everywhere and if you're going to become -- you're going to merge, like if we were to merge with south america, how do you think the united states would do? >> you will certainly have countries, nationalism will be around. but we have to learn how to tap into those markets around the world for our own growth and exports and opportunity. >> i understand. thank you, sir. >> great to be with you. >> join us tomorrow. "squawk on the street" begins right now. marissa mayer 9:15. back in a moment. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange. final week of july and it promises to be busy. verizon buys yahoo! a fed meeting, dnc in philly, a third of the s&p posts earnings. futures relatively steady. a muted start to the week in europe and the 10-year is around 1.57. our road map with verizon announcing the deal to acquire yahoo!'s core business for $4.8 billion. we'll talk to marissa mayer in a

few moments. the dnc kicks off amid country controversy over leaked e-mails. the ceo will join us in the next hour first up verizon announcing the deal to acquire yahoo!'s core business for $4.8 billion in cash. verizon plans to combine the internet asset with aol. the real estate holdings in that action. marissa mayer will join us in a few moments once that conference call ends. wow. this day has been a long time coming, jim. >> yeah. and i think that the -- i remember speaking to lowell mcadam many months ago when he said this could happen and a clear vision if you gave it to tim armstrong they could make something of it. i'm excited. maybe it will be back like the old days in '98 and '99 when yahoo! was the leader or not -- >> you mentioned mcadam in february, a reminder of what lowell told jim on "mad money." take a listen. >> we said we would look at it. i think their board has been very responsible how they're

doing this, very deliberately, very logically and we have to understand the trends that we're seeing and some of their results now, but then, at the right price, i think marrying up some of their assets with aol under tim armstrong's leadership would be a good thing for investors. >> at the right price. he gave it to you. right price. gave it to you. i remember like during the commercial saying to him, look, i don't want to say it but like didn't you just break a lot of news. well that was the point. i mean yeah. and this will be very good. those of us who know armstrong for a long time, have to be excited because we know that yahoo! was a wasting asset. it was truly something that lost its way. armstrong has great loyalty and will put people in and could make this a rival, a rival to some of the others who have been at it. because the whole web needs a portal. put everybody together not google and not facebook. >> yeah. >> watch this. >> there is a large argument being made that consumers

deserve and crave a third option other than the two big ones you mentioned. >> we got three networks and they added a fourth and everybody likes it. broadcast. i just think people are underestimating armstrong. they've underestimated armstrong for years and years and ought to get to know him. it's a mistake. >> yeah. >> david faber, should be at this table but he's enjoying vacation. does not mean he's not going to call in. joins us on the newsline this morning. where are you and where are your thoughts on this deal? >> well, my thoughts are i'm very happy. i think a lot of people involved are happy it's the last time we will be talking about the deal potentially guys. i think jim's point is a good one. now about verizon creating this content company that we're watching come together under the leadership of mr. armstrong and others and it will be interesting to see how they integrate yahoo! and those brands and create something that couldn't conservebly will compete for them in the new streaming environment with the go 90 platform and a number of

other things they're trying to do. different than at&t they brought direct tv but in terms of coming up with programming so to speak or content they're trying to set themselves apart from their competitors. as for yahoo! guys i mean you know the story. i've been talking about it so long. verizon ended up, did pay a bit more than they perhaps had thought. i'm hearing they came in with a big -- billion dollars more last monday when final bids were due and squeaked by. dan gilbert's private equity group came in at the last minute before the board meeting on friday up their bid by $750 million got rid of a lot of the contract language that they've had that was making it difficult but couldn't compete with verizon at $4.8 billion in cash. so they win the day there. but the key question for the stock is, from here, is well all right, what do we do now with the cash on the call i think they may be addressing that.

but nobody will necessarily say when or how it willing returned to shareholders only that it will be and then the stake, the expectation they're going to figurer out a way to sell that. fewer things in that investment company the better it will be in terms of the discount being as slim as possible in the underlying value to the alibaba shares that will be in that investment company once it has been separated from the whole and all done and yahoo! is completely just a memory. >> wow. >> is there a good analog, david, a company like verizon who's leapt so quickly into original content? is it on the likes of a comcast or some of the other big companies we talk about? >> you know, it's interesting. i mean we see so many, you know, we've seen a lot of what we would call internet companies or, you know, the move to contact to a certain extent but often more as contributors even though they may own some of the programming. i'm not sure. i would have to think about that, carl, in terms of an

analog at this point. but they are trying to differentiate their service. as service levels have come up for everybody, it clearly they're trying to get -- create glue with their customer that goes beyond simply saying we're the best at delivering your data or your voice. we're also going to deliver you exclusive content you're going to want. it will be interesting to see again how they integrate that. as for marissa mayer i know you guys will be talking to her. sorry i'm not there to join. but she plans to stay on although my understanding that's not all up to her. and one would expect once the deal closes there's not much to do. you're talking about a company that will be cash, the stake in alibaba conceivably the stake will have been sold not in a tax efficient manner. they will take the taxes on that. it's worth about $10 billion before taxes then see what values are from the investment perspective that's what people have been trying to figure out. a lot of it will depend on the discount that it trades to to

alibaba and whether alibaba ever is willing to step up to buy that investment company. down the road they might be. they're the most tax efficient buyer no doubt about it but not clear they're going to be willing to do it in the near term. >> david, is this like a 40 adcompany, close end mutual fund. that's all it is, yahoo! >> exactly. that's what it will be. it won't be called yahoo! anymore. it will be an investment company that basically has one investment, alibaba. and again, if you don't have yj in there and sell the intellectual property which they're trying to do, discount will be the pure play it is, the less the discount will be to underlying value of the alibaba stake. >> david, we make a joke about mavens. this is the mobile advertising video. but is there anything there for ken armstrong to work with or something he can shut down or run through his own? yahoo! finance, yahoo! sports they kind of -- that's something that aol is not that strong at

t. are there other things worth keeping? >> there may be. he understands that part of the business too in terms of problematic advertising. key part of what they had at aol, jim. i wouldn't dismiss it out of hand. as we've discussed, of course, and i'm sure you will with marissa mayer, the mavens business is still growing. they're talking about getting it to 1.6 million in cap revenue but fwroeg more slowly. i don't think they will dismiss it at all. 4.8 based on a slowing nongrowth company is not a small amount of money. they will want to get their efficiencies where they can. there are some say the company has been undermanaged, those who criticize marissa mayer and say by virtue of buying it they will be able to find plenty of ways to increase the value. >> speaking of leadership and yahoo! the verizon executive on squawk talking about how the auction process is clouded the issue of leadership.

take a listen. >> unlike aol where we had an opportunity to plan for leadership and even some of the things tim talked about in terms of synergies, this has been somewhat of an abnormal process, an auction we didn't a chance to define leadership, talk about who will be in what seat. tim and i will be out with marissa and her leadership team and the rest of her organization this week and we'll be planning those and we'll come back when we're ready to talk about the leaders. at this point tim is leading the integration for us at verizon and we're very pleased he's doing so. >> a lot written about the friction of armstrong and mayor in the past. you don't think they can coexist? >> no. the wording of the -- cara is so much fun. i come back and say that was nice. see you later, take your money and run. it's a steve miller situation completely. >> not the joker, right. >> no. no. come on, take the money and run.

no. she was not the joker. she turned out to be the winner of -- well money is not everything. those of you who play for pride, you would say that she took the money but not the pride. >> right. david you're going to come back for the mayer interview. >> he leftp. >> hey, he's on vacation. >> he deserves it. >> don't bother me. on friday i was with my daughter, don't bother me. >> david, thanks for calling in this morning. when we come back, marissa mayer on the sale to verizon saying she's planning to stay with the company. she will join us after the break. also ahead, sprint out with quarterly results and mar shell la will talk about the game plan for growing the company. take another look at the premarket. busy week ahead. that fed meeting, boj. dnc. and a third of the s&p, the busiest week so far. we're back in just a minute. .

