know that. >> your reactions were spot on and different all the time. >> yes, how you go about telling them no, especially no, i could have been nicer with my nos. i was, like, no. >> you got to move on. >> got to move on. got to keep going. >> i cannot wait for the rest of the week. >> thank you, sarah. good to have you on. speaking of moving on, that will do it for us on "squawk on the street." "techcheck" starts now good tuesday morning welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa today, tehe team behind hello sunshine will join us this hour on their new deal with black stone. is it game over for chinese gaming stocks? why those names are cratering, and results missed from alibaba. and later, we'll talk google's

new pixel 6 and what it means for the competition with the journal's joanna stern >> we start today with chinese stocks this morning, first alibaba, a small miss on the top line, driving that stock lower profit beat and it did boost its buyback program, shares so far, you can see they're down more than 1.5%. also tencent plummeting after a state owned chinese newspaper called online gaming, quote, opium for the mind investors thinking that sector might be next in china's regulatory crackdown and you can see the effects that had on some of the competitors as well as contagion there. netease down more than 7%. it is another rough start to a month for some of china's biggest tech names look at this performance in july alone, alibaba down 13%. tencent, down 15 baidu, 20% with others like didi just brutal charts here. not to mention the education

tech names that lost about half of their value hong kong's hang seng index fell about 9% for the month, and that's not even saying anything about the kweb etf that trades over here. we have beenhere before with chinese gaming tencent, the obvious target, drives a third of the revenue from gaming. perhaps less obvious is that these u.s. companies that have been moving further into the chinese gaming system, because of the opportunity there, like a roadblock, shares were down 5.5% its china license has gone live and it does have that high exposure to the younger demographic, which beijing and the ccp would rather do their studies than become gamers and content creators. >> i can't decide or figure out, i guess, how much investors are supposed to care about this. cnbc's arjun carpel points out that the state media article that used the word opium for

the -- it was pulled back, right? and then revised and reposted without that language, softened a bit. maybe this is supposed to be a lighter chain yank and not a chain yank so hard that it was going to tank the stock that much are they calibrating here? i don't know >> it is difficult to tell it doesn't help, d. that in the meantime, baba's revenues came in shy but just -- it would be very hard to fight the torrent of headlines that we're waking up to every morning out of beijing. >> yeah, keep in mind, remember, baba, earlier this year was or late last year had a fine more than $2.5 billion. so returning to profit from that hit and we still don't know, guys, after billions of dollars in fines issued, if the pain is done for that company or ant group. that's the question for investors when it comes to these platforms, e-commerce, ed tech, gaming, it is how far does beijing go and your question is valid, yes,

they walked it back and we have been here before, with gaming. is this sort of a light slap on the wrist, something that they're going to walk back or does it continue i remember looking at ant group and just being amazed that the ccp went that far and that wiped hundreds of -- more than $100 billion off of value of that company, private at the time still private thanks to that crackdown. >> and meantime, in the world of broader tech, companies continue to try to adjust for the world post covid, we're not certainly in that world yet, we have seen this new acquisition by marvel that we'll talk about a little bit later. and i think everybody's trying to figure out not only what's going to be allowed because of government restrictions, but also what is going to be required to thrive in this next stage, carl. >> indeed. we're going to talk a little bit about sort of the dynamics that we're getting -- we're beginning to see out of china as they come out with these restrictions on

various industries, d. one lesson, maybe longer term, that they seem to be taking a harder line on software companies than hardware. and that makes sense given how their labor force dynamics affect overall social order, which is something we know that chinese want to keep top of mind. >> absolutely. those semiconductors, right, that has been part of beijing's long-term plan is building up its own industry, which at least in terms of chip-making is far behind the u.s. in terms of innovation and speaking of hardware, we'll talk a little bit of google pixel and smartphone so they're saying good-bye to qualcomm for smartphones at least. google saying the latest line and announcing its new pixel phone, the six, and opting to design and install its own chip called the google tenser which arrives this october the move partially mirrors apple's decision to leave intel and create its own last june despite the announcement, it

