disney ceo bob iger is looking past the film write-offs that cause them to missed quarterly earnings.e gave a view on future plans for streaming services and the takeover of 21 first century fox. how a listen. bob: fox also has significant stake in sky, the most successful television company in europe. the addition of the valuable assets will enhance our position as a global entertainment company with excellent production and distribution businesses and a key and emerging markets around the world. vonnie: joining us now is a portfolio manager. if you once it so badly, why not offer more? >> i think that is in the cards. in a regulatory filing with the u.k. takeover authority to extend the window for them to make a deal. get in overbid, hopefully we get it soon. and that being said, i think the main point for disney is to focus on its owner operated direct to consumer, essentially netflix, competing product, which as you mentioned, bob iger spent a lot of time talking about. vonnie: if you were bob iger, how far would you go, giving you know they would be happy for disney to own sky, h

ceo bob iger wrapping up the conference call and we'll bring you his latest comments.e meantime, here's what else is coming up on "fast." ♪ ♪ >> the new crypto on the block, ethereum classic has the right stuff and it's going parabolic. he'll be here to explain what all of the hype is about plus -- >> i just love television so much. >> don't we all, kenneth there's one stock taking on the tv giants and traders are e tting it's about to break out. thname, the trade and much more coming up on "fast money. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. when you rent from national... it's kind of like playing your own version of best ball. because here, you can choose any car in the aisle, even if it's a better car class than the one you reserved. so no matter what, you're guaranteed to have a perfect drive. [laughter] (vo) go national. go like a pro. see what i did there? >>> welcome back to "fast money," shares of disney are moving after hours ceo bob iger speaking on the earnings call and julia boorstin

investors pressing bob iger. we'll fill you in on his answers. >> and snap sorars and comes bak to earth many earnings movers to get to this morning >>> tesla shares pulling bag until the premarket after rallying late. jump sparked by the midday tweet from elon musk saying he's considering taking tesla private. musk later issued a statement saying a final decision hasn't yet been made. a reason for doing this is about creating the environment for

bob iger focusing on the next acquisition, fox saying we're more enthusiastic about the f acquisition than ever and confident in our ability to fully leverage these assets.le the cab networks are still a weak spot. it is dropping by 5% which is a bit worse than expected. for "nightly business report" i' julia boorstin in los angeles. >> let's turn to bill snead on all ofthis. he is a longtime shareholder of disney and a big proponent of a company even though there have been questions for the years with espn and the cable com bonens which again showeds weakness time around. you sort of dismiss that as noise.>> why? ell, first of all, they're a manager of a variety of brands and so what happens, just like when you run a good stock portfolio, there are cer yin stoc own that are doing well temporarily and some that aren't doing as well and you just want to have a great majority doing well all of theve time and the done that, and remember these -- this stock was under tremendousressure during this battle for these fox assets and people were wondering if netflix and other futuristic competi

i'm not sure bob iger will address that.omaine: can you talk to us about theme parks and how they are doing, and whether or not they will be rushing into some of these issues with regards to some of the slowing economic issues worldwide? geetha: i don't think so. quarter after quarter, at least over the past few years, we have seen good momentum in themes part -- the parks. they have been adding -- theme parks. they have been adding new attractions. the avenue -- the avatar one did really well. they added toy story in june and fixed are based attractions -- and pixar-based attractions. they had really good numbers come out of shanghai. we saw healthy demand as the european park resorts -- demand for the european park resorts. they have been able to counter any economic recession well. scarlet: i remember let couple of years ago with the big question on every earnings call was who was going to secede bob iger. who could he hand the baton off faded out.s he is staying put for another couple of years. are we any close to gettin

