♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. david faber is live at liberty media's investor day in new york a lot from david all morning long meantime, s&p going for nine gains in a row today longest win streak in 19 years to do it, bulls will have to navigate a 30-year bond auction. more fed speak, including powell, and a wave of media

consumer earnings. our road map is going to begin with that extended win for the s&p and nasdaq how long can that rally continue also ahead, disney is one of this morning's biggest gainers you're also going to hear from john malone, and what he has to say about disney and streaming and so many other topics it's our annual sitdown and exclusive interview with a man who's been at the center of media for 50 years, liberty media's chairman, john malone. meantime, let's begin with disney rising on that profit beat, the company also said it plans to increase its cost-cutting measures by an additional $2 billion to a target of $7.5 billion bob iger did join cnbc yesterday to talk about the quarter, including the company's growth in subs. >> we do expect subscriber growths to continue, but we're mostly focused on delivering profitability by the end of fiscal '24 we had a great quarter

that was really the result of great content >> jim, they keep that q4 '24 profitability target >> there have been a lot of good things here. there had been a feeling that a $5 billion takeout wasn't enough this is from the, let's call them, the peltz promoter faction. this is what's really important to me. the cash flow is so great, i'm now looking for a buyback, as soon as next year. a good dividend. i like what i hear these are surprising because they had the cash flow, i no longer think they have to do this strategic alliance i talked about yesterday with a gun to their head. i actually like, rather than just presume to be apple, i think amazon could be in play as someone who could be a partner for them so, i saw many things that are good david, you may think i'm too bullish, but i'm all in disney >> wow i'm trying to understand, though, what was it that gives you this confidence, jim

>> i believe in the cost cut i was very worried about cost cut, david and i think that there were a lot of people who felt that it just wasn't possible but when you have a combination of disney plus starting to get a lot of subs and the idea that maybe there were more -- there was more fat than we thought, i'm in now, david, earlier this week, i defended the disney position i had for my travel trust, and i needed this windfall, and i am calling it a windfall. i think it's precisely what mr. peltz thought could happen, and i think it's going to happen so, i like it, david i believe. i believe. >> yeah. yep. listen, there has been a lot of overhead there that others have pointed to when you compare disney's cost structure with some of its competitors, for example, jim there's never been a question as to whether there might be more to cut, and so i think coming into the quarter, there was at least a hope that the cost cuts would increase, and they have, obviously, to $7.5 billion now

and that's significant whether you can expect a buyback, you know, even next year, i mean, there's so much still to come. you've got, obviously, they had growth in subs, right? what was it, 7 million at disney plus that's good, but you want -- you know, you got to get to profitability. it does appear, though, that perhaps the biggest losses, i mean, for paramount, it was last year now for disney, it will either be this year or last year you know, they are -- and hbo max was profitable so, there is some light at the end of the tunnel for these streamers. >> you know, it's interesting you mention hbo max. i've been going over that, what was considered to be a terrible warner brothers, and i know where you are on warner bros. discovery but i looked at the cash flow, and i wonder if that stock is down too much and maybe there is not the trouble a lot of people seem to think when it comes to what david zaslav is

doing. i'm not as concerned >> you're not. there are people who took $500 million out of their numbers in part because of what they were saying and in terms of where they're not going to get in the leverage ratio by the end of next year i do think there are some questions in people this morning who are struggling to understand, because you had this pointing to the decline in advertising at warner bros. discovery. it didn't appear to be something, at least, that disney was as focused on, but it raised the question of the network business, the linear networks, and how bad things are it's no surprise to anybody that they're bad. bob iger made it very clear in our interview last july that it was even worse than he thought, and he thought it was going to be really bad. i think people are struggling to sort of understand that quarter, given the 17% decline in warner brothers shares that took place yesterday and the fact that it seems to differ a bit from what we saw from paramount and now from disney as well. >> $2 billion paydown in debt, i mean, carl, we're looking for

certain things from certain companies. i just care about the balance sheet for warner bros. discovery, and i was not let down but david's right. there was not as much that we thought. just so we know, disney, balance sheet such, we're not talking about that we're talking about just spewing cash they are very different animals. >> you made that pretty clear. entertainment revenue up two, parks up 13. iger did talk about too much quantity over quality in terms of focus on their ip the exhibiter business is going to get more attention because amc is down premarket. >> i go back to, what has nelson peltz talked about kind of a bloated disney it justice seemed as if maybe iger listened and recognized it's bloated and i thought our excellent interview yesterday, we did get the feeling that he has gotten religion about what needs to be done i don't know i liked it i liked it a lot i think it's a buy strong buy

>> do you think this keeps peltz at bay, jim? >> nothing -- nelson has great ideas, i'm reading a unilever piece about what nelson's doing on the unilever board. can he be more disruptive? i don't like that term i think he can be another set of eyeballs i don't see anything here that nelson doesn't want to be involved, but i do think nelson has to be happy with a couple more billion taken out, given the fact that what he was most concerned about was that they were never going to take the money out that they thought he could. maybe he's a happy warrior, not a warrior. >> not to mention, david, we do have the strike, ostensibly over with this new tentative. that's going to take at least one long-term risk off the table, perhaps >> without a doubt carl, there had been this concern that, obviously f , if e

didn't get there in this latest sort of back-and-forth, you might be looking at a significant impact into next year that appears not to be the case as we see they do reach that tentative agreement, dealing with some of these issues in terms of residuals for streaming, a.i., and how that's going to work as well. so, yeah, an important -- very important development, obviously. the hope is that they'll get back to spending more money on content, by the way, at the streamers. some of the free cash flow numbers were enhanced as a result of costs were a bit lower, given things were not actually being produced at the moment speaking of streamers, obvif course, it was a key component of my long conversation, as we do every year, with john malone. this year, i did take the opportunity to visit with mr. malone at liberty's headquarters in denver, so we could be together. we continued a conversation we have had for quite some time we have been talking about disney plus right here in terms of its subscriber growth the fact that iger believes that

will continue. but still, key questions, of course, about the long-term profitability of this business, what it's going to be looking like, and whether there needs to be some form, some form of consolidation amongst all of these streamers. take a listen to malone. >> all of these companies should be talking to each other about whether there are synergies, synergies in total combination, synergies in sharing content, si synergies in one-ha guy becominn output engine and the other guy being a platform i think we're in a period of rapid transition, and for survival, all of these guys who don't have it made need to become creative, and the only way you can be creative is to get ideas from your brethren >> you've talked about bundling the streamers, some sort of new -- one proposition to the

consumer is that -- could that really happen >> well, it could certainly happen if one of the streams was focused on one type of demographic and the other, another type of demographic. so, like, a disney plus together with max might be a pretty decent combination you might also see sports-related or focused bundles. david, your old buddy, zaslav, he's experimenting right now with putting a form of cnn on the max bundle, and he's also going to put some sports stuff and see what that does to churn, to consumer interest does it bring different -- >> does that upset the distributors or no >> i think the distributors are all in this world of, we'll get him when he renews, right? just like charter did with disney, which is, yeah, disney

can experiment and they can do this and that and the other thing, but when they had to come back to us for the vast bulk of their profitability, we're going to sit down and have a serious discussion about the future. and i thought both sides handled themselves with great dignity in that they didn't go out and say the other guy was a jerk they negotiated. they were trying to get the other side to understand it from their point of view. here's how we look at it and i think they ended up with a good solution, which i think will be the model now for some of these old media streams >> malone obviously talking about that agreement between disney and charter we're going to have an opportunity, by the way, to speak with chris winfrey, the ceo of charter i'm sure we'll talk about that disney agreement, guys but jim, when it comes to this world that we have been talking

