good morning. it is 10:00 a.m. at group on headquarters in chicago, it's 11:00 a.m. on wall street, and "squawk alley" is live. ♪ good monday morning. thanks for joining us here on "squawk alley."

joining us for part of the hour, henry bloget, founder and ceo. it's great to have you. first up, the long rumored deal finally official. pfizer and allergan announcing. but more importantly, the new combination will allow pfizer to relocate its headquarters in ireland, which has a much lower corporate tax rate than the united states. here's pfizer's ceo ian reed on the deal just last hour on "squawk on the street." >> this is a great deal for america. it allows us to continue to sustain an investment of approximately $9 billion mainly spent in the united states. we have 40,000 combined employees in the united states. so i think it's, you know, it's a great deal, i'm very happy to be announcing this deal. >> i know you have a lot of thoughts on this deal, but the fact that headquarters will now be in ireland, is that just a formality in your opinion?

>> of course it's a formality. the way we decide where companies are based is absurd. most companies are based in delaware in the united states. it's just a piece of paper in a lawyer's filing cabinet, that's the whole thing. a company is reorganizing to try to get a better tax rate. this is going to continue to happen until either congress finds a way to make it absolutely impossible to do and i don't think that's in the interest of the united states or we come to some smarter global taxationism where you're basically taxed on sales in each individual country instead of this absurd system that we have now where you put pieces of paper in different countries. >> but does it matter i guess is the question. does it matter if these companies are american companies, paying american taxes, or is the bigger failure here on pfizer for doing it or on u.s. lawmakers for not fixing the tax code so that pfizer wasn't driven to do it? >> what i would ask is what is an american company? more than 60% of its sales are

outside of the united states. so what makes it an american company? what benefits is it drawing from that that should keep it here? i think if you look at global corporations, they're doing business all over the world. united states is a big market. they absolutely should be taxed on the business they do in the united states. but a special tax because you're an american company. when you look at how companies are organized these days, it's just not keeping up with the way the global economy is running. >> the deal is structured as a reverse merger. allergan shareholders will own about 40% of the company. despite the fact that allergan is technically buying pfizer. but the government has argued they're being -- that they're being cheated out of hundreds of billions of dollars of tax revenue. how do they make that up if they do not get that from corporations if, in fact, they would change the tax code to not have that? >> it's the same argument when somebody switches state because the state has a lower tax rate.

we don't look at that, oh, so immoral, you're keating the state and so forth. there are all sorts of rules for how you are a resident in a particular state, new york, 180 days or what have you. to me this is no different. the more people moralize about this. this company, again, more than half of its sales are outside the united states. what is it about it being an american company? >> true, but there is a story in "the times" over the weekend about california water use. i used to live in california so i watched it kind of closely. the rich in california are able to use so much more water than the poor. the poor are getting restricted. it just seems when we talk about taxes and we talk about people paying their fair share and some people talk about corporations being people, it just seems sort of -- >> okay, so step back from that. look at huge global corporations based in the u.s. have armies of tax lawyers who insure they pay a tiny fraction of the statutory rate every year. so we're okay with that. >> are we? >> people seem to be.

that's minimizing taxes. now we're appalled by the idea that you're going to simply move a piece of paper that says you're headquarters in some place like ireland, ah, it's a terrible moral outrage. come on. the whole congress and the rest of the world has got to be aboard the fact we have gloebal core passi corporations now. >> both ceos appeared confident of the ability to get this deal done and certainly pushing health care announced mma to top $600 billion this year so we'll keep you updated on that. amid an ongoing debate about maternity leave in the united states, facebook's ceo mark zuckerberg says he'll take two months off after his daughter is born. quote, studies show when working parents take time to be with their newborn, it is better for the family. facebook is offering two months for maternity or paternity