what did we learn from bob iger and from the disney results yesterday?ess we learned clearly they are very optimistic about the acquisition of fox assets. the number is a slight miss, so disney does need to be adding content to its portfolio, building out its streaming service, but we did not learn too much about what happened with sky, the final assets in play in the bidding war that has emerged between it and comcast. a mixed bag, i think. matt: 21st century fox is laying out plans for a new fox as its $71 billion deal with walt disney nears completion. all this came after earnings and sales topped analysts' estimates. fox news did quite well. >> indeed. i think the real standout take away here is how well the cable network programming division did. 60% of fox revenues, but more importantly, the center of profitability. as you mentioned, fox news, but also the fox business channel, fox sports, of course. but i think the big picture is that, you know, these business channels are actually highly profitable. obviously, if you have a sport'' channel, you h

what did we learn from bob iger and the disney results yesterday?> we learned that they are very optimistic about the acquisition of fox assets. the number is a slight miss, so disney does need to be adding content, building out, streaming service but we didn't win -- learn too much about what happened with sky, the final acid in play in the bidding war that has emerged between it and comcast. a mixed bag. matt: 21st century fox is laying out plans for a new fox as it waltillion deal with disney nears completion. this came after earnings and sales topped analyst estimates. fox news did quite well. >> indeed, the real standout takeaway here is how well the cable network programming division did. 60% of fox revenues, but more importantly, the center of profitability. you mentioned fox news, but also the fox business channel, fox sports. theseg picture is that business channels are actually highly profitable. obviously, if you have the sports channel, you have to buy content so the real picture is around the new fox assets that will remain with fox and

the problem bob iger has is twofold. he has a lot of competition. he has to integrate.nto the disney channel, espn and hulu. hulu is the sleeper. it has 20 million subscribers. it is losing a billion dollars a year but it is one to start making money unlike netflix. julie: another company out after why isn't snap doing better? >> instagram. the salvation of facebook. growing a billion dollars a year in profits. the dynamite service for teens. it is going to steal. in -- snap, you focus your camera on a product, and it cliques into amazon and you can buy it off your telephone. it is going to be a millisecond before instagram does the same thing. david: everything snap has done. quick snap has to start earning money. the report is when to show a big loss. bigger than last year. david: thank you. coming up the president trump set to meet with a dozen ceos at his new jersey resort today. he begins to shape his economic message into the midterm elections. more on what we're watching, next. in charge shown using g tv on your terminal. browse recent charts to catch up on

bob iger said how he sees the deal. >> fox also has a significant stake in sky.he most successful pay television company in europe. the addition of these assets will enhance our position as a global entertainment company with excellent production businesses in markets around the world. >> they completed the largest public offering in two years xaouming. repeat of it capped the market value at about $28 billion u.s. dollars. that is almost 20% below its valuation they were hoping for as recently as a couple of weeks ago. papa john's sales fell 6.1% in its latest quarter. weaker than analyst estimates and sent the stock down as much as 12% in late trading. founder and major shareholder issued a statement saying history shows the company performs better with me involved and declines when i step away. francine? francine: thank you so much, taylor. let's talk trade and tariffs. the u.s. will impose 25% duties on an additional $16 billion this chinese imports in two weeks time. exports grew faster than expected while imports surged showing both domestic and internation

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>> ceo of disney, bob iger talking about how enthusiastic he is about as we know the purchase of foxand bob iger is speaking to this, this acquisition how it will really help disney's global growth strategy, talking about the fact that fox entertainment has properties in 170 countries. he particularly, mr. eiger calling out star india, has 120 million viewers per month. pretty much guaranteed. he is making a reference to what we're seeing in a larger media trend which is smaller, digital bundles are showing great success. he spoke about the fox entertainment properties of fx and natgeo contributing to that part of disney's business in the future, and saying that he finds it is going to allow disney to compete with netflix and amazon. he is also giving details, not as fun, when i left the call about espn plus, a lot of analysts want to know four months postlaunch how many paying subscribers. analysts looking for more than 100,000 paying subscribers. i will stay on the call, bring you updates. melissa: thank you,. david: tonight's results could tell us if socialism is the really the fu