about for quite some time that has consumed, what, $11 billion of disney's capital so far, it's still far from clear to the profitability of many of these streaming services, even as they do inch into the black obviously, other than one name that we all know very well, netflix. >> absolutely. disney did make the point that fourth quarter, they kind of pushed it out in some way, '24 is when it would be doable now, david, i was thinking, when i listened to mr. malone, and i was not thinking about your buddy, david zaslav in this, but do you remember that in 2022, the justice department sued to block a deal where randomhouse would have bought simon & schuster because they felt it would hurt the ability of writers to be able to bounce off these publishers to get the best deal when i listened to mr. malone, and i look at the meddlesome nature of the ftc and justice department, i wonder if they say, listen, you can do these combinations, but that would stop writers from being able to

make as much money that is what the justice department cares about i'm not sure you could even do what he was talking about. >> you know, listen, there are a lot of things you can talk about, but you always have to think about regulation, and we get into it, and i think we will share later in the morning some of our back-and-forth around the big tech platforms and how they, you know, in malone's opinion, need to be more highly regulated, perhaps, or at least in some way curbed because they are the true threat. not everybody competing down here with each other, but when you deal with apple, amazon, you're talking about multitrillion dollar companies you don't really have a chance >> he's got a great point, especially because they have balance sheets that are different from david's buddy >> yeah. >> that zaslav, just so you know who the buddy is s&p is riding its longest win streak in a couple years, going for nine straight days today. if we get ten straight days, got

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futures are on the move higher once again. s&p continues to ride this rally, going for nine straight days of gains. it would be the longest since '04. but jim, you mentioned, we got past the ten-year auction. >> doesn't matter.

i don't like the set-up. the reason i don't like the set-up is because we've come in every day, and the futures have been very tepid, sometimes looking down i'm watching frank holland's excellent show but interest rates have been tame today, rates are actually going the wrong direction. rates are going higher one of the backbones of this whole thesis is you can pay higher and higher multiple for some of the high-growth stocks we lose the bonds, we have the futures up that's exactly the opposite and worst set-up we have had during this whole streak, so i don't like what i see, and i think we could go the other way >> i was struck by the commentary out of the street yesterday. i mean, goldman, "the hard part is over. ubs, "another roaring '20s for the u.s.?" >> just revolting. where were you guys at the bottom we have had ten days of gains. look, i like november. i think it's good. one of the things that's great about november is that interest rates have been tamed. if you lose interest rates, even for a couple days, you're going to have profit taking, so the

futures is as fatuous as those comments you just read it's never this easy and i really want people to know that this whole rally has been marginally about earnings and much more about rates, and you just don't want to -- you want rates to be tame you don't want them to be competition. today, they're competition >> speaking of earnings, we got 90% of q3 in, beating by 5.7%, which would be the best in about seven quarters i mean, the idea that aerearnins have been okay -- >> i think earnings have been okay, other than oil the street got it down let's use a paradigm so people get it there are two people who say that target should be bought today, why because brian cornell derisked it >> evercore does a tactical outperform >> i've got it in front of me, and i really liked it, and it says, it's down and up that's an idea i like. but you get these kind of ideas because we knew -- it's like we

can't keep rolling walmart we can't keep saying good things about costco we can't keep saying good things about tjx. people are trying to find new things to recommend where the estimates very cut or derisked, but that, again, is not what i want to see. i would prefer to note -- another note on costco, because i don't think costco is that expensive. but yeah, you want to do target? go ahead but that's not -- i want high quality, and i don't want to see interest rates where they are, and the futures should be down, not up that's the kind of moronic thing. they want us to notice it and say, oh, it looks good today >> we will see there's a lot of wood to chop before now and the close we'll get cramer's "mad dash," countdown to the opening bell. take a look at the premarket here still a bunch of nes tgeamo t to after a short break.

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let's get cramer's "mad dash" as we count down to the opening bell >> there's a ton of news about nvidia and where their chips are going and whether they have a new chinese chip i would prefer to go back to a conference call which was much dismissed and derided, which was oracle it was a disaster for oracle my travel trust bought it all the way down we now know that there's such a shortage of nvidia chips that oracle is actually making a deal with microsoft azure to be able to provide more compute power, because larry ellison had mentioned on the last conference call, bought a ton of -- when they were cheaper -- of these key nvidia chips so, now, it turns out that they are going to get a lot of business in this partnership, simply because microsoft can't get all they want. let's extrapolate further.

we know that china was not able to get certain kinds of chips. that looks like that may have been a windfall for nvidia they sold the chips to china for a lower price. now, there's flowback because the government blocked it. given the fact that we now know that microsoft is actually renting the oracle cloud, we have to presume that nvidia's marking up those chips real well good news, nvidia, which is one of the reasons why it's running. good news, oracle. >> so, you would take your numbers up nvidia? >> yes >> are you worried about these reported new designs for china >> you know, i'm trying to confirm it this is the kind of thing we used to run into trouble with apple. the organization, the news outlet that talked about this, is one that i do not know, and i'm trying to get it confirmed from nvidia. what does matter to me, though, is there's clearly a shortage of nvidia chips, and it's so bad that microsoft has to contract with larry ellison, who bought so many of the chips so, that is a sign that oracle may not be as bad as people think.

>> we'll get to arm as well, and your interview last night. >> i got a lot on that one >> we'll get that after a break. don't forget opening bell is coming up in about six minutes and you can catch us any time, anywhere. all you got to do is listen to re: eng lln e "squawk oth stetopinbe" podcast. alright! tiny, branch, poppy... on another musical adventure. ♪ you're all i ever wanted ♪ i can't believe this is really happening. ♪ you're all i ever needed ♪ looks like your band days aren't behind you. grrr.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. nvidia is a great partner, and yes, i spent a lot of years there. jensen is a great friend, mentor, and boss we do a lot of work with nvidia, and i think one of the better examples in terms of how we work together and why we're a great partner for them is their next generation chip, called grace hopper, their super chip for a.i. training takes a tremendous amount of compute power, which the gpu is very good for >> that's arm's chief, rene haas with jim last night following the company's first report since going public in september. down $6 premarket. i guess it's on the guide? >> yes, it's on the guide. jpmorgan saying the right thing, being, i think, positive red bird atlantic, an outfit i don't follow that closely, talking about not an ideal start

and a miss there is absolutely a belief off the desk that they blew it, that they really didn't have -- the next quarter is not going to be good, that there's real problems i think this is a wrong narrative. i think there's a misunderstanding about what happens when you license and then when you get royalties. the royalties are in the back end. they tried very hard to explain it they did use the term, super cycle, which i think is the kiss of death we had a coal super cycle. drop the super cycle from the narrative. you don't need to talk about that, but you do need to explain that it's lumpy for now because a lot of it is cell phone, and they can't talk about the fact that it's apple who's the customer they should have focused more on the pc, and they definitely are right to focus on the fact that they're partners with nvidia for grace hopper, which is the most powerful single combination in the world right now when it comes to burning not that hot artificial intelligence. >> royalty revenue down five was

the miss to jim's point about the super cycle, rene talked about that as well here's what he said. >> i think we're into a refresh cycle for pcs and phones, but candidly, jimm, i think for all cl devices, our quarter was so strong, and what we're seeing now is really a super cycle of investment where today's compute requirements are greater than what the capabilities of the chips have, so what does that mean we're nowhere near good enough, so people are investing in more and more chips, more and more compute, which is good for arm >> right, look, arm is going to be everywhere, and i think that arm's partnership with nvidia makes it so you have to have a cpu and a gpu. they could have used other people remember, there was a moment when nvidia was trying to buy one. now, i'm not being critical about the notion that there could be a huge amount of business i just think when you say super

cycle, and then you give that guidance, it's considered hubris, and yet rene does not have hubris. he's a humble person and also a raider fan, which is just unfathomable >> let's see how it does today get the opening bell here in the cnbc realtime exchange at the big board, it is timberland company weyerhaeuser and at the nasdaq, bang & olufsen. no question disney is going to be the standout on the dow at the open >> yeah. as we've seen the shares looking up about 4%, we're seeing overall some positive tone to that sort of group that we have been talking about a lot the last couple of days, given warner bros. discovery's numbers yesterday brought down the likes of paramount and our parent company, comcast, all of which are up today but disney, in fact, quite strong you know, jim, just to come back to arm for a minute, and that 6%

decline, it's the range -- it's the wide range of the guide, isn't it, that seemed to freak people out a little bit. is that fair to say? >> yeah, 27, 21. i want people to understand, i like arm, but when you do that kind of guide, what you say is, well, maybe there's some sort of shortfall lurking. i thought that was a mistake i think they wouldn't have been that underpromise, overdeliver what they should have spent much more time talking about is not this quarter that is in but the next quarter, because i think that's the beginning of the better you're right, david. the guide was such that when i saw it, my jaw dropped i said, oh, geez, i'm just going to have to just soft pedal this because i don't think it's that bad. but a lot of other people just felt aggrieved that right out of the gate, they felt this should have been a better, more upside, and david, i've got to tell you, i wish there had been too, but i think there will be, and i think that's what's more important >> got it.

