good morning it is 8:00 a.m. at quibi headquarters in los angeles, california it's 11:00 a.m. on wall street and "squawk alley" is live ♪ hey i'm not giving up today ♪ ♪ nothing is getting in my way good thursday morning. welcome to "squawk alley." i'm carl quintanilla with jon fortt and julia boorstin for the hour a big story this hour is quibit as we talk about the shutdown six months after the launch. julia, we thank you for bringing

it to us and so many questions to get to about what is to blame, what happened to the capital that was used and what happens now? >> that's right, carl this was an audacious bet to begin w a lot of questions about whether this could be pulled off and many people told me when jeffrey katzenberg announced and brought meg whitman onboard it was a crazy idea but if anybody could pull it off, he could. it is interesting to see what happens now when, in account fa, he could not pull it off obviously a big risk a lot of money on the line they raised nearly $2 billion. we'll have to see, jon, how they figure out how to pay some of that back to investors. >> wow in my view, this is the we work moment for content i mean, it's a flameout of epic proportions to match these hollywood roots. the entire concept to me was based on this idea that you can bet on experience. i mean whitman is ebay, h.p., katzenberg is disney,

dreamworks they had to raise all this money because their vision was big they had to attract this star power to match their pedigree. and it's really, i think, carl, lined up with that soft bank idea of you got to have big scale to make a big splash but if that idea isn't just right, it's a big flameout. >> yeah. obviously they've been vocal about what they thought some of the deciding factors were, the pandemic not the least of them we look forward to talking to them around 11:30 a.m. eastern time tesla, guys, is one of the big stories of the morning five straight quarterly profits. full cycle founder and managing partn partner joins us and collin rush good morning good to see you. >> good to see you good morning, guys good to be back. >> abraham, i mean, we talked earlier this morning about some of the, i guess i call them nitpickers, just focusing on the

regulatory credit fails. i have to imagine at this point that maybe you are impressed with the level at least of demand momentum and supply momentum that musk has built >> i mean, the profit from the automotive division, that was fantastic. that was very encouraging. the actual inventory credits were down from last quarter, yes, double from last year down from last quarter and they got a profit. i was thinking this morning of you when you asked me last time i was on why the snp index committee wouldn't put them on it's because the gap accounting piece and i think now they're going to be reconsidering. yes, they -- if you remove the compensation which is something like $580 million worng th of sc options, the company would have have a billion dollars worth of profit right there i think they'll be coming around >> yeah. how about you? i know you have an outperform.

i think you went almost to $490, right? >> yeah. we went to $480 with the price target the automotive gross margins were up. and that really speaks to the efficiency of the manufacturing as well as the price stability they have with the products. so as we look at that, you know, that number as we scale up and have efficiency on the factors, thinking about a, you know, auto company that has 3% gross margins is not out of the realm. we saw that with the cash flow this quarter worth a billion of operating cash after the big capex number of a billion dollars. there's a lot of leverage in this they're investing and processing to advance here. >> collin, we seenl to m to be this really weird dance when it comes to tesla people are saying it's not an auto company and shouldn't be

valued that way. but right after earnings, we're looki looking at the numbers that show it's an auto company i'm not sure for the investor right now that should really matter what do you think are a couple of the most important metrics about this company writ large that really matter that might justify this valuation >> you know, so for us it's really about the process technology that they're developing so moving into the manufacturing and some of the ip that they are with the acquisition a year and a half ago this molding technology they're using to simplify the manufacturing and clean up the process. that's important for us in terms of keeping a lead on a cost structure. one thing we wrote about is the leverage they're getting on just the manufacturing on the durable g goods and whether it is software related to the self driving or the insurance products that they can bring forward and spread out

across the globe just because -- i think that's what people are looking at is fully disrupting not only just the manufacturing piece of this but the rest of the associated businesses around auto ownership and transportation >> i hear that it sounds like auto based kind of operational metrics that is based on if you're willing to think this company is worth what it's trading at right now, don't you have to look beyond that >> i mean, its margins are automotive margins we talked about that in a previous visit one of the interesting things i was thinking about yesterday is how much they're crushing market as a strategy. they're not spending a dollar on marketing and they're leveraging his celebriticy and showmanship as a human marketing machine it is the envy of the auto industry and all consumer goods out there. i mean they're getting tens of billions of dollars worth of free publicity because of that

