comcast wants to buy time warner cable for 4 $4 by billion dolla. number 1 takes over number 2 to create a bigger number 1. this merger is about a lot more than just cable t.v. and on our program today, we are discussing what it means for the business of media and for you, the consumer. craig aaron, we should talk about net neutrality. the internet is important to both of these companies? >> this deal in many ways is all about broadband. it's the future. comcast is the nation's largest internet service provider. time warner cable as a big footprint as we talked about earlier. so in the end, i think in many ways, this is about broadband. this is about an effort by companies like comcast to keep typing that product, a very profitable company to them to their television services. if they can keep you subscribing to keep the content you want to see online, that's good for their business. for most americans, these compacable companies and this cable company might be their only option. not in every market but in most places if you want truly high-speed int

comcast taking out time warner cable. this is a long time. itz, brand-new industry and now dominating our lives. >> dominating is a dominant theme. consolidation and airlines, cable. even in retail. >> or martin sorrell said about the overall gdp. sorrell.rtin a data check with scarlet fu. >> retail sales numbers coming up this morning. jobless claims. futures down by 10.5 points. 10-year yield unchanged. >> good morning, everyone. bloomberg "surveillance." at of our interviews out bloombergtv +, and bloomberg radio. scarlet fu and adam johnson with me. >> we mentioned pepsico reported earnings earlier this hour. came in just above analyst estimates. the company boosted the dividend and announced a $5 billion stock buyback row gram. this is a challenge for pepsico. volume continues to fall. north american volume last year sliding three percent. , hughliu is with the cfo johnston. >> you hit all the really big points coming out of the earnings release. thank you for joining us this morning. >> good morning. scarlet mentioned, you boosted your d

comcast swooped, in agreeing to buy time warner cable, for $45.2 billion. both boards have approved the deal but they a face lengthy regulatory scrutiny. if it goes through, however, comcast will have sealed its dominance over the cable industry. it also potentially ends a battle by charter communications, the fourth largest cable operator, to take over t.w.c. i spoke with our senior west coast correspondent, jon erlichman, chief washington correspondent peter cook, as well as bloomberg news reporter, alex sherman, about the deal and started by asking jon how it all came together. >> charter had this great interest in doing this deal with time warner cable. time warner cable wanted them to pay more money. charter was talking to comcast about the possibility of comcast acquiring some of the assets of time warner cable and along the lines they decided comcast, it's a better move to get bigger than everybody else and have control over marks like new york and los angeles and chicago, philadelphia, the d.c. area. they truly are the biggest player in the cable bus

comcast buying time warner cable. $159 a share and would make the largest cable network in the nation. >>> pepsico announced a new five-year $5 billion productivity program. joining us right now to talk more about it, from purchase new york, hugh johnston, pepsi's chief financial officer. it's great to have you here this morning. thank you. >> thanks, becky. good morning. great to be here. we're excited to publish results today. >> these are better than expected numbers. what happened that the street wasn't expecting? >> i think it's a variety of things. i think the company is performing really well the portfolio we worked on is working both from a product and from a geographic perspective. we've become more productive over time. we're driving more cash out of the business. in addition to the strong results, our long-term guidance we announced 2014 in line with and in addition to that, our cash return to shareholders will be up 35% which we're particularly excited about. >> some of the cash returns, lets talk about so

conglomerate. >> that's true. 25% to 30% of the ownership stake will be controlled by former time warner cableif the deal goes through. >> that's a big if, right? it will be a fierce debate. >> it's a big if. they are confident on the comcast and twaws comca comcast the time warner front that it will pass muster. there's no break-up fee if the deal should fall by the wayside, comcast will not be obligated to pay anything to time warner cable or vice versa. they might say it's a sign of confidence on the part of both. in fact, they know that this deal should pass muster. >> and nobody would come in with a bigger bid. >> highly unlikely. >> they would say we've only got a third of subscribers, but they have 16 of the top 20 markets. they will control the pipes until kingdom come. >> 84 million houses, 33 million subscribers although they say there's a willingness to divest 3 million subscribers there are no ownership caps and no overlap. >> david, thank you very much. let's go back to rick in chicago. i hear you've got the business inventories figure. >> december business inventories rise more t