carl, we continue to see some strength in mega cap today, not a lot, and i would note shares of microsoft have started the session lower, but the move in that stock has been nothing short of extraordinary as it distinguishes itself as perhaps being the leader, so to speak, over alphabet or even meta, although we all know that they are going to be competing rigorously with all sorts of products yet to come jim, microsoft has added just a prodigious amount of market cap since those earnings >> yeah, look, i think that what's happened with microsoft is that you go back to amy hood, who's the excellent cfo, she had been dropping bomb after bomb for the last few quarters when she started saying, listen, don't get ahead of yourself. that was the opposite this time. and david, this kit lab, copilot and the regular copilot that went on sale november 1, i think people are starting to realize these are actual profits, very big profits, for microsoft, so microsoft has to be added into the mix with service now and

adobe, of course nvidia, making money right now, david, that could be additive this quarter where numbers are 2-0. the estimates are too low for microsoft. that's what i think is happening. >> it's that small group, though, jim, of those companies that right now are going to be beneficiaries with certain products for generative a.i. obviously, nvidia being sort of the backbone behind so much of it amd hoping to play arm talking about grace hopper but the other companies, you know, jim, it's all on the come still. they have to talk about it, but there isn't yet something there. >> i agree every night, there's one that talks about it that you thought, well, okay, maybe they're real twillio last night, jeff lawson talking about how a.i. mixed with their messages is very, very real. i agree with you, david, when you start hearing about companies that have a lot of business and therefore have a lot of data and then say that a.i. is real, these are the ones -- i mean, carl, i think these are the ones where you

just say, wait a second. is it a.i. and inference, meaning, you can figure out if you bought this, you'll buy that, or is it people just saying, look at that trend let's run some a.i or is it what i have been using it for which is to summarize research reports give me five key points, and it's real good at that >> yeah. or as catsenberg said, it's going to change the way animated films are done the implications are huge and broad. >> you get more time in your life if you say, listen, i just got a 42-page report on coinbase, give me the salient points, please >> lot of sales in health care lilly, of course, fda news yesterday. azn saying they're working on next-gen oral weight loss. >> so am i i'm working on one where it shoots around the corner i thought that was outrageous. don't talk about two years from now. talk about what david ricks has accomplished talk about the fact that he has actually lowered the price this is on eli lilly's offering, because i just think that what

people must recognize is that's the winner oh, man. i called him today -- i'm trying to book that >> you cannot win them all you can't. >> that's how i feel almost every day when you book somebody on "mad money" or sara every day. that's the face i feel >> david, i was this close i was this close to nailing that one. david has done a remarkable job. >> you're going to get him >> yeah. i think that they lowered the price. some people saying, well, that's good for wegovy. those people know nothing. what matters is that you're going to get a readout about heart and heart attack this weekend, which is going to make every single one of these health insurers say, way, 660,000 people die of heart attacks, we're going let people have this, and we're going to choose lilly's because it's cheaper that's the way it's going to go.

>> wow a ton of retail news >> that's the key, jim just to put a fine point on that, jim, that's it not that you need me to tell you, but that's what everybody's talking about, the health insurers and heart and if they get the results they need, let's just repeat it again, then who knows? it's another leg, i suppose. >> yes >> because it will be covered. >> that's before we start talking about sleep apnea and start talking about stroke and a bunch of others and heavy drinking david, what i think is really important, and i know you're going to make fun of me, and i actually don't care, like sam gerard, yes, indeed, in "the fugitive." you can't get the lilly. there is an outfit in massachusetts that has some. it's that kind of thing. in the truck >> a.i. chips and glp-1s >> yes the truck, wegovy. >> let's hope that doesn't come around >> i know a guy up in massachusetts. he's got some wegovy yeah yeah, you know, go find him.

>> you know the guy. i'm sure that david ricks, who was mistakenly booked on the 4:00 -- just kidding, i'm going to watch the 4:00, but david's got to talk about the second factory in north carolina, the stealth, the skunkwork factory in north carolina that apparently has a lot the stock is down. that's okay. people really do believe that if you charge more, you get more business i've never learned that, david that's not been the way i've done business. let's charge more, rip people off, and you know what we'll getthe business. go ahead, david. tell me something. tell me something good tell me something sweet. >> all right, i will i'll tell you that shares of disney are up almost 6% this morning, and obviously, jim, you were quite enthusiastic. it's a good time to talk disney, and actually, it kind of worked out well in terms of what malone and i talked about as well, because we spent a good amount of time talking about the future of espn and what is going to happen to the bundle in terms of, as they go to, potentially,

a streaming service for espn and any number of other things that kind of involve disney. take a listen. >> espn. >> yeah. >> which we have talked about and you have talked about for many years in terms of the cost of the bundle and what it did to it sports rights, we've discussed what do you think happens to espn >> one of two things happens disney gets bought and espn gets sold to private equity, which i have been predicting for ten years. >> who buys disney >> apple >> i don't think apple does it john, they don't do deals. you know that. you went out and met with cook, i know you did, and he didn't even know what you were coming to talk to him about >> i've been talking to tim cook about this for ten years >> and he's not listening. >> he always asks me the same question, john, what would i do with espn? and i say, you sell it to private equity >> is he interested? >> i say this a little tongue-in-cheek. if there were no antitrust issues and so on -- don't forget, he was on iger's board

and iger was on his board. >> apple's biggest deal is a $3 billion deal to buy beats they just don't do it. >> i understand. that said, what happens to espn, very similar to what happened to disney plus. when they start streaming it, the streaming version with ads will be part of the cable bundle and it will be like no difference you could go buy this stream of espn if you want, or you can just continue to receive it as part of your bundle. and you know, why would you pay for it twice that's going to be the theory. and so, to me, when i saw that solution, i said, yeah, this is rational these guys are going to have businesses that will transition slowly to the future instead of this being some kind of an

abrupt break, and that was what i was afraid of. an abrupt break. because it would get to the point where, you know, the cable guys are saying, we don't get any margin out of this it's a terrible business it has too much capital. to hell with it, we'll go out of it and there have been cable companies in the u.s. that have done that, and they're -- their multiple has gone up at least for a while >> right >> i thought that was a terrible outcome. i would much rather see the cable -- the broadband companies be distributors of streams in bundles, in packages, whatever, because the two are kind of tied to the hip, and you know, if old media goes down, it isn't going to be good for the cable guys to only deal with big tech. >> you think espn finds a

strategic partner of some kind >> i don't know if they have to. i mean, the problem they face is escalating sports rights costs >> which we've discussed in competing against -- >> and then competing incrementally as renewals come up with big tech i still think it remains to be seen if big tech ultimately decides that this sports game is profitable you know, my experience has been, you know, maybe 20, 30% of households are sports fanatics and if all you've got is, you know, thursday night football is going to work for amazon because they can say it works. how do you know if adding it to prime and raising the prime price was because of thursday night football or just because they have pricing power? you don't know