guy. he has an amazing personality. quite interesting to watch >> carl, i wonder whether you're at all concerned that tesla's lead could narrow? and when you look at the fact that there are so many competitors working to get their new electric vehicles to market, one estimate said more than 400 new electric vehicle models scheduled to hit the market by 2024, how much is that a concern for you? >> yeah. we're always very cautious around the competitive environment. so we watch what products have come to market first we saw a variety of vehicles and then designs that had electric power trends on them and now we're seeing the first attempts athe clean sheet of paper, you know, ground up designs on the full operating systems. and we're having trouble integrating the operating systems and disappointing range. you know, we always like to track what v.w. is doing and it's been early in the space and the ib 4 range is a major disappointment for a lot of folks. the next group we look at is bmw

and mercedes with the products they bring to the market and look at what the range is, what the power tranlooks like and where the cost points are. i see tesla accelerating the lead at this point given what they're doing in terms of learning cycles. they're learning and growing and they're growing much faster than the competition. i'm less concerned about it. >> interesting point of view i'll close with you. the you know, coming off the electric hummer announcement over at gm, i mean, you try to reserve one of those now, you get a blank screen that is the kind of thing we used to say about tesla's models what is the argument that says that the lead -- tesla's lead is not going to get marginally smaller? >> you know, i had a meeting for the full cycle business in europe i was lucky enough to be able to get -- you know, use my american passport and get into europe and i noticed there is a lot of electric mercedes and electric

audis on the road. a lot more tesla i'm not sure i agree with my colleague that there isn't pent up demand for existing familiar luxury brands to go electric because it's working in europe they're all over the road. so that's what i've noticed. >> and really quick, before we go, am i to believe that you now think that smp inclusion remains a strong likelihood? >> i do. i do think that's going to -- maybe one more quarter >> okay. that will be a big day for elon musk and investors thank you. we'll see you soon >> thank you >> thanks for having us. still to come, an exclusive with quibi's jeff katzenberg and meg whitman. "squawk alley" returns in two minutes. before we talk about tax-smart investing, what's new?

-audrey's expecting... -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan.

stocks have cut their losses in the last few minutes in yields are up as pelosi says i think we're just about there let's get to that story. >> pelosi is still speaking to reporters. she sounded optimistic about the prospect for a deal. she is still engaged in in negotiations with the treasury secretary and that they made progress this week >> so i'm pleased that we have reached a point where we at least -- they still have not

completely signed off on it but i think we're just about there >> now she said that they are still working on the issues of schools, census, and the election one thing she had not mentioned just yet is state and local funding. the president tweeted that pelosi wants to bail out blue states and no way she would do what is right for american people that tweet does not seemed to have thrown a wrench into the negotiations adjustment yes negotiations just yet as they're getting closer to the deal >> one of the most important things that investors are watching in this market. thank you. coming up, cybersecurity company macafee is going public again about 20 years after the first time making the return to the nasdaq this morning. the ceo is going to join us exclusively next rvelg and coming up, quibi's jeff

katzenberg and meg whitman ♪

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cybersecurity company mcafee is going public again. the stock is set to open soon on the nasdaq this morning. joining us is the ceo, peter leaf i'm looking at the history mcafee was public for a decade in the 2000s private for a decade in the 2010s in the handoff from mobile to cloud and now public yet again in 2020 with a handoff as i see it from cloud to ai. what is going to be different this time and what are the areas where you need to invest most heavily? >> great thanks for having me if i could, i'd just like to start by saying thank you to all of the mcafee employees around the world. it's a very exciting day for us. and, jon, i think you summarized it well. one thing that has been changing

is the market. and it's very expansive. it's very important. and cyber criminals and cyber threats are only continuing to increase both in volume and scale and that ai need and the need of data scientists who understand where those threats are coming from, from espionage to disinformation as we've seen lately to all of the ran sosomw that continues to plague us is substantive. >> how should investors mod wrl you see the biggest opportunity in consumer versus enterprise? a lot of people still associate your brand most strongly with consumer end point security. >> yes and two very important and two very good businesses the consumer business is growing at a very solid clip and has been for quite a while because the needs of consumers continue to expand and it's not just about the

