what have they done under philippe dauman? strategy has been plying profits into share buybacks. carol: people calling it a lost decade. >> yeah, in the meantime in retrospect it seems like there would have been better ways to use those profits. also, paramount has had a very slim slate of movies, too, so they have been trying to bulk that up, trying to do tv production in addition to movie production, but that also feels like they are a little bit slow to get into that. carol: such a great -- david: thank you very much. coming up, this week's etc. section in the magazine. carol: we talk about an up-and-coming company and its move to be the patagonia of hunting gear. we have the details when bloomberg tv returns. ♪ carol: for hillary clinton and bernie sanders, the next out of ground will be nevada and south carolina. >> we have got a proven track record of doing what works better, and now we just need another democratic president to build on the successes of these two terms, because otherwise we are just going back to that la

what have they done under philippe dauman?trategy has been plying profits into share buybacks. carol: people calling it a lost decade. felix: yeah, in the meantime in retrospect it seems like there would have been better ways to use those profits. also, paramount has had a very slim slate of movies, too, so they have been trying to bulk that up, trying to do tv production in addition to movie production, but that also feels like they are a little bit slow to get into that. carol: such a great -- david: thank you very much. coming up, this week's etc. section in the magazine. carol: we talk about an up-and-coming company and its move to be the patagonia of hunting gear. we have the details when bloomberg tv returns. ♪ carol: for hillary clinton and bernie sanders, the next out of ground will be nevada and south carolina. >> we have got a proven track record of doing what works better, and now we just need another democratic president to build on the successes of these two terms, because otherwise we are just going back to that

dauman should be ousted.gabelli for that matter has been publicly critical of viacom's performance as well. and he's an investor held in very high regard by an awful lot of people. >> absolutely. and there's the fact that sherry redstone is saying that dauman is not the right person to have the chairman role, considering the performance of the stock in recent years. so, it seems from the tone of dauman on the conference call that he didn't want to acknowledge what challenges viacom is facing. he was very optimistic in saying that he was very focused on -- you know, optimistic they were able to turn around ratings and he also said he was very focused on improving the stock performance. but analysts have been very critical and there are a lot of questions about whether he should have gotten that chairman role. >> yeah, there's a suggestion, julia, thank you. doc, i think people have said, you know, give him a year, see what he can do. what do they need to, you know, sell off some assets? do they need to buy pro

dauman to the chairman role.his battle is going to continue, it would seem, for some time. >> not as simple as saying it's about conflict of interest or we need fresh blood at the top. it's more complicated than that. >> she says they need independent voice at the top of viacom as chairman. others say she sees this as opportunity with the weakness of viacom, incredible compensation they paid to mr. dauman, this is an opportunity for her to assert herself as her father's health declines. >> the investors like the whiff of change. up 5%. >> mr. redstone still controlling shareholder. >> activist interest? >> there has been some, but more on a governance level. you have somebody unable to communicate still as executive chairman. it is a reasonable question to ask how long that should continue. the idea of consolidation taking place and/or cbs or viacom being part of it is premature. >> we'll see what comes out of the meeting. >>> it was a contentious hearing in congress. martin shkreli making a quick appearance, ple

what have they done under philippe dauman?ybacks. carol: people calling it a lost decade. >> yeah, in the meantime in retrospect it seems like there would have been better ways to use those profits. also, paramount has had a very slim slate of movies, too, so they have been trying to bulk that up, trying to do tv production in addition to movie production, but that also feels like they are a little bit slow to get into that. he's. such a great david: thank you very much. coming up, this week's etc. section in the magazine. anol: we talk about up-and-coming company and its move to be the patagonia of hunting gear. we have the details when bloomberg tv returns. ♪ carol: for hillary clinton and bernie sanders, the next out of ground will be nevada and south carolina. >> we have got a proven track record of doing what works and now we just need another democratic president to build on the successes of these we terms, because otherwise are just going back to that land , oneickle-down economics of the worst ideas of the 1980's, alon