will continue to work closely with google on other products. joining us now for more on this, senior personal tech columnist at the journal, joanna stern great to see you google -- >> you too. >> higher end premium smartphones, they have not really taken off is this going to be a game changer here >> i do not think this is going to be a game changer for the mainstream audience. because as you said, you know, these google pixel phones haven't exactly been a mainstream hit they have maybe a single digit of android global market share so lots of people don't think about, oh, when is the next pixel coming out they think about the next samsung or iphone. that said, this is a big deal for the movement towards tech companies, the oems, the people that create the actual hardware, moving to using their own chips, right? apple has been doing it. we are now seeing it here with google and so the move really represents these companies being able to control the entire staff, right control the hardware, control the software, so they can build unique software features and ai

features. >> and so, joanna, expand on that a little bit more what does that make for -- what does that mean for some of the big chipmakers like intel and qualcomm, qualcomm saying it will continue to work on other things but is this an evolution we're going to continue to see that is going to sort of separate chipmakers from other ones than the ones that can design and manufacture? >> i think so. i think it puts fire under their feet, right, to create -- to continue to create products that these other partners want to have but this is now being a distinguishing factor. this is a factor where you're building a phone, you're building a laptop, if you can build your own chips, and you can push the hardware and software innovation to be better and the products might be better we have seen this on the m1 laptops. it is a remarkable feat of how the whole synergy of the product and how it works better together, they highlighted some features, better photography features, better video, also some better text to speech

features which they're going to claim you couldn't do with a qualcomm chip or they couldn't do as well with a qualcomm chip. >> to put this in perspective, google is not actually trying to win with the pixel they're not trying to beat samsung. they're not putting out the marketing spending to do that and probably strategically they have reason not to my sense is what google is really trying to do is keep samsung from getting too out of control. it is like in football, like the safety out there, trying to make sure they don't get in the end zone too easy and against the coverage on the wide receivers there was a time when samsung was really trying to sort of run away with android, and google seems to be using the pixel to say here's pure android, here's what you can get on a phone that updates easily, and that keeps samsung in the fold because samsung knows if they get too crazy, google could pour on the marketing spend at any time. >> i love what you're saying there. it is a very interesting defensive move i like how there is a sports analogy here i think also this pushes samsung, right

this pushes the rest of the android ecosystem to look at their own chips, to think about how they're strengthening ai, thinking about how they can build those features and also google is putting them in the operating system so like you said, if samsung can integrate that or not get too out of control and do its own thing, also, i totally agree with you on the marketing spend, i'm not sure at this point when people are so engrained with buying the same phone or same manufacturer phone every year or every four -- upgrade cycles are now standing or shortening, buying the same phone two to three years out and somebody is thinking i'm going to switch from samsung to google, i don't know if marketing can push that. >> right i guess we'll see. joanna, always great to have you. thank you. >> good to see you guys. back to china, joining us is professor and author of what the u.s. can learn from china ann lee to talk about the headlines we have been getting and particularly as it pertains to software names i wonder if you can explain to

our viewers what is it about the software industries that regulators in china seem to have their eye on why is that? >> okay, so there are really three main issues. one, they're worried about inequality right? they see what's going on in the u.s. the u.s. has the facebooks and googles, where they are super wealthy companies making just trillions of dollars and then the number of people they actually hire is minuscule compared to the revenues they bring in, and the profits they have and so this is creating giant inequality, and it is obviously causing all sorts of domestic political problems in the u.s. china obviously wants stability in their country, and when they see that social media companies here in the u.s. are causing such great divides in their population, they are running scared and say we can't have this happen here so that's, like, number one.

number two, obviously, is -- are the national security issues, because they don't want sensitive information to be leaked out of their control into foreign hands, and a lot of these companies, because they have ai, and other sophisticated algorithms are collecting lots of information into their cloud computing systems, and what not. they're very worried about that. that's another issue and then thirdly, this doesn't really get talked about enough because this is more about a cultural issue, but if you look at chinese culture historically, in their hierarchy of how they value people and industries and things, merchants basically are the bottom of the totem pole and when you're talking about companies like alibaba or investment bankers or whatever,

where people just connecting and they're not really producing anything, they don't feel that they're actually adding that much value they're more like parasites. and so china would prefer to invest more money and resources into companies that produce real things, like solar panels or electric vehicles. >> sure. >> and so they want to promote those companies, and so if u.s. investors want to basically ensure that their investments are not going to be hit by, you know, regulations from china, left field, they should actually think about, you know, investing in areas that are aligned with where the chinese government wants things to go in china. and so that would make more sense. >> that adds a lot of context to the opium of the mind headline we have been talking about so much this morning. i apologize for keeping this a little brief, we have some breaking news, but thank you very much, ann lee as we said, some breaking news from the new york state attorney