leave. a time when a lot of companies are announcing unlimited leave but perhaps zuckerberg's actions speak louder than words. >> they said, look, we're going to eliminate our vacation policy. take as much vacation as you want. you just have to be responsible about it. this is the same thing on the parental side. so is zuckerberg actually going to disappear for two months? i doubt it. i think he'll probably work from home a little more. he'll stay in touch. i think the idea of this policy is, again, sure, work and life is always a balance. if you want to take more time with the kids, makes sense. >>cy don't think he's going to entirely disappear but the sense i get is, he really is going to step away, in a big way. it gives parents at facebook even more of a sense that yes, i can really take the time. there's some benefit here from

the fact that his wife, dr. priscilla, is due in december. so it's really december, january, he's taking off. also helps that facebook is trading near all-time highs. he's got sandburg, many others, who can pick up the baton. >> it does draw a stark contrast to marissa mayer, the ceo of yahoo!, who is due with twin daughters. she has said she will continue to work throughout her maternity leave. she's been known to take only a couple weeks off. is there anything that we should glean from the different -- or is it to each their own? >> there's no right answer. mark may find after two months he's bored frankly. little kids -- mark doesn't got what they want. i hate to say it. he may be spending a lot of time on emaim ba-mail back at the of we'll see. the idea there should be one policy that fits everybody, it's unfair to people who love to work. >> marissa took two months off,

she might not have a job to come back to. she's got sharks circling. mark, controlled company, doing pretty well. >> that is a good point. you're sticking around longer today. we'll hear more from you later on. we want to get to brussels which is still under a partial lockdown as police hunt a suspect wanted in connection with the terror attacks last week in paris. julia chatterly is live in brussels with more. >> thanks very much, kayla. the press briefing expected. they've been talking over the last hour. will they change the lockdown situation that with find ourselves in? and did they glean any information from the 21 suspects they arrested overnight and this morning? that was the product of 29 separate raids. you really get a sense of a ratcheting up of the pressure. they didn't manage to locate that suspect of the terror attacks overnight. he's still very much a wanted

man and the search continues here. meanwhile, the subways have been closed. schools and universities have been closed. the big question here, is that going to be the status quo maintained tomorrow? we wait and see what information we get. obviously, the question is did they glean any information and will that manhunt continue overnight and throughout the following days. back to you. >> all right, julia chatterly in brussels, which is the seat of the european union, the headquarters for nato, certainly a very important piece of the global economy. >> we want to check on the markets as well. right now, trading just slightly positive on all the major indices. the dow up just .1% or so. shares of glame stop after earnings missed estimates. one of the biggest losers, at its lowest levels since january. coming up, as we gear up for black friday, new data on where people are shopping from four square. we'll bring it to you.

plus, no one at groupon knows i'm writing this. on muss words. and good-bye streaming. adele on track to break records with her new album "25" but how long can she stay off services like spotify? you can't predict... the market. but at t. rowe price, we can help guide your investments through good times and bad. for over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions... you can feel confident... ...in our experience. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your retirement savings. t. rowe price. invest with confidence.

tand that's what we're doings to chat xfinity.rself, we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time.

every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. supersaturday, black friday. one thing certain, this upcoming

weekend will be a big one for retailers. our next guest has traffic data from last year. more important, insight into what we should expect this year. the chief operating officer of four square. there are these projections that show thanksgiving day getting bigger and bigger. especially mobile. and the weekend leading up to cyber monday getting bigger. what are you seeing in the in store trend? people actually showing up? how is mobile and just online shopping affecting that? >> sure, john. we're seeing a spreading out of the holiday shopping season. as you mentioned, thanksgiving day's get bigger. it's really becoming black november. we see with an earlier hanukkah this year. early enticements. and the secret to the holiday season we saw last year is the biggest day is no longer black friday. the biggest day is actually