and so, whatever happens there but my suspicion is that google, youtube, is going to have a big loss on out-of-market football they pay too much. and i think they're going to discover that they pay too much. you know >> do they care? >> eventually, they do yeah eventually, you know, the accountants catch up with divisions that lose money. >> the accountants catch up with the divisions that lose money. by the way, 8:00 tonight, we're going to air the -- much of the interview in a special primetime, because there's just so much to go over with malone, and you know what, jim i haven't done the math. others have. i don't know exactly their methodology, but apparently if you spend a dollar on tci in 1973, it's worth $3,750 today. >> it was the most heavily

recommended stock when i was at goldman. absolutely the '80s >> he's created an enormous amount of value. >> he's so smart i mean, you know, david, i was trying to go over the google, what they're going to make on football, and i concluded, maybe they're going to lose money, but i thought it was impossible. the only people that said they were really happy with the football was the nfl because they paid $2 billion he's on to something i think amazon, they absolutely love sports, and they know how to do it i agree with you that apple doesn't buy, but i also think when you look at division pro, it is so important to get content, because when you're in the vision pro, it's almost like those $30,000 tickets, david, that you need, courtside, to watch the knicks lose to the sixers >> i know. so, you're still a believer that something, back to disney here, will happen -- >> i'm not a believer. i'm a knower i'm not a believer i'm a knower the vision pro is that important. espn and vision pro, made in

heaven lie down and watch the game while you're watching taylor swift to the right, and you know what you got everything you need in all of life, except for pink, but she's coming, and i can't get tickets. >> you've been saying this for a while. >> yes, and i'm right. >> we're going to find out meantime, it's not too late to get in on today's cnbc your money virtual event featuring jim and a bunch of financial experts. you can scan the qr code or just visit cnbc events.com/yourmoney. we've mentioned the 30-year bond auction. fed balance sheet this afternoon. we've got bostic, barkin, powell this afternoon as well, along with bailey, lagarde, imf conference ten-year, 4.54%.

welcome back to "squawk on the street." you're choking me up, greg see that we're live from liberty media investors day, and liberty media

ceo joins me good to have you again, an annual -- i wouldn't miss it. >> how many years? >> i don't know. it's got to be at least ten. maybe more >> this is my 17th >> wow for me, at least ten and i'm always happy to talk to you. let's talk formula one first, because you got a big race in vegas coming up next week. >> we do >> on the earnings call, very recently, you said, it's going to be a bigger spectacle, more impactful than we had anticipated. you also talked about initial start-up costs, and i did get a couple of questions, greg, from investors sort of saying, okay, you're spending, but the free cash flow could be quite high going forward from vegas is that true >> yes i think there are a couple things to think about. on the initial cost, we've got an opening ceremony that's grand. won't have that in future years. we had a bunch of initial start-up costs around security, around temporary bridges, around optimizing the fan experience in a hurry that other time we're going to be optimized for the

quality of the fan experience but also improved profitability. but the impact, not just of the race, but what it will do to our interest among sponsors, what it will do to our interest among fans, we think that is going to be enduring from this year forward. >> and therefore, perhaps, the possibility of generating a good amount of free cash flow in the future, which you do what with >> well, i think we look for ways to invest both in ourselves. we had a lot of capex related to this we may see other opportunities we bought quint, which is a business we think will help us reach our fans, providing premium hospitality experience and the like around formula one. but also, we can look forward to repurchase stock or do the like. we continue to also look at other ip opportunities what i talked about here is we are investors in premium ip. the atlanta braves, formula one, are all great examples, but we could find others. we continue to look. >> would the pga be something that was included in that? >> i think the pga is definitely premium ip >> you do? does that imply that you guys

are looking at it as a possibility, along with what i know are a number of other groups that are at least knocking on the door there, given the potential transaction with liv >> can't comment on that, but i believe the pga is premium ip. >> got it. back to formula one, before we move on. tv contracts you got a lot of questions tv ca lot of questions about that on the call, keeping them short term why do you think that's beneficial to not sign a longer deal >> where we've seen a stable market and attractive partner, for example, in the uk we've done a longer deal and certain markets, but where we see the growth, experience in the u.s. and the opportunity, we think will be able to capitalize on that relatively and the next tv contract and broadcast contract, whatever form it takes, will be better because of the growth we've had. >> move on quickly to sirius you probably won't have much to say. timing wise in terms of the collapse of the structure and where we stand right now, there were some who thought we would

get an announcement today. didn't happen. can you give us any updates? >> we made an offer. we've had dialog, and i'm afraid that's all i can say. >> that's it any expectation in terms of when you would like a comment. >> can't say that. >> you have gotten so displipds through the years. >> you learn, slowly. >> what's happened >> all right let's talk braves. you mentioned them sorry that the playoffs didn't go well after 104-win season we know what it's like as mets fans, 101 wins a year ago. what an incredible team you have there. >> it's an offensive powerhouse. >> why did you sell 1.8 million shares recently? >> well, we originally had an exchangeable debt that was done at liberty level when we split into different tracking stocks, and that debt ended up over at liberty, there was elements to remain hedged effectively, liberty wept out and bought

braves stock when we spun the company that no longer became relevant and they no longer had to worry about exposure to the braves we only sold off the shares that were underlying that exchangeable and were no longer relevant. >> last time i had you on, i asked a question, there does seem to be a lot of expectation at some point the braves and, obviously, the entire property and everything else may be sold. is that a fair expectation >> we have no plan or intent to do that. we created optionality by creating a separate asset-backed security, but we have nothing to announce about that. >> at all? >> we've been owners for 16 years. >> there may be a lot of embedded value there not sure how you do a tax-free transaction seeing as guys like to pay cash for these assets >> having done the spin, we would be tax-free at the corporate level for any transaction that occurs in the future that optionality is positive. >> you talked about a pivot to live a number of years ago

live nation is an example. you got out a lot of linear cable networks and we've been seeing continued pain there. >> we have tried in these things, our investor days, to outline some of our views of the world. we talked about what we thought was excess competition in video streaming and why we thought the year had more upside we talked about the power of live and tend to move on that. we got out of directv and starz and invested in siri and a lot of live events, the braves, formula 1, live nation, all of which have been capitalizing on people's interest in live. we had challenges like many during covid but come out the other side you strong with that interest. >> you have insight into different parts of the economy how would you characterize things >> i think there's nervousness we've seen strong demand at the higher end consumer, whether it be for ticketing and concerts or whether it be going to braves games or formula 1, but i think

you see nervousness. as you go down the income levels you see more challenges and some of other businesses which cater less to the optional dollar, that higher-end consumer, feel a little challenged. >> you expect that to continue >> yeah. i think, you know, we are probably in higher interest rate for longer period. i think that's right particularly given the amount of government debt we continue to produce. $2 trillion deficit is not a positive i worry about that i. >> back to the idea of live. you keep an eye on so many things endeavor potentially may be taken private, maybe or maybe not, own 51% position in tko, which is live. i'm cusses you whether you think -- curious whether you think there's value there. >> endeavor owns a host of properties it did not trade particularly

well silver lake is trying to take advantage of the discount to their credit. >> yeah. tko attractive to you at all from a - >> i think tko is an interesting property and i don't see them releasing tko. >> no. i could imagine that as well we will have be a opportunity to talk to chris winfrey about charter. fixed wireless, want to weigh in on that? is that a real thing in terms of competing with broadband >> for some consumer set fixed wireless is attractive it has expanded the market to new areas, but also been the case, there's substitution at the bottom i don't think over the long term, that is as much of a threat as some perceive because of capacity issues from some of the carriers, also because of demands. i know you spoke to john, our chairman, john malone. and he clearly points this out if you look at how we're going to increasingly distribute video content with streaming it, it's going to put massive pressure on these fixed wireless assets.