time warner cable, i moved out of new york. ice providers are the worst customer service in the world. class that is a real flaw and it opens up opportunities. >> we will have our eye on it. thank you. thank you so much. class really fun. >> thank you. >> that will wrap it up for "in the loop." betty liu is next. stay with us. ♪ >> 30 minutes to the opening bell. this is "in the loop." the countdown begins right now. >> welcome back. you are in the loop. here's what we are working on. 30 minutes ahead of the bell, futures are indicating a lower open on this does -- this snow we thursday. snowy thursday. pepsico will keep his drinks and snack units together despite pressure from an investor. comcast agreed to by time warner cable. the price tag is $45 billion. the two biggest u.s. cable operators, time warner cable rejected a lower offer from charter communications. for more on how the huge deal could change the cable industry and what it means for you as a cable consumer, i want to bring in cristina alesci. by comcast.e move a t

we've talked to apple talking to time warner cable about a new deal for apple tv. what does this mean for innovation in the cable industry? does that slow this down? >> there is argument it could speed it up because comcast technology is superior to time warner cable. you make them bigger and give them more resources and bigger scale, you can get more customers on the same page as r as expediting the way that people watch television. comcast has guide the "x" 1 and x 2 they are called. they are state of the art individual crow guide. they look like netflix or amazon prime than your cable grid you are used to. you add on a lot more customers to that and it's possible that many more people can have a more advanced television viewing experience than they can today. >> however, i want you to take a listen to another thing that jonathan kline had to say about how monopolies impact innovation. take a listen. >> the downfall of monopolys is that they take their audience for granted and that is an enormous opportunity for new comers to come in. time warner loves to say don'

and time warner cable having their blackout fight last year. e sympathy for the cable companies, so the content players are able to get more and more of this revenue from retransmission fees. now they have to go back and talk about how this affects them. cannot play comcast on time warner cable anymore. i don't know that it makes a huge difference for the biggest layers like his man fox, who get paid -- players like disney and fox, who get paid a lot. david, now that we have time warner cable and comcast as an entity, that's a different kind of beast entirely. comcast is always been different because it has the content to go along with the pipes. why haven't we seen more deals like that? >> vertical integration between content and distribution? a decadehrough almost of exactly the opposite. you had media conglomerates simplifying their corporate structure and business lines and returning capital to shareholders. cnbc-comcast deal was an anomaly when it happened and i would not expect to see vertical integration between distribution and content.

and it announced its intention to buy time warner cable. would give comcast a whopping 30% share of the pay tv market and 30% of the internet broadband market. cable has been consolidating for two decades now. at the same time cable faces growing competition from satellite tv, if the new deal goes through, comcast will have that many more subscribers, and twice the size of dish network who are trying hard to compete with the cablers. new online video services are also getting into the game. they have been making inroads as they tear down the traditional appointment-viewing model. and then there is the issue of customer service. comcast and time-warner get lower scores than their competitors. bad service and rising bills have prompted customers to shop around. the average cable bill just for tv has almost doubled in the past 15 years, so when a competitive environment with more customers slipping away the merger from a business per executive looks good ju but for the consumer's the implications are not so clear. >> reporter: by my measure co

our top story today, comcast is set to buy time warner cable.hat the all-stock transaction is worth roughly $159 a share. that's about $44 billion. the tie-up would create the largest cable provider in the nation with more than 33 million subscribers. although i think they were looking at divesting some of those so that he would wind up close to 30 million subscribers at the end. the deal is expected to face a tough review from the federal communications commission, potentially from the justice department, as well. >> i'm of two minds about this. >> i was an anti-trust voyeur and i've given you grief in the past. i want to see you step up to the plate here and investigate these. really? >> i'm happy to talk about it. >> in this case, you don't think