super saturday. the last saturday before christmas. and so it's really spreading out. it affects different kinds of stores differently. >> what can we extrapolate from pure traffic data? we heard all about showrooming. people going into the stores to look and see what they want to buy but it's not necessarily a guarantee they're going to buy something online or come back to the store later. how predictable is traffic in terms of sales? >> so, obviously, 134 million americans are going to be shopping in physical stores this weekend. so 93% of the economy still takes place in physical brick and mortar retailers. mobile and online are growing fast. the four square space inside data looks at the physical traffic. we're seeing certain categories really powerful for this friday, particularly black friday. electronic stores, home improvement stores, black friday is where they make their move. actually, we're seeing big box

retailers and department stores and toy stores do very well. physical shoppers, that last saturday. you have a lot of things left on your left and you want to cross them off in one place. >> here's the buying it being ls to me like some of the big box retailers are in. walmart moving its cyber monday sale into sunday night. seems to me they need to move it a lot earlier than that. they want to get people in store because they probably get a bigger ticket when people are in there and they see something else they want. at the same time, i'm not going in walmart no matter what. but if they had an online deal i could buy on my phone on thanksgiving day, i might do that. are they kind of getting themselves into trouble by trying to save the in store experience at the expense of the online experience? >> yes, i think the smart retailers are going to think about the whole season as people spread out and procrastinate their deals. they're waiting for online deals. the nrf is predicting fewer people coming in because they're looking for online deals.

you have to have a few great deals saved for those latter week because it isn't all about the first weekend anymore, i think you're right. we're seeing a lot of categories like those physical stores still are the best place to shop for most americans. despite the fast growth in mobile, online, 93% of the economy still takes place offline. if you bring people into the stores, they won't click away, they'll add a few more items to the basket. >> your data requires either a wireless signal or a check-in. you show data for starbucks, j crew, among other retailers. wondering if there is a store or a brand that is more, i don't know, more susceptible to having a consumer that will actually check in there and what type of lift that gives them. >> yes, it's a great question. so now thanks to 8 billion check-ins, we've built shapes for all 65 million global businesses that matter. and so our members opt in. we see 2 billion location trials

a day. we can snap them to those 65 million businesses. doesn't require a check-in. we're able to see passive five-minute stays within stores. that lets us built a much more robust picture of foot traffic because otherwise you would be subject to the humble brag. maybe more people talk about being at starbucks than walmart but we want to see it all. >> any one store that's a surprise in terms of how long people are staying? >> well, you know, the big winner, the biggest winner last year on black friday was best buy. that's the retailer that really has to make black friday work. it's the big ticket items come early in the season. and then later in the season, people want to go to a big box retailer and end up with the 10 or 15 last ligifts on the list. >> best buy, phoenix rising from the ashes. jeff, ceo of four square, thank you. >> when we come back, star power tops the allure of streaming with adele on track to break sales records with her new album

"25." but how long can she go without spotify? what does that mean for other top recording artists?

that is adele, of course, she decided to skip streaming her new album and now on track to smash the one-week sales record, a record set by in sync 15 years ago before justin timberlake went solo. are we seeing a new trend against streaming and what does it mean for spotify and apple music? john kellogg is assistant chair of the music business and management department at the berkeley college of music in boston, also entertainment lawyer. it's obviously an elite few able to yield the power against the streaming services. do you see that number of artists growing over the coming years? >> no, i don't. once again, it is very elite few that can do that.

certainly beyonce has the power to do that. think as we go over a period of time, you might see a few more. but once again, taylor swift did it last year. i think that adele made the right move in this respect in respect to her market and really trying to target her particular market. >> do you see this as being a permanent move though? because taylor swift has kept her music off of the streaming services. whereas adele will have to wait and see what happens with this album. do you see the services being able to woo these artists later on after the initial release or is this a permanent decision in your view? >> well, i think as streaming takes off and gets more subscribers, i think you'll find this business is going to come to scale. artists are going to be able to generate and make up for the loss of album sales with the royalties they can earn from streaming. that is not the case now. i think once we get close to maybe 100 million people actually subscribing to these