6.6 billion devices out there. it is pertinent data, financial information, now health care, telemedicine, all of these things are now in a mult tideitf places and we know mobile is continuing to increase. a 71% increase in mobile malware attempted attacks which is massive. >> how strongly do you play on the cloud platforms and i'm thinking about aws, azure, google cloud, and even, you know, salesforce's ecosystem that there is so much heat right there in terms of applications, trying to operate there, data stored there >> that's right. and that impacts consumers in a substantive way. and we have tens of millions of consumers that we continue to be there for. it's also impactful for the enterprise customers and government entities and one of the things that mcafee takes great pride in is we work with all the cloud players as we know all of that important data needs

to be protected. >> peter, how much do you see demand impacted by covid-19 both from an enterprise and consumer level as people adapt to work from home and as we look ahead to world where even after covid-19 you will have a lot more people working from home at least part time? >> i think it's so on point. and we start with the adversary in mind. because since covid-19, cyber criminal behavior has only expanded it's no longer just fish ago tacks. it's now being used as a lure. and many of you probably continue to see that and odd texts you may get from your alleged bank so we see it across the board. we see this need to be able to work from anywhere including home and vpn usage and regulated entities continue to go up so we see this as something that will continue and we need to make sure we're there to protect our consumers, customers, and government entities. >> peter, i want to go back to

this question. this reminds me of nvidia. over the past few years, they have blown up valuationwise, stockwise, and people recognizing the behind the scenes data center capabilities of the technology not just built into individual end point units. so right now enterprise and consumer, the businesses for you net revenue wise are about the same size. is the bigger opportunity in enterprise and if so, what are specific things you need to do to capture it? >> i don't want to negate the size of either space they're both substantive on the enterprise front, we have been with 80% of our revenue comes from customer that's have been with us 17 plus years so we see expansive opportunities because we bring a broad platform to the market but as you said earlier, jon, the cloud component with what we call unified cloud edge is a big opportunity because there is so

much more to protect and new applications don't emanate from the data center, they're cloud native but on consumer, we see a market that is expanding at a very substantive clip and there is so much that needs to be protected for all of us. because our lives are digital. our phones are now become the remote control to our world. so it's not just about the device it's that important data and we work diligently to make that user experience easier and better every day >> how much you are positioning this as a growth type software company? i mean, the name is years and years -- decades old so a lot of people might see this as value. how much you are trying to position yourself as growth esh, heavy on investment, not producing a dividend any time soon >> just to touch on the former we have a consumer business that's been growing very consistently at a very healthy double digit clip. it is a reoccurring revenue

business largely a subscription business. as it relates to use of cash, we're very strong cash producing company. we real estainvest for great sos with our partners, for our customers. but i think what you're going to find is we're going to use the cash effectively and we are looking to proceed with a dividend as well while a consumer market that we see upon us will enable us to continue to grow so we're looking at it from both vantage points >> thank you, peter. that stock pricing at 20 we're looking forward to seeing where it begins trading. >> thank you >> that's mcafee carl all right. stocks have gone green once again. pelosi continues to make comments about stimulus. as we said earlier, coming up, quibi's ceo meg whitman and jeffrey katzenberg on the shutdown quk le ia w g up exclusively on "sawaly"n femoments. in a few moments, rackspace technology will enter a

new and exciting chapter. across muti-cloud, apps, data and security, we focus on solving the business problems of our customers with technology we are a type of company the market has not seen before. going public will further invigorate our mission to embrace technology, empower customers, and deliver the future.