dauman may said.hari redstone, sumner's daughter and board member will continue to at least fire at the current management of the company. either in part to try to get some change there or perhaps to get some change on the trust, of course, which mr. dauman is a trustee with six other people. >> cable is not that bad. >> no. >> i expected things to be worse. >> terms of cord cutting or subscriber erosion? >>ing about disney tonight. >> we have disney tonight. we'll see what mr. iger chooses to say and what the numbers look like. it's not that bad, you could argue, but it's moving obviously -- not moving in an up direction. >> but it's not an oil company. >> no. >> is that the standard now. >> that's the new benchmark. >> not an oversupply, no sense of equilibrium -- >> no dry holes there. >> if you have a compelling content, these companies will tell you it doesn't matter what platform, they'll get paid for it whether it's an over the top streaming service or whether it's in the bundle that cable prov

. >> as we reported the last couple of hours and as expected i guess, dauman is the chairman of viacomreplacing redstone. he is the company's chairman and over the objections of board member and vice chairman sherry redstone that made it very clear in her announcement that she wanted someone that she called an independent voice to become the chairman of the company. not someone that's the trustee of mr. red stone. and he is now chairman of the board in addition to being ceo of viacom. this does not mean that this battle that really broke out into the open yesterday is resolved. sherry redstone who i am told with her father frequently and in his home and helping him in terms of dealing with many matters and communicating is going to continue to be on the attack in a certain extent with trying to assert her power here. importantly it's is the health of mr. red stone himself. a number of people i have spoken to over the last 18 hours indicated the failure to communicate has been seriously undermined or by deterioration of his health so it does raise the question of his ability of continui

and also we have to rep that philippe dauman we learned last week that philippe dauman will be deposed -- so manuela herzer's attorney told us earlier today in the next couple of weeks he'll go to new york to depose philippe dauman, very interesting. dauman did not want to be deposed, but the judge ruled he will in fact have to be deposed. amazing stuff considering here that dauman is the ceo as well as the new chairman of viacom. you have the fact that sumner redstone still has a controlling stake in cbs and viacom, he's 92. the stuff is kind of amazing. >> a complicated stew, for sure. thank you, julia. >>> up next, jcpenney on a major rally, up 35% over the past week. we're talking to jcpenney's marvin ellison about how he's turned around the company's stock and his plans for the future. stay right there because "power lunch" is back in two minutes. man 1: i came as fast as i could. what's up? man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we m

philippe dauman made 80 million dollars last year. we should show their salaries.'t imagine he produced $80 million worth. liz: right, the blue line is viacom. >> look at the salary. that's the salaries, and the one on the right, and this is -- that's not -- is that the salaries? >> it says 44 million for the five year compensation but doesn't take into account the stocks. >> i'm saying we are talking huge, huge amounts of money here. liz: does this outrage you mario gabelli? >> the stock is a loaded laggard, there's 400 million shares, the stock is selling rough numbers $50. 20 billion, 4.2 billion of cash flow and the current year ending september 30th, it's a statistically cheap stock and capex in the business -- liz: are you okay with philippe dauman getting paid that much money? >> the money is a background noise to the following, he has to demonstrate to the world he can grow again in terms of dealing with the dynamics of the digital world from linear to over the top. he has to demonstrate he can get into the growth platforms domestically and internationally,

this comes three weeks after dauman took on role as chairman after criticism to transfer paramount to digital distribution and for his high pay. melissa. >> julia, the point of the whole thing in terms. stock turning around is even if it does do that, it's a good first step but it's still left with the same fundamental problems that are facing a lot of the other giants, namely cord-cutting in the bundle. >> reporter: exactly, a first step but a first step that's really only about a relatively small part of its business. viacom's business, as with many of the other media giants, is primarily about those cable channels, all of that content, mtv, comedy central, nickelodeon, et cetera and that's the business that's facing so much digital disruption right new and we still haven't heard anything about dauman about how he plans to move forward and make changes that we haven't heard about yet. >> julia boorstin in lonks. >> in terms of content and media, guy. number one pick? >> well, it was disney, but dan's about to talk about it. i'll say this about viacom, though. the move today wasn't g

