bam tech. overall, disney earned$1.2 per share. r reve but investors apparently wanted more and shares fell in initial afterhours trading. julia boorstin who speak with bob iger, ha results. >> the big headline from d earnings red light is commitment to digital. third of streaming video company bam tech for a billion dollars. with plans to buy a new sports app. also plans to o apps and produ company's other properties. model.hin we think that in today's world, having the ability to stream on a scaled basis, live sports and live programming, is a competitive advantage. >> disney's ceo says this investme leaves the door open for th eventually bring its core espn service direct to consumers outside the bundle if and when it makes sense and in the meantime, iger says disney's ads co shift smaller t bundles, announcing its seven biggest tv channels will be included in the directv now bundle in the works. back to you. >> bill smeed owns disney shares of sme capital management. welcome. ha of the strategic directions that mr. iger seeg di

, bam-tech. company and there is a sense here they will start providing some sort of espn content down the road which speaks to the future perhaps for disney as it tries to get away from all encompassing cable packages which espn is a part of, trying to set it apart as part of its own spun-off service. 33% stake in this company. disney would pay a billion dollars in two installments, now and january to acquire majority ownership in coming years of this company, bam tech. that is one outlet for them. one outlet to try to overcome drop-off from cord cutters. melissa: jack what is your response to that? what is your reaction? >> squeezing more money out of espn. everyone is worried about espn. i'm not so worried. you could have one or 2% subscriber loss year by year, but faster increase in fees to offset that. get a little profit growth. if your biggest problem division generation huge cash flow, that is not a problem. one thing i want to see from the q&a as steve says, discussion what is going on t

it's on disney called too late to hit singles and their assessment of the investment in bam tech. i flag it. are they too late in the game to be investing this this kind of streaming service or could we make it work. well worth the read. >> and i think that ivan's point was the rest of the industry really hasn't gone there yet, but everyone is going to move there. by disney doing it, sort of a warning sign for everyone else they have to prepare for the future. >> particularly in sport s content in terms of streaming that. >>> we're approaching the top of the hour. the team is getting ready for "squawk box" this morning. scott joins us from new york and scott, donald trump's friend and supporter called your show yesterday and here's what he had to say in part about trump's economic plan. >> if he sticks to what he's doing, i certainly do not understand why any worker, any middle class worker, the arch chi bunker of the world. that was a great show. i used to watch it. those guys are going to vote for him because they're smart guys. they know they're getting screwed and that is what

bam tech has 7.5 million subscribers. that's a lot. i'm surprised that.le to replace the income that they get by going through the cable companies that aggregate large audiences, like us -- >> they aren't the only ones. >> like us -- >> with apple tv you have to download apps or channels. you have to download the cnbc app. you have to download it. we all have a challenge. >> and you have to pay ala cart and i wonder if they can replace the revenue fast enough. >> what i'm watching is shares of tesla, down by about 1.8%. first auto pilot crash in china has been reporting, at least tesla, that reporting last week and no injuries. it happened when the driver side swiped a parked vehicle half on the road and took off the side mirror. tesla said that the driver's hands were in fact on the steering wheel and the driver made no effort to actually steer the car away from crashing the other vehicle. the driver says it was sold as self driving as eposed to driver assist. that's something we have talked about a lot. the fine line there and what consumers really thin

buyim and disney's collaborating with bam tech to create a streaming espn baseball.orts a it won't stream existing espn channels, but disney's ceo, bob iger, says this op espn's busin down the line. >> if the business model is supporting these great media property starts to fray, in a significant way, we have the r pro th replace it or supplant it. that's really important. we're not suggests it's going to happen. it's our hope it doesn't happen, but this puts us in a great position should it happen. >> apart from espn, iger says this investment will hy d consu orngs imagine a disney app for kids o ml content. it's not justal al lal la cart. disney says it's top channels will be included in both of them. gl i think this move into you know,irect streaming technologya n there's a future where the cable set x is no longer the nexus with the consumer. >> the question investors are evaluating now is whether the consumer to streaming and away from traditional tv is going to eat into current disney revenue streams. g deal, particularly on espn, where 80 million people are paying for espn whether

at the same time, the company paid a million dollars or a ,hird of the state in bam tech a streamingervice performed by major league baseball. studio entertainment was one of the areas of strength with the number of various film successes. profit was up by 62%. ofare also speaking retailers, specifically looking at some of the higher-end retailers. profit beres estimates, but they do not raise their forecast for the full year. the company citing dwindling mall traffic, decreasing tourism as some challenges. it is trying to get discounted merchandise out of the department short -- department store channel. on the flipside, ralph lauren which has embarked on a turnaround plan under a new ceo appears to be bearing some fruit as earnings and revenue came in above estimates although both did fall year-over-year. oil prices going into today's inventory report, they have reversed higher earlier, they were trading lower among other things. recordrabia pumped a amount of oil per day in the month of july. we are also looking at the 10-year note. earlier today, we saw our reaction to the idea t