general's office, which is just released a report on its probe into governor andrew cuomo contessa brewer has more. >> leticia james is talking now, and says that new york governor andrew cuomo has violated federal and state laws in creating, and these are the big headline points out of this report, in sexually harassing multiple women including current and former state employees as well as others that the governor and his team retaliated against those who came forward with their stories, and that executive chamber was rife with fear and intimidation and a hostile work environment this has been one of the ongoing accusations that the governor created a toxic work environment for those who were under his supervision and care the governor has repeatedly denied these claims. we're listening now, what this means for the governor, what it means going forward, because there are multiple investigations going on right now. independent investigations about

his handling of covid in nursing homes and whether he and his aides tried to cover up what the real impact was of covid in nursing homes. there is an investigation into that book deal he got, writing about leadership during the coronavirus pandemic and the crisis to hit new york state it was a $5.1 billion book deal. and there are real questions about how he was able to accomplish that and the money they used and whether he was using state resources to write this book on state time. again, what you're seeing right now is new york attorney general leticia james announcing that new york governor andrew cuomo has broken federal and state laws in the allegations against him, sexually harassing multiple women who worked for him, some who didn't, some former employees and some who didn't work for the state in any way, shape or form. i'll keep monitoring this and bring you more headlines as they come in. >> really quick, contessa,ther is the ag and the state aassembly, which has said that

her report would be pretty important in determining whether or not to try to impeach the governor how might this alter or impact those efforts? >> i think it is clear that if the attorney general thinks that he's broken federal and state laws that there may be charges coming down the pike, that would impact the way that state leaders have to handle this. we know that governor cuomo was planning to run for a fourth term in office, again. he has vehemently denied the allegations and said let's wait for the result of an independent investigation. but the whole fact that this investigation happened was at his request. he charged his attorney general to lead an independent investigation, she tapped a former prosecutor who became an independent private attorney as well as leading attorneyin employment law to head up this investigation. they interviewed dozens of people who had been close to this investigation, who worked for the governor, who had claims of their own, and the result was

an investigation that leticia james says makes it clear the governor break the law >> well, very important and big development, contessa brewer, thank you. meanwhile, the dow leading the way this morning it is in the green fractionally. the s&p is about flat and the nasdaq in the red by about half a percent, about 90 minutes into today's trade. reese witherspoon is with us this hour. that's coming up "techcheck" just getting started. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions

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quick gut check on nvidia. headline from bloomberg just crossing a moment ago. the uk considering blocking and inn individualia's takeover of arm over security issues that stock down about a percent and a quarter. now and what has become a contentious deal on the regulatory front, jon, we got headlines a few days ago that china is delaying its review some investors and analysts could see this as a benefit or call it a distraction. >> it is a big deal for nvidia itself we know that qualcomm, intel, some others have raised concerns about this and in a way, perhaps, a test of

this new regulatory environment. interesting to see how this one plays out. meanwhile, software company zoom info seeing revenue growth 5 7% year over year, while attracting record customers in q2 shares are up almost 8% after that report. zoom info ceo henry schuch joins us now henry, welcome tell me about this business environment as we're attempting to come out of thepandemic, bu can't quite manage to yet. >> hi, jon, thank you for having me we're super excited about the current business environment because what we're seeing across our customer base, we recorded revenue dwrgrowth of 57% in the quarter. we did that in a profitable way with operating margins of 43%. we're able to do that because what we're seeing is customers want to modernize the way they find their next best customer or the way they go to market. and what zoom info does is it helps companies identify the next best customer and helps them engage the next best

customer and it does that through a combination of data, technology and insights. no matter where you go and no matter if you're in the pandemic, prepandemic or postpandemic, companies need to i'd t identify their next best customers and that's what we're helping them to do. >> you have recruiter and chorus have you seen a shift in where demand is and what type of engagement your customers are looking to have in finding as you say their next best customer in this environment? >> i think the biggest thing we're seeing is customers are looking for ways to give digital tools to their sales people. today there are 13.5 million sales people in the united states and it is an underserved population from a software and technology perspective and so they want their sales people to be more effective, to be more efficient, and a lot of those sales people have transitioned from being in the field and being at boston red sox games and fancy dinners to having to go to market in their living rooms across zoom