democratic national convention kicks off in philadelphia not without its share of controversy as dnc chair debbie wasserman schultz announces she's stepping down. good morning, jon. >> good morning, carl. a lousy sunday for the

democratic party because hillary clinton instead of talking about her new running mate tim kaine was thrown on the defensive by the e-mails showing debbie wasserman schultz and the democratic national committee favored her in the primaries over bernie sanders, something wasserman schultz denied. there were two saving graces for the clinton campaign. the first is that they managed to force the resignation of debbie wasserman schultz effective at the end of the convention by yesterday afternoon. the second was that bernie sanders, the one harmed by that favoritism by the dnc, went on "meet the press" and said it had not shaken his support for hillary clinton. >> just to sum up here, these leaks, these e-mails, it hasn't given you any pause about your support for hillary clinton? >> oh, no, no. we are going to do everything that we can to protect working families in this country. what -- you know, again, chuck, media is not necessarily focused on these things, but what a campaign is about is not hillary clinton, it's not donald trump.

it is the people of this country, people who are working longer hours for lower wages. >> now bernie sanders will have a chance to repeat that message in his prime time address to the democratic convention tonight. you're also going to have michele obama extremely popular figure within the democratic party and nationally for that matter and elizabeth warren, another key figure on the left, just like bernie sanders who is going to try to help unite this party. hillary clinton hopes tonight goes much better than yesterday did and she needs it to because the polls out now, carl, show that donald trump got a convention bounce and in the average of polls on real clear politics, donald trump is now leading hillary clinton. >> yep. cnn, "l.a. times" a bunch of polls. how much does the elon mu-mail controversy allow trump to go after the left flank of sanders' supporters? >> i don't think it's going to be about donald trump leaping over the ideological divide and taking democratic voters on

trade, on glass steagall, on this issue as well. there are some blue collar -- white blue collar voters who used to be democrats who are now republicans. it's more people in the middle, people who aren't fixed partisans donald trump is attracting right now. we saw in the cnn poll that his numbers went way up among white noncollege voters. went down among white college educated voters but not nearly as much. >> going to be an interesting night beginning tonight. john, we appreciate that. john harwood in philadelphia. how are you synthesizing all of this last week and this one? >> well, i just think that the market tends to be -- either ignoring or it seems like both candidates must be regarded as people who are not going to get in the way of the market. i find this rather amazing because these people are going to have direct impact on the stock market both trump in terms

of you don't want to own any international companies under trump. i have new core tonight, dan demeko, is a trump supporter basically just says listen world trade organization gone, hillary clinton clearly higher taxes and what does that mean for capital gains and dividends so we're ignoring them at our own risk, both of them. >> but you think there's a point over the next 105 days where it comes to terms with what could change? >> you're on these earnings calls and hearing about what would happen basically kind of talking about brexit. this is brexit times ten. if we pull out of the world trade organization, decide to declare war against china a lot of companies counting on china to be a big boost for 2016, i mean, why don't you just like slash numbers now. and i'm not saying that's necessarily wrong. if you're in the steel company you want to raise numbers, making no -- not coming up with an opinion, just saying the fact. people don't think that it's possible that we'll like have a

trade war with china. >> yeah. >> i mean, aerospace kind of bad. >> yeah. >> meanwhile, just the raw economic data we've gotten over the past few days, the market pmi last week, ism services, ism for june. >> right. >> we're going to get q2 gdp this week. >> this week is it. i mean i'm sitting here looking at this week and thinking okay, how am i going to be able to be a value this week given the deluge because earnings end -- and the fed, the week kind of holds the year in the balance. it's that important. i came out on friday with a game plan that said i don't like this week. i don't like this week going in because whoever speaks last and is negative is going to control and someone's going to be negative this week. someone will be. i was surprised that the market was so happy about honeywell, for instance, which was a bad quarter. not bad for anybody else but relative to honeywell. a question on the call which said these are like recession

nary numbers and it took my breath away but it's true. the end strils are on the firing line. if you think the numbers show you trump is winning you have to sell those stocks. you got to sell them. just because he's saying, we're done with the giveaway. with the giveaway of jobs comes the earnings for these companies. so i mean, people should be aware of that and make your choice. understand that you might do better as a worker, you may do worse as a share owner. that's okay. that's labor versus capital. >> yeah. definitely the markets and politics will start to converge. >> it's got to. look you will be down there getting hopefully a geno's cheesesteak because you can handle it, but this week is so crucial because if we hear a lot of bashing of the capital side, what are we going to do, sit here and ignore that? >> yeah. >> it's going to be on every night. look at this parade of earnings in philadelphia. think they care about this? no. they got nothing else. they don't have any phillies, eagles training camp does open.

stop by. >> less than 50 days away. when we come back, yahoo! ceo marissa mayer on her company's future with verizon and aol. we'll get you one more look at the premarket opening bell in just about ten minutes. don't go anywhere. ♪ you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers

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people but more importantly taking from everybody. and sprint i think has been involved in what i regard as a great civil war against t-mobile. verizon, at&t, all very well capitalized companies. sometimes you wonder where are all these people coming from but everybody has to answer to how sprint did. because sprint is kind of flanking and i just think you're going to have a tremendous interview because a lot of people have given up on sprint but the stock has been a big winner. nobody thought that. hear about the balance sheet, ask about that but this was an amazing quarter. >> where is the traffic coming from, pokemon go? >> it's interesting. having played this whole weekend. >> what? >> yeah. i played pokemon go all weekend. it is finding the gib and having it taken away. i'm blue team. by the way if you're not blue team you're a loser. >> yeah. >> this thing is -- i know -- mentioned nintendo is down big. >> they did not change their

guidance. >> right. but this pokemon go i bumped into people playing all weekend, had to go around and share and use up battery life. it's insane. it's insane how this has gripped the country. >> yeah. by the way, nintendo the reason down so much is in tokyo at least they did say it's not going to change the near term profit picture. we are going to get earnings on wednesday. maybe they'll say more about it then. >> i don't know. i found it very engrossing. i also found it very competitive. and it is -- you're out there on the run. you're on the run. i got more exercise playing pokemon go than i have had in 40 training workouts. i'm exhausted from playing. that gym. keep taking the gym back. >> definitely a phenomenon. >> oh. >> no signs of slowing down. we'll talk to claure about the earnings and influence of that phenomenon. opening bell next and the interview with marissa mayer. just minutes away. ♪

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you're watching cnbc "squawk on the street" live from the financial capital of the world. the opening bell in two minutes. some of the names that are reporting this week. apple, mcdonald's, under armor, boeing, coke, facebook, amazon, google, ford. are you ready? >> this is a week where i have someone sleep for me traditionally. that person does it. i pay them very well. they inhabit my house. but i've got to tell you that big problem here is that there will be days where things are happening so fast you will miss key points. i was going over just what happened friday over the weekend and friday is a prelude. so don't take any action when you see the headlines. the headlines will be wrong as everyone is really really stressed. witness chipotle. stock goes down really hard and then you go listen to the call and the call is so great. listen, look at ge which my travel trust owns, the headlines fabulous but the calls not good.

listen to the calls before you make decisionsp the headlines writers are strapped making quick decision and wrong as much as right. >> is that going to be true this week especially on the headline front apple gets one today in the ft at least that they're nearing the sale of their billionth iphone. >> well that's -- talk about something that is exciting in theoretical but the fact is we're dealing with a quarter where the numbers have to come down. i think that -- i was thinking about pokemon go this week, can we download it, get some money but don't get the big money. big money accrues to no one. apple has the whole. they've told you about the hole. there's still so many analysts recommending this stock, carl, it's scary. we have got to get -- if you own apple and don't think it should be traded you have to get the analysts that don't care about it gone. >> you long said they need to own skepticism. piper does cut numbers today.