so those should allow the concerns. >> it offers more speed than time warner cable does. if the concern is getting better broadband, i think it is a great deal, and it is supposed to save $1.5 billion. >> david, we hear so much about cable cutters does this position the company in a different way. do start looking past cable t.v. as a product? >> this is certainly that the c.e.o. has been working on for several years if you look back to the universal deal, that was about creating a company that had both content and distribution. this now pushing the distribution side, but as it was just said, also really emphasizes the future of distribution is going to be over the web, not through traditional television pipes. >> but the web enters a lot of homes, craig aaron, via cable television, doesn't it? two same -- >> it is by far the number one source. it is their only option, if they want truly high speed broadband that's the kind of power that cable will have over what we watch, see, hear, and read. and their ability to stir zero with that connection in the future, not that far

that has to do with time warner cable's management decision as much as comcast. o doubt these two companies have had different strategies when it comes to netflix or apple tv or other products that potentially could compete with the cable products. the main difference is that time warner cable has been very willing to be open to the idea of other companies coming in and melding with their product. apple tvwords, if wants to study user interface for time warner customers, time warner says we are fine with that because they are better at that. has been a little bit more closed. they are a little bit more wary about letting the intruders into the gates. so we will see how it progresses. from the side of netflix and apple tv how much trust do they have of comcast and time warner cable? >> if you think about the broadcasters themselves, the ones cutting the deals with the likes of netflix, they get paid a lot of money from comcast so they have to be respectful of that. but a lot are skeptical that all of the people who watch those various shows will continue through ca

so the news that they have done an end run around charter and done a friendly merger with time warner cable came as a shock to just about everybody last night. >> ok, so let's get past a surprised factor. buying the second-largest u.s. cable company brings comcast more than 11 million subscribers. it gives comcast access to new york city market and more provider content. so the question is -- how big does that make the new company? >> if you include directv, dish, verizon fios, at&t u-verse, comcast will have about 30% of all pay-tv subscribers, but if you look at this as just cable companies, comcast becomes really dominant, combining number one and number two. of course, you can also look at the world of tv viewing these days to include youtube and netflix and amazon prime and hulu, etc., and then you get a figure beyond the early percent, regulators will have to make the choice -- are they comfortable with comcast owning so many cable subscribers and owning the nbc universal content portfolio? that is a lot of power in the industry for one company. >> oh, the regulators. if we know anyth

as bloomberg has reported in apple's talks with time warner cable, the challenge apple faces is breaking up that cable ecosystem, being able to sign competitively priced deals with all the content players that are similar to the ones that the cable companies already have. >> you did an interview with disney c.e.o. bob iger. disney owns nbc, i want to talk about the content perspective. first take a listen to what iger had to tell you in that interview. >> whether this consolidation or ownership of the existing multichannel business changes, we're going to be as in demand as we've been. you can't go after the subscriber without offering them our product so it doesn't really mean much to us. >> given comcast also owns nbc, that adds another wrinkle into this whole potential deal. how does that play into this? >> it's a big factor. they are not a straight cable player. they are a content provider as well. it's an important wrinkle and it's one of the factors that will make regulators look at this differently and why the stakes matter more than cable bar. one thing very important to remember

customers time warner cut cable.cast employees gave over $6 million in campaign contributions last year. burt, a real problem but what is happening at the lower end. you said consumers at the lower end are not spending. so why are they willing to spend money, $150 a month, on cable? >> they are not. and they are moving to netflix, which has over 30% of on-demand video. they are moving to youtube, close to 20%. and comcast just lost a significant number of subscribers as well. so, it is a real battle to have net neutrality decided by the federal government on this deal. to tom's point, who is representing consumers paying $150 a month? >> talking about the doj as a revelatory optical -- obstacle. what do we know about how the sec is positioned for something like this question mark there has been a lot of change in membership -- would you know about the fcc position? >> one who was with the universal deal, now working for comcast as a lobbyist. it will be interesting from a tom wheeler perspective. but on the antitrust

david bank, now that we have time warner cable and comcast as an entity, that is a different kind of beast entirely. comcast has always been different from the different cable operators because it has got the content to go along with the pipes. why have we not seen more deals like that? >> of vertical integration between content and distribution , well, look, i think we came ofough almost a decade exactly the opposite. you had media conglomerates and simplifying their corporate structures, simplifying their business lines and returning capital to shareholders. nation, treasury secretary jack lew, what he has to say but the debt ceiling extension and unemployment in america. first, jobs are sizzling out of pepsi. we will look at how much the company is saving from those jobs. and talk about a close call. syracuse's perfect record wasn't saved bythis -- wasn't this buzzer beater. the 19-year-old moved up the court and led 80 three pointer fly. nothing but net. syracuse tops pittsburgh 58-50 six, staying undefeated, 24-0. look at that thing, oh, yeah. oh! ♪ >> this is "lunch money," on b

