scarlet: according to paul sweeney, a bloomberg estimate, it andates the film studios the fox tv channel overall. it is expected to generate a profit margin. it is an incredible margin. matt: you don't see that kind of margin and a lot of businesses. scarlet: it has been reported that some of the talent at the --work matt: they said they would leave if roger left. rupert murdoch would be the chairman and acting ceo. they are going to replace it. murdochrs that rupert -- scarlet: it is the cochairman founder. looking at different angles, what are your thoughts? , it: hiring an outside firm comes at an important time. we get into this kind of red meat of the political season and fox's a strong conservative. for what theyious put on that voice and what they put on the air there. megan fox has been a foil -- , has been a sorry foil of donald trump. her contract is up. they are playing a role deciding what to do about this. perhaps bill o'reilly who was one of his highest-rated shows. it certainly played into this decision about what to do and you they needed to keep in terms of generating re

let's bring in paul sweeney. news is 20% to 25% of profits -- is that because rupert murdoch runs the country and there will not be much change? about 25% of total cash flow, so it is extraordinarily important, but there is such a strong position relative to the cu competition there. they by far have the biggest audience by far over all the cable news networks. near-term probably not much of an issue, particularly going into an election. the audiences are going to be big, the advertisers will be there in a big way. longer-term, investors are concerned. it looks like james murdoch had a big hand in making the change. if they have a bigger influence on the company and on fox business and fox news, will they change the editorial focus of this channel going forward? toe: that is where i wanted go. there are reports that a number of the talent at fox has clauses in their contracts that they can walk away if roger ailes is no longer there. does the talent matter as much as the focus, the right wing conservative focus o

bloomberg intelligence analyst paul sweeney did point out we saw another downgrade.the possibility of international cyber debt subscriber growth. extracting weakens ahead for netflix. >> it seems to fit with the stock down 18%. what else? see one year chart, we volatility up and down. this stock has had a rough go of it. it largely has to do with the fact that in a foot says outperformed so much for so many years. expectations are high. they now have bearish calls out of two analyst suggesting more of the same ahead, and estimates were justcond quarter brought down by about 8% over the last cointreau weeks. >> between the fallout of the brexit vote and the partnership trade agreement, a key global issue this year. in sun valley, david is sitting down with the u.s. trader, michael. david? david: thank you. not an idle manpower what brings you here and what are the conversations you are having? >> it is a good opportunity to talk about the impact of the transpacific partnership particularly on the economy and the contents of the media industry. it is a rare agreement w

bloomberg intelligence analyst paul sweeney says this is a bullish sign. vonnie: thank you.heck in on the bloomberg first word news. more from our new york newsroom. state claiming responsibility for brutal killing in a church in the normandy region of france. hostages were taken during morning mass. they stabbed an elderly priest before they were shot by police. another hostage was seriously injured. president ollanta visited the scene. -- resident how long -- president francois hollande visited the scene. >> the third remains high even after everything we have been through. we are facing a group that has declared war. we must lead this war with all of our means while respecting the law. that is what makes us a democracy. >> antiterrorism unit is investigating. are staying away from france and turkey the summer. they are flocking to spain and portugal. both forecast a record number of tourists. overnight stays in portugal jumped 13%. foreignaw a 9% drop in visitors in the fourth quarter. relations appear to be warming up between turkey and russia. the president of turkey wi

and an interesting dynamic considering that paul sweeney says the fundamentals for yahoo!eek for a decade. he says that they have only had strong business cycles. first around the tech boom and more recently into the ipo of alibaba. that -- this is interesting -- yahoo! is down 10%, the nasdaq is up 11%, a little bit of a correction around that dynamic. >> certainly. you can see that apple sales are down 1% right now. we know that the company's reporting earnings tomorrow. what can you tell us? abigail: big selling pressure has the news hit the tape the gc arbors has downgraded -- bgc downgraded apple. he says the company has under tim cook and he sees risks to the upgrade cycle that he believes the iphone seven may show more weakness as opposed to .he last upgrade cycle of course, as you mentioned, the company is reporting tomorrow after the close. looking for big declines year-over-year in earnings and revenues. on the one hand you might say that the bar is set low. on the other hand you have somewhat bearish supports coming from skyward, saying that it could be worse. w

here with more, paul sweeney. we do not route for or against companies. but wow. ul: you look across the digital landscape, facebook is the one that is really gaining share. look at their advertising revenue, up 63%. the top line of $25 billion, extraordinary growth. as they continue to migrate to mobile, they are getting a lot of share there. they have a lot of other platforms that are out there in addition to facebook. --t's happened in stick alix: facebook themselves warned that revenue will not always be this good. they have been increasing the number of ads in people's newsfeeds. they are generating more revenue per user because of that. the big drivers here, they are anding the user base getting higher revenue per user by putting more ads in the newsfeed. the incremental ad load will play out sometime mid next year. they still have a bit of runway on the ad load. ofrting 2017, a lot investors and saying that is when they can start pulling the revenue lever at an instagram or messenger or whatsapp. publichen facebook went come everyone would come on a program

joining us is paul sweeney, the media analyst and on the phone, .ene munster we spoke to earlier ande november and looks like it could be done in the next few days. is the verizon-yahoo! tie up the best one? jean: great reporting -- gene: great reporting from bloomberg and time is of the essence here because the real value here is unlocking yahoo! the cash free and transaction, and they need to get that done before the election. this is a good outcome and some of the stuff that you have been reporting on, the alignment of what verizon was doing would make a ton of sense. alix: in terms of the $5 billion number, that comes from our reporting, the original bid was $3.75 -- 3.7 $5 billion and was that number surprise to you? it at over $6 billion, so that number is a little bit lower than where we take it will ultimately come out at, so we are at $6 billion. if you look at the tax and if it's -- benefits for yahoo! japan and alibaba, that is about $10 billion or $11 billion tax benefits, so $1 billion. or there doesn't make much of a difference for yahoo! shares. david: let's assume the