>> that was good but stills like it. come on, somebody downgrade it ahead of the quarter. you got to get that enough out from 93 to 98. that's not sustainable. >> let's get the opening bell and look at the s&p at the bottom of your screen. at the big board today, insurance company allied world celebrating its tenth listing anniversary. at the nasdaq global x funds celebrating the launch of the global x conscious companies etf. interesting call out of tom lee, long-time bull, last week, but he's worried about august. >> yeah. >> the last four of the six -- >> i am too. >> are you sfrl. >> august the month always worried me. not october. a couple key sellers take down the market. i'm always -- i'm always reminiscing about august of 87 and how things -- that was when you realize wow, we are really on much shakier ground. went up on -- you and i talk

about the no volume. august is a month where a lot of people say geez, tech, which had a good week, is going to slow and a lot of things about tech that are good like micron is up because they did a poison pill. well, it would be down otherwise. intel's quarter was weak. sky was skyworks, that was not a good quarter. so look, it was in the vacuum, it was good versus what people expected. i'm saying be careful. tech is up a lot. and tech had a good week in terms of stocks. not a good week in terms of numbers. >> yeah. >> and that's the kind of thing that gets revealed in august. tide goes out and say wow we've moved a lot. i want people to be careful. >> let's check on verizon and yahoo! of course. as we take stock at that $4.8 billion deal. amended merger agreement in amc and carmike. >> that's positive. we got a deal which is really igniting people, that's -- this is the apollo takeover. the stock is going through it. in terms of irony, wedbush

downgraded it saying there wasn't a lot of upside. well, someone comes in periodically and makes them upside and that's apollo, that stock going through the bid and there will be buyers. i like by the way just in terms of things that worked last week is the biotech. but on what? on what? see we have a lot of things going up on what. i don't know. and that concerns me because we have not gotten the kind of earnings surge i would like. we've got the stock surge. that means people are paying more, paying 20 times earnings for market that is not justifying that and that's what i fear this week. >> really? >> yeah. >> thompson reuters says earnings are coming in about 6% above estimates. >> yeah. dollar year over year is okay and a lot of companies are commenting on that. but having -- having gone through the honeywell, ge calls, having gone through what i regard as being a series of calls that are like a kimberly, we have to have that one on tonight, i haven't gone through that call yet, not -- i regarded kimberly as being okay but the

market doesn't. consumer product stocks coming down, tech stocks that i think are due to come down and up kind of floating up. we have some retail that's better, some not. the retail better tends to be the bargain basement retail. apple looms larger than amazon. amazon is a killer. amazon does what it's supposed to it's bad for everybody. >> busy week in housing. we'll get some housing numbers. >> i like housing. >> pulte with an upgrade but whirlpool with a downgrade. >> i think whirlpool is fine. stanley works is better than i thought. i think home depot is hanging in there. the housing thesis is strong. that one still makes it for me. but the other -- the other stocks, i mean i see a lot of enough. i see a lot of fluff and i'm concerned about it because we need to see it backed up by some numbers. this was a very confusing week for people last week. because it just seemed better and that's why tom is right.

we have to have some fluff taken out of the market and i'm afraid it's going to happen this week and we can look at it when we get the employment number, the market is too frothy. >> you mentioned some of these names that have gone way up. dana her today, 125 beats 122. >> a restructuring where they're giving you another company and dana herd delivered once again. great thing about dana her they're becoming a life sciences company, excuse my looking at it, but that's a great quarter. life sciences was a standout on the ge call. in a call where i felt aerospace, which has been a great driver, remember we have boeing this week, been a great driver, really an issue, really a problem, and you don't want to see that to be a problem because boy, that's a big compelling area. oil and gas, we are seeing the -- unless you're doing something like a johnson controls, a dana her, self-help, you're kind of stymied here. i just am telling people be careful. >> yeah.

>> the market really is buying stocks for higher than it should. >> with oil, obviously, notably weak. >> yeah. >> i mean i think oil -- oil is down 91 wow. that's a lot. i didn't like the calls as much as everybody else did last week. i didn't like them. they just weren't great. >> meanwhile the news of the morning by now, verizon acquiring yahoo!'s core business for nearly $5 billion. joining us first on cnbc the ceo of yahoo! marissa mayer, from sunnyvale, and our own andrew ross sorkin in new york. andrew, start us off. >> thank you, carl. and marissa, thank you for joining us on this historic morning. the end of an era of sorts. i wanted to go back, i was thinking this morning, i remember when we spoke it was july 16th, 2012, which is four years ago, you had just gotten the job. the afternoon you had gotten the job and i wanted you to try to measure if you could for us this morning when you think about this outcome relative to the hopes and dreams you had for the company then, how you think

about it? >> well, i think that when we look at what yahoo!'s achieved over the past four years we've completely modernized the product line and we've gone mobile. we've invented new forms of advertising. we've driven towards the programatic buying, the overall buying push that we see happening from advertisers. and our user base has grown by more than 50%. we're well over a billion users on a monthly basis now. we've tripled our mobile audience out of more than 600 million monthly active users. and we've built new lines of business. from basically nothing in 2011 to $1.6 billion in gap revenue last year across our investment businesses we call mavens. and so overall, we set out to create a stronger, more modern version of yahoo! and that's very much happened and we're very excited about what we're able to offer the market there. and also today is an important step for shareholders in terms of finally, you know, taking the step of separating our alibaba

stake and our yahoo! japan stake from the operating business is an important step to unlock value for shareholders. >> i would not be the first to tell you there has been a critique that this has not been the success and when you think about the price what i wanted to do is ask you you this, there was some speculation that people inside yahoo! were putting out a number, couple months ago, at 8 to $10 billion when you look at this numbers at $4.8 billion and i know it doesn't include alibaba and the yahoo! japan stake and the patents but when you think about that price tag, do you look at that and say, great deal or do you say i wish i had been able to get more? >> i think that when you look at it, it represents the fact that verizon is recognizing tremendous value here at yahoo! and so it's a very proud day for us, we're excited to one, be achieving the separation from the alibaba stake but doing it in a way that sets up the strategic business for further synergies and opportunities and acceleration. one of the biggest business challenges we faced is getting

mobile distribution, particularly for all of the revamped improved applications. what we see is users who experience them love them and stick with them and engage with them on a daily basis and we need to get more distribution and verizon offers that and when you look at the reach and what can be achieved with aol, it's tremendous scale and reach and we're very excited about that. >> so just to be -- put a fine point you don't look at this as a failure? >> i don't. not at all. i think that when overall when you look at what the company has achieved over its history, and where we are today, i couldn't be prouder of the team that we have and what we've been able to achieve. it's really hard to build new businesses. it's really hard to take a company that was so predominant in a moment in time. yahoo! is a company that changed the world, not many companies get to change the world. and popularized the internet and elon mu e-mail and search and real-time media and try to harness that through a paradigm shift like

mobile i view this as a success. >> marissa, you said today on tumblr you plan to stay with the company or you hope to stay with the company. we had tim armstrong on earlier today. we asked him about his expectation in terms of your role in the future. he said this hat has not been worked out. what can you tell us about the conversations you may or may not have had about your role? >> i would say that, you know, this has been an auction process and a well publicized auction process so it's different than some acquisitions. sometimes it's very much one to one and a lot of time working on the integration beforehand. we now have the transaction expected to close in q1 of next year so we have the next months and weeks to really work through these integration plans. that will start this week. we've had some conversations. i certainly plan to stay. i love yahoo! and i want to see yahoo! into the next chapter. and tim and i are old friends and colleagues and i very much respect him and looking forward to working with him again. >> i want to bring jim and carl

in, what role do you see for yourself at yahoo! specifically if you were to stay? >> well, obviously, my role to date has been working hard on the process to get us this far and now, my immediate priority is seeing the transaction throughs to close. while also managing the value of our asian assets. so i've got two priorities. yahoo! inc is both of those components and that's what i'm going to be focused on moving rward. after that, very open minded. >> jim? >> miss mayer, jim cramer, you made initiatives in sports, particularly the nfl and i'm wondering whether an accommodation of verizon aol yahoo! means you will bid on the international rights and actually take the nfl and put it on line? all international rights. because there will be a game every week. is that a plan? >> we, as i mentioned just now, because of the fact that we are in an auction process we haven't designed some of the integrations but these are the

opportunities we think are exciting. in terms of the overall scale and reach that we bring to the business, i think it would be possible to go after more and more valuable content and licensing rights and opportunities. and certainly we learned a lot from our nfl live stream last fall, the first of its kind and in just terrific scale. >> marissa, you look relieved after what's, obviously, been a busy few months. are you? >> i don't know if i was relieved. i'm energized and i'm always pretty energetic. but today is a big day for the company and i know you're going to be talking with our employees in a few hours and overall, it's been -- it's just been a lot of work, but a really good outcome and i'm happy with that. >> marissa, for those shareholders still trying to understand what yahoo! in total is worth, what is left and who is going to ultimately run that business? who should run it? >> sure. well, what is in part of what we

informally titled remainco is our holdings in alibaba group, holdings in yahoo! japan, we have a few smaller minority stakes that will remain behind a patent portfolio that we've entitled excaliber the noncore patents. verizon will get a license to those patents but actively looking at how to invest, monetize and lock the value in those patents. and our cash. we wi will stay behind. that company will become a company that upon the close of the transaction will be renamed and it will be transition to an investment company. >> miss mayer, you're clearly a big winner. there have been reports you make $218 million on this. is this a good opportunity to just be able to kind of go into the sunset and do a foundation? that's an awful lot of money and good opportunity to do charity. >> i think that what motivates me is people and the opportunity to transform the world.