our friends at amazon, who run thursday night football, are consuming something with 40 million streams, something like 25% of all the bandwidth in the united states during thursday night football as you see more events be streamed you will put more pressure on these networks and i don't think fwa will handle it. >> they don't pay anything for that. >> that's net neutrality, i would argue is a travesty. >> yeah. >> why shouldn't amazon be paying for all that? >> that's a good point something malone and i did talk about as well. always appreciate taking time with you. >> thank you, david. >> glad to have you here. >> greg maffei ceo of liberty. >> formula 1, next thursday don't miss sara eisen's documentary "inside track the business of formula 1" premiers on cnbc at 8:00 p.m. eastern time next thursday. >> i will have sara on "mad money. i'm excited. it's what everybody talks about. the sport people want other than global football.

tonight by the way, i just heard maffei say there's issues what did endeavor do. endeavor cited positively in the take two conference call i have stras on tonight. stras has been trying to crack into skinga handheld mobile, says they have something very good we'll talk to strauss about that. >> look forward to that. lot of names you will have on tonight. >> fantastic. >> get to the market dow goes red down 19. energy and industrials leading oil is back to 76. consumer and health care ggg. vibew 15 don't go anywhere.

♪ (captivating music) ♪ (♪♪) the first law of thermodynamics states that energy cannot be created or destroyed. (♪♪) but it can be passed on to the next generation.

(♪♪) good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with leslie picker at the new york stock exchange david faber live at liberty media investor day sara eisen is on assignment. market trying to reclaim early losses after the bell. s&p trying to get nine straight wins that would be the longest streak since '04. watch the sectors being led by energy and industrials

as for trooursz busy day, fed speak, continuing claims did come in at the highest since april. >> 30 minutes into the trading session, here are three movers we're watching disney is one of them, but chipmaker arm and delivery company instacart reporting their first results. arm revenue beat, guidance short of expectations, while instacart reported a $2 billion loss for the quarter. amc entertainment slumping shares higher after the company reported results but now down about 13.5% after filing to sell more stock mgm the latest casino name to report a rebound beating estimates thanks strong demand in china saying they are near a deal with workers who could begin striking as early as tomorrow the shares up 0.9%. moving to disney, shares rising here. best dow component on the profit beat, expanded cost cutting program, narrowing streaming losses, back to 90 bob iger did join "closing bell:

overtime" to break down the numbers. take a listen. >> we do expect subscriber growth to continue, but we're focused on delivering profitability by fiscal '24. we had a great quarter adding 7 million core disney plus subs. that was the result of great content. >> let's bring in michael nathanson, senior analyst, has a buy on disney, price target of 115. great to see you what a move from 80 to 90 in three weeks. >> yeah. we'll take it, carl. it's been a struggle since we upgraded the stock a year ago. >> what was your take? is it about the sub growth, the cost cutting i guess some argued on the margin, iger being marlginally interested in not unloading assets, as it was in july? >> i think it came down to the idea -- zaslav said -- cost of control. the company felt it was out of

control financially. they were spending on content, there was to return on invest to capital and felt like for the first time the company was speaking to financial framework that the street wanted to hear, right, about cash flow down the road, cost cutting that's above estimates. it feels like disney is back to being under control and i think they can focus on growing again. it's been a struggle, like the chapek to iger handoff was bumpy and finally they have the memo to spend less and drive better returns for the spending. >> it's david. you know some people seem to be struggling with understanding warner brothers discovery, the response in the market yesterday to what was, obviously, a disappointing prediction on their leverage ratio, and the likes of paramount a couple weeks ago and specifically disney can you explain sort of aren't they all suffering linear

networks declining at a rapid rate why did warner brothers discovery get things tougher than disney? >> it's funny. last night i went and checked some math. 35% or so of wbd's ebitda comes from linear networks 75% of disney's ebitda comes from parks the problem is the overexposure to linear and they don't have enough offsetting assets to slow that decline, right. they've done a great job of cost cutting. for disney, linear networks are such a small piece of the company's pie, that if parks can turn and you get an improvement of profitability in streaming can offset the linear fall i think it's about asset mix therefore, paramount, their balance sheet is so stretched, that they have linear exposure and they don't have anything else there in the hierarchy of problems, disney with parks is great

wbd at least has warner and hbo. and a balance sheet getting better and to us paramount has a sell on for us, it's the wrong place, wrong time, wrong balance sheet. >> yeah. back to disney itself, michael -- >> [ inaudible ]. >> thank you for putting it in perspective. disney and the cost cutting, which they increased significantly, is that a number that makes sense to you? is there more there, perhaps, that they could cut? >> there should be more. here's why they got to consolidate hulu and disney plus. they're not talking about cost savings through consolidation. it could be a billion to $2 billion. i don't think they want to talk about it because they want to get hulu if the deal closes. we see cost cutting. li linear network, business is falling. everyone has taken cost out more aggressively and sooner. i think you've got cost cuts coming more on hulu integration

and then someone maybe the new cfo will look at linear networks and say we have to cut more. i think we have a very low bar to get over for kind of operating efficiencies as the year goes further, '24, there's opportunity for more cost cuts. that's what gets stuff excited >> to that point, michael, you say the things that iger was brought on to fix seems on the cusp of getting fixed. i'm curious what that means for nelson peltz, which is he's an activist in the stock. julia asked bob iger yesterday in the interview kind of where things stood with nelson peltz, and he kind of said we've talked and not sure what he wants is there anything that at this point you think he should be asking for >> what he would say is, look, you brought in a new cfo from pepsi, who is going to be aggressive that's a well run company. disney has a transition. that's upside. cost cuts and slowing spend, maybe there will be asset sales

there. i'm not really sure the market would pay off right now for any assets disney wants to sell. if i'm nelson peltz, i'm like they're doing what i want them to do and i sit back and say we're getting closer to what i want, which is a more efficient disney, higher profitability, better cash flow the stock is still too cheap let's give them a year and see what new cfo can do. that is a huge upside surprise it is. >> maybe next time, michael, we'll talk buyback dividend, a case cramer made this morning on our air. that's for next time thanks michael. >> thanks, carl. want to stay on media and move a bit, though, in terms of subject matter of course back to my interview with john malone, chairman of liberty media, somebody central in the media business for the last 50 years. you know, in fact, just speaking about this with greg maffei, the ceo of liberty, in terms of the big tech companies and in

particular amazon, how much capacity they use up when they are streaming something like thursday night football. as you might imagine, mr. malone had a view on this in terms of sports and in terms of the competition from these largest companies in the world, apple, amazon, and alphabet, and what that means for the streamers take a listen. >> the anomaly is network neutrality, the government policy, creates this crazy world in which amazon can buy thursday night football for multiples of what the industry has been paying, and for the distributors like charter or comcast, instead of it being one linear channel which consumes -- which is everywhere and consumes, perhaps, 0.01 of the network,

suddenly it becomes 30 million streams on thursday night, essentially choking the networks with -- and forcing the distribution companies to spend a lot of money on expanding capacity rapidly, and yet it costs amazon nothing for the transport. so what we've created here is an open path for big tech to essentially decimate, let's call it. >> interesting perspectivether from malone. you also heard it from maffei talking about net neutrality and the impact that it's having on their business in terms of the ability of the massive tech platforms to pay whatever they want for sports rights and then those who distribute it are actually bearing a lot of the costs. we'll have more from my interview with john malone

we'll have it later this hour and tonight, 8:00 p.m., full interview available. it's a special report. i didn't know we were calling it "leaders." i like that. i had a show about 20 years ago called "leaders". >> was that before or after -- >> i thought it died. >> strategy session, the list, your filmography goes on and on. >> it was after "bull session" before "strategy session." yeah it was prime time. >> well, to malone's point about how media evolves so do we we look forward to that tonight. david faber with "leaders. as we go to break, the road map including more on david's deep dive with malone and why streaming is not working for most players trying it. plus the ceo of charter will join us in an exclusive you do not want to miss later this hour. after the break the road ahead with the ceo of lyft as