interactive streaming services, more artists are in a position to say i have no problem having the album streamed at the very outset. until then, think it's going to be a challenge. >> it seems like a no brainer to me if you're adele, taylor swift or beyonce, and you can get people to buy the album up front, it's kind of like a theatrical release. then put it on pay-per-view and rentals later. my question is for the streaming services. this is for kind of an all you can eat buffet where you can't have the lobster or the steak. are people going to say, the artists who i really care about, the biggest artists, are not available, do i really want to pay this? >> i think that is true. you're only looking at a select few artists that can actually do this. i think that's going to really temper that whole affect. and they're going to continue to do it like i say until we come of scale with the interactive streaming subscribers. interesting to note that she did release her single and it was

streamed on youtube and it had tremendous streaming, 7.3 million streams the first week. so it is available but particularly not to the interactive streaming services. >> john, are we in a situation where now particular artists can command bigger royalties? and if not, will we move to that, where the streaming services will say, sure, we're going to pay you quite a bit more than we're going to pay everybody else, especially if we have an exclusive on it in the early days? >> the streaming services are already paying about 70% of their revenue to the creators of music. the problem is is when does that -- when do those royalties actually get to the artist and how do they get to the artist? that was really the basis of berkeley college of music's report on fairness and transparency in the music industry. i think that is going to be a big debate. i think artists are really going to have to lobby and advocate to be paid a fair share of royalties. but as the pot grows, i think

you're going to be able to find that the artists are going to make more. >> although for adele, the numbers seem to tell the story. crushing the records despite the first week only being just more than one day. we'll see how many albums she can actually sell going forward. we appreciate it. >> thank you. >> and let's bring in simon hobbs. about five minutes away from the close in europe. how's it looking? >> it would be brussels. brussels of course is on lockdown for terrorist investigations for day three. no wonder some of the travel and airline stocks are lower. they're leading the decline. it's actually the data in europe was quite good today. the pmi rising to its highest in 4 1/2 years. good growth in germany. the periphery of europe really racing ahead. doesn't mean to say in eight sessions the ecb won't double down on qe. that's the focus of the foreign exchange markets. the euro managed to resist a break below $1.06 today. even as we speak, we're back

down at that level. within the last hour, the uk prime minister, having returned from paris, has been detailing the long spending list that he now has for uk defense after he indicated he would divert another $18 billion into defense spending. he's promised a new fleet of terrorist surveillance drones that will fly to the edge of outer space he says. the bigger hot button issue will be wednesday when a similar figure, $18 billion of welfare cuts, will be basically qualified to the uk public. this, after the up house, effectively the senate, the house of lords, said they were so draconian. the italian banks are higher after the weekend the bank of italy announced there will be a new funded, funded by this guy, by the bigger banks, over $3 billion, to rescue four of the smaller banks. they're try to rush it through before the rules change on

bail-ins. let's look where we are on the greek banks which continue to reprise for their rights issue. remember, the greek banks can only fall by 30% on an individual session. trying to get down to where they priced. for the record on friday, piraeus priced its issue at just a fraction of the cents on that. presumably over the coming days, they'll fall back to that level. it's kind of an antiquated system. but that's greece. >> you ask whether this should be trading. >> i'll defer to you. >> simon hobbs, thanks. no one on group on knows i'm writing this. ominous words in a new post from andrew mason on the company he co-founded. he'll join us to explain. but what if you could see more of what you wanted to know?

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good morning, everyone, i'm sue herera. russia has released new video reportedly showing air strikes on islamic group state positions in syria. russian president putin in iran said the air strikes will last until those guilty of blowing up a plane over europe last month are punished. the brother of the suspected terrorist in the paris attacks describes his brother as naive,

kind and intelligence. he is telling belgian tv he's hoping his brother, salah, decided at the last minute not to go through with the attacks. justice department officials traveling to minnesota next week to investigate the police involved shooting death of jamar clark. that shooting sparked protests and calls for the the two officers involved to be prosecuted. gop presidential candidate marco rubio will begin running his first tv ads tomorrow. he speaks directly to the camera, focusing on what he calls a, quote, civilizational struggle against isis. and that is the cnbc news update this hour. let's get back downtown to "squawk alley." >> the story of the morning is pfizer and allergan set to merge in a deal worth $160 billion. we talked to the ceos of both companies. she join us live in new york city with the latest. >> we're coming to you outside of pfizer's new york city