bob iger didn't just fall off a turnip truck and while netflix has a lead on them when it comes to the streaming stuff, who says it's zero some. you have plenty of other players. well, on the other hand, let's shift away from disney and talk about tesla. now i'm going to have a lot about this one later in the show but this morning, my "squawk on the street" partner david faber made it clear that not one of his myriad contacts gives any credibility to the idea that an $80 million possibility is possible given how much the company is losing. essentially, we're putting too much faith in elon musk. sure, he makes a great car he is a visionary. it's still kind of crazy to think he can put together the financing for this deal. now the potential merge they're has created a chasm between the believers and the nonbelievers the pharmacy benefit manager by cigna. the deal could hang in the balance was carl icahn has no faith in the merger. look, icahn admitted when he talked today that he probably can't block the transaction. he accepts that the shareholders are going to approve it. but he took t

it is clear that disney's bob iger really wants sky.k about acquiring fox and launching the streaming service globally, the addition of sky and the original content has the platform it has in europe. he is really motivated. he will beer or not successful is another matter, but i certainly inc. the expectation is that fox will come back with a higher offer first guy, backed by disney. if only because comcast forced disney to overpay for fox in the first place by coming in and bidding at the fox assets, so there is an expectation in the market that disney will want to make comcast feel some pain for sky is it it -- if it does not do right by sky itself. anna: thank you, rebecca penty, joining us on set in london. bloomberg business flash. juliette saly has it for us in singapore. juliette: snapchat's parent has reported a first ever quarterly drop in users, but sales topped expectations. second quarter daily average users fell 2% from the previous period. it signals that a controversial redesign of the app is still hindering growth, missi

. >>> what do kamala harris, bob iger and leonardo have in common?et on all of them to win the next presidential election. next at 5:00 a.m. a breakdown of the official betting odds. >>> resources are getting maxed out across california, how inmates are helping battle wildfires. >>> plus, what ♪ ♪ ♪ i put a spell on you ♪ yeah, because you're mine ♪ with chase atms serena can now grab cash on the go, all with the tap of her phone. ♪ stop the things you do no card? no problem. life, lived serena's way. chase, make more of what's yours. . >>> good morning bay area. >> this is "abc 7 mornings." >> good morning, 5:00 a.m. jessica is in the field. we'll talk to her in a second. alexis is here. >> good to benever han 7 minutes away from your accuweather forecast. check in with meteorologist mike nicco. >> hi, everybody. we'll start looking at san jose where it's cloudy this morning a little hazy. the air quality is okay right now. in fact, it's moderate everywhere. there's a possibility just like yesterday that our east bay valleys could go poor and the sa

. >> we're also watching to see if bob iger gives any update on international regulatory approval forisney's ack acquisition of fox or whether he wants fox to make a higher bids bid for sky and how the company will chang mega merger could impact outlook. i'm julia boorstin in los angeles. >>> visitor turnoutes impre at seaworld. and that's where we begin tonight's marketocus. e theme park operator said the new attractions and promotions which, by the way, included free beer, caused attendance to rise in all of its parks. both earnings and totalen r saw gains as a result. attendance famously suffered at seaworld after that 2013 documentary called "black fish," alleged the company mistreated the killer whales in some of its shows. shares today rose almost 17% to $24.69. >>> newell brands cut its earnings forecast for the fourth ti this year after it reported weaker quarterly sales and profits. the maker ofelmer's glue and sharpie markers said the bankruptcy of babies r us, whi sold many of newell's products nd the retailer's cutting inventory, put a dent in its own results. shares of ne

investors pressing bob iger. we'll fill you in on his answers. >> and snap sorars and comes bak to earth many earnings movers to get to this morning >>> tesla shares pulling bag until the premarket after rallying late. jump sparked by the midday tweet from elon musk saying he's considering taking tesla private. musk later issued a statement saying a final decision hasn't yet been made. a reason for doing this is about creating the environment for tesla to operate best. as a public company. we're subject to wild swings in our stock price that can be a major distractions for everyone working at tesla all of whom are shareholders pretty wide range of reaction from the sell side today including jpm saying it's a statement. the ceo of a public company, we're going to fold. the possibility into our evaluation. >> look, i think it's entirely possible that he meets with the saudis you have to think maybe elon needs the must be. i'm sure in a conversation they say you want to go private if elon doesn't dump from what is c

