for bigger digital assets. >> well, and, rob, speaking of acquisitions what did you think about amazon buying twitch here? what does that signal about amazon future intentions?

where does it leave netflix as acquirer, or aquecquiree and ot places you think we could see akwisty activity? >> buy it versus build it. right? we made a bet about eight yearation the major disruption doesn't always happen inside the largest monolithic company, often happens from resbel force that integrate with larger media companies and have the larger capital that's needed. you're seeing a lot of that certainly in the digital online video. >> i guess it is a media company, then. >> well, they're making moves that have attempted to get the kind of nominations that netflix had in the last few years as well. a lot of new, original programming coming from places like netflix and hulu that aren't getting quite as many the headlines netflix has but the work is getting done, do you think, last question, rob, we could see some of those, or

should frankly see the other guys participating here cracking into the emmys, fregs in order to show this moment really has gone mainstream? >> it's happening. people have really gotten to the point where you can go out on the street and ask people about shows that are premiering in digital, and they're knowing about it for the very first time. so this is a trend that's just gaining and moving up rapidly. i think it's taken a long time to get into this first and second inning in the game. but i think in the next two years you'll see it move a lot quicker. >> rob barnett. unk thank you, sir. >> thank you. >> appreciate your thoughts this morning. netflix only won seven of the 31 emmys last night but the company were light up twitter. the lights on your screen right now indicate every time the word netflix was tweeted last night during the show. obviously, you can see more on the east coast than the west coast. but quite an interesting diagram there with mentions of netflix during the emmys. >> i like just looking at that.

weirdly mesmerizing. >> looks like a screen saver. >> exactly. fascinating. burger king buying tim horton's withes 34ds billi $3 b financing from warren buffett. what should kings/horton's name after buffett? be right back. [ male announcer ] it's one of the most amazing things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us. ♪

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welcome back. let's get right to it. burger king buying up tim horton's with the help of warren buffett. what should the combined king/horton's name after buff ift. josh tweets a buffett buff a, of course. >> people misspell it, only one t, might as well. >> and the cherry coke marinated buffett burger. >> cherry coke? >> and noah tweets, buffett's billion calorie deep fried doughnut cheese burg e with a dividend fries delivered every ten minutes. >> an omaha steak reference would have been a gimme. >> expensive, though. for a fast-food company to roll out. with buffett, could probably do it. be honest. >> truffle fries, anybody?

truffle? >> not satis-fries for sure. >> and kayla, over $1 trillion mark? >> it did. >> for the year. incredible. add that, plus talk about europe hemping push indexes here to fresh all-time highs for both the dow and s&p 500 today. that does it for us here on "squawk alley." hitting noontime on the east coast, land toever to the "fast money/half time report," and scott wapner. >> welcome. live from post nine, starting lineup, josh brown, and stephen weiss, and also jon and pete najarian co-founders with us of option monster. the new highs for stocks. dow set a record intraday high. s&p trying to close above 2,000 for the first time ever. that milestone getting a lot of play in the national papers today. "usa today" asking the question of whether s&p 2000 should be cheered or feared. ev