shares fall de -- piece might decent results

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. lyft shares hugging the flat line after missing on q3 booking giving softer than expected guidance on q4 bookings as well. let's bring in deirdre bosa with a special guest on this. hey. >> good morning, carl. thank you. that's right we have lyft ceo david risher with us. david, stock just briefly turned positive, so a bit of turnaround fort after-hours overnight i mean, really since you became ceo earlier this year you have

began to price more aggressively, and that has helped you guys recoup some market share against your rival uber can you continue to price that aggressively how do you balance that with profitability? >> good morning. great to see you again so look, it's a growth story right now and you mentioned one way that we're growing is because we're pricing in line with the market, which is wonderful and makes a lot of sense, our riders like it a lot, and we've grown three consecutive quarters up 10%, up 17%, now up 20% and we'll grow a little bit more next quarter our big focus is on obsessing over customers that's our focus we think we can do it profitably and grow and excited about what the future holds. >> is this as good as it gets? when i look at gross bookings, a metric you reintroduced, it shows that you're growing gross bookings 15% versus 31% at uber.

can you increase that growth >> we can continue to grow faster it's a little apples to oranges. they operate outside the united states and also include food delivering and so on and so forth. the focus is on our riders and drivers, and so just as an example today we introduced a feature that's meant to kind of reduce holiday stress. i don't know if you get stressed around holiday travel, but i do. now if we pick you up late for a scheduled ride, we will give you up to $50 back in lyft cash and more than that if you end up taking uber to the airport we'll reimburse you. we're focused on doing the right things for our customers and we know that customer drives profitable growth. that's our focus. >> how does that factor into the bottom line? let's talk about gap profitability, the holy grail. your rival has achieved two straight quarters of net income.

you've narrowed your net losses significantly. do you anticipate getting there and when >> so, i won't talk about the when, but i will say yes, we anticipate getting there there's really no question in my mind look, maybe this is what ceos always say, but if you run a business well and you run it with customers in mind, and you're disciplined about controlling your costs -- and we have been -- and you're disciplined working your margin -- we are -- over time money tends to come. that's what we're seeing we're closer now than ever i don't want to give guidance that gets out ahead of our skis, but the bottom line, this is a volume business and the more volume we can drive, the more features we can introduce, like women plus connect, that helps women riders and drivers connect, airport scheduled rides we can make better, mort riders and drivers choose us and the bigger we get and the more profitable we get. >> that's some of the product enhancements your new cfo talked about. cost structure is only part of the margin expansion equation.

i got to ask you about a risk that may be further away, but it's a big one, and i think bernstein called it existential, robotaxis. i took a few over the last few months and they bypass any ride sharing platform and built their own. how much time do you spend thinking about that, if any at all? >> yeah. so autonomous vehicles are important. they're also long term let's be clear this has been in the future for a while and continues to be, the right. you can see with cruise some of the changes they're going through, without being able to operate without a driver now it's a two step forward, one step back thing. in the long term, robotaxis an autonomous vehicles will be part of our mix, right. some riders will want it they will be able to hail them through the lyft app that means we'll partner with the organizationes that are building them. we think their best move is to focus on building the technology, which is very

expensive and very, very complicated to get right, and we're in great position to operate them that's what we'll do they'll be part of our network, just like other things. >> okay. >> and great - >> i will say the experiences i've had, they built that platform as well, the operating platform but i know you've had partnerships in the past as well as uber. finally, david, one more question from me, you said earlier this year that you were open to offers have you received any interest, and would you and the founders who i believe still have control of the company, be any more open to it than you were a few months saying in. >> know what, i appreciate the consistency of the question, you ask it every time we get together and my answer is consistent we'll always answer the phone, but it's not our focus there's so much opportunity here for growth and profitable growth and we're closer than we've ever been in a sense and so much opportunity in the future. not really our focus. >> as we've been talking your stock has been rising. it's up about 1.5% david risher as always, a

pleasure to chat. >> maybe it's been a fun interview, people are watching. >> got to be it. >> back over to you guys. >> i would agree with the market there. great interview, deirdre and david. thank you. as we head to break, check out the move on medical products maker beckton dickinson, disappointing guidance sending shares slumping now. more on toy'otr vedas hemors next we're back in two. o have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's yours free, just for calling the number on your screen. and when you call, a knowledgeable, licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the call is free, and there's no obligation. you see, medicare covers only about 80% of your part b medical

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welcome back we have a number of movers to get to this morning across the tech and consumer space. let's get to dom chu with a breakdown of those. >> leslie, a few of those big earnings headliners this morning. we'll start with the plunge. in shares of top golf callaway, parent company behind their namesake entertainment venues, also playing equipment for golf, also lifestyle brands like travis matthew and jack wolf those shares are down 15, 16% off the lows of the session so far. earnings came in higher than expected but revenue shy of expected and the company is lowering its full year outlook due to tough comparison to its top golf business as corporate

outings starts to cool from the covid tailwind highs ceo chip brewer says the company will take decisive action to cut costs and capital expenditures to set the company up for future growth profits this is a big share now off 16%. shares of affirm are higher by 20%. the so-called by now, pay later company, reported a smaller than expected loss, better than expected revenues driven by growth in the amount of money customers spent using affirm's installment payment plans. it did also raise the amount of money it sets aside for future possible credit related losses affirm up 22%. coming up in the next half hour, the firmer's ceo and founder max levchin. must watch tv there. we'll end on twilio, higher by around 4% or so. now 6% after the cloud computing communications platform company reported better than expected profits and revenues and gave stronger current quarter guidance than estimates.

twilio helped along by data and application business a handful of these names on the move in a big way. i'll send things back over coming up after the break more of our exclusive with john malone as he sounds off on netflix competition and the streaming landscape at large all after the break. don't go away. move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

welcome back to "squawk on the street." i'm david faber at liberty media's annual investor day. it's an opportunity for me as well to sit down with john malone, a man at the center of the media industry for 50 years. it is a conversation we continued many years, but somewhat different this year in

part, at least in terms of subject matter, so many companies are dealing with higher interest rates, something we haven't seen in 0-odd years -- 20 odd years i asked malone for the companies he's involved with how are they thinking about capital allocation and thinking about returns and how they manage their balance sheets in an environment with interest rates far higher than they have been for quite some time. take a listen. >> i tell my guys higher for longer look at your balance sheet and make sure you're bulletproof on your balance sheets. you're going to take a hit on because every one of my companies has taken a lit to boost up returns doesn't mean that's a bad strategy if you've been able to lock in long fixed rates look at your balance sheet for opportunities to take advantage of the fact that you have long fixed rates and deleverage now

at a discount capital allocation becomes very important in terms of, you know, is there growth in this environment? to a large degree the businesses i'm in are maturing in their industries, and so growth will slow or has slowed there's more competition because of cheap capital bringing in new competitors and new technologies. >> previously cheap capital? >> yeah. and so -- and we're also seeing a period when i think we're going to see serious distress in our industry by companies that didn't leverage prudently. >> such as >> dry we've seen it with - >> digicell. dry. >> paramount had their debt downgraded to junk i think they're running probably

negative free cash flow. sherry had to go out and seek some -- >> she's seek new and preferred -- >> capital - >> got rid of the dividend essentially there. >> streaming isn't working for most of the players trying it. it's not being the successor profitable cash flowing service for most of the players they were hoping it would be, and their seeing attrition of the traditional cash flow streams, so, you know, whether it's distribution or content, old media is having a hard time with this transition to - >> that's a conversation you and i have been having for years i want to get deeper into that but to hit drag hi and paramount more drahi styled himself on you using leverage. >> to a point. >> to pint