conferencing and what we're doing is giving them the tools to be able to be effective in that environment, we don't think that environment is going to change we think lots of sellers are going to be working in a digital way going forward, and we were transitioning that way before the pandemic as well >> and henry, some of your customers pushed back their return to office plans and mandates the vaccines what is zoom info's policy are you still planning on returning to office and what about the vaccine? >> yes, so, first, i'll tell you we really do believe our office culture is a major strategic differentiator for our business. that being said, we are watching the guidance from the cdc very closely. we have changed our guidance a couple of times based on different changes that are happening with the cdc the delta variant changes the way we're thinking about returning to office, we're just paying close attention right now. the number one thing is we're not going to bring our employees back in a way we think is unsafe >> all right henry schuch of zoom info. thanks so much for being with

us >> thank you wihen we come back, reese witherspoon making news to are her deal to sell her company to a blackstone backed group for almost a billion dollars reese witherspoon and the ceo of that company will join us after the break. microsoft announced it will require proof of vaccinations for all employees, vendors, guests entering its facilities in the u.s joining a wave of corporate america that is doing the same stay with us you have the best pizza in town and the worst wait times. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire that building you're trying to sell, matc- you should ten-x it.ion. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run...

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resetting here near the bottom of the hour welcome back to "techcheck." i'm carl quintanilla with jon fortt and deirdre bosa and julia boorstin a news update with rahel solomon. >> good morning, everyone. here is what is happening at this hour. new york city will require proof of vaccination for indoor activities applying to

restaurants, bars, gyms, entertainment venues the new rules go into effect on august 16th. new york is the first major u.s. city to impose such restrictions american automakers are bringing back mask mandates. the big three automakers and the united autoworkers union saying the wearing of masks will be required at all u.s. plants, offices and warehouses starting tomorrow shares of clorox down 11%, worst daily loss in 20 years sales are disappointing and profits have fallen sharply from pandemic highs the company also says that manufacturing an logistic costs are rising. and spirit airlines is canceling many flights again this morning nearly 300 flights, about 40% of spirit's schedule, so far today have been canceled the airline blaming weather and operational issues american airlines is facing similar issues it canceled 280 flights or 9% of today's schedule you're now up to date. julia, back to you >> thanks, rahel

reese witherspoon's hello sunshine is selling to a blackstone-backed media company led by former disney execs kevin mayer and tom stags and the price tag is around $900 million according to a source familiar with the situation joining me now to discuss is the founder of hello sunshine, reese witherspoon and the company's ceo sarah harden thank you, both, for joining us here today >> thanks, julia nice to be here. >> so it looks like we're still waiting for reese to join. so, sarah, why don't we start with this deal why does it make sense to sell right now? >> well, i think, you know, we started the company four and a half years ago we set out with a very specific intention of how we wanted to build and i think over the last six to 12 months we really started thinking we're 4 1/2 years into the bill, scaling very quickly and we took a step back and said how do we set ourselves up for the next five to ten years of growth. and, you know, one of the things

i love about reese in working with here is that we have a huge ambition for the change that we want to make that this industry. and, you know, i think for us as we look ahead and we have our sights set pretty high, i think what we have starting the conversation with blackstone and kevin and tom, you know, for us it seemed like the right time to really look ahead for the next five to ten years and say how can we create the change we have been creating over the four and a half years and do it more quickly and ambitiously and with a sense of urgency i think our mission to change the narrative for women has never been more important and i'm just thrilled for chapter two of our story >> and, so, sarah, let's talk about that price tag i know you won't comment on the $900 million, but it has been out there pretty broadly give us a sense of the value that blackstone sees in your company? i understand you're going to be hitting profitability this year. what is the growth potential that blackstone sees in hello sunshine >> look, i think at the center

we have three premium content studios, scripted studio and i think show like little flies everywhere and morning show and daisy jones and the six and from scratch and surface and many to come, and unscripted business scaling very rapidly and i think our kids animation division, we haven't announced much of what is going on there, but our mission to change the narrative for women extends and starts with changing the narrative for girls. so we're really focused on building that. but at the center of this too is a driving conviction, we had this when we started the company it is not enough just to make premium content. we to play a role in helping consumers find and experience that content so what we also built and we built it around books to start with, around reese's book club, is a real community. and along the way building influence with women and so part of our flywheel is not only making content, but really helping those women and consumers because our content