. -- comcast agreed to by time warner cable. it faces a lengthy regulatory approval process. comcast will have sealed this dominance over the cable industry. jon erlichman is with us from l.a., peter cook is in washington dc with the political angle. i will start with jon. how did this happen? >> this interest from charter, to get bigger in a world where we have a lot of options. it has to get bigger, more meaningful to people. obviously, charter had this great interest in doing this deal. time warner wanted charter to pay more money. the possibility of comcast acquiring some of the assets of time warner cable. along the lines, they ultimately decided that comcast was the better move for them. getting bigger than everybody else and having control over markets like new york, los angeles, chicago, philadelphia, the d c area. they are the biggest cable player in the united states. to gothis deal going through? peter, the regulators made it clear with at&t and t-mobile that they wanted more wireless carriers. will it be different with cable companies? >> it will be different becau

time warner cable and the time warner cable is not tom time warner the bigger right so exactly comcast is one of the most powerful companies here in washington d.c. i think that's demonstrated by the approval that they were able to secure of their merger with n.b.c. universal a few years back huge power players and they expect that this deal will go through and they are selling something that they're hoping washington will buy but from what we've been hearing from the american people folks were suspicious of this deal from the very start these are two companies that always rank on the bottom when it comes to consumer satisfaction in customer service so there are some real questions here and customers are right to be asking questions you notice when comcast talks about the benefits of this deal one of the things that they never mention is lower prices for consumers and in fact consumers can expect that their prices will continue to rise at this merger is approved that's coming. at the consumer level it seems like increasingly we're seeing basically something that looks like monopoly her

fact they will own only 30% will not affect cooler options or pricing because comcast and time warner cable do not compete in a single zip code. as comcast's ceo brian roberts pointed out, the cable companies defeat pi directv, dish, verizon and in many case as fifth provider. roberts arg gurs consumers and small add medium businesses will benefit, better technology including faster internet speeds and comcast xfinity live and on demand and ability to buy digital movies to then access from anywhere. comcast is also volunteering to extend the necessary neutrality agreement it struck with the fcc as part of its universal acquisition deal to cover time warner internet customers as part of that agreement. we'll see if comcast assurances are enough to clear regulatory hurdles whether added leverage and negotiations could bring down content costs and whether the cost savings will enable lower prices. sue? >> julia, thank you very much. we wish we were out in california, because it is a nasty day over here. snow and ice, the schools are cancelled. >>> up next, what this terrible winter means for t

time warner cable, meanwhile, surging. , which he broke early this morning. >> it is one of the biggest media deals of all time, and certainly the biggest we've seen in cable, creating a coloss sas that will stretch across the country. comcast agreeing to acquire time warner cable for $45 billion. of course, any trust regulators and the fcc still have to weigh in before this deal will be approved and will close. nonetheless, the possibility of it has been in the air for quite some time. in fact, time warner cable has embraced comcast as it tried to avoid the clutches of charter and liberty media and said, hey, why not bid for us? why not do this deal? the financial part of it, well t makes a lot of sense, many would say. and finally, that seemed to be the case for brian roberts, who i spoke to earlier in asking him, well, why this deal as opposed to an international deal or expanding in content? >> when you take out the synergies, we're paying about 6.6 times cash flow to buy some premier markets and a premier company. that