altease in the states is not looking good. >> it's all toast. >> hardly any equity value. >> admitted at a goldman public session that everything is for sale, but you have all of this distress debt, debt trading at deep discount, and it's going to start to mature and/or go into default if it has covenants, so it's either people having to refi because they issued investment grade that ain't anymore or because they took on coveted subordinated debt -- >> still on sotheby's might be - >> he owns that personally i don't think he's about to hock that to save the ship. no i think what you're going to see is distress and so you asked me about what happens in periods of distress, well, historically, the right thing for a business to do in distress is survive

and, if they can, take advantage of the distress. focus on what they do with their free cash flow, what they do with their dry powder, and try and figure out how to take advantage of distress. out of distress usually comes a reduction in competition, increased pricing power, and the opportunity to buy assets at deep discounts are. >> are we there yet? >> not yet we will be there. >> we will >> we'll get there. >> what's the cyclie like in yor opinion? >> somewhere in the next two years the refinancing pressures, the pressure from big tech, outbidding the industry for important content, the guys who have balance sheets that have a lot of reasonably near term maturities, are going to be in

trouble. >> right netflix is not amongst them now. it's not the trillion dollar camp of apple, amazon, and alphabet, but it does seem to stand alone, netflix i'm curious, we've had this conversation, going on for many years -- >> those guys -- they were brilliant. they took advantage of a lapse in both the old media and the distributors recognizing the opportunity they created, random access using the internet they jumped into it and they implemented it in a very orderly way. built scale, and they have sort of become almost a basic service for households >> you believe that. >> does netflix represent what tv used to represent when you say tv

>> i would call it entertainment television library television, random access, not live, not sports. >> not sports or news. >> but in the area of, you know, library, watch it when you want, conveniently, as part of a service, they've done a wonderful job and implemented it beautifully and they have pricing power. >> the last quarter -- their churn is high, but i think what you find 80% of their customers don't churn at all and 20% are samplers, they come and go, based uponp an episode or series or something so easy to connect and disconnect, right, that churn numbers probably don't give you a complete picture of the economics. they probably have a stable base, people like me, that, you know, it's just for 12 bucks a month or something, absolutely you're going to have netflix.

>> right. >> but john, if netflix stands alone in a way, and then you've got unlimited capital if they want to use it from the apple, the alphabet, through youtube and amazon of the world, what does it mean for comcast peacock, paramount plus, max ha does it mean for these companies and direct to consumer strategies we've been talking about for years. >> in the entertainment space, library combined with whatever new things you can come up with, right, it's going to come down to - >> disney plus excuse me. >> an outfit like warner brothers and everybody to create new content and promote it in a way people want it can they create unique content that is not available to netflix or ob netflix, so can they build

themselves a continuity in the library space, in the entertainment space -- >> what does that mean >> that means they come out with "barbie" or "lord of the rings" or whatever, this becomes a creative side thing. can they be a better creative engine and capture it and do it vertically so that that basket underpinning of their continued success in producing entertainment content for whatever distribution platform monetizes it the best. it may be their own or somebody else's, right. that has to be the core question of whether they could have and continue to have and make profitable streaming service can they have their own vertical, driven by the fact that they can create exclusive uniqueness >> they're never going to get to the scale that netflix has >> that's not clear.

that's not clear now, you know, if you take the earlier model, we watched hbo become the dominant pay tv service, and then we had starz and showtime showtime and starz never got to the scale of hbo, but they got up to 65, 70% of the distribution probable lay little lower price point and bundled. it was stable. i can tell you for years it was very profitable. >> right. >> it was a good business. so the question really is, can there be a successful and sustained number two, three, maybe four >> that is my question. >> that is the question. i believe there can, but only if it's driven by something that's unique and exclusive. >> of course, the questions and the conversation that we've been having for many years, malone and myself, with some

interesting added things, carl and leslie, especially in terms of dealing with higher rates, i thought his expectation that we are in a cycle that may end in some distress for certain players and an opportunity for others, i thought, was quite interesting and, obviously, as you know, malone has seen his share of those cycles in the last 50 years. >> yeah. i thought he was candid saying it's toast, talking about the overleverage and challenges facing the media industry, pressing him for current times and what the future looks like amid all the competition. >> yeah. specifically, again, malone never pulls punches. i'm sure they're not happy to hear him say it's toast. that's, by the way, shared widely a lot of debt there at that company. not a lot of equity value at this point, as they continue to compete in sort of cable and broadband. but this vuiew of the world is interesting in terms of netflix

standing alone and then the competition the streamers have, particularly when it comes to sports rights, for example, but lots of other programming. apple and alphabet with its youtube and amazon and how you can possibly expect to compete there is a continued question. malone is not ready to say you can't, but he certainly is raising those questions. >> his discussion of maturity walls among corporates in the space, david, kind of reminds me of what we say all the time about commercial real estate, along with the dry powder that others are assembling, the question would be, how different the picture looks if, in fact, rates have topped, how much less worse might it be? >> yeah. that's a key question and your debt stack becomes important in this case we can talk about warner brothers discovery in part that's why that story from yesterday was so important they are delevering story, but perhaps they're not going to get there as quickly as they originally said, and so that's

why the stock took a hit malone's playbook is, get your cash ready, so you can take advantage if you need to. >> yeah. what's the saying survive until 25 that's for cre we can apply it to media and certain pockets of the media world as well. >> great stuff as always speaking of liberty, they are the owners of formula 1 and we are less than two weeks away from the huge las vegas grand prix the city's debut race. we'll dive deeper into this in a new cnbc documentary called "inside track, the business of formula 1" premiers in just a week, thursday, november 16th at 8:00 p.m. eastern time and pacific. >> very much looking forward to that. time for a news update let's get to bertha coombs with those details. >> thanks very much. here's what's happening at this hour u.s. fighter jets conducted a strike at a weapons storage facility in syria overnight that the pentagon says was being used by iran's revolutionary guard. the strike came in retaliation for dozens of attacks on u.s.

forces in the middle east over the past few weeks that is according to the defense secretary. it's the second retaliatory strike the u.s. has launched since the start of the israel-hamas war senate democrats are voting this morning on whether to authorize subpoenas in a supreme court ethics probe the democratic-led senate jush committee could call up billionaire republican donor harlan crow and fundraiser leonard leo. crow and leo are facing questions over their ties to justices clarence thomas and samuel alito. it's beginning to feel a whole lot more like christmas in new york city. crews cut down the 2023 rockefeller center christmas tree in upstate new york this morning. the 12-ton, 80-foot tall norway spruce is set to be delivered to manhattan saturday morning i covered one of those once. it's amazing how they do that. >> you've covered everything,

bertha. >> i've been around a long time. >> thanks, bertha coombs. still ahead the ceo of charter with us live from ose rty media day as stocks ar cle to session lows with the yields on the rise ly encouragins that you'll definitelyagins want to hear. depending on the plans available in your area, you may be eligible to get extra benefits with a humana medicare advantage dual-eligible special needs plan. all of these plans include a healthy options allowance. a monthly allowance to help pay for eligible groceries, utilities, rent, and over-the-counter items like vitamins, pain relievers, first-aid supplies and more. the healthy options allowance is loaded onto a prepaid card each month. and whatever you don't spend, carries over from each month. other benefits on these plans include free rides to and from your medical appointments. you pay nothing for covered prescriptions, all year

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>> this is louis' car? >> number 44. >> can you put a price on the car? >> costs about $50 million to develop. >> our business generates $600 million in revenue "inside track the business of formula 1" premiers next thursday at 8:00 eastern. take a look at shares of affirm up more than 19%, adding to huge gains on the year after strong results for the quarter shares up more than 150% since january alone, although still well below their peak. still the quarter beat expectations we'll break down the numbers with ceo max levchin in the next hour don't go away. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets

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. welcome back to "squawk on the street." we're live from liberty media's investor conference. charter communications ceo chris winfrey joins me now first time we've sat down. >> thanks for having us. >> of course very happy to talk to you. a lot going on that we followed with your company involving disney i want to start off with charter itself right now and just this idea, chris, after your last quarter some investors, at least, questioning whether or how you view yourself in terms of growth and whether you're

still a growth company before the pandemic you grew at 5% the recent quarter, growth very limited broadband growth limited except for rural do you still think of charter as a growth company >> i do. if you take a step back, we're a connectivity relationship builder company if you will and we're still growing broadband inside of our existing footprint, despite a one off temporary market and the new footprints we're building into the rural communities. the other piece, don't forget, growing 600,000 mobile lines per quarter -- sorry, yes per quarter, and we're now the nation's fastest mobile operator, fastest mobile grower in the cont. we have connectivity relationships coming from broadband inside of our existing footprint, rural footprint, as well as mobile, which is really the seamless connectivity, the convergence in our unique ability to marry those two together wire line and wireless and save customers significant amount of money with a better product. the fastest mobile product in the country and fastest internet

provider in the country. we have temporary growth impacts inside of this year. >> what are those growth impacts right now? we talk about fixed wireless, for example. >> sure. >> and yet there's this belief it's only a temporary threat, that eventually it will die down do you still believe that? verizon and t-mobile are aggressive. >> i agree the biggest driver is coming out of covid where you had a lift in broadband penetration and we bit offed from that. nobody more than we did. you had a tremendous amount of growth off the back of it. there's not a lot of move activity in the marketplace, which means lower selling opportunities. at the same time an inferior and new competitor in the marketplace taking a little bit, nibbling at the low end. the reality is that customers demand for bandwidth is increasing significantly every quarter. and so their capacity is constrained and it's going to become more constrained as customers use more bandwidth i thought we would be behind that and be on the decline, but what has happened their growth

rate and acceleration has slowed down, and so they're at a steady pace i think within a matter of quarters we'll be back to a more normalized environment we're not standing still this idea of convergence and creating a product that has a structural advantage, our competitors can't replicate because they don't have competitors can replicate, and we're investing in our own network to update it to multigig at lower cost and faster pace than our competitors and we're investing in rural as well we have a lot of different legs of growth that's there we already bottomed out. to answer your question, we bottomed out on our growth rate, which we mentioned on our last earnings call. we're coming off the back end of that we always knew 2023 would be a challenging year, investment year, so we're - >> speaking of competition, fixed wireless, you explained your view of that. but these overbuilders as well, even with higher rates, don't seem to be pulling back yet. does that continue to be a - >> i heard an interesting theory

from one of our smarter analysts that cover us. they're not going to announce they're stopping the overbuild projects i think some of this money gets repurposed it's a better return on investment these overbuilders have never made money when they're doing an overbuild project. that's nothing new every ten years somebody says, i have a great idea. we'll make money with overbuild. we'll get to a certain penetration and that doesn't happen not only do they not get the penetration they think, but the kost to deploy this overbuild is going up it's higher than what they expected there's never return on investment less of a return on investment going forward. and i think over time they'll have better uses with that money with bead and other infrastructure projects coming through from the government. >> do you start taking more price? there was a view you haven't been as aggressive as you might be by the way, i'm a customer of yours all over the place i don't want to you raise your prices. >> nobody does if you want to grow, the idea we want to be a growing company, we want to grow and take share in

the marketplace and we want to have growth because it's good for the company, but it's also good for consumers if you have an attractive product that's priced in an attractive way you can bundle together, you'll not only take our products but take more of our products and as a result, we'll have more penetration on fixed wire line network. as a result, we have a lower operating cost per customer. which means i can provide you more products at a cheaper rate. that's charter's strategy. that doesn't mean we don't take rate increases when we need to we've been in an inflationary environment. programming has gotten very expensive. in some sense we have to pass that through, but we don't want to because it reflects poorly on the company. >> i do want to talk about programming, obviously real quick from a customer of yours for wireless, broadband, cable, all of it, i get three different bills. is there a day when you may be able to consolidate that sort of thing? >> when you're taking spectrum one, for example, that may be a way. could we separate the video bill

and have a connection bill, i think that's the case. when you think about the value we provide, wire line, internet, video, mobile, and you put all that together, it's a tremendous amount of value but it's a tremendous amount of product it could be a very large bill, too, even though we're saving you money if you were to take it independently. i'm not sure i wanted to throw that on everybody's bill you take four mobile phones and video and internet, it adds up and we're still saving somebody money. whether it's one bill or two bill, the goal is to save money and still look good. >> let's talk about disney and charter. came up in my conversation with malone, as you might imagine i haven't had an opportunity to talk to you. is it a template for what you may pursue with other content providers? >> yes simply put, absolutely we're not going to renew any of our programming deals with somebody who has or plans to have a direct-to-consumer product unless our customers get that for free. our customers are already paying for that linear content. they funded these alternate business models, which aren't

making any money the idea that they could be sold around or be asked to pay twice, that's not going to work it's not going to work in the marketplace -- >> do you think everybody has gotten the memo? is there an expectation when it comes up with paramount or warner bros. discovery, you'll have the same -- >> i think some of the large programmers are approaching you proactively and say we get where the model is going, let's get on with it. over the course of the next year, reactively or proactively, i think we'll have the vast majority of content into this modernized programming model that creates utility for customers and gives them value back into their product. >> do you think it extends the life of the video business >> i do. from my perspective, for those customers who can afford a big expanded package and have direct-to-consumers included, if they can afford that package they'll get a lot more value than they had. we other achieved another -- is we have flexibility to create less expensive packages for

customers. and to put dtc, direct-to-consumer, apps together with cheaper packages so customers request select and create value based on the budget they have. i think it extends the life. for us, we're indifferent. we don't make a whole bunch of money. we're trying to provide a utility to the customer and a charge on the bill we're proud to put there because the customer gets to choose the content they want, whether direct-to-consumer app - >> is there anything you can chair with disney? -- >> we haven't rolled out disney and espn plus until late in the year, in january more to come we did roll out zumo when you put the modernization of the programming agreements that we're doing and the ability to integrate the linear as well as the applications together, and then you take a look at zumo, or joint venture with comcast as a platform that seamlessly integrates that linear, search content, voice

remote and - >> my parent company, comcast, with the technology. >> it's great. >> i can tell you it is. >> that's our primary platform for video distribution if you combine the platform and the value we can provide with linear and streaming, for some customers that will create a lot of value i think it extends the life of video. i actually think it works better for the programmers. >> real quick on the balance sheet. i talked to malone about this, obviously, capital allocation. right now you're spending a lot on capex, not as much on buybacks why not use it to delever and buybacks why is this the appropriate approach >> we're a growth company. if you know you'll have growth in the coming years, we're still growing today, we're going to grow faster in the future -- >> last quarter didn't have any growth. >> it had 0.7% ebitda. that was our low point the ability to expand from there, the temporary investments we made are largely behind us on the operating cost side. the capital investments

continue the capital investments we're making, we've always since 2010 when i got to the company looked and said, our priority of capital allocation is where we have positive roi projects that's where we'll invest first. secondly, if there's accretive m&a to do that's better than buying back our shares, we'll do that we've done that, too we invested in our business, always we've done m&a the leftovers do share buybacks. the value of our buybacks, we're still doing buybacks, the value is higher because of the organic investments we're making today >> a lot more to talk about, chris. so happy we got time >> thank you. >> chris winfrey, the ceo of charter. "squawk on the street" is back right after this

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its entire location in pursuit of sunlight (♪ ♪) where could reinvention take your business? accenture. let there be change. good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with leslie picker. three ceos painted a picture of the consumer from where they're going to where they're going. affirm, investors are buying now not later. a smaller loss and revenue beat has shares surging we'll talk to max levgen i