what she was saying is she didn't want dauman to take on that role. he is a trustee and health care proxy. yesterday she came out against him becoming chairman of viacom. this morning he was appointed chairman of viacom and now she's going to fight that. looks like we're at the beginning of what could be a battle here over viacom's leadership on the heels of sumner redstone stepping down from the post. >> certainly appears that way. our next guest had a vested interest in the outcome of today's board meeting. >> mario gabelli joins us on the phone in a cnbc exclusive. >> i'm delighted to chat. >> we're delighted to have you. and we believe it's in the best interest of the company and all shareholders. do you agree with that statement? >> first let's deal with the retirement of a visionary and a media mogul. sumner we think he created a fantastic company. and bought himself a period of time to do the following. first take a partner in in pair mount. you have alibaba and amazon and alphabet. three companies could put 10 billion in at jv and you could ha

todd we just heard philippe dauman's commitment to returning the stock to its pry other valuation. what happens if that was based on a legacy business and the revenue opportunities in the future just aren't there? >> kayla that is the issue. the earnings report itself, the eps number was in line, the revenue was at a light but what the market is always looking forward to is there's nothing that philippe dauman can do in our opinion to get kids and teenagers to put down their ipads and go back and watch tv the old-fashioned way with all the advertising and prescription fees that it carries. as has happened in many quarters before, we got some new news during the call about future growth rates, in this case on what they call the affiliate key line it looks like it's going to be much slower than the market expected. when you think about that and the advertising growth rate and the relevancy of linear ad-supported television networks to the audiences that viacom is trying to serve, we've gone so far as to liken that to eastman-kodak trying to sell 35 millimeter film to kids who are usi

i'm amazed the director said we want continuity, that's why we're picking dauman. do you want continuity in a company where the shares are down 50% in the last year and all the performance looks to be dreadful. >> sumner planned for this for a long tichme. that's why he has a trust with seven trustees that will take over upon his death and/or if he's deemed not capable of taking care of these things himself, jim. he's had this plan in place for a long time. nothing says when he does pass that there's a forced sale. to your point, i think there certainly will be and there is tension between shari and dauman, and perhaps trying to see what she can effect in terms of change amongst the trustees, she's outnumbered 4-3 family versus nonfamily. >> there are a lot of trusts out there. people point to the hearst corporation, but you don't have a situation where management and family are at odds. that's been carefully handled so the family is careful with the managers running the company. here this is very unstable. it's interesting that ultimately, when sumner redstone is

, yes, you could paint a picture where he could control the film studios, philippeippe them on -- daumanas the confidence of the board. i wonder about the board's confidence in him and how is investor confidence at this point and how much time does he have in the eyes of the investors here to turn it is around? vasily: in terms of investor opinion, i think he has been going down and that is the frustrating part but things are going from a less bad to somewhat good, for example, the ratings came out today and nickelodeon was down 30% last year and in january it was up 6%. so that is good. so as long as things keep getting less bad and finally get to breaking even, the stock should grind fourth and it could finally work for the shareholders. david: people are worried about distribution arrangements and from reading your latest note, it doesn't sound like this is going to happen? vasily: i am not worried, of course this is worrisome, but the big distributor, dish, will between getting dropped, i think there is deal, so ifor a think it is not hyper growth but it is not a drop by hundreds of

the board of viacom has just d asd philippe dauman chairman.forthe end of the sumner redstone. i want to head out to los angeles for this because it was some board -- some boardroom drama with shari redstone saying she does not think they should be chairman of the company. what should happen -- what happened here? it sounds like she is on an island. according to people who know what was happening on this sherry wascall that the only dissenting voice. it was a 10 to one vote, including sumner. philippe has spent a lot of time currying favor with sumner and the rest of the board and he has a lot of people who are loyal to him and it's going to take more than her attitude to change that. betty: so what happens to her? she still has a say in both companies and when her father dies, the power and control of natural amusement, which owns cbs and viacom does past through -- does pass through a trust in which she is a member. i think she can curry favor but at the moment, les moonves and viacom have sustained control of those companies. sounds like she