is -- puts women at the center, but is very broad reaching and help those consumers show up to that content that makes us a partner of choice to whether that is streaming partners or theatrically or to come to a content series on a social channel as well. and so, you know, that's our belief that as we build a media company, that is set up for the future, is we have to be directly connected to audiences as well. >> yeah, sarah, certainly a new kind of media company. i want to bring you in here, reese, to get your perspective on why you wanted to sell your company. i know there are other offers out there. but why did it make sense to go with this blackstone-based group? >> well, we were just, you know, we were really out there exploring optionality, you know, the media space is just rapidly changing and growing and it just felt like a unique opportunity to really partner strategically to scale and grow. and bring our mission to even

more audiences worldwide >> and so, reese, you know, you have done so much about authentic voices and really getting women's voices out there. what are you doing to make sure that you and hello sunshine can maintain independence and maintain your brand, now that you're owned by this larger company based by a private equity, you know, backed by a private equity giant and run by these two disney veterans? >> yeah, i mean, we're just doubling down on our mission now we're going to have the ability to tell more stories, to hire more female filmmakers, to promote and lift up even more authors. i'm excited to get more involved in digital creators. and it is really -- it is fascinating to see how a company like this that started just four years ago can really resonate with audiences i mean, i think when you do things awe as authentically andn

addition is clear to people, you're there for intersectional story telling that puts women at the center, which is something, you know, you think about it, we lost hundreds of years of storytelling about women because the storytellers were all men. so we're just really getting started. >> so, reese, whenever someone is the face of so much of the content they produce, there is a question of how do you scale and, of course, it started out with you starring in a lot of the projects now you expanded beyond that how you to address what the future of the company looks like when you expand so many projects you intend to act in yourself? >> that's really -- not determinable because i love acting, it is my first love. i'm going to continue to make movies and television shows that really resonate with me. but i think one of my biggest goals was to try and produce for other women. because i get to see these books early, i get this really great

access to amazing authors, and to be able to now say, okay, i've got shows i'm not in, but they're starring octavia spencer and kate hudson and zoe saldana and riley keogh. it is a great opportunity to just spread all this wonderful storytelling around so we get to see really diverse voices in these faces. >> yeah, and one thing i'm curious about, you mentioned this a couple of times, i know it has been really key to your success, your relationship with consumers. it is not just about you, you have i think 29 million instagram followers, but you're building these brands that have the direct relationship with consumers. how do you plan to use that as you continue to grow and speak directly to the women who you want to go from reading a book to watching your show or buying products maybe >> yeah, i mean, look, we didn't have these kind of opportunities seven years ago. i was making movies in a vacuum. i never really knew who was seeing them, what their feelings

were, now i have this really great one on one relationship with people all over social media, and we have been able to grow this community of book club members and they love to talk, and tell us their ideas and, you know it really helps with commerce and it helps with what movies we make, because we can really figure out and tease out exactly what audiences want to see. and that's why i'm really excited to extend our mission into animation, so that we can reach more young women with this idea that women can be the heroes of their own story. and do that authentically with real female creators >> now you mentioned commerce, i'm hoping you can lay out for us some of the different revenue streams. in addition to you do scripted and unscripted production of series and films, but then you also have this commerce and, you know, division that is also about commerce and community, what is the revenue opportunity there? tell us about how you make these deals with cmos of big brands?

>> i think we have our content studios as i mentioned and we have our community and commerce side of our business, and we think of commerce as any form of engagement so we certainly have e-commerce, the gift of reading, we have the gift of reading box which on sale now all the proceeds of that go back into our give back initiatives to enhance literacy. and in addition to that, we work in a very selective, integrative partnered way with brands and generally we speak to cmos and see how they're looking and trying to reach and which cultural conversations with women they want to be in and then we spend a lot of time building very integrated partnerships, so procter & gamble and they have a deep commitment to gender equity and we have been partnered with them around fair play, for example. buick who has installed a book club app and the whole vehicle fleet and they're supporting our authors by getting books heard and out in the buick fleet we love that that app was built by an all