headquarters. of course under this deal they're creating the world's largest drugmaker, pfizer, exchanging 11.53 shares at a deal of 363.63 per allergan share, as you said about $160 billion deal. this would not only create the world's largest drugmaker, it would be the biggest deal to ever move a company outside the united states for tax reasons. pfizer moving over to ireland. lowering its tax rate to about 17% under this deal. there's been so much political scrutiny of these deals with treasury just issuing new rules. pfizer saying those new rules probably don't apply. the ceo says there's more to it. >> this deal is about great franchises. i'm excited about it. it takes two businesses, our established business and our pharmaceutical. it gives it broader growth. it's a really strategic deal from that point of view. it enables us to incorporate

open signs, open development, the philosophy. we get overlapsed synergies. there are benefits from tax. now, if there were benefits from taxes weren't there, you know, i would still try and do the deal but i expect the price would be different. >> as for that price, some analysts are saying that allergan shareholders may have been expecting more, up to $400 per share. both of those stocks are trading off today. allergan ceo also joined us for this interview. saying there's tremendous value. we'll bring more to you outside pfizer headquarters all day. back over to you. >> andrew mason last served as ceo of group on nearly three years ago but he's still a shareholder. last week, posted a blog, why root for group on. he's got a business model and he's announcing its expansion.

cnbc's julia borsten. >> andrew, thanks for joining us today. i have to ask you about this blog post you posted last week. you're no longer running group on, though you are still an investor. what is the message you're trying to send with your post? >> well, when you've seen companies like microsoft or yahoo! have a hard time and then come out with a new ceo, people get behind the new ceo. they're excited. group on just got a new ceo. i think at least inside the kind of circles that we live in, you and i, julia, tech and media, people -- i almost feel like people hope -- they made up their minds about group on and they hope it gets done with, with failing, and the point i was trying to make is not really commenting on anything -- like decoupling group on from a business and how their execution

has been from the fundamental power of the underlying idea, which is that group on, it's extraordinarily difficult for small businesses to reach anyone. unless you're subway or you're the gap or somebody that has massive marketing budget or the benefits that you get from scale, it's really hard to figure out how to get the word out about your business. that's something that groupon solveled by being an extremely cost effective and risk free, where you're not paying up front form of advertising effectively. regardless of their execution in the past, there are ways to make that work. groupon is better positioned than anyone with relationships with hundreds of thousands of merchants, with 50 million customers i think. it would be great if they figured that out. we should want groupon to figure out how to help small business main street. that's all. it was really a simple point which is let's hope these guys

win. >> so it sounds like you're frustrated that -- go ahead. >> i was going to say, i have to say what you said, there's obviously self-interest. i mean, investor. i mean, i made the thing up. i want people to like it. but i still think it deserves to be liked. >> so you're frustrated investors in the media are not giving groupon a chance. but looking at the environment, living social, their biggest rival, was shut down. do you think in this environment where there are deals all over the place that groupon has a chance to succeed? >> well, i mean, i think in part living social shut down because it wasn't very good and groupon did a good job at outcompeting them. it was an overcrowded market. there were thousands of clones within a couple years after groupon launched. so i think just because they're having trouble doesn't

necessarily mean that -- i mean, groupon, like i said, still has 50 million customers and hundreds of thousands of merchants working with them so they ought to figure out how to make something of those assets. >> andrew, it's john ford here at the stock exchange. you say groupon solved a problem for local business but you also say it was kind of like morphine, okay, in the right kinds of amounts but if you use too much, it was a problem. it seems to me like people were using too much and groupon didn't put the kinds of limits it might have on really helping small business to use it correctly. it was focused on growth. i think a lot of people reacted against the hype of, hey, we're the fastest growing ever. it siege eseemed like there wer bunch of groupon pushers on the street. are you excited about the current groupon and the kind of broader daily deals on older items or are you more excited about the local version of groupon that started and getting