you know, i was lucky to spend 131/3 years at google. -- 13 years at google, 4 years at yahoo! so far and these are companies that have changed the world. and they've taken the internet from government research project and made it something that touches all of our lives every day. and, you know, that's what i'm really excited about and that's what really motivates me. is both the people get to work with and the people i get to work for are users, shareholders, et cetera. >> sort of a predictable question, i guess, in this interview, things you would like to take back or regrets, i don't know, vogue cover, anything? >> i think that, you know, there's lots of stories behind all of those moments and some of them make them more or less understandable but on the whole, you know, we've done -- i'm proud of the team and what we've done here and the way that we've approached it and, you know, we've really -- the morale at the company and the energy at the company has been very strong throughout. it's been a real period of uncertainty for these past few

months and the resilience and conviction, you know, we're sitting here with the first half of the year done and we've met our goals and plans. and we're running yahoo! with the lowest cost structure and the smallest number of employees in a decade while we continue do as much as the company has ever done and so, you know, i'm really proud of the way that the management team has executed and is running the business at the moment and i think we want to look forward not backward in terms of regrets. >> ma vase, if the company were -- marissa, if the company were private one of the arguments over the years has been there's been so much turnover in the company and activists, you got your job in part because dan loeb was at the company, now starboard, do you think the outcome would have been different? >> i think, you know, it's very important for us to look at what generates the most value and opportunity for the company. when you look at the transaction that verizon has proposed, it recognizes a huge amount of

value and that's what our process was really designed to recognize. it was designed to look for and find the best home for the operating business and the one that recognized the most value within it. >> okay. marissa, before you go, if we were to have this conversation, hopefully a conversation a year from now, what do you plan to be doing? >> i plan to stay at yahoo! and see it into its next chapter. >> we are going to leave it there. marissa, appreciate you joining us first on cnbc and congratulate you on the transaction. >> thank you very much. >> thanks. >> jim, carl? >> andrew, thanks very much for bringing that to us. andrew ross sorkin in new york. open minded that's going to be a headline for the next few weeks. >> yeah. i think that there's we're going to see it through and not a lot of let me listen to what tim armstrong want nose do because tim armstrong will be running the company and so if tim armstrong doesn't really want her, then she's not going to be there. so like let's -- this is like an

employee saying what she's going to do. >> okay. a very rich employee. >> yes. glad she came on and talked about the deal now that it's done. >> we're all open minded. >> the dow down almost 50 points. to bob on the floor. >> good morning, guys. we have a little bit of a problem today and the problem is oil. let me show you the sectors right now. the big issue is remember oil has been 44 to roughly $50 for months now. oil broke through today. 43 and change right now. so we're at the lowest levels since may for oil. if you look at the major sectors see sectors, energy, industrials, materials, all in the downside. the big names chevron and exreason down close to 1 -- exxon are down close to 1%. oil rearing its head being an issue here. over in europe they're trying to get through the brexit thing but they're having a hard time. ry ryan air surprised everybody. earnings better than expected. brexit would lead to downward

pressure on fares. air france got a downgrade from society general. they're going nowhere. lufthan lufthansa, got to be a mistake, i think they're basically flat. cut their full-year profit last week. that stock is not really going anywhere. the point is brexit still weighing on most of the airlines. rhine ryanair not with standings. earnings picture continues to go on, kimberly-clark big darling of investors they beat and affirmed their full-year sgidsance. the good news. the bad news, personal care half the business and lower than expected. the problem, classic problem of growth with these consumer names. north america better than expected up 4%, developing and emerging down 7% in addition to the currency problem. you had china lower than expected. very increased promotional activity. this was a historic high, kimberly clark a short while ago. everyone loves the stock, great dividend yield, 2.7%. broad diversified business. it's had a tougher time in the month of july.

meantime we are at the quarter point for earnings. 125 out of 500 companies in the s&p reporting now. and the numbers slowly having getting better. wednesday the s&p down 3.8%. this is the blended earnings. thursday down 3.3. today down 3.0. i think the chances of this going positive are very small. perhaps 20%. but the numbers clearly are going in the right direction. we talked last week about the fact that not only are companies generally beating, but they are beating by a higher percentage than normal. this is called the earnings surprise. so today, companies are beating by an average of 6.2% over what they were expected to. those that have reported. the average beat historically about 3%. it's about twice as good as expected. that's certainly a very good sign overall here. finally want to note as the democratic national convention begins, there is some very interesting controversy about the financial trading tax. transaction tax. clinton and others support a financial transaction tax on certain types of high frequency

trading, excessive bids and offers. bernie sanders and others in the democratic party support a financial transaction tax on all stock and bond trading. this is a big issue you will hear about it this week overall but the democratic party platform acknowledges their views for a broad vision on financial transactionion tax has been tried a lot of other countries, generally haven't worked very well but that doesn't mean it's not going to be an issue this week. back to you. >> bob, thanks so much for that. bob pisani. >> bob spells it out. this would hurt the stock market. meant to make money for the government. >> meanwhile oil to watch after we got that rig count last week. let's get to jackie at the nymex. >> hey, good morning to you, carl. certainly that rig count increase that we saw four straight weeks of increases in fact part of the problem here. we're focused again on this concern about a global oil glut. when you see the price come down like this and the rigs back on-line that could mean more production. meantime we're down on the

dollar a little bit today but dollar index still over 97. that certainly pressuring oil prices as well. refineries reportedly blending winter grade gas sooner than expected because they're expecting that demand dropoff to come as summer driving season comes to an end. seasonally this is what tends to happen to crude oil. same thing happened last year. but i would say this, don't discount a buy the dip move here because we've seen it before. the technicals are key when it comes to the oil trade as well. trading at 43.30 just off of session lows but as you mentioned just near a two-month low as well. back over to you. >> jackie, thanks so much for that. when we come back we will continue to break down the yahoo!/verizon deal and analyze what mayer told us and talk to former president and coo of yahoo! dan rosenweeg about what it means for silicon valley. we'll talk to walter isaacson who wrote the book on steve jobs, dow down 61 points to start a busy week. we're back after a break. .

time tore cramer and top trading. >> couple things that catch my

attention, one is by the way a piece by wells fargo about how gap stores seems to have gotten it together. i was in a rome gap stores which was jammed. the product looks great for first time in so many years. i cannot believe it. i like this call. credit suisse starts allergan, my travel trust owns this with a buy, $327 target. those have been waiting waiting waiting for the money. this reads like the teva is about to happen. i like both calls very, very much. >> tonight on mad. >> holy cow. >> set it up. >> new corp, that is the company doing so well since the president put tariffs on. tom falk, find out how bad the kimberly clark quarter was. people thought time share would be killed by airbnb. they had a munster quarter. all week i've got the big ceos and i'm excited about this week but it will be exhausting but with very to deliver.

congratulations andrew on the marissa mayer get so to speak and i still come back to the fact that i think armstrong will do great things with yahoo! >> yeah. >> he's a big thinker. >> and has proven himself a couple times on some tough assignments. >> those who don't know him or those who underestimated him they do it at their own risk. >> all right. jim we will see you tonight. "mad money" 6:00 p.m. eastern time. when we come back a lot more on yahoo!/verizon and talk wireless wars and sprint with marcelo claur. dow down 53 points. back after a short break. e. dow down 53 points. back after a short break.