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keeping our eyes on facebook and twitter. facebook shares flat twitter down 3.5% with senate republicans voting to subpoena ceos jack dorsey and mark zuckerberg over the handling of "the new york post" article on hunter biden we'll bring you the latest developments as they come. up next oush, our exclusive inte with jfratefey kzenberg and meg whitman. hi, my name is sam davis and i'm going to tell you about exciting

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we're watching shares of goldman sachs here still hanging on to some green arrows news, of course, of the record u.s. bribery fine to set this will one mbd scandal admitting wrongdoing we expect a 12:00 announcement on this in the meantime, the wires also saying that goldman sachs will cut some pay and claw back some executive bonuses after those costly fines they're citing sources on that we hope to learn more in a half

hour julia? >> thanks, carl. quibi shutting down six months after launching the short form streaming service. quibi founder and chairman jeffrey katzenberg and ceo meg whitman join us now. now quibi was a historic bet on a new type of content and shuttering just six months after launch is a dramatic failure for this jeffrey and meg, you did come on cnbc to announce the company's launch we appreciate you joining us now to talk about this decision. meg, i want to start with you. why did you decide to shut down quibi now rather than at the first signs of problems with the adoption or rather than wait and continue to try for longer >> well, first of all, we're glad to be back. we did launch quibi with you, julia. we're glad to be back today. so we over the summer we had a very successful launch over summer we started to see a slowdown in our momentum and we tried many different things many different products, packaging models, we changed our

marketing. we changed the app around many different times. but it was clear that for whatever reason this was not going to be a successful as jeffrey and i had hoped. and so we took stock of where we were and we said the best thing to do, the honorable thing to do is return money to shareholders when we knew this was not going to have a fast forward as a viable stand alone business. we feel we made the right decision, a very difficult decision but right one for shareholders >> certainly this must be very hard for both of you you both put your on money n you also have personal relationships with many of the people that you went to to invest in quibi jeffrey, of course, you have long standing relationships with all of the media giants that you brought on as an investor in quibi. how are you handling this, jeffrey, in terms of the bet that you got all these companies that you've known for so long to make on your start-up? >> well, thank you, julia. you know, in the end i think all we can do or we can do is own

it you know we are so appreciative of the opportunity to go pursue this really, really big idea. for sure, you know, there was risk involved in it. but i think all of us expected a much better outcome, a much bigger outcome from. this and, you know, to our investors and studio partners, you know, we are grateful, thankful, for them giving us this opportunity and letting us do it. and in the end, i think what, you know, as meg said, at this point when we have seen that it does not have the future for the best thing question do is return as much money to them as we can. and then take care of our employees in the best way possible >> now i want to get into this idea of returning money to investors later. first, i really want to understand what you think went wrong here meg, you had a very strong launch but the reality is even though many people downloaded the app, when it came to converting the people to being paying subscribers, that was much more

challenging. i have seen reports that 10% of people who did a free trial converted to paying. and i'm wondering if you can help me identify what you think really went wrong here we have really seen other short form mobile content thrive during covid-19, whether it is snap that reported a 50% increase spent time watching shows or tiktok growing rapidly. jeffrey, do you think it was the subscription model that was so problematic? >> i think it's a convergence of a number of things, julia. the so, yes, we had a new product. we asked people to pay for it before they actually understood what it was. i think we thought there would be easier adoption by people to it i think that the environment that we found ourselves in as you heard us say many times, this is designed for on the go in between and a moment of time in which no

one was on the go. they're still not on the go. and so our product market fit was wrong. i mean, somewhere between the idea being less than perfect which we own and the environment we found ourselves in is where the fail has come. how much is, you know, what each of those are in that equation, i'm not sure any of us are ever going to know. but it didn't work having said that, i guess the content made is something, you know, that we're quite proud of. i think has been actually really, really well received i'm sorry. >> no. jeffrey, i actually was going to reference something you now famously told the times back in the spring and that was i attribute everything that's gone wrong to covid-19, everything. would you temper that statement now? >> 100%. it's not fair. it was a little bit of a, you know, a clippy answer to, you

know, flippant answer at the time but, you know, other companies have faced the challenges of covid-19 and they managed to find a way so i think meg and i believe in, you know, owning our midst simply blaming it on covid-19, you know, i don't think is fair and not something that either of us want to do. we're proud of the content that we made. you know, emmy award winning content in a very short period of time. we're proud of the product and the engineering team and what they built but in the end, we did not get the acceptance of consumers and customers in the way in which we had to in order for this to be a successful business. >> meg, i want to ask about cost of entry and the length of time that you got to play were you playing bad poker or is t the ante just so high that you had to fold early? apple can afford to burn

