it's not just ebida. it's quality of ebida and predictability of ebida.s we talk about the three business that is will be created, the specialty products group will have a higher multiple. the ag business will have a higher multiple. our multiple is lower as a dow company, and as a group we'll have an uplift in multiple, but it's the multiple verse the ebida and the quality and the predictability of ebida. i'm not telling investors anything they don't know, but when you look at ebida, you have to look at what constitutes the ebida. >> why not just saechl help? why not split down the way you are now in the future? it would have been a lot quicker and conceivably you could have gotten it done in a more expeditious fashion. why was that not preferred? >> this deal, you have to understand is the most tax-efficient way to put the pieces together properly in no tax. we now create a specialty company that's going to have a nice multiple trading against it. dow puts the right pieces from dupont in to where they belong, and we had the same issue with dupont. a lot

ebida is down north of 60% or so. it is tough to hire and maintain talent there when you're having this turnaround problem. you want to run a smooth, quick process here. even if it's something as simple as the core at set. maybe the most tax efficient way forward. >> thanks for phoning in. >> thank you. >> pete, what do you do now? >> well, i think to tim's point, obviously now everybody is going to start attaching some kind of a value. rather than that zero number that was there before. certainly they start to price something in. whether that's $6 billion no $8 billion,time not sure it's quite that much. but there's some number they will say that's what these are worth. >> you sell here? >> no. you don't sell. the whole reason i was holding this stock was the fully taxed -- that's the baba stake, the core, still leaves me probably 2 bucks of upside or 6% or 7% at this level. if you get some efficiency and the spin of the core fully taxed with the structure and the ability to figure out how to get more value from the

if we do and those create ebida they will be valuable. >> charles, are you advising your companies thatre close to going public that maybe they should hybernate for a bit longer? what's your advice? >> the add invites is build a great business, and if you do, investors will want to invest in that business. don't think that the public markets are nir vaughna. a difficult one in this, and as long as you have cash in the bank and you have a solid birks keep on running and worry about it later. >> more on the arrest of the embattled pharmacy martin, the news conference is expected to begin in brooklyn in 20 minutes. we'll have more on that. and, indeed, rick santelli, what are you watching now? >> well, you know, the fed has its dots. i have a couple of dots myself. only three. it's why they can be so important and such an easy way to calibrate the next moves in the fixeded income market in the yield curve. all right after the break. >> coming up, we're following twol big stories. martin skreli arrested by the fbi on securities fraud. we'll take you live to the news conference in brooklyn.

yahoo has $4 billion in revenue makes $900 million in ebida and has a valuation of nothing. i think the split will help people really understand what is and what isn't in core yahoo and then it's incumbent upon the board and ceo to grow that business. either grow the cash flow or grow the top line and hopefully both. >> i have been beating the drum. i have wanted marissa to succeed. the question is has she operated this company properly, and ultimately, is there just a misvaluation? is it possible this company could be -- which i think is not possible. it doesn't even make sense. it's core yahoo and has some wackadoo value associated with it. is she the right ceo to be leading this company? >> that's a question for the board, and separating the assets is the right thing to do so that we can all focus on the core business. we're all rooting for her success. and for the success of the company. 10,000 people work there. it's a very powerful asset. it's got a billion users and $4 billion in revenue. of course, it's not worthless. they've just announced it might take it another y

ebida down north of 60%. when you look at the visitors, the usage hasn't turned around.e go through this in detail in the notes. i think if they are playing on a reset in 2016, you could see it at the ceo level as well. >> if they spin or sell the core business, what do they have left with her? i think that point has been raised by jim cramer and others this morning. >> it's a really fair point. whoever did buy the asset, should they sell it. it would probably decide whether they run it, whether they have their own executive internally or externally if they would bring in. the only thing left at that point would be some cash, a stake this that yahoo japan, and the alibaba shares. >> where does ross livinson fit in all of this? we've got him tomorrow exclusively on this program. you know we're going to ask him about it. where do you think he fits? >> we did a list of top candidates should ms. meyer move on. loss livin sohn floated to the top and -- they have public equity ceo experience. they also have very intimate knowledge of yahoo. having been there before. much like

then are you left with the cheapest media stock there is at about six times ebida. very cheap.not a huge fan, and i think it's very difficult to navigate. i think there is going to be winners and losers. i would rather play it through like a google, for example, and try and figure out does cord cutting really move on, which i sense it will. i'm not there. >> all these tech companies are now entertainment bohemaths as well and amazon is getting -- >> it's right up in the generation it's coming up now, and even, you know, our generation, i find myself watching netflix and amazon, which is an even better viewing experience than netflix. >> yups soaring today. double digits after releasing its first advertisement featuring oprah winfrey. steve weiss has been a skeptic on the weight loss company all year. let's have a listen to what he said. >> on-line right now is killing companies. it's the great company killer, and that's no different with weight watchers. there are fundamentals in the stock that were horrendous. it was heavily shorted for good reasons until oprah came in. it's d

new incredible app that will in the first two years does 100 million of revenue and 20 million of ebida, that was ae stand-alone company, you would be like, oh, my god, that's fantastic. >> have you told bob peck to knock it off already? he is the one that put you out there. not us. not the wreed. it's an analyst, well respected one, on wall street who keeps saying that levinsohn should be considered as one of the guys. >> again, distraction for the team. i hate to see the most fun i used to have. i walk into the cafeteria that they call earl's. just sit down and talk to people. you know, you forget that these are lives that are being sort of cast around day in and day out by all this noise. the reality is it's still a $4 billion top line business, and there's a lot of value there in my mind. >> let's talk about how to achieve or realize more value. starboard, the activist who's are in there and are urging the company to do something, says clearly the best outcome for shareholders, this is from today, would be for yahoo's board to immediately abandon the spin of alibaba and commence a c