bob iger has repeatedly reiterated that the sky properties are very important and gives the 23 millionbers across europe. it allows them to diversify geographically. scale up them to content as well and make that big foray into direct to consumer. there has been a bit of speculation that disney is going to go easy on sky know that comcast has withdrawn from its fox chase. there is a bit of uncertainty out there. >> speaking of the fox chase. it is basically over barring a few details. next quarterin the or two with box, the entertainment aspect? >> it is pretty much a done deal. i think what they are waiting for is a global regulatory approval. they have that in the u.s. but they have to divest the regional sports networks. we need some details on how that is going to happen and what the prices they are going to get. based on into secure regulatory approval in the eu and other regions. for banctec? plans >> they have been in this heavy investment phase. this is the platform that they need for their espn plus service and this is what they are going to heavily rely upon for disney brande

>> i would never invest against bob iger. i think he's a brilliant guy. mr. disney left the company years ago, senior management is adept all the time. iger has done a great job. i would hesitate taking on netflix, i think disney has done the right job buying into fox and owning the library that it has, it can expand upon it, it can take the movies that fox owns and sell the toys and the implements that go along with it. i would hesitate to take the opposite side of anything that bob iger does. do i own disney? no, should i? yes. i prefer owning the things if i drop them on my foot will hurt. that's my style. stuart: wait a minute, wait a minute. what do your investors, the people who buy your letter, what do they say? you've walked away from technology. >> yes, i have. stuart: a booming sector in many, many years, you walked away from it? >> without question, i get taken on task on the internet on a frequent basis for having done that. there are times when owning crude oil or owning steel or owning copper or owning machinery or owning ball bearings makes

this affects, nat geo, bob iger talking about smaller digital bundles are the way to go.ked about 170 countries. 120 million viewers will really help the global franchise. amazon and netflix. >> was interesting last night because after the earnings the stock fell in bob iger started to talk about streaming services and bundled subscriptions. disney has three steaming services after the 21st century assets who then once the deal closes, you have the espn plus. >> as they do their direct to consumer, the reason i ask about price, it would be interesting to see how its price for his netflix. but i also found interesting is 33 million cord cutters this year and this is a direction you want to take disney and rightly so as well. >> 15 times in 15 minutes. >> hit franchises the play of "star wars" or 10 episodes. >> we mention netflix as well, that amazon is another all-time high. >> 50 all-time highs in this year alone. amazon and apple are the only two you can talk about in that context. it is the 800-pound gorilla. >> a bit of a contributor? >> i don't want to add it up beca

performance is encouraging >> this is about the forward looking guidance coming out of disney and bob igeresterday. their big gamble or their big bet is ontheir own version of the streaming service, disney flix which will come to the market in 2019 while they prep for that, that entails extra spending on the technology side. it doesn't appear we'll see a reward on that investment until the later stages of next year. >> they have their hands full. don't forget this is one that the shareholders and most regulators signed off on a couple more to get across the line if this goes through, iger has a huge number of assets to fold into one disney flix, the comments were interesting from iger yesterday, we will walk before we run in terms of how many shows we'll offer. the pricing will reflect that lower volume of products compared with netflix at this stage. so they won't have a big blockbuster launch by the sounds of it. which you expect from a disney brand. a more rational approach to get it right from the start. that's interesting on the cost side, it was also around espn. the sports channel a

ramy: bob iger touched on how he hopes to put his cash to work during the conference call as well.gure listen to this. also has significant state in sky, the most successful paid television company in europe. the addition of these valuable assets will enhance our position as a global entertainment company with excellent businesses in tn emerging markets around the world. ramy: let's boil down what he said. what does it mean for the deal going forward? chris: this is classic iger. he said he was very excited about the fox deal and he said he will pump up production for things like fox searchlight, the oscar-winning film unit. he will produce a lot more of the film content for fx. they will have more egotours tours. -- eco- shanghai and hong kong were up. that has been a little bit of a change. hong kong was down a bit after shanghai opened. it was taking a lot of the chinese tourists there. on the good news out of the parks business in asia which has been strong overall. haidi: always appreciate your time for us, chris palmeri, with us on disney. closer to home, and the bank of aust