female team as well at buick and many other examples of that where brands work with us to create experiences, content, that is additive and authentic and going to resonate with consumers. and, you know, they're the key streams on that. and as we build out reese's book club too, there is something -- books are at the center of lifestyle for women and very intimately and they're full of joy, they're the way women connect with each other and as we build up that community, we're really excited tokeep going there. >> reese, i'm curious, you know, some of us are old enough to remember other business models that attempted to highligh female stories and tailor their content to a female audience, like lifetime and we they didn't seem to have the breakthrough success that hello sunshine is obviously having i wonder what you think changed in hollywood between then an now. >> i certainly look at women who stood in the space and cut paths for us like oprah, ellen, and people

who build these very authentic relationships with consumers and audiences because they genuinely care about educating and entertaining women, and i think we're in a really interesting time in media where there is this confluence of social media and women having a voice and saying they want to see something different, plus the emergence of streaming platforms that has really widened the lanes for new filmmakers to come through and start telling their stories in their own words so we're seeing this need for content, so that we actually have room now. there was always room. but now it just feels like more of a real directive on the part of these streaming platforms to employ more diverse voices and i think that's why we're seeing a larger spectrum of the female experience in streaming product. >> now, you talked about a lot of the big stars you're working with and, of course, we just have

this big lawsuit, scarlett johansson against disney as you work with talent and work to secure deals with talent, how do you think about making sure that they feel like they're profiting in success >> i think one of the things that hello sunshine, reese and i and the team, were committed to not just what we do but how we do it. we're partnered with talent in the most incredible way. and, you know, i think of it as the power of female partnership, whether that's with carrie washington and our producing partners totally aligned, whether with the beautiful author from scratch and her sister who was a writer with us on little fires and i think reese has been incredible in not only setting the conditions for our company for our employees, in a way that says let's create conditions that we would have all liked to have worked in, over the last 15 to 20 years,

but that translates to taking them on set and, you know, i do think the way we partner is deeply integrated. it is very thoughtful. i think we're in the few things well business. and i think lauren who runs our scripted business would tell you the joy in her role is getting to work as well, with reese and all these inkrcredible people a that extends to amazing actresses with get to work with and it is show runners, directors, above and below the line talent. and we're really proud of not just what we're doing, but also how we're doing it. >> and, of course, reese, a final question to you, you started off as a movie star and the big question that industry now are the media giants much more focused on building their streaming services and on that streaming business than they are about the box office i wonder if you think the movie industry as we know it is over, where is the power shifting now in the industry? >> there is always the joy of

movies and sitting in a theater. that is a unique experience that we have to preserve and particularly for really exciting films that love that big screen experience, it is also important to see what the audience wants and i started noticing, you know, that women who were my audience, they have kids, they're taking care of elderly parents. it is not as easy for them to get to the theater it is wonderful to be able to provide premium content for them, where they are, whether it is at home, on their phones, connecting with friends or over a podcast, it is really -- it is a great new time for women's stories to be told >> and, of course, with your company under its new ownership, you'll be able to sell to all of those different streaming platforms as well as to the movies reese, sarah, thank you both so much for joining us to talk to us about this big deal for hello

sunshine >> thank you >> thanks. >> great stuff, julia. great answer from reese witherspoon. coming up on the show, marvel, a bill dollar acquisition. what it all means. that's up next [grunts] ♪ ♪ [grunts] pnc bank believes that if a pair of goggles can help your backhand get better... yeah! ...then your bank should help you budget even better. (laughing) virtual wallet® is so much more than a checking account. its low cash mode feature gives you at least 24 hours of extra time to help you avoid an overdraft fee. you see that? virtual wallet® with low cash mode from pnc bank. one way we're making a difference. (chimes)

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certainly in the cloud environment, there's such scale in terms of the computing being deployed and networking and storage, by the way, that the ability to differentiate on the semiconductors inside the cloud environment can provide a huge advantage to those companies in terms of the service they deliver. >> now, i love on the other hand, but that's "squawk box." if this were a news segment, maybe i told you so or we saw this coming. that was marvell tech ceo matt murphy in march when this hour was called "squawk alley" answering my question on opportunity in the cloud market and the groundswell of activity in that sector today, marvell pulls the trigger again announcing the acquisition of inovium