billions disney has a library how much of a factor is that >> well, listen, there is no question being a start-up has challenges that big companies don't have but there is no question that we have to launch in a big way. everyone understood the business case for quibi and it was going to take a lot of capital up front because we had to make this very high quality content we had to build an entirely new platform all the content was original it was designed to be on the go and mobile so we actually went right along with the business plan that we laid out at the beginning. but over the summer we saw that there were real challenges, you know, as julia said, about acquiring and maintaining the subscribers. and that led us to look very carefully he is baines say did we really see a future here? and we didn't. the content is well loved. we got great reviews from the

app and neighbor a different time and different place this would have worked better but jeffrey and i are realisted and mature executives. we felt this is the right thing to do for investors. the right thing to do for partners and folks that really helped us build this business. we have a lot of believers and we're grateful to all of them. >> but, meg, you just made the point. you said the content had to be so expensive and high quality. i remember getting the explanation from you about the opportunity in having really expensive content. as expensive as they show on hbo but designed for mobile devices. when you look at the success of lower cost content on snap or user generated content on tiktok and think back at the premise, do you think people don't want as expensive content when on something as intimate as their phones >> well, that was the bet. there was a white space which was this very high quality content in the short form for mobile and whenever you try to create an entirely in you category

which is what we did, sometimes it works and sometimes it n. this case it did not work but we had a lot of confidence that this was the right formula. that we thought that there was an open white space in the marketplace. and we gave it our very best shot >> and now if you were to be able to do things differently, would you have delayed the launch until after covid-19? you would have maybe done an ad supported nonsubscription version or less expensive content, you know, permanent cost per content half or a quarter of what you were spending you had big stars, big name producers. >> we do have all of that, julia. >> yeah. maybe a little bit of everything >> we do some of all of that >> we did test an avod version that was in australia. that had better results but not good enough for the results to keep on going.

i don't know that we would have done user generated content. that marketplace is well filled by some very strong and excellent competitors. so lots of thing wez might have done differently with 2020 we accomplished a lot even though the business did not succeed. >> jeffrey, i'm curious your thoughts you got so many -- so much input from basically unwanted critics over the last six months but one of the things was the ability to screen shot or essentially ride the coattails of social media, free media in essence. i wonder if you think that was a miscalculation but more importantly, i wonder if you think those who are in the game from here on out need to think more about being mable just a tad less propriety airy on the thing yours spend ag lot of money on.

>> that's great question and a lot of complexity around it that we don't fully understand. but there is no screen shots on any premium content. not on netflix, hbo, hulu, amazon and the reason is because if you can screen shot share something and screen shoot it, you open up the copyright of it. so in the social media world where you got user generated content and all the wonderful things that are vital and go out there into the world, you are able to screen shot. so we actually ultimately did get to a place where you could do that. but actually has a lot of complexities around it including ownership of the ip itself but, listen, it was a criticism we earned. it is one we pivoted quickly to try and tackle and as i said, a lot of issues around it. it's not a simple yes or no.

the. >> jeffrey, we talked quite a bit about the demand side and how covid-19 affected that how perhaps the model affected that we haven't talked about supply i wonder your thoughts on this environment on the oversupply of content and how that might have affected the willingness of some of the big players to buy quibi or the assets that you have available that you did have full rights to. is there an oversupply of dib t digital content? >> i don't believe so. if anything, there is a shortage of supply right now. because our industry has been shut down now for eight months and is going to continue to have to, you know, slowly regain into, you know, well into next year so there is a content supply challenge right now. i think the only thing we have attempted to do to date is actually sell the entire company. and that is something that we