looking at some other news the company just announced, disney investing acquiring a 33% stake in bam techlogy services and video streaming company being spun off from mlb advanced media. disney paying a billion dollars in two installments and an option of majority ownership of the company in coming years. now, disney saying here in this press release bam tech a partner for disney in the support enand delivery of streaming products across the company but disney's also announcing here that it will collaborate with espn to launch and distribute a new espn branded multi-sport subscription streaming service. this is not going to be just taking espn over the top. because they say here that current content on espn's linear networks will not appear on the new streaming service but it sounds like there are multitude of different streaming services in the works and one last piece of news out from disney, the company telling me that at&t directv working on the new directv now over the top service will include espn, espn2, abc, free form disney channel, disney xd and disney junior, the seven biggest

disney will pay $1 billion for bam tech. it will launch a new web-based espn service this year.he sports channel continues to lose subscribers in the last quarter. >> as you look at espn, it is a great business for the company. it does have growth ahead of it. but it is not going to grow at the rates that we have been used to. taylor: tv channels are the biggest contributor to disney sales. largest oil exporter pumped a record amount in july. saudi arabia produced almost 11 million barrels of oil a day last month. that won't go well with other friends in opec who want to limit. that is your bloomberg business flash. report saysd new that brexit will come at a cost for the financial services industry, no matter what agreement the government makes. the negotiation timeline could drag on. we have a great bloomberg article where we speak to the former prime minister telling us thanbritons will be longer three months exit. is still with us. also, john fraher. when we go back to greenland, it is the only template that we have so far. and how to negotiate with the eu. john: that's righ

higher analyst spending and on the news that disney is investing $1 billion for one-third stake in bam tech. and analysts are largely positive on this move. a closer alignment with video streaming is a strategic positive that enhances disney's content delivery options. fbr analyst applauds the move because he said they have to go more direct. he sees the new espn service a niche and not going forward. saying can balancization of the core business is a risk so execution is key. disney ceo told me yesterday that while he hopes the traditional tv bundle doesn't erode, if it does disney will be prepareed. bill? >> all right. julia thank you very much. julia boorstin in los angeles. >>> now to our "closing bell" exchange for wednesday. joining us today, kevin from the private client groove. steven sarge gill foil and rick santelli checks in from chicago. sarge, what is moving this market? we are down 50 points on the dow. another one of those very narrow days but what are the at lift you're watching here? oil and overseas or what? >> a couple of catalysts. let's face it. this isn't an awful day.

flipside, the company did buy a third state in bam tech and will be launching in espn's -- launchingffic was up over 6% in july, although how much money they made her seat per mile was down by about 2.5%. airlineswas also high, with a lot of capacity. story,st, a different the revenue they are making percy per mile is down by 4.5%. they had cancellations and outages july 20 and that weighed on that company. in terms of eli lilly turning to biotech, parma, health care, a panel is recommending the company's late stage trial of a cancer drug will continue despite the act the drug did not eat an interim goal. those results expected in the first half of 2017. a look at pfizer on the back of this, they are rivals to this breast cancer drug. now we look at other stocks around the world. cory johnson imprints and -- in san francisco has the latest on solar city. -- showing the company's turnaround plans may just be working. very different from some other retailers we have been hearing from. what is ralph lauren doing right? >> basically taking his own medicine. taking step out of the departm

expected, but the big announcement is about overthe top streaming for directv in a major investment in bam tech. that stole the show. here's bob iger on the closing bell yesterday. >> we think it's a good investment. we love the business model. we think in today's world having the ability to stream on a scaled basis live sports and live programming is a competitive advantage and something that's necessary. we love the user interface. so overall we look at it as an investment, but as a partner, as a part owner and ultimately as a majority owner, we feel it gives us an ability to jump start not only espn, but our other business as well. >> and here was iger's response when asked about the impact of zika on the park's business. >> it hasn't. haven't seen anything we've been concerned about in terms of visitation or bookings. >> joins us now, stan myers. >> as we look at the quarter, disney reported decedent earnings. the studio literally outperformed all expectations. up 40% in the quarter. theme parks came in ahead of expectations as well despite the easter holiday moving into the march quarter.