phenomenal based on an economic standpoint this is a platform that's still growing that i think bob iger would be a strategic asset for them, which, again, not your conventional wisdom, but -- >> remind me, tuna, or julia for that matter, where the asian assets of fox now reside will they reside with disney, the star and so forth? >> star will reside with disney, and that's -- i would just point out, that's a massive asset, and i think that the international exposure that fox brings is one reason why it was so appealing both to disney and to comcast who also made a bid. also latin american assets that are very valuable. i think that the acquisition of fox had a number of appeals, but one of which is the direct to consumer potential having a controlling stake in hulu, but also having the access to those international markets through star and sky and also in latin america, but i would point out that disney with the acquisition will own about one-third of sky. the question is whether they make the bid for the rest of it and how this all plays out will they want to be a partner with comcast

investments in the studio side of things the theme parks are doing well lay out for us, if you were bob igeright now, what is the path forward for disney how does the next year or two shape out in terms of how strategy takes form. >> he's been a little bit late to the game in the sense of recognizing that shift in the media distribution pattern that everybody else is now jumping on to he's going full bore, direct to the consumer that is going to be precipitated by the 2019 launch of the disney streaming channel, over the top channel. a sleeper is hulu, which he's going to use, he'll put family oriented content into the disney channel. that's got the nickname of disney flix to take on netflix hulu will be an adult and art house edgy film and television content distribution channel hulu has 20 million subscribers already versus 80 million for netflix. he will ramp that up and do the best that disney can to compete with netflix and the other streaming services that's a problem for disney. you have amazon. you have apple you have google. yesterday jeffrey katzenberg announced newtv. another stre

compare that to bob iger at disney, $39 million a year. he was well supported.> shepard: thanks, deidra. are you looking for a great deal? the world's largest yard sale or garage sale is happening right here in the united states. it's almost 700 miles long. more than 2,000 people selling stuff and you're there live with jeff flock next! ible. capital one has partnered with hotels.com to give venture cardholders 10 miles on every dollar they spend at thousands of hotels. all you have to do is pay with this at hotels.com/venture. 10 miles per dollar? that is incredible. brrrrr! i have the chills. because you're so excited? because ice... is cold. and because of all those miles. obviously. what's in your wallet? >> shepard: if one man's trash is another man's treasure, why not head up the world's longest yard sale? that's what organizers call a massive stress of roadside stands that run 700 miles from gadsden, alabama to addison, michigan. jeff flock is along the route in saline, ohio, about 100 miles north of cincinnati. what you got, jeff? >> i'm on route 127. th

we found disney's ceo bob iger on the list and mark zuckerberg, leonardo, kanye best and stephen colbert. disney is the parent company of abc 7 news. >> i want to see easy on the ballot. that would be certainly entertaining. >> how about that debate. >> hasn't he said he might. he's considering running. >> he said a lot of things. >> yeah. hasn't he said. >> just to be fair. >> that's true. >> interesting watching kamala harris rise through the ranks rapidly too. very impressive move for her. >> decent odds there. >> yeah. >> let's talk about what's going on. we've got unfortunately decent odds of having poor air quality today. hi, everybody. another spare the air day as our stagnant pattern will be mendocino o poor auaty complex fire. it's also going to be hotter today, likely our hottest day this week. low clouds and fog, mild temperatures, not as cool as this morning and the heat will taper by sunday. your micro climate and the coolest weather up around milpitas and sunnyvale. 88 in san jose, 99 in gilroy. on the peninsula 72. millbrae maybe not as comfortable. redwood city 85. menlo