that right? >> when i was there, and i'm sure sense, we did an incredible amount. to help protect them from themselves. we really worked hard on that. we weren't stupid. you would have to be stupid to think a business having a bad experience would be good for groupon even in the incredibly short term, it's super bad for groupon. because the bad press you get out of it and that merchant tells their friends and so on. we put effort into trying to help businesses. small businesses, something like half of them go out of business regardless in the first year. we have a detour of the marina that's this bizarre walk through cupcake shops that's narrated by a fake verner hertz zog and within a month of launching that maybe a couple dozen people went on it but 2 of the 5 businesses

we featured went under. it's just the fact if you pick out of the hat a set of businesses on main street, like, it's a hard thing, it's a hard business. some of them are going to go out. in term of what i'm excited about, i don't really care about the good stuff. that can be like a growth thing for groupon, whatever, with products. i feel like it still might be a great business. my passion, the thing i think groupon needs to exist in this world for, is to help small businesses find a way to get the word out and make main street not just this wash of subways and that sort of thing. >> you are running a new small business. i'm wondering, do you offer the detour experience as a group on? if so, how does it help your business? >> i wouldn't run detour right now as a groupon because it

doesn't -- it doesn't feel like the right fit i guess. but the way that i think -- i think early on when you had a dedicated e-mail that was going out to hundreds of thousands of people, that would be a great form of exposure for detour and i think i would have done -- i would have done something like that. because we are looking -- we're essentially a small business in san francisco right now, local to san francisco. looking for ways to get the word out. and it's hard. like, it's expensive. the options that are available to you require a lot of money up front without necessarily a lot of guaranteed return. >> but, andrew, the fact that as a small business in san francisco, as someone who's looking for marketing, there isn't a version of groupon, there isn't one you can use, is that concerning to you? >> yeah, i mean, i think -- i'm

not really commenting one way or the other with my blog post about groupon as a company. i'm more trying to comment on the underlying value of the idea. and groupon has work to do. i'm sure they do. and that's not something that i'm trying to avoid. >> and before we go, just a question about the management. you mentioned they have a new ceo. do you think the management team is the right one to do the work you think needs to be done? >> i don't know. i mean, rich, who worked for me as my head of marketing, was great. i really like rich. it's been a couple of years. i don't really know who else is there. i just impulsively wrote this blog post because i saw the change in management and felt the move to say something. >> you do have the perspective on starting this business. you have the hindsight of having

run it before. its market cap is now about $1.6 billion. i wonder if you ever think about whether the story of group on and its trajectory would be different if you had accepted that $1.6 billion from google. >> no, it would be exact -- the story would be exactly the same. no, of course it would be different. >> how so? >> well, it would go like this, it would be -- it would be in 2000 and whatever groupon was bought by google for whatever amount of money it was. i can't even remember what it was. i don't think it was 6 billion but something like that and then that would have been the story. >> would you encourage other start-up founders to take acquisition offers more seriously, given what you learned? >> no. no. i mean, there are all sorts of -- there are all sorts of special things about the groupon story that make it -- that make

it dangerous to try to generalize too much. the model -- we were sending a daily e-mail for stuff with half off. there's a reason -- it was cloned by a thousand different companies. multiple different companies because it was so easy to copy and there's no real difference between groupon and the competitors in the eyes of many consumers. so just the dynamics of the business made it very different from a lot of other start-ups. and, you know, i'm sure there's great lessons people can learn. i feel like i like to think that our terrible experiences helped contribute to some of the large private companies now that are pushing off an ipo as long as they possibly can. but beyond that, i'd caution people from generalizing too much. >> for the past year, you've been running your own small