didn't have papers for what we did have is real interest in our content and our library which is actually quite attractive and that will be the next pivot for us which is to wind the company down and to see if there is somebody who will value that library which is actually quite deep and quite rich and very unique and very valuable in the marketplace right now today. >> but so, jeffrey, when it comes to selling those assets and looking at the value of the library, quibi is in an unusual position you actually licensed your shows for a certain number of years. so tell me how you expect to be able to monetize the shows will you be returning them to the companies. will you be licensing them for the period of time you had them? seems a little bit more complicated than the typical owned asset. >> look, not really. julia, if you think about today and any of the companies that go

out to license content, no different. we have a seven year license which in the world we live in today is about one or two cycles so it's a very deep, very rich library. there is 28 movies there's a pipeline of things that are coming. there are alternative shows. and i -- our expectation is that the offering of the quibi content itself is actually going to find some interest and some buyers seven years is a long time >> and so, jeffrey -- >> so, jeffrey, as you look at the value of licensing the shows over the next several years and also potentially selling the technology though you're in litigation right now over some of that underlying technology, how much money do you think you're going to be able to return to investors? did you raise nearly $2 billion. how much of that will you be able to return >> i'll send that to meg

>> yeah. so you're right. we raised $1.75 billion. and we know it's been reported that we'll have at least $350 million of cash at the end of the wind down. but more importantly than that is the monetezation assets that jeffrey described and saving wez think with he can get on the wind down and sale of the other assets like the technology platform so we don't know what that will be worth it's really, you know, we'll see what the marketplace will bear but we think there will be much more to return to shareholders than just the cash that has been reported >> and, meg, is the value of the underlying technology limited or mitigated by the fact that you're in this on going litigation with echo which is backed by elliott? >> yeah. we don't think so. we do think that we are very firm ground with the ip and the patent that we have on what we call turnstile which was the, you know, most innovative part

about our mobile platform. and we think honestly, we have prevailed in court on a number of different motions to date and we think we'll prevail in the end. and people will take a look at that they'll get their own ip lawyers. i think they'll come out saying this is not a big deal this is something that quibi will win >> now, meg, i just want to get a final question to both you and jeffrey about what's next for you after this very big and important chapter. you both have run various businesses meg, you've been ceo of different public companies what is next for you what is your next chapter? does it include a cabinet position >> well, first of all, we're consumed for the next several months at least on winding down quibi in the best way we can making sure we take care of the employees and help them find jobs they are an incredibly talented group of individuals and then we've, you know, go the to sell the content library and wind down as i said. so we'll see what happens after that not sure i know what is up next.

>> and jeffrey, this was a real passion project of yours possibly your biggest disappointment in your very long and varied career. what is next for you will you continue investing at wonderco, quibi's parent company? can you imagine taking on investors again? >> well, here's the thing, julia. you have known me for a very, very long time, decades. and, you know, i have a bottomless well need to win. it smarts. hurts a lot. very disappointed that we disappointed our investors and our employees. and, you know, so for me, i got to get back up on that horse and, you know, go find the next mountain to charge up to and it's the only thing i know how to do. and i have a lot to prove. >> well, jeffrey and meg, we really appreciate you being so

frank with us about what is obviously a very challenging moment in closing down quibi jeffrey katzenberg and meg whitman, thank you so much for joining us today yeah, that's a rare and brave display by the two of them we do appreciate it. i'm sure viewers do too. still to come, designing the future of airbnb, a closer look at airbnb's partnership with the at nt.pp digr. th'sex before we talk about tax-smart investing, what's new? -audrey's expecting... -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. united states can't easily get to a doctor or afford the treatment they need. that's why goodrx has built a leading consumer-focused digital healthcare platform.

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we're awaiting news from goldman sachs about this record foreign bribery pen amount regarding the case and now reports of potential executive clawbacks. the for more on all of this, we turn expecting, formal announcements from the justice department. we are expecting significant callbacks of executive pay in the tens of millions of dollars in total, which will include the likes of former ceo and chairman lloyd blankfein, in light of the fact that they were at the helm at the time or at the helm today as they've dealt with things over the last couple of years. it does not suggest they had any

knowledge of the wrongdoing. that will include callbacks of individuals who were responsible. i don't know the numbers that will be apportioned to the likes of blankfein and solomon the sub entity of malaysia will plead guilty of one count of conspiracy to violate the scpa that will be the only plead -- guilty play and that's just the malaysian entity of the bank in terms of fines, they've already paid $1.5 billion to malaysia i'm expecting a roughly another $2.5billion covering the likes of hong kong, singapore and all various law enforcement agencies here in the u.s. we'll wait to hear more about whether that requires extra provisions from the banks.