bob iger wasn't worried.a buyer and autozone, there is one that has always been a buyer on weakness autozone is a tremendous buyer of its own stock and it shrinks the float and it has worked if you take a look at the long-term chart for azo. buybacks are no reason to own the stock and in some cases are reason to silt i think if you ever want to own a stock of a company that's wasting the mode to survive on useless buybacks or spending money it doesn't have on an activity as fruitless as repurchasing stock to call bottom, and you shouldn't rely to help prop up a stock if the situation's dire the way i see it, these are false signs of health, and too often just a darn waste of shareholders money "mad money" is back after the break. >>> boo-yah, jim croatians on a great show. >> "mad money" is not a show about picking stocks for you it's a show about empowering you to think for yourself. >> this is bill from new york. jim, thank you so much. >> this is curtis in north carolina i want to say thanks to you for cre

happening with moodna's is beginning to sink in melissa: howard, les moonves makes roughly double what bob iger does. how much is the head coach is he's been described how essential is he? >> he's more than just the head coach for les moonves is the man who turned cbs around from a last-place network to a first-place network. here's the key the cbs independent directors are quick to hire two prominent law firms who handle misconduct allegations. you talk to people they spoke to as ronan farrow did in youth speaks to menendez. it cbs has got a dilemma. they may think he's the greatest leader and businessman of the world but do they want the black tights to use the logo analogy that keeping him in place would result in if in fact these allegations are confirmed by outside investigators. melissa: this is not the blue. all of us who are in the media know that this is something reporters have been investigating for a long time, right? >> yes. the rumors have been around but rumors around for a lot of people. but "the new yorker" did and those are my snood media figures who were forced to leave it se

yesterday, ceo bob iger laid out disney's high-stakes plan to fight back.s, including hulu and the recently launched espn plus. it also plans to debut a family-friendly service next year featuring content from pixar, marvel, disney, and "star wars." second, it will use new content from fox on those platforms. disney plans to buy fox's entertainment assets for $71 billion, including its movie studio and tv channels. >>> snapchat's revenue grew 44% last quarter, but it lost users for the first time ever. snapchat is down 3 million daily users. snap blamed a rocky redesign of its app, but it's not the only social media company to see a slowdown. shares in facebook and twitter both fell after reporting slowing user growth. facebook lost more than $100 billion in value in one day. that's a record for a u.s. company because of those concerns that putting privacy first is going to mean profits will be second. >> well, pretty important. >> yep. >>> coming up, a fighter jet launches a missile by mistake! yes, that would be a mistake. the story just ahead. >>> plus,

you can place blame on disney and bob iger as well because part of the problem with the cable bundlech they cost. costs toe cutting the save money. espn, and companies targeted represents about a dollars of your cable service. it is the most expensive channel, that they are not the only one shelling out bills and's -- out billions of dollars for sports. many companies are spending enormous amounts of money on the sports rights. that gets passed on to the distributors who pass it on to consumers in the form of higher bills. we are some services like at&t who introduced a sports free bundle. there are others out there like this and there are other ideas out there showing that people do not want to pay for channels they are watching. so the industry is starting to slowly come around to this idea that there are consumers who do not want to pay for sports. it is a big reason why the bundle has gotten so expensive. scarlet: one of the best quotes is the former cofounder of espn saying that to fans wanted more sports so they are driving the price. [laughter] julie: a bloomberg exclusive is

joe: that's the question, how badly does bob iger want skied -- want sky?welsa real so you would think disney does have a strong upside for it. it would help with its diversity internationally and its direct to consumer assets. it's a case of which wants it more and that's the number that the market is trying to work out. matt: thank you, joe mays, giving us the reporting as it's an ongoing developing story. up next, we bring you some of the other stock movers including rent asked. st, withding renca shares up 5%. this is bloomberg. ♪ matt: welcome back to bloomberg. ."is is the "european open your mid-cap movers with nejra cehic. is a: norian renkaat company that makes tires. casino down over 8%. worstne of the performers. it's dropped the most in more than two years. dalloway also moving lower over 4%. also moving lower over 4%. rises, it hasn't been enough to offset costs. something making investors nervous with that stock lower. its: glencore posted biggest ever half-year profit. it's held fire on any new plans to return money to shareholders. we see sh