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find a remote hotel. bring the family. i do not think that is a good idea. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with simon hobbs, kayla tausche, mike santoli at the new york stock exchange. busy week with something for everyone, whether it's m&a, central banks, earnings, macro data, politics, we've got it covered with the s&p down just a touch to 21.68. >> our road map, starts with verizon. making it official, buying

yahoo!'s core business for $4.8 billion. we'll hear from the former chief operating officers. >> a shakeup at the dnc as debbie wasserman schultz steps aside amid an e-mail scandal on the eve of the party's convention. we'll head to philadelphia for the latest. >> investors cheering after sprint reported earnings that beat the street. the stock up nearly 13% this morning, we'll sit down for an exclusive interview with sprint's coo ahead on cnbc. >> but we start today with the big deal of the morning, verizon announcing it is buying yahoo!'s core internet properties in a deal worth $4.8 billion. ceo marissa mayer just spoke with us about the deal. take a listen. >> overall when you look at what the company has achieved over its history, and where we are today, i couldn't be prouder of the team that we have and what we've been able to achieve. it's really hard to build new businesses. it's really hard to take a

company that was so predominant at a moment in time. yahoo! is a company that changed the world and not many companies get to change the world. and popularized the internet and e-mail and search and real-time media and to take that and harness that through a paradigm shift like mobile, i really view this as a success. >> let's bring in mark at rbc and craig, founder and senior analyst. the stock is down this morning and i'm wondering if you think the street was expecting a liar price tack or just -- a higher price tag or a relief sell-off we did get news and a deal that is going to happen? >> i think for yahoo! i think this was already relatively clear on friday. for verizon the stock is trading really with what's happening with interest rates which tells you that market at least the verizon investment community,

isn't taking this as particularly big deal and appropriately so. the numbers aren't that large for a company like verizon. >> mark, what happens from here? because now the question gets asked what happens to the stake in alibaba? yahoo! said on its investor call it will hold on to that for tax purposes but with you still don't know what happens long term and running this business, a question that verizon and aol ceo tim armstrong didn't necessarily answer this morning on cnbc? >> well, i guess a couple things. this deal had not only been known on friday. this deal has been known a couple months. one of the biggest m&a deals i've seen in tech in some time. contrast this with microsoft for linkedin. this was a lengthy process, multiperiod, multistage process, so we kind of all new this was coming. the question is when this in our mind from a yahoo! perspective was the most obvious strategic

buyer. what's going to -- who's going to run the asset going forward. i assume this flows to tim armstrong. verizon with tim armstrong has a seasoned internet executive who will know exactly what to do with the yahoo! assets. now whether they will work with them, he will be successful with that in the long term i don't know. they don't know either. he's the right person to be running the combined assets. >> what happens when aol and yahoo! are combined under verizon? once this gets integrated. the word we've heard all morning is scale. what is scale if you don't know what products you're going to leverage on that. >> think about this as bringing together three separate assets. right. you've got aol which is primarily for verizon and ad tech platform, yahoo! a content platform and verizon which i think in this context you can think of as customer data about wireless usage. what they're hoping is if you combine those three things, you

can actually significantly enhance the value of yahoo!'s advertising inventory. it's not an easy proposition but the strategy here is about trying to monetize yahoo!'s content with higher advertising. >> well, mark, let me pick that up. draw a parallel in the travel industry, you had barry diller who created a technology platform with expedia and went around and bought what is now 30 brands he bolted to that technology program and stripped out everybody's back office. is that effectively what tim armstrong is going to try to do here? and actually the value moving forward of the combined businesses is in a very clever ad selling business in real-time with differentiated products that come out of that? is it that bulk advertising ability that is actually the value ten years down the line? >>. >> you know, it probably is. simon, i thought you were going a different direction with that

analogy. on-line travel has become a due op poly with two names, expedia and priceline. the challenge that verizon will have in the future is on-line advertising has become a due op poly too and greater concentration with two names, google and facebook, than on-line travel has seen and the concentration rising over time so this is a case where you've got a combined asset that will amount to high single percentage of all ad revenue out there and a flat lining percentage or a declining percentage. that's the real uphill battle. if tim armstrong could maintain that slice of the pie, there's a win in there. but it's not a huge home run win, but then again this isn't a huge home run acquisition by verizon. >> mark, there is a breakup fee. 3% of the transaction or, you know, roughly $144 million. that usually gets baked into any deal as a formality. do you think there's any chance this deal doesn't get done? >> i think it's extremely

unlikely. i think they have gone through so much. it was such a broad process, extremely well publicized, mult. rounds. these two assets knew each other well. i don't think there would be any surprises at this point. we went through a series of questions on the call this morning with the board and with the management team. they pretty much were able to check off each item. i don't think there will be surprises. may even occur or close prior to what they talked about q1 of next year. >> well, it was certainly in the works for quite some time and very leaky during the process. but mark mahaney and craig moffit, thanks to both of you this morning. >> thanks. changing gears the democratic national convention off to a rocky start with the resignation of debbie wasserman schultz and an e-mail scandal. john harwood at the dnc in philadelphia and joins us with more. good morning, john. >> good morning, carl. debbie wasserman schultz has quit the job as chair of the dnc, but that's effective at the

end of the convention. she's still going to open and close the proceedings and she got a taste this morning of how rocky that reception might when she spoke to her own florida delegation. >> that we know we need to -- i also had the privilege of speaking to hillary clinton. and -- she thanked me for my service. we had a wonderful conversation. she asked me and i committed to her that i would serve as a surrogate throughout this campaign so that we could make sure that she is able to help build on the progress that we've been able to make. >> the people most upset are supporters of bernie sanders. fortunately for hillary clinton, bernie sanders is not trying to fan the flames, although he thought the outcome was exactly the appropriate one. >> there is no question but the dnc was on secretary clinton's side from day one. we all know that. and i think, as i have said a

long time ago, that the time is now for debbie wasserman schultz to step aside, not only for these issues. >> bernie sanders will have a chance to deliver a unifying message tonight when he addresses the convention. so will elizabeth warren another fire brand of the left and, of course, the marquee speaker of the night's performance is michele obama. extremely popular within the democratic figure. hillary clinton needs a boost from this convention because donald trump has got an boost from his. and both of them are done we will be able to get an apples to apples comparison, guys. >> john harwood, in philadelphia, thanks. we want to bring from philadelphia veteran democratic strategist chris, ceo of park street strategies and from washington, former rubio communications director and senior adviser alex conen. partner at firehouse strategies. good morning to you both. >> good morning. >> and chris, the rnc took its knocks for being chaotic in the words of some. is this worse?