this deal gives marvell an innovator in the cloud ethernet switching market i don't think this is really just about consolidation and chips. it is bigger than that this is about tech m&a as a whole. the pandemic seems to have shifted the way companies think about competing in the recovery. the trends that took their businesses to new heights cure during the worst of covid probably aren't sustainable. take a look. what about square yesterday and their purchase of after pay instead of a crypto company or zoom's acquisition of 59, which is enterprise, instead of a consumer company both are aggressive in adding stable growing businesses and that seem to be how the pandemic plays expect to find their next leg of growth. and why this probably won't be the last major deal you see in tech m&a this summer one more note on this, marvell deal, they won't get accused of overpaying innovium is doing $150 million in sales the billion dollar number is only about 6.5 times revenue

marvell shares this morning, though, down fractionally, last time i looked, we'll see how they're able to integrate this they say that it is going to be immediately accretive. >> jon, yeah, capping off what we're already in the middle of a week of lots of m&a. keep your eye on shares of robinhood, up sharply this morning, 17% here, 43.94 is going to be well above the ipo price you recall of $38. a lot more "techcheck" straight ahead. don't go away. this past year has felt like a long, long norwegian winter. but eventually, with spring comes rebirth.

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best known as email newsletter platform that has taken on the likes of facebook and alphabet, letter platform taking on facebook and alphabet. announced a new podcasting product taking on spotify. substack has seen fast growth with the subscription model. and the ceo has some strong words for social media, quote. the ad pedaling model is costing us too much by being free. chris best, the ceo of substack joins us welcome back, chris. nice to have you >> nice to be here >> so the for book smart studioing you are getting into the podcasting landscape and paying a 6-figure advance. the advertising model let's the likes of spotify and apple pay talent and studios 7 plus

figures. how do you entice and retain talent and studios in that landscape? >> i think one of the things the substack model unlocks for writers and now for podcasters is at baier incentive structure that makes them accountable directly to their readers and listeners. and so knowing that they have the freedom to create their best work is really important for writers and podcasters and all of the other independent publishers helping shape our minds >> you're just at the start of this sort of building a podcast community. has that proved an interesting proposition for others how big do you plan on growing this >> we have seen remarkable success in podcasting so far it turns out the techniques that work for independent writers, the ability to connect directly with the audience over email, all of the tools that we have built for writers work really well for podcasting too. because it's the same kind of idea where i connect directly with someone who i am trusting

to help curate my world view and give me the information that i want in my head. and so it's really going well so far >> well, substacks -- i have looked at it haven't used the podcasting feature you have had in beta what have you learned about how doing it under the subscription model is different nan the mainstream advertising model. >> the subscription model is not just a ditch way to make money people think ads are one way and subscription is another way to make money but the truth of to it is the kind of work you create when you i -- you try and earn the trust of people paying for it is just qualitatively different and better than the kind of work you create when you try to get a million people to click on something, or a million people to listen to you selling mattresses or whatever you have to do. people know this and dislike

advertising and seen it as a necessary evil until now but if you can make a great business and create the great work without it, i think it's better for everyone. >> yeah, and chris, we have we have seen the resistance from the optout choices that users are increasing le making when it comes to new privly rules. >> nobody likes listening to ads on the podcast it's horrible >> could be. necessary evil depending on what you get. but, chris, >> unnecessary zbleevl chris will chart the new path >> thank you >> coming up, video game companies report this week and the stocks weaken. is this a buying opportunity that is next ♪ someone once told me, that i should get used to people staring. so i did.

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welcome back take 2 kicked off a busy week for video game earning, topping results despite expectations disappointing guidance they will delay the release of some titles without naming which ones active vision blizzard, shares fallen more than 15% engines july 1st facing pressure over workplace culture. this morning an announce mtd that allen barak is out following a employee walkout and sexual harassment suit and ea and zinga following on

wednesday and thursday, carl >> we'll watch that. and along with more news about vaccine or mask mandates microsoft now saying the earliest date for return of the u.s. work sites will be no earlier than october 4th as we keep our eye on the market action,s&p is about 25 points for the fresh high to the half. welcome to the "halftime report". frornt and center this hour, the state of stocks and why the view of your money may be dimming we'll debate that and what lies ahead for the markets with the committee. joining me for the hour stephanie link, josh brown, michael fav. pete norwegian, the co-founder of market rebellion.com. let's see where the trade is carl said it s&p only 20 points from a new high a gain of 0.5% the dow jones good for 175 hovering around the highs of the day just a bit off we are off the fourth negatives session in five for stocks michael, i thought it was interesting. you thought the market appearedi