cable industry. comcast buying time-warner for $45 billion. vid shuster joining us now with all of the details. >> yeah, del, comcast is our nation's biggest cable provider, and scooped in in with an all-stock offer that ended an earlier bid by charter communications. comcast is valued at moore than $144 billion, with close to 22 million subscribers, and part of the value comes from the fact that it also owns nbc. time-warner cable is valued at over $37 billion, with more than 12 billion subscribers. it is just a cable provider, . but together time-warner cable and comcast have more than 33 million customers, and because of its size the merger is expected to face tough review. comcast on top with nearly 22 million subscribers. direct tv and dish network have 20 million and 14 million subscribers. time-warner cable is next with 12 million subscribers. and then is verizon, cox, at&t, and charter, each with more than 4 million subscribers. brian roberts pointed out that his company and time-warner cable serve different parts of the country. >> we

comcast is going to acquire ime-warner cable for $42 billion. and it puts cam -- comcast on the road to be the largest cable provider in the united states united states. 11 uld have more than million residential subscribers. matt wood, the policy director for the nonprofit group free press says this would be a disaster for consumers. before we get to the consumer angle i want to you just describe the math. why does this make sense for comcast? big l, you know, a disadvantage they've always had is eau -- they lack a nationwide foot print. this gives them a huge opportunity for innovation. >> why does it necessarily have to be a national company to be creating innovation. >> there is some things you can , and only do with wi-fi when you think about moving into the wireless phase, this gives comcast the ability to do something have i similar to the things that verizon can provide. >> this a suitable competitor to at&t and verizon? >> not really. comcast is far and away the largest residential provider already. the 11 million you are talking about is

consumers in time warner cable will see subtle changes to their services. some sorts of improvements over time. that will take a while to implement and integrate. but relatively subtle over time. not inconsequential. >> a difference - comcast is seen as being aggressive than time warner cable with tv everywhere products, allowing contents on mobile devices. another difference, comcast has more on demand programming. comcast calls the deal p proconsumer critics think not. >> of 19 of the 20 largest cities, there's one choice, comcast as the local cable monopo monopoly. that means second class service at high prices with no option to choose anyone else. >> the deal is expected to come under scrutiny from regulators. comcast says it will shed 3 million subscribers. observers expect concessions will be needed. >> we should add comcast says it will follow rules for net neutrality, treating all online traffic equally. >> researches in california say they made a breakthrough in an effort to develop a new source of energy. the work could lead to an endless supply o

deals -- s the another miss for john malone after being supported from buying time warner cable. les advanced 71% a year ago. liberty has spent almost $50 billion to consolidate europe's cable. watchers, those shares shed 20% after hours last night. 2014 earnings well below wall street estimates. weight watchers is facing increased competition. it announced plans to resize its business. we are a little bit of set that up it upsets. starbucks tom cinnabon, copy sellers are struggling to control their costs while keeping customers happy with the latest spiced latte. we talked about how she manages those costs. >> setting up it supply chain infrastructure is key. we opened almost 100 cinnabon locations in almost three years in russia. gained two pounds looking at those. coffee prices have soared 30% this year. alix steel joins us now. i know you love food but what about coffee? thatwant to get a go since go get a cinnabon right now. -- i want to go get a cinnabon right now. onlynies likes starbucks by the fancy beans. starbucks arctic haze a price of two dollars per pound. it wants t

charter communications might go after cox after losing out on time warner cable. n to meet next week to discuss their options. cable the third-largest company with 4.4 million subscribers. continuing on, starwood capital ceo gets ready to sell shares, possible ipo for barry sternlicht. looking to sell a minority stake , sternlicht is reported to have been speaking to banks preparing to sell shares. moment --e >> this is very typically, two nations involved, transnational deal with dublin, ireland working out of new york and new jersey. a stock and cash deal as well. i think you are more up to speed than i am, this is an industry of mating. most activectavis, buyer of pharmaceutical companies and last three years, made almost $50 million worth of bids. generic companies trying to continue to grow and eat up market share. puthe financing has been together, bank of america and mizuho securities. >> robert wolf, there is tax treatment and ireland, people get better tax treatment. we will talk about this, this has to do with transnational investment, no borders anymore.