>> it's not worse, but to be frank it ain't helpful. i think it's different where the division in the republican party is much more pronounced when you saw so many of the old standabe refuse to come to the convention, here has to do with one swrids and the democratic leadership at the dnc. i think with wasserman schultz resigning that will get settled quick, but as you saw this morning, there's still bad feelings and i don't understand why she would come out and still gavel in because it ain't going to be a welcome introduction, i think. that's the only problem i have. >> a lot of people wondered that as well. alex, does it change the trajectory of the proceedings in any way all of this? calling for a floor vote. the way is sanders colors his speech, anything like that? >> it's a big distraction. donald trump has a bump coming out of philadelphia because last week was all about him attacking hillary clinton. nobody was making the argument

last week for hillary clinton. her campaign was relatively silent which i thought was strange they didn't more surrogates out defending her. now they have to make up ground this week and everything that has do with bernie sanders and divisions on the floor and the chair woman getting booed by her delegates from florida, that is a big distraction from what the clinton campaign needs to be about. if she is going to get a similar bump coming out of it. >> chris, the bump that trump has gotten, ex-convention now, how surprised are you? it's well above historical averages. >> actually, not that surprised. you know, we were doing -- my firm was doing focus groups in ohio and other states and we saw, you know, that his message does resonate to certain extent with folks in the sense that he speaks to the reality that a lot of people feel that they feel the system is rigged, that they feel frustrated. the problem he has, is not only offensive and rhetoric that people considered racist he's not -- he's not capable of articulating a policy vision any

substance and once he gets to that point he starts faltering. i'm not surprised. this is a sugar high for donald trump. that happens with conventions. i imagine it will happen with ours. once you get passed this and having a substantive debate we will have a problem problem because he doesn't have that second piece. he doesn't have a second act. that's why not only do you have the division of the republican party, that's why so many voters have doubts about him. >> just to come back to wasserman schultz, does her presence in the controversy about her prevent arguably some of bernie sanders supporters attaching themselves to clinton? if there's more noise that argue bri it was not -- arguably it was not a fair battle will they join with clinton given that so many of them felt passionately against her? >> i think that's a very good question and one that we don't know the answer to and won't know the answer to it until this week. chris was talking about how trump got a bump this week. he didn't peel voters off

clinton. what he did was win undecided voters now supporting him. a lot of undecided voters still out there, a lot of them were bernie sanders' supporters. i am skeptical they will end up supporting trum trump but they're not supporting -- this week is key to her winning those supporters and the distractions you were mentioning that is a big problem and a big challenge for her going into this pivotal week. >> why is hillary clinton not doing better in the polls given how offensive trump has been to so many sections of the population why is it still so close? >> well, you know, it's a good question. i think part of it has to do with the fact that the american people across the board are kind of frustrated about the political system. they're angry at both political parties. it's kind of explains sanders supporter and rise and explains donald trump's rise. i think when you are the candidate like secretary clinton

that is basically going out there and articulating more of a steady leadership a steady vision, it doesn't have the same kind of appeal to people who want to burn the place down. now here's the problem. once you get past these conventions and you start -- and the average voter starts really focusing, i cannot imagine that people when they look at hillary clinton what she stands for and look at donald trump and what he stands for they're going to make the choice, but listen, i think people are underestimating the potential power and influence that a trump message has, as distasteful as i may believe it is he has appeal and i think we would be mistake as democrats to underestimate the potential threat he has through this election. >> right. finally, alex, it's been said today if you don't know hillary clinton by now, you probably never will. she's been in the public space so long. does that put the onus then on powerful surrogates like a bloomberg this week?

>> absolutely. i mean, what's remarkable about this campaign both candidates donald trump and hillary clinton, are so well known to the american public because they've been famous for decades now. very unusual in a presidential election to have both candidates be this famous and to have ideas already made so made up in people's minds and voters minds why both candidates are underperforming where they should be right now. trump helped himself a little last week. hillary clinton needs a barack obama, michele obama, her husband, and other surrogates to make the case for her because she cannot do it on her own. she's just not likable enough. >> if i can make one quick point. i think the one big contrast between the conventions look at the surrogates speaking this week. president obama, you have michele obama, you have bill clinton, you have some of the rising stars in the democratic party. in stark can trast to the republican convention where you didn't have mortgage raitt romn

mccain the real leadership in d.c. or across the country who spoke to the division. so when you're talking about powerful surrogates we are going to see that tonight. >> none of those are rising stars, chris. those are from yesterday. these are voices from the past that are going to be speaking at the convention. >> that's not true. >> elizabeth warren is not a voice of the futurep. >> cory booker is not a voice in the past. gavin newsom is not a voice in the past. you're wrong, alex. >> i mean i -- i mean i think that party of the tomorrow, the next generation republicans, many of whom skipped the convention in cleveland all in the 40s and aurl all republicans will not see those voices in philadelphia. >> marco rubio is not -- was not at the republican convention. >> yeah, fair enough. >> this is getting good but wish we had more time. chris and alex thank so much. we will see what happens on this very interesting week. coming up on the program, former yahoo! executive dan rosensweig we'll get his take on the $4.8 billion deal which marissa mayer

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it is the busiest week of earnings season. stocks inching down.

are the valuations fair? mike santoli has more for us? >> good morning, simon. there are ways to slice the market to make valuations look fair but i think it's hard to make it look cheap. might be surprising to hear that we're at 25 times trailing earnings. 25 times. not many bull markets get far above that. however on an operating basis 19 times last year's earnings closer to 17 times the forecast earnings. if those forecasts for something close to 10%, let's say high single digit percentage gains come through that looks reasonable. a piece on cnbc that slices it further to say where is this higher valuation coming from. it's largely coming from the defensive sectors if you break it down what i call the yield play sectors, consumer staples, telecom, utilities and real estate they trade at 20 times forward earnings, quite expensive. energy because of the collapse in earnings at 53 times. everything else is 16. so really, those sectors that are geared toward a u.s. recovery don't look terribly

unreasonably valued and one thing people are going to say but interest rates are so low. that's true. low interest rates like this enable high valuations but don't exactly forgive high valuations. in other words it's never been that rewarding on a long-term basis to pay up very expensive prices for stocks even though rates are low. we will have to see if the earnings come through. >> if you're buying bond-like stocks for the bond hp like qualities, is there a point at which you can say, i don't care about the p/e i'm treating it for bonds. >> if we go back to valuing stocks strictly on dividend yield the case 60 years ago, then absolutely true. if treasury yield stay down it's support pore the market for more bring in john, chief market strategist at oppenheimer and michael e-roney at state street global advisors. that point with you. >> yes. >> just buying stocks for the bond-like qualities do you care what the p/e is? it's relative to treasuries isn't it? >> simon, i'm not buying stocks for the bond-like qualities.

i'm buying cyclicals that pay dividends. i'm looking at i industrialings materials, information technology, and among the defensives the only place where i'm really shopping is going to be in health care because health care has been brutalized this year. >> the broader point here is that the record highs and the breath of the rally, the strength of the rally, appears to be broadening. >> yes. >> is that, therefore, changing your view of this market and the safety at these levels? >> well i would have to say i'm concerned about the vix and around 12. it shows a high degree of complacency near term and i would expect that the market will eventually, if this keeps up, begin looking for a catalyst. if not to correct to at least take a trim, maybe not even a haircut. >> things are just too quiet? >> things are very quiet right now. that said, what we really have it's the old thing of like real estate, it's location location

location. among asset classes it's relative valuation valuation valuation. if you have a need to invest, whether it's to get current income or whether it is to -- it is to go for growth to some extent to meet a wronger term need where do you go? do you go to cash or bonds at rock bottom yields, commodities which are barely stabilizing at this point. we don't think so. you look at stocks and you look at an improving economy, whether it's jobs or automobile sales, housing sales, you know the list. >> michael, let me bring you into this conversation. there are those that think it's about earnings and there are those that think it's about central banks. who knows if japan will do helicopter money on friday. leave that to one side. what if the fed on wednesday talks about a strengthening economy and, therefore, interest rate rises are back on the cards? what does that do to this market, mike untille? >> i think you could be

signaling an important point. i think that we remain in the cycle where risk assets do very well, measures of volatility decline and then the fed begins to signal that they are going to have an interest rate hike. they are eager to get out of 0 interest rate policy, this fed in particular and wouldn't shock me if we see that this week and that will actually put a little bit of a headwind to this particular rally, i think. >> how strong is the headwind? if that happens. >> well, i think that what's happening is the earnings are coming in a bit better than expected. i've been calling this a summer camp romance rally. and we remember all those romances back at summer camp. right. they were exciting, hot, they were thrill, but when summer camp ended they ended. what's likely to happen is summer turns to fall, this particular rally will begin to slow down. we may stay at these levels. my expectation for the s&p has been consistent in that you'll get the dividends, you'll get whatever earnings growth it can

generate and get very little multiple expansion and that's what i'm expecting for the balance of the year. >> have a great week. michael from state street and john joining us from oppenheimer. coming up, can you hear me now? sprint rolling out a new ad campaign taking a page straight out of its competitions book. >> the guy that switched to sprint. >> sprint's reliability network is within one percent of verizon. can you hear that? >> coming up our exclusive interview with marcelo claure straight ahead. ♪ [announcer] it a force ofnat?