business, detour, which you're launching today with a business model. tell us how detour is taking a very different approach, to giving people audio tours of cities and why you decided to get into this business. >> yeah, so this is an idea i had back before group on. it's something i've been thinking about. every time i would travel, i don't really like going on walking tours. i don't having my nose in a field book. i just want to be out there on my own schedule with the people i want to be with and exploring but i also want to learn and connect to the place somehow and have an experience. so when the iphone came out, it seemed like building a platform for audio tours could be really amazing. over the years, i would watch and nothing great came out. so that's what we decided to build with detour. it's a smart -- it's an extremely smart app. you can leave your phone in your pocket and it's using gps so the narrator is adjusting to where you are.

it feels like there's somebody there with you. the technology just kind of melts away. the detours are extremely cinematically produced. we find award winning producers like radio lab for example to make these things. and amazing narrators who are at the centers of the story. for example, our detour of the -- of the castro, walking you through the history of gay rights, is narrated by cleave jones, who if you saw the movie "milk" was narrated by -- was played by immeal hersh and kind of lived through everything that happened there, and there's just no other way to experience that neighborhood quite like that. and then the last thing is it's social. so you can sync up your phone with other people's phones and have a shared experience so it's not like a typically socially isolated audio tour. our hope is detour can become a

way that -- something that changes the way people travel and the way they experience and connect to cities. >> andrew, unfortunately, we're almost out of time. my quick last question, you're rolling out to three more cities in the u.s. next year. you seem to be rolling out slowly. is this a lesson learned from your type at groupon? >> the only thing i'm going to say, because i don't want to be like a dick cheney. i came on here -- i knew you were going to talk to me about groupon of course but just like -- i only got one question about detour. and i just want to make -- to the people at groupon, i'm not going to be a dick cheney, i'm not going to go around from the peanut gallery and talk about stuff. >> okay, well, best of luck to your -- >> was that an answer to your question? >> no, not really, not really. >> all right, bye. >> thanks so much, andrew. >> all right, see ya. >> and thank you, julia, for bringing that interview. he could have gone with chris socka, i don't know why he went

dick cheney. i guess he's not going to shoot anybody either -- >> groupon shares up 5.5%. >> does this sound like a guy leaving the door open to coming back to groupon? >> if he has a plan, he doesn't articulate it clearly. i was actually interested, okay, what is the future, definitely local. i'm sure he has a lot of regrets. >> you founded your own company. you're an executive. watching someone who founded a company who's now on his second act, what are your thoughts? >> i think it's very painful, i'm sure, to watch what happened. the company, as we talked about, they had an opportunity to sell for a lot. they actually were worth a lot more than the sale for a while. they're going through a really, really tough period. still have a big valuation though. there is definitely an opportunity there. there are other companies. a lot the dot kms went through this and came out, did well on the other side so maybe there's a future. >> if the stock keeps reacting like this when he does talk

about the company, maybe ed employees -- >> will demand him back. >> thank you, henry bloget from business insider. >> and actual tax returns on their investments. we'll bring you that story after this break.

coming up, what the pfizer/allergan deal means. and our call of the day. the analyst that says its time

to add match to your portfolio. and why a sideways market may be a good thing for investors. >> all right, scott, sounds good. venture capitalists hoping to see actual cash returns on their investments end up with coal in the stocking this year. ipo activity reinma remains ver. >> start-ups we know are very good at fund-raising. unfortunately for their investors, they aren't as eager to look for exits. in q3, there were just 145 exits, including 4 ipos. the worst quarter for two years according to a new report. so what explains that trend? one eye-popping valuationings are discouraging sales. we know capital does remain readily available. start-ups raising more than $47 billion in the first three

