chris palmeri, why did disney's earnings actually disappointed this time? hey took a $100 million right off onto movies that have not even been -- on two movies that have not even been released. third sequels the of "planes." people were not putting these in their calculations. ramy: bob iger touched on how he hopes to put his cash to work during the conference call as well. that figure 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

for more, let's bring in chris palmeri. uch this could undermine revenue sources of apple and google because, for apple in particular, this is a hope for the services business going forward. chris: indeed. we have analysts suggesting this could be as much of a 20% hit as an earning -- on earnings for the companies. we're talking about $50 billion in profits each. that is potentially tens of billions of dollars of profiteer. joe: the nice thing about the app store is it is just easy. we all know if i downloaded onto my phone whether it is spotify or whatever else, it will just work. it is easy. can they replicate the ease-of-use by getting around the app store? chris: they are trying. it is probably not coincidental that companies are doing this. netflix and the folks that brought you for night are the ones trying to take a lead here because they are in the strongest position. the theory is, these companies are spending billions of dollars on content or hundreds of millions designing again, and then these toll collectors get

let's go to a laborer chief chris palmeri. it wasn't the movies, so what was it? : it looks like we will never see two animated films, projects that were probably tied to john lasseter, the former head of disney's animation business who stepped down last year, so this is the movie business. there are big winners, and often some losers. ramy: that is showbiz, as they say. ceo bob iger touched on how he put his cash to work during the conference call. take 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 sk