comcast agreeing to buy time warner cable. they want it, for $45 in stocks take a look at time warner shares over the past eight months. as it was in play, a lot of companies from charter to maybe even cox making noises about wanting it started to push this stock considerably higher. the stock has risen about 50%, last night time warner cable turn its back on charter accepting the offer from comcast. here is the offer, $159 per share. well above what charter was offering and well above where the stock is trading right now. does wall street really feel they paid too much? the big question is if the merger will even be approved by regulators. a glimpse from an all-star panel. former fcc commissioner probably has an answer or an opinion. the new media analyst. and david bank, rbc capital markets media analyst. i will begin with you, do you like this deal, do you like this combination and do you like the press? >> if your opening a miami bureau, i would like to volunteer for that. liz: okay, i will work on it. >> here's my reactio

monopoly late last week comcast announced a massive forty five billion dollar takeover of time warner cable if approved the merger would combine the two biggest cable companies in the country and give com has control over approximately thirty percent of the american pay t.v. market not surprisingly the deals going to be just great for consumers it c.e.o. brian roberts told c.b.c. that buying time more will ensure that comcast customers get access to better products and faster internet. it's a really special transaction time warner cable and for comcast shareholders or employees and mostly our customers the deal is pro competitive we're going to be able to bring better products faster internet more channels on demand t.v. everywhere and a national local platform that other people however are not so enthusiastic about the deal joining me now for more on this our chance williams associate policy director of free press and todd boyle media and democracy program director for common cause to really extraordinary organization it's great to have you guys both with me tonight chance break this deal

and time warner cable is the most hated. a couchle of theories.ne, it is possible that this larger company will be able to keep the prices down, that are. >> thatted by content providers like disney. and if it can keep that prices relatively low, then you don't have to increase the fees that people pay each hospital. on the other side. whether this new company be able to jack up fees themselves and there's not much that consumers can do about it. >> what are you working on? what else? >> i knee you are all about the american dream, and all of us being able to realize our potential, a lot of people that involved home ownership. there are a lot of people out there whose dream is changing and they are making the decision to rent. and for all those people that are making that calculation. all right, david, appreciate it. the u.s. military is upset about the release of 65 prisoners in afghanistan. now despite u.s. demands the release is of no concern to the united states. jane ferguson has our report. the government has insisted for weeks it will relea

aol brought time warner and comcast buying yuan ver sal. the news today is a huge play in cable, comcast wants to buy time warner. number one takes over a two to create a bigger number one. the merger is more than cable tv, and we are discussing what it means for the business of media and for you the consumer. craig, we should talk about net neutrality and that sounds like a cable tv deal, but the internet is important to both of these companies, isn't it? >> yes, it is all about the broad band, that is the future, comcast is a largest internet provider and time warner is adding a big footprint and in the end it is about broad band and efforts like comcast to continuing to tying the profits to the television services. if you subscribe to cable to get whoo you want online that is good for the business. for most of the americans, these companies could be the only option for high speed broad band, for most places if you truly high speed internet you are talking about the cable provider. >> how does net neutrality and the rules and debate about the future of the internet play into t

so time warner cable doesn't compete in the same territory as comcast. they're going to divest maybe three million subs, i understand, to try to stay under that philosophical -- it's not legal, but a philosophical -- cap of 30% cable customers. but i think what's really interesting, what's threatening cable companies in general right now is over-the-top video. and craig is right, you have to get that through a broadband pipe. but from a programming perspective, you know, we see "house of cards" as being the hot topic of the past few days through netflix, but youtube and amazon and other stuff that's user generated is quickly being looked at not just through a cable screen, but through a mobile screen. and actually, that's quickly becoming the number one screen. some of that's through licensed wireless, some of it's through unlicensed wireless. but there are a lot of interesting dynamics in this marketplace right now. so it will be very interesting to see what kind of antitrust scrutiny there is. craig talked about buying power for content, there's also th

comcast scored 63%, time warner cable scored 60%. zon, direct tv and dish scored higher but not by much. comcast and time warner said they are working diligently to improve customer service and for now this megamerger requires government approval which means facing intense regulatory scrutiny focusing on customer pricing, they will bring the pipeline into 19 of 20 top markets in the country. we have breaking news, moody's is saying it is taking time warner's rating of review for downgrade and could be upgraded. the bond market is reacting positively to time warner's bonds versus charter communications deal with time warner. that is the breaking news. dagen: thanks, liz macdonald. do you like it? connell: i do a lot. dagen: chronic problems. could just be me and my general energy. connell: another area where we agree. new developments on the target breach that has been all over the news. experts say they allow the hackers to integrate target's network some more on that coming. dagen: nascar's champion didn't even make the playoffs. wha