quarters of this year. it's according to the national venture capital association. of the limited number of exits, we did see the vcs that led the way included sv angel, new enterprise associates, 500 start-ups, accel. the question now is whether fund-raising will become tougher in the months ahead. already, there are reports a number of start-ups have scaled back their valuations expectations including jet.com and thumb tack. >> it's the new world we live in. josh lipton, thanks. meanwhile, let's get to the santelli exchange. >> thank you, kayla. let's pick up on some of the issues josh brought up. what a great hit he did. if you look at thing it is like ipos, start-ups, unicorns, you get a certain sense of the state of the economy. when you look at things like

bibacks, great journal article today, you're not getting exactly the same scenario. bibacks, according to the first nine months of this year, are about 516 billion, okay. 516 billion. what does that mean? well, for a half a trillion of seed corn, isn't going to be around for the future. what do i mean by that? well, listen, i'm not the first. this is say well worn subject. of course as we get close to liftoff potentially for normalization, the notion of how many fewer shares there are and how that's affected earnings per share and the fact that, you know, the reason that you need to keep a little seed corn is because if you eat all the corn, what are you going to plant the next year, the year after that? it's a lot -- the same and the effects of the future economy. so if we look at it in the most p palatable perspective, all things being equal, might stay on the low side.

but where's the worst power going to come from? not to mention the notion that anybody who doesn't understand how low interest rates have given this lazy recycling of cash, some of it back to investors, whether it's good or bad. but it really isn't the best thing. i'm sure when you think of it in terms of big stimulus plans in the past, over half atrillion is a lot of money that wasn't used in actual stimulus. and the final thing, when we play roulette, it's black and red. black and red can also describe stock market indices. the dow right now is neutral. the s&p is up 1.7. that's in the black. the nasdaq's up 8%, in the black. in my opinion, two of the three need to be well into the black for the fed to tighten, because in a way it is kind of fed roulette. john ford, back to you. >> halfway through the market day. major indices holding in there, up slightly.

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i'm a gas service my nrepresentative. n. i've been with pg&e nine years. as an employee of pg&e you always put your best foot forward to provide reliable and safe service and be able to help the community. we always have the safety of our customers and the community in mind. my family is in oakland, my wife's family is in oakland so this is home to us. being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. together, we're building a better california. google appointed diane green to run its cloud business. the mechanics of that move will be a little complicated. i had some conversations with google after the announcement and learned green is going to stay on the alphabet board where she's now on the audit committee. seems like she might have to step off that committee because the charter says there need to

be three independent members of the board on that committee. as an executive, she'll no longer fit that category it seems. google's infrastructure operations, including those that manufacture custom servers, are also going to report up to green. that is important because that's the operation that google runs on top of. in essence, google itself is going to be a customer of her cloud operation. she won't just have per view over the external facing cloud operations but also the very system that google runs on top of. so that makes for an interesting position she's going to be in. >> as google and alphabet seek high-profile hires, perhaps that sets a precedent. >> it does, because the official she reports to are not on the board. diane greene will sit on the board but her bosses don't. it's google, so they'll figure

it out. >> the averages holding. usually thanksgiving week for the last three years has been positive for the dow, the s&p 500 and the nasdaq. we did get some negative data today. certainly the market is trying to digest that. but holding in there, earnings train continues chugging. palo alto networks after the bell which will be interesting to watch. >> a number of enterprise companies did pretty well. also worth noting on another note, shuttle drivers for major silicon valley companies are going to be getting better pay and for the first time ever paid holidays. they voted to unionize in an overwhelming 95% majority vote. just as an example of how the more some things change, others stay the same. >> those shuttles are powerful recruiting tools for those companies located outside the san francisco area so an

important development for them. finally, we want to give you one last check of the gaming companies take two interactive. not setting up for a very good holiday. >> it doesn't affect the consumers at least. you can still buy your favorite games. >> let's send it over to noon time and "the halftime report." >> all right, guys, thanks so much. welcome to the "halftime show." joe is here a long with john and pete nagarian and our guest from douglas t. associates or something like that. why the movement of the market over the past year may be good for investors and what could happen now as a result. good match gets a good buy call today. we'll speak to the analyst. we begin with the markets. stocks ix inned.