what dauman is saying the franchises they have in the works are the likes of a -- they have a mission impossible franchise, they are going to be more of those movies and transformer movies. they think they need to be a content power house. and where the content has shifted is both to digital streaming and television. if you look at amc, which is what go belly suggested that's a strong tv content producer and distributor. it might make sense for amc, which is a stan alone company, has just a couple of channels to be combined with a larger media player. just in terms of consolidation being the name of the game. >> mario also suggested alley baba. when i saw this news cross i immediately thought of dali an wanda. either way, potential chinese investment in this sector. they have been wanting to pi up for a lot of stuff. a lot of people think they are paying too much much for what they have bought in hollywood so far. >> there is no doubt the chinese are interested in hollywood. i would be shocked if one of these strategic investors that has contacted viacom is not a major contractor for

reports philip dauman is interested in becoming the chair.edstone said it is my firm belief that whoever may succeed my father as chair should be a leader with an independent voice. dauman is a trustee. we'll hear more this afternoon when the viacom board meets. redstone's resignation from cbs may have been prompted by medical examination of him on friday as part of a lawsuit from his ex-girlfriend. the results of that exam from friday were sealed but the timing, all of this is certainly interesting. andrew? >> so, you think there's -- obviously there's some kind of family squabble going on here but you think this was forced by what happened on friday, that's reason this is happening today, it would not have happened otherwise? >> reporter: i think the timing is interesting. i've talked to various people who say it's possible that redstone's health either took a turn for the worse or that there were some concern about the results of that medical exam on friday. we have no idea what the doctor found. the timing is very interesting. then i've t

pretty good management. >> a year from now is philippe dauman still the ceo? yes. >> stories are being written that he has a year, to the end of the year to turn things around. >> i think mario may have laid down that line in the sand. he's a media investor. i have no reason to believe that the board has laid down that line and they are the ones that hire him. >> thank you. >> thanks very much. >> when we come back it's primary day in new hampshire. many calling it a do or die day for many republicans in the house. we'll hear from john kasich in his own words next. first though as we head to the break check out the futures right now. okay. now the dow futures are down by 154 points below fair value. nasdaq down by 45. these are the worst levels of the work. stay tuned you're watching "squawk box" on cnbc first in business worldwide. this just got interesting. so why pause to take a pill? and why stop to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can

philippe dauman on who just took over the chairman spot pledged he's going to try to get the stock pricere it was and this is a five-year chart. the stock was much higher for much of the past couple of years, particularly in 2014. but like most media stocks, they had a tough 2015, so this illustrates the challenge he's going to have to get stocks back to level on a day when air down 15%. used bloomberg intelligence tools to map out the change in domestic ad revenue over the past several years. is the changed year over year on a quarterly basis. has not had positive growth in the mistake ad revenue since the third quarter of 2014. it has been showing a drop. and we've got to look at disney because that company is coming out with its earnings after the close of trading. it's falling by a little more than 1%. a lot of challenges have an plaguing disney, including how espn is faring and i know how you guys will elven to what disney is expecting later and the show. the big story of the day is you are looking at crude prices hitting their lowest level since january 20. $28 a barrel just moment

activists will point out that the ceo dauman and the coo almost half a billion dollars in stock optionsthe last five years. they would say how did they perform at viacom? most would say not particularly well. if you're a shareholder, look at the past year. that's record you would expect to be rewarded with promotion. they say they want continuity, when the continuity of the stock price is going down, down, down s that the continuity you want? >> he's also the trustee and executor. >> that's one of the points that the daughter is making, there's an inherent conflict if you have someone who is a trustee also running the company. i think she has a good point on corporate governance there. >> it's also unclear if she just wants to gain power under that trust. >> that's true. is it a corporate governance issue or is it a power grab? >> but also is this i industry changing? activists sniffing around, there might be deals, as everybody change their dna to become more digital focused what will it look like in a year. >> we're seeing a convergence between hold and new media we've been talking ab