and let's take note of a prelude to tomorrow's business, please the stock of disney, because ceo bob igeralked about early success with espn plus, as i said he would on the show. it's over the top initiative that's gaining traction and changing the narrative positively until disney can close on buy from key fox assets the company reported what looked to be a weak number, and the stock went down. but this one always trades on the conference call. and it was stellar bottom line, if you only take one thing away from this segment, maybe for the whole night, understanding we have a serious stock shortage on our hands at these levels. there just aren't enough shares to go around, at least at the prices that we are trading at now. and it's making even bearish money managers afraid to sale. at the tend of the day the stock market is a market like any other. which means it's controlled by supply and demand. when there is not enough supply, prices go higher end of story james in california, james >> caller: hey, jim. >> yo, yo. >> caller: what are your thoughts on grand canyon education, given thei

i'm sure there is pressure from disney whose bob iger said sky is one of the more valuable assets within, potentially within, the fox portfolio. we didn't see that stocks change much as you have the outstanding issue of sky and the disney acquisition. when you look at what remains of the company, that is at the crock of what will be the business here. scarlet: you wonder what rupert strategy -- rupert's strategy is. you wonder if he is selling at the top of the market while everyone else is coming into bit higher. let's bring in geetha. she helped us disney result yesterday. when you look at the numbers for 21st century fox, the fiscal first order -- fourth-quarter revenue is beating the highest excellence -- estimates. were investors and analysts lowballing? were they not confident in the business coming into the earnings report? geetha: i think it was her healthy report from 20% three fox -- from 21st century fox. the real focus is on the deal with disney and what could potentially happen with sky. they definitely would've gotten a boost in the cable network .egment those have been inc

expectations, the stock first dipped but then they shot into the green during the earnings call after bob iger was slowing thanks to the tv bundles. saying they've seen improvement. right now you see disney shares trading down just about half a percent. iger outlined how disney would benefit from the fox acquisition particularly from the international assets hulu of which it will own 60% and the disney branded app which is launching next year >> our incredible portfolio of high quality, in-demand branded content uniquely pushes us to successfully and a half gate th - navigate this marketplace. we always believed we have the brands and content to be competitive and thrive alongside netflix, amazon, and anyone in the market >> disney's digital efforts were in focus throughout the call iger saying that the initial performs the espn plus service which launched in april is encouraging conversions from free trials to paid subscriptions being exceeding e far. >> all right just to drill down on a couple of bigger themes, programming costs was mentioned as one of the things that caused the numbers to b

matt: so why is bob iger so excited about the integration of as, in his future plans, disney resultsdisappointed? alice: filmed entertainment is what fox is really bringing to sky,ix, and also 39% of which as we know is the number one pay-tv company in europe. so, that filmed entertainment piece is very valuable to disney, because it really wants to launch a direct home offering in 2019. that's what 2019 is all about, a hulu sort of based product. a netflix competitor they are looking at. in the filmed entertainment division at the box office has always been a bit sub-scale. disney is a juggernaut, but fox relies more on hits like "deadpool." more of a pattern here. it is important for disney to pack in films and determine. disney also plans, they have three buckets, filmed entertainment, merchandise, parks. those two, merchandise and parks, are linked into the filmed entertainment, a unique explication model you can do when you are a family entertainment company like disney. obviously fox is not a children's company, but it will pack in a great offering to consumers all across the p

first time hearing from bob iger since winning the fox assets and maybe we'll see what's coming withdeadline coming on thursday. etsy higher after reporting earnings we'll talk quarterly results first here on cnbc stay tuned you're watching "squawk box. back in a moment ♪ ♪ ♪ ♪ the difference between possible and impossible? it's a person who believes they can, surrounded and supported by others - by us - who believe it, too u.s. bank - the power of possible. thanks, janet. it's welcomemy happy place. store. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. >>> welcome back to "squawk box. the u.s. department of justice releasing its argument for appealing the acquisition of time warner. ignored in his decision because he refused to