it offered to buy time warner cable. it's bid was much lower. time warner cable holding out for a higher bid has worked out. but now investors and annual lis are asking where does charter go from here? who else can it team up with? that's why we're seeing a decline in shares today. >> if that deal is going to move forward, government regulators are going to have to give this the green light. what else do we know about this? >> that is one of the risks associated with this situation. that's one of the risks to the deal. we might see comcast divest some of its properties and charter, which i just mentioned, that company might be able to pick up some of those assets. >> thank you so much. let's go to our chief washington correspondent peter cook. he has more on this story. is this going to be an up hil fight on the regulatory front? >> anytime you have the number one cable company and number two cable cun company joining together, you get some red flags and we'rey views in washington. at the end of the day analyst players think this deal will likel

that is what is going to happen when you put comcast together potentially with time warner cable. cable told charter, about, we are looking for $160. comcast has come back with 160 -- $159 as a stock offer. it is all paper, all stock. the two of them getting together trumps charter. create a beasto of a cable company. some people say that putting two dinosaurs together in an ever-changing landscape. >> this kind of deal in the cable industry has impact across the world. is it going to be a race for more m&a? >> i think this is certainly one of the date set pieces on the chessboard. had been in pursuance of time warner cable on three separate occasions. , there isave got here a he's with a wonderful line. if cable business had a soundtrack, jaws would be the soundtrack. deep, pounding noise, almost as if there is a predator and the predator is coming. consolidation gives the cable operators scale. that gives them the ability to put pressure on the content providers to provide content at a cheaper price. few places tory go for your cable provider, you end up paying more. >> it is goi

a mega media deal, comcast buying time warner cable.at it means for co industry play irs. and the woes of the wealthy, what's upsetting the rich now? this is going to cause some outrage, scottie. we have it at 1:00. see you then. >> all right, see you then. thanks so much. >>> beer giant molson coors reported better than expected revenue but falling short on the bottom line. if it time to tap into molson coors stock? joining us now is the president and ceo of molson coors, peter swinburn. peter, welcome. good to have you on. >> good to to be with you. >> the headlines today seem to be dominated by things like molson coors could use a beer buddy. that coming from ahead of the tape in the t "wall street journal." i saw somebody else say that you have strengthened what some say are irrelevant markets and weakness in relevant markets. is the market missing something? what is the market getting wrong, if anything? >> well, i think everyone has got their own agenda. it's the irrelevant market, one i haven't heard. the united states is the big

comcast is buying time warner cable for about $45 billion in stock. anies are the largest in the country, each providing tv to millions of americans. together they hold about 33% of the market here in the u.s. this deal undoubtedly will get tough security from federal antitrust regulators. we should note that time warner cable is a separate company from time warner, which is the parent company of cnn. >> and john, the biggest question is what happens to your cable bill with all this? cable inflation has been about 6% a year. this giant cable company's going to have a third of all u.s. customers, certainly something regulators will consider. >>> looking at the stock market today, worldwide selling in stocks today. japan, hong kong, shanghai all lower. stocks in europe breaking a six-day winning streak. the stock market here in new york gave up its winning streak on thursday. looks like selling again today. february is looking pretty good so far for stocks. one question, will it be a temporary bounce or will investors be able to shrug off a rough start t

we have the man who exposed next. ♪ stuart: look at time warner cable and comcast. now they are getting together or at least they want to, stocks moving in different directions, time warner up 9, comcast down 2. netflix and other streamers, that deal might be time warner comcast could be good news for streamers, more people get rid of cable, who knows? streamers are doing well. big compact car recall for ignition issue. at stock down 35. burger king, a new menu items helping burger king's profits and stock is up 2%. better performers in america, profit margin, the stock is up 1%. next, the man who exposed the those facebook white farmers. staying active can ease arthritis symptoms. but if you have arthritis, this can be difficult. prescription celebrex can help relieve arthritis pain and improve daily physical function so moving is easier. because just one 200mg cebrex a day can provide 24 hour relief for many with arthritis pain. and it's not a narcotic. you and your doctor should balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofe

consumers in time warner cable see subtle changes. some sorts of improvements over time, that will probably take a while to implement and integrate. but relatively subtle over time. although not inconsequential. >> comcast is seen as more aggressive with time warner cable with tv everywhere, allowing content on mobile devices. comcas has more on demand programming. comcast calls the deal proconsumer. critics think not. >> in 19 of 20 largest cities, there's one choice, or will be after the merger. the problem for cop assumers is that -- consumers means we'll get second class service at high prices with no options to choose anyone >> the two companies have no geographical overlap, it will come under scrutiny. comcast says it will shed 3 million subscribers. observers suspect nor concessions will be needed. >> some real estate in the bankrupt city of detroit is cheap. three aspiring writers could be home owners for free. bisi onile-ere explains. >> these three houses in detroit may not be much to look at. they are old, abandoned structu

julia borstin has more. >> reporter: comcast acquisition of time warner cable, if it's approved, would create a cable and broadband internet giant with nation-wide reach. comcast saying the deal will pay off and start generating money in year one. in part because it will have operating efficiencies of $1.5 billion. >> comcast buying time warner cable gives them a huge nation-wide footprint to decrease competition, obviously provide a muchct for the average american consumer. >> reporter: but consumer concerns will be under the microscope when the fcc evaluates the deal. consumer advocacy group free press rejecting the deal watching in a statement "comcast will have unpress denlted market power over consumers andnd an unprecedented ability to exert its influence over any channels or businesses that want to reach comcast customers." but comcast says the deal will not affect consumer options. >> we don't compete. we're not in the same markets. not in any of the same zip codes with time warner. there's no overlap, no reduction of competition. so we're just able to bring is better products

roberts at comcast, comcast, they are acquiring time warner cable. it is an all stock transaction. even with that, and implied cash value and cash is cheap. this is wpp ceo sir martin sorrell yesterday. >> it goes back to cheap money. you can borrow money and 30 year bond market like we did last year, three percent net of tax. by something at 33 times early in the best of earnings at least in theory without feeling the whip. long-term cheap money, good management, and opportunities means more consolidation. in sochi.he is out maybe he is watching from the g5. when the chairman of

time warner cable takes the number two spot. a lot of action on wall street. back to you. >> investors are reacting to the time warner cable and comcast news but can this deal pass? here to lay it all out are charlie gasparino and brian sossi. you think this is a win not only for shareholders but for customers as well, why? >> for time warner shareholders you're getting certainty of value and comcast ceo which is proven value creator. since 1990 comcast shares are up almost 1500%. certainty of value. winning management team. as consumers i think you will get more, a lot of concern your cable bill will go up 20, 30%. more tiered packages and more services. if i'm consumer i'm getting more services why wouldn't i want to pay a couple bucks. >> i come back on that 1500% and why i will challenge you. you predicted we'll get a deal like this. is this best deal possible. >> i don't know, hard to tell. i will say this, bear stearns was up a gazillion percent before it went under. >> bingo. >> comcast has not done a great job dealing with nbc. nbc is still pretty much

come cast announces today it is buying time warner cable.ary snow has that story. >> by any measure comcast proposed bid to take over time warner cable is huge. there's the $45 billion price tag, and then there's the potential reach. we buying the second largest cable provider, comcast would have roughly 33 million subscribers, cementing its place as the country's largest cable company. >> to put it in perspective, when chase bout jpmorgan, that was only a 33 billion r thats deal. so this is a really large merger. >> the deal was unexpected and comes after comcast became a major content producer by finalized it's purchase last year. here is how comcast stacked up. a paid t.v. provider comcast is the largest. satellite providers and dish network followed. time warnser next with roughly 11 million. smaller companies have more than $4 million each. what request consumers each? one analyst covering the cable industry says changes for consumers won't be dramatic. >> consumer whose are in comcast markets probably won't see any change at all. consu