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sprint shares soaring double digits the company reporting its highest subgrowth for the first quarter in nine years on top of earnings that were in line with estimates. big revenue beat. sprint ceo marcelo claure joins us in a cnbc exclusive. welcome. >> i think it's always good to be back. >> you got a lot of people's attention with these post-paid ads, low clurn. what's driving it and where are these people coming from.

>> i think the most impressive thing is to get jim cramer excited about sprint. >> which he did. >> he has been a nonbeliever so i think the biggest accomplishment of this quarter is actually getting jim cramer to be impressed about sprint. you know, we're going back to the fundamentals of business and that is bring a great product at a great price and you started to see customers come in. 173,000 phone ads which matters in this business and the highest in the last nine years so we're happy with the results and progress we're making. >> some analysts, i don't know if you call it nitpicking or not, but say capex was lower than they expected, prepaid still shows more challenges, is that fair? >> we have to get off the bandwagon and spend money to have a great network. we are efficient on how we're building our network. it's by far the best performer. if you follow -- pc magazine,

which has been a tough critic of sprint basically say that a print is back. we beat verizon in reliability. we beat all three carriers in speed. so you don't need to spend the crazy money that carriers have been used to spending. we're going to spend $3 billion. that's good enough. we're going to continue to give great service to our customers. that's proven by the lowest company history. prepaid a tough game out there. we've put all our focus on post paid that's where the money is. we will continue to fight back in prepaid and expect great results in the future. >> i hate to talk about mother on father's day. it is your earnings. but a big day for verizon as well. do you view yahoo! as a competitive threat now? >> no, not at all. i mean i'm always going to congratulate the verizon team for trying to innovate and trying different things. we're focused on wug thing and that is we're going to turn around sprint and focus on what matters which is customers are willing to pay $70 a month.

which think that's where the -- we think that's where the company is. they're in a different state in their company. we're in the handset business and the wireless business. and we're going to continue to fight back and win in that space. >> marcelo, the story you lay out here, suggests that the fundamentals are pretty firm for you. and really across the industry. does that imply that a couple years ago u.s. regulators were right to kind of stand in the pay of a potential merger and does that mean the consolidation in this part of the business might be done? >> i mean, not at all. i'm still a firm believer that verizon and at&t have an edge because of their scale. and it would be nice if the government will eventually allow us to potentially explore making a wireless companies. i don't think they were right. however you got to play with the cards you've been dealt. we said we would turn around sprint. we have a five-year plan and we're into year two. you got to look at the numbers. i think one of the things that people haven't spoken is we

generated or adjusted free cash flow $466 million, that is $2.7 billion better year over year and we're -- we have to generate free cash flow to pay down debt. we're focused on that. we're focused on returning sprint to profitability. that doesn't mean that, you know, verizon and at&t are still larger than us, but, you know, we beat at&t by 400,000 net this quarter. we're putting up a good fight and see what happens when the new government comes around. >> the yahoo! deal today does indicate, though, that this convergence you have between various players in the industry and this has gone on now for 10, 20 years, i wonder whether you see, for example, quadruple play as being one of the holy guardrails in the future that maybe a telecom company merging with a cable operator in particular, has been rumored not necessarily with yourselves, will be some sort of answer to how consumers and content is going? >> i mean that's been happening

in europe. you have a lot of successful quadruple plays. i think the u.s. is a bit different. you have the cable operators, they are in different places and the government has not let a couple of cable mergers come into place. but anything can happen. i mean, i don't believe in buying content. i believe that most of the new content that is being created is user generated. look what is going on with snapchat and others. i believe that consumers should have a choice of where they get their content and nobody should control the content that they watch. we believe in partnerships. we have our content strategy. i think the ultimate content strategy is providing unlimited service to your customers so they can choose where they stick their content. a different point of view. we wish verizon well. we love when our industry innovates and great to see one of the great names like yahoo! be part of our industry. >> what sort of leverage will you have in just being a handset

and network company that doesn't believe that the future of a handset is to deliver content through that device that you own? >> the future of the industry is to deliver content that's available to everybody. right. we don't believe in sprint generating its own content. content is available. most of the content now is being watched on youtube. most of the content is user generated. millennials making their own content. utilizing our network to pass it on. snapchat, video, that's what people are watching. long gone are the days like direct tv which tells a specific time you got to watch content. that's called linear programming. we believe in content and video our network is exploding with video and we think we have to do a great job at providing customers the basically the means to be able to watch content and provide them with great devices and great services. and that's why we're one of the

few carriers left that has the capacity to sell unlimited plans where people can watch all the content they want without having to worry how many gigabytes they're consuming. >> two questions from me. does the arm deal change the sprint experience? and are people blowing through their data plans because of pokemon go? >> so two things. first is the arm deal, in order for softbank to do that deal, massa and i had a conversation and massa had to feel very comfortable of where we are in the trajectory of turning around sprint. he feels very good. we all feel good. we're making great progress. pokemon, start by again, jim cramer is on the wrong team. everybody should be on the yellow steam team the sprint team. we've been doing great. all of our stores basically offering lures [ inaudible ] around the sprint stores so the other day we had a boss show up in front of our stores with kids

because we had special munsters at the store. it's craziness and people love it consuming data and no better way to actually play pokemon than if you're with sprint on an unlimited plan so you don't need to worry how many gibb ga bites to grab the monster. >> jim is listening and will take that advice personally. thanks again. marcelo claure joining us from sprint. >> verizon is making it official. acquiring yahoo!'s core business for $4.8 billion. we'll speak to the former coo of yahoo! dan rosenweig, next.

west contra costa unified school district holds our environmental and sustainability goals as one of our top priorities. i definitely rely on pg&e to be an energy advisor. anything from rebates, to how can we be more efficient? pg&e has a number of programs, to help schools save on energy. when i see a program that fits them, then i bring it to them. with the help of pg&e we've been able to save a tremendous amount of energy and a tremendous amount of money. we're able to take those savings and invest it right back

into the classroom. together, we're building a better california. good morning, perchp i'm sue herera. your cnbc news update this hour. two are dead, a 14-year-old and an 18-year-old, and 17 wounded after a night club shooting in florida. the attack occurred at a teen party at club blu in fort meyers. police detained three people and

said the area around the club has been deemed safe. police say it was not an act of terror. investigators removed items from a migrant shelter in germany during their search for evidence after a failed asylum seeker blew himself up and injured 12 people on sunday. a police official say a video pledging allegiance to isis and bomb making material were both found at the 27-year-old syrian's home. isis has just claimed responsibility for that attack. at least 18 homes have burned and a wildfire that spreads after scorching 51 miles of dry california hills and canyons north of los angeles. that fire is only 10% contained. and members of the russian delegation arriving in rio last night after the ioc rejected calls for the entire team to be banned over its doping record. they can participate if they convince each international sports federation that they are clean. and that is the news update this hour. i'll send it back downtown to you, kayla. >> thanks so much, sue herera at

headquarters. the end of an era for yahoo! agreeing to be bought by verizon after a lengthy auction process. yahoo! ceo marissa mayer was just on this show this morning and here's what she had to say about her future at the company. take a listen. >> obviously my role to date has been working on the process to get us this far and now my immediate priority is seeing the transaction through to close. while also managing the value of our asian assets. so i've got two priorities. yahoo! inc is both of those components and that's what i'm going to be focused on moving forward. after that, you know, very open minded. >> joining us on the newsline is dan rosensweig, the former coo of yahoo! and current president and ceo of chag dan. if you're an employee or advertiser does anything change with the news of the deal? >> yeah. it's actually probably two

different directions. if you're a yahoo! employee, it's probably very disappointing day. you know, you realize that a lot is going to happen in the next six months, combine not just two but three cultures, verizon, you've got aol, yahoo! you've got two coasts, went from being an independent company and brand to a remote office in sunnyvale, california. if you're a yahoo! employee probably a lot of disappointment, not surprised, everybody knew this was going to happen, but i think, you know, there's going to be more people focussed on what am i going to do now. a lot of turnover. if you're an advertiser, you know, there has been a desire and i think this is what verizon strategy's is and a smart one if they can execute, a desire to a competitor to google and facebook as a network, having the strong third network at scale would be desirable for advertisers and i can imagine