david: how long will investors give disney and bob iger before they have to know exactly what the costs real indication on the result? michael: that is a good question. in the next six months or so, disney will have an investor day and we are expecting them to lay out the cost of the buildout. i would say in the next six to nine months, we will know the cost. in terms of whether or not it is a success, we will know in about a years time. it is going to take a year and a half or so to get our first indications of how big this could be. together, weose will know the costs and we will have to wait to start testing this idea to see if it is successful. probably another 18 months to go before the market ways in on whether this has been a good idea and how large this concept could grow. david: with the completion of the 21st century fox deal, this will be the largest most dominant media company in the world. at the same time, the way you describe this, there are two things going on. this is a difficult merger to effectuate any way. much different then adding pixar or lucasfilm's. -- lucasfilm

has a pretty bullish setup and a lot of focus will be on the fox deal and how it will fit into bob iger'sll strategy on streaming. >> it's interesting. my take on earnings is the kind of thing that's boring nothing ever happens and very little news and something like facebook happens which proves me totally wrong. so sometimes you need to focus earnings i'm not sure you'll get any facebook, like surprises. >> but this will be very interesting. the key what's the outcome of the sky deal we don't know. they own 39% of that and the most interesting thing is to hear about their integration of the whole fox deal and what's the synergies. they'll start rolling out what the real hardest mats are, but we'll get some flesh on the bones. >> the big thing for disney and for a lot of investors that are so focused on netflix is going to be what is disney going to do to create whether it's hulu. >> they said they wanted to compete with netflix, that that was a rationale for the whole deal and they'll have to prove they can do that >> disney's stock price up 15.5% over the last month. >> it's weird. i t

ceo bob iger touched on how he put his cash to work during the conference call.a listen. >> as you know, fox also has significant stake in sky, the most successful pay television company in europe. the addition of these valuable assets will greatly enhance our position as a global entertainment company with excellent production and distribution businesses in key and emerging markets around the world. ramy: chris, what does this mean for the deal going forward? chiris: what you can read into that, iger says he's still very interested in acquiring the parts of sky doesn't already own. fox is wrapped up. comcast, the other bidder, is not interested, but comcast still has the highest offer for sky, so in a way this is bob saying, that part of the deal is not over, i am still interested. parks what about the business? a bit of a bright spot, especially in asia. chris: the parks over the last two years has been a real driver of business, as the tv business has been going through technological changes. the new park, a couple years old in shanghai, seems to be doing grea

bob iger?lecting really good trends in the studio, momentum in the parks. what investors are going to be focused on is any data point with their espn plus product, a streaming service they launched in early april. it's been a full quarter now. we will see if there is interest in how they updated that product and what the future demands may be. mentioned, espn is about cord cutting and the future of tv. an update on the disney streaming exercise. >> they are preparing for their branded streaming product launch next year. be tipping their toe in the water a little bit, gauging the demand. they are getting ready for this new product launch. they beefed up their content point folio. the fox acquisition is all about bolstering their content assets, deepening their library content. they are sent to do that with the launch of that product sometime next year. francine: what will you be looking out for with them in the past. they have done well with theme parks, particularly in asia. >> we see some good

bob iger was a little laggard into moving direct to the consumer many he's got the materials, th theoing to get sky by the way which will give espn a major international footprint. maria: you don't think comcast gets sky? >> i don't think so. maria: why? >> fox just filed with the u.k. regulators today and got a new ruling that says they only have to buy 51% from the 39% that fox owns. that gives disney a chance to control sky for a lot less money than the $35 billion that it's going to cost to buy the whole thing. >> i'm glad you brought that up. before the threshold was 75%. one of the interesting things that came out of idaho was analysts thought that the baby was going to be split. disney is going to get fox, 21st century fox and all of a sudden comcast can have sky. this news completely changes the paradigm for that. where's comcast going to stand? >> comcast is between a rock and a hard place. they also have 30% of hulu now which disney owns 60% of. maria: will maria: they want to keep that? >> income cast will exit sat some point. disney can make sure they don't get any profit