according to sources familiar with the matter, they probably provided for most of that extra $2.5 billion already maybe a few hundred extra provision, but i don't think this will lead to a massive change in analyst estimates for the bank we are expecting that formal decision to come out at around about 12:00 and get more of those details from the d.o.j. side and also the bank itself, guys >> our viewers might be -- they might get to know what's known as a deferred prosecution agreement in that briefing describe why that's important, particularly because it means the firm will be able to hang on to institutional clients to some degree >> i would say the important thing from what i'm hearing so far is there won't be restrictions to how they do business there's only one guilty plea in the subentity in malaysia, as i

mentioned. we'll wait to hear if there are any kind of concert orders about risks reviewing controls but the cost of that has already been laid down it's not like this the first revelation of this wrong doing they've been laying in a lot of investment to try and address any risk management issues already more details to come imminently but the stock reacting relatively positive to this because the fines about $2.5 billion, $2.6 billion. >> thank you now let's get another check on tesla as we head to break. you see it's up better than 2.5% off the day's highs, but still higher on the back of rngseain we'll be right back. "wheel of " i was blessed to be part of building one of the greatest game shows in history. during that time, we handed out millions of dollars to thousands of contestants. and i thought, what if we paid the contestants their winnings in gold instead of cash and prizes? back in 1976, we had a wonderful contestant named lee

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former apple design chief has a new client, air bnb. dierdre. >> many famous design chief as a consultant is the man behind some of the most iconic products of our generation, from the candy colored imax to the ipod

smart phone and he will help dejoin the next airbnb products and services it's built on its brand and design-driven approach it helps drive more direct bookings than, say, relying on google he is also the latest hire in an incredibly volatile year and ahead of ipo which a source tells me could happen as soon as december other names to come over to airbnb include david stenchson and catherine powell, global head of hostings there have been notable departures look greg greeley and belinda johnson who remains on airbnb's boards. it will hit markets with a newer executive team and larger losses amid the pandemic. guys, when it comes to -- i was

reminded that airbnb's logo was a little bit controversial when it came out in 2014. i will leave you guys to imagine what some suggested it said. perhaps we could get a logo redesign from ive and his team >> we'll come back to our biggest interview moments ago as jeffrey katzenberg and meg whitman joined us on their decision to shut down quibi. here's the two of them on what comes next. >> we started to see a slowdown in our momentum. we changed our packaging model, our marketing, we changed the app around many different times. but it was clear that for whatever reason, this was not going to be as successful as jeffrey and i had hoped. we took stock of where we were and said the best thing to do,

the honorable thing to do, is to return money to shareholders when we knew this was not going to have an app for it as a viable stand-alone business. we made a difficult decision but the right one for shareholders >> and the bottomless well needs to end it hurts a lot very disappointed that we disappointed our investors and our employees and, you know, for me i have to get back up on that horse and find the next mountain to charge up to. it's the only thing i know how to do and i have a lot to prove. >> you know, when you look at people like jeffrey katzenberg and meg whitman, these are two people who have had massively successful careers you really have to give them credit, carl, to acknowledge this didn't work, acknowledge the failure and say they want to move on. i really would give them credit

for that, carl >> i would say almost unanimously the response from viewers at least from my tweet deck, julia, was exactly that. it takes a certain kind of lead leader, confident and strong to come on and own it the way they did and reverse some of the early explanations they had for why the business was challenged. thanks for that, julia let's get to the half. >> carl, thank you welcome to the "halftime report." i'm scott wapner the countdown to the election and what lies ahead now for your money. we debate that today with our investment committee joining me for the hour are josh brown, steve weis, anastasia amoro amoroso. take a look at stocks now. been down five of the past seven days, a little all over the map today. we're following stimulus headlines of course, the latest on the virus, the lebelection