they would be an advocate of this kind of deal because it's in their best interest do so. but there's a long time between here and networking. >> there is one part of this company, dan, that remains untouched and that is yahoo!'s holding in alibaba. a deal that you did for yahoo! when you were at the company. how long until you think we'll see either alibaba buying back that stake or that transferred to some other type of vehicle? >> well, i think what happens now i think it becomes a company, an investment vehicle and really no reason for it. so i don't know what the final disposition will be, whether they buy it because it's tax efficient or distribute it out. but, you know, there really isn't going to be anything going forward because who needs an investment vehicle yahoo! had in alibaba. i don't know -- i don't know they have urgency to do it. it's not their problem right now. they will wait and see what happens. >> what are we to make of marissa mayer's tenure at the

company? carla swisher, critical, on the network saying, you know, change comes fast in this industry you to innovate and hit on all cylinders. she didn't feel that mayer had done that and maybe made mistakes with some fairly expensive appointments that she made that didn't really turn out properly. what do you think the legacy here, how will she be judged? >> well, i think she'll ultimately be judged as the person that shut out the lights at yahoo! at the end of the day, it was an independent company that's now been sold to $280 billion telco. and, you know, it was a very meaningful, short run that led to the company no longer being independent and being sold. so i think there's really no other way to look at it. you know, people can debate whether or not anybody could have done the job or not done the job, but if you're asking what the legacy will be be, the legacy will be made choices and it yielded this result.

>> dan, quickly before we go in the spirit of full disclosure for our viewers, you were informally advising dan gilbert, the billionaire founder of quicken loans on a rival bid for yahoo!. anything you can say about the price tag that mr. gilbert would have been willing to pay and how that deal would have compared to what we got from verizon today? >> well, what i would say is dan reminds me very much of terry yang in that incredibly passionate, very smart, big believer, willing to invest in the future and had big visions and big plans for the company to remain an independent brand forever. but at the end of the day, financially when $280 billion company that can take on the risk of the deal which is very risky or take on the yahoo! employee stock compensation which is very high and roll it over to verizon, there was no way that they could -- they would lose the deal if they wanted to lose the deal. >> all right. >> dan was very aggressive and

very positive and would have been a great owner for it but didn't work out that way. >> we appreciate your perspective on the deal we did get this morning $4.8 billion acquisition by verizon. dan rosensweig, our thanks to you. >> thank you. >> coming up which tax plan trump or clinton's is best for the economy? we'll ask douglas holtz eeken and jared bernstein. a check on the markets down 88 points on the dow. this is the busiest week for earnings of the quarter. 35% of the s&p 500 are due to report. more "squawk on the street" after this. (guy) oh man, the show's pretty much over. (friend) wish we could start it from the beginning. (jon bon jovi) with directv, you can. you see, we've got the power to turn back time

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donald trump doubling down

over the weekend on his import tax plan against u.s. companies that move operations abroad. and ratcheting up his criticism against the nation's trade deals. calling the world trade organization, quote, a disaster. here with us now is doug hol holtz-eakin economic adviser to john mccain during his presidential bid, former cbo director and president of the american action forum, and jared bernstein, former economic adviser to biden. now a senior fellow at the center on budget and policy priorities. doug, let me kick off with you. you were in cleveland last week. >> right. >> watching trump, watching some of the side shows and panels and the view seemed to be the team would walk him back from what he was saying on trade. >> yes. >> and now we get this bomb shell on "meet the press" he might leave the wto. >> sure. this is steve moore and larry kudlow on a panel i participated in and at each point where one of the objectionable trade policies arose, tariffs on

chinese products or ripping up and a half ta and starting over or leaving a trade deal he's much more flexible we're talking to him he's going to moderate his position. we heard that. i didn't see sunday's announcement as moderation. >> yes. do you understand why he's doing this? because it resonates so well in the rust belts and the swing states? >> i don't think it's just that, simon, though certainly that's at the political core of it. i think leaving the wto is perfectly consistent with donald trump's view on trade and globalization. he has consistently argued that globalization doesn't need to be reshaped, that's more of the clinton view, it needs to be restrained. he's talked about building walls and raising tariffs that both doug and i agree would be reckless economics. so leaving the wto is part and parcel of a kind of nostalgic world where globalization doesn't exist. i think it's extremely unrealistic and horrible

economics. >> doug, do you have an idea, can you give us some color on the scale as former director of the cbo, of the math on that? >> it's unthinkable. here's how i view the things. go to the southern border or deport all the 11 million here illegally. >> which we did run the figures on. these things can't happen. they won't happen. he's talking about them but they're not going to happen. what's mistysterious about his weekend pronouncements if he does what he says he will do, lower the corporation income tax to 15% nobody will leave and he will never be in position of leaving the wto because we will have fixed the tax problem that drives u.s. problems offshore. it's a incoherent stance but a popular one. >> jared, as far as the dnc is concerned this week, clinton is not doing as well arguably in the polls as many people might expect her to do and one of the reasons for that is in those traditional democrat rust belt states trump is cutting through with his trade message it would

appear. big similarities to what happened with brexit in the united kingdom. what does clinton do on stage this week to counter that and perhaps to raise or to counter the likability factor that people talked so often about? >> you know, i've thought a the challenge is where donald trump can say i'll take you back on an era where globalization doesn't exist that can't happen and won't happen. so when he says i'll bring the jobs back, she can't get up there and say no you won't because that's too depressing a message. instead she has to talk about how her ideas will reshape globalization and i think fairly specific ways and there's an opportunity to really go after donald trump. he is talking about ideas that his advisors say aren't going to happen. it's hard to figure out what he's going to do. she can create a trust factor by

explaining how she'll reshape these globalization trends in ways that will better for the american work force. >> is that on her agenda? is that going to reconnect her to young women for example? is she able to do that in a way that cuts through? >> when it comes to young women there's another part of her agenda that actually does really cut through and that has to do with balancing work and family. it's not just young women. it's that many ways the needs of women have been ignored in our work force for many years and the idea that we don't have paid family leave or families don't get much help with child care that's an area where hillary clinton is very strong at the intersection of good policy and good politics. >> thank you very much. >> when we come back what's the key to the electric car revolution? we'll head to the desert where phil has the answer. up next.

goldman sachs is calling it the new gasoline and some say it's the key to the electric car revolution. the great lithium race is

heating up. good morning, phil. >> good morning, mike and here people are saying where is that? where are you? northwest nevada. halfway between loss vegas and reno. this is also one of the world's largest deposits of lithium and pure energy minerals is exploring about 1500 feet below us to see how much lithium is down there and could it be processed in the future as part of a lithium production site. currently there's lithium extraction ponds run by other processors here. it takes about 18 months in order to extract the lithium from the ponds. there's a 15% annual growth in lithium as far as demand world side. one of the key is the fact that it is essential to the batteries in electric vehicles. >> we still all have our portable electronics but now more and more we're needing to

supply electric vehicles. it uses kilograms instead of electronics that use grams of lithium carbonate. >> it's the global demand for electric vehicles. sales topped a half million. this year as well china the world's number one batteries. and they have been up in the last year and investors are looking at them saying we're going to need more lithium ion electric vehicle batteries and that's why we're here in the middle of nowhere in nevada. back to you. >> they're not making more of the lithium. thank you very much. >> let's hand it over to john forte with a look at what's coming up on squawk alley this monday morning. >> it's officially official. verizon bidding almost $5 billion for yahoo!. where did yahoo! and aol in the past go wrong and can they break

this domination by google and facebook? we will look into that. and now hackers seizing control of the narrative ahead of the democratic national convention. is there more of this to come? all of that and more coming up on squawk alley. [child speaking indisnctly]

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>> it's 11:00 a.m. on wall street and squawk alley is live. ♪ welcome to squawk alley for a monday morning. we're in post 9 joining us from aspen today walter isaacson. good morning to you. a lot to get to today. it's official verizon will buy yahoo!'s core business int