part of the reason is the free online rival game, fortnite. >> fortnite was a huge hit last year. that's great. we admire the work done by others. we'd like to have all the , we don't always get all the hits. at the same time it was doing well, grand theft auto online had anotherecord year and redemption 2 had sold in 23 million units at the same time other titles are in theoi marketplace well. as long as we deliver quality, people show up. that'shat we've seen in this quarter and that's what we're projecting in the year. >> stake-two shaouched a 52-week low today and fell %.arly as we reported yesterday, electronic arts posted disappointing results a guidance. its stock fell better than 13%. >>> video game stocks didn't just lag the market today, this group has been lagging for a while now. take a look at this. tham biggest have been down for about the last six months. activision, which reports next week, has been leading the way, down39 so what is troubling the industry right now? randolph ramsey is editor in chief of gamespot and he joins you know, this is an industry in transi

so generally the appeal of fortnite is it is free.ys ago, discovered this new game from alec on it arts called apex legends which has taken the video gaming world by storm. will this revive ea's fortu nes storm. will this revive ea's fortunes going forward? great question. so apec legends incorporates the best part of fortnite, the same gameplay. it is the same genre. it is not a knock. if ea really push apex legends in the next quarter we will see a change of fortune for the company. what about sony interactive entertainment? change at the top, will this leadership shakeup change their fortunes? i think so. so, sony's problem is it is time for a new playstation. however the tech is not there to do the upgrade. so sony has to reposition the playstation thatis has to reposition the playstation that is not just has to reposition the playstation that is notjust a device for gaming, butfor that is notjust a device for gaming, but for content. as we know, sony have a big library of movies and tv shows. if they can push those movies and tv

coming up, epic games fortnite is killing the competition.als like ea and take-two along with activision lower their forecast. bloomberg technology is live on twitter. you can follow tictoc on twitter. this is bloomberg. ♪ s bloomberg. ♪ in directedake-two the list of game makers being crushed by fortnite. they came out with a revenue forecast well short of forecast. the same thing happened e.a. a day earlier. shares of both companies plunged. traditional game publishers are under siege by the success of shooter game fortnite. is this all because of fortnite? chris: yes and no. changer,was a game phenomenally successful. really a cultural phenomenon. sucking up a lot of people's time. it is free to play. how do you compete with free? there is more than that going on. revaluation of the industry as these companies were able to extend the life of grand theft auto online and keep selling more versions of the game. and in game purchases. the industry was reevaluated as being more valuable because it had a recurring revenue stream. now it turns ou

siegeublishers are under by the success of fortnite. is this all because of fortnite?yes and no. fortnite is a game changer. phenomenally successful. sucking up a lot of people's time. more amazing because it is free to play. it gets into the how do you compete with free problem. there is more than that going on. there was a reevaluation of the industry as these companies were able to extend the life of grand theft auto online and keep selling more versions of the game. reevaluated ass being a lot more valuable because it had a recurring revenue stream. of at turns out it is more hit driven business like it used to be. you can't always count on those customers. >> what are activision and others planning to do to take on fortnite? >> you are seeing some copies of games that are taking on the most compelling elements like the battle royale mode. it creates an exciting and addicting form of play. some games are coming out in that mode. some games are coming out visually appealing. they are free to play. money throughheir purchases of decorative items in the game like fort

'fortnite.' if you are on the 'kron on' app - our ge cont commercial break. kron-on- dot-tv to subscribe." (pam) (pam) former 'fresh prince of bel-air' star alfonso ribeiro's lawsuit against the makers of fortnite ... has hit a major snag. that is because the u-s copyright office does not think his 'carlton dance' is unique. ribeiro is suing two video game publishers... for using the dance without permission in 'fortnite' and the 'n-b-a 2-k series' games. he tried to get the dance copyrighted as part of the lawsuits, but the copyright office said, the famous moves are just a "simple dance routine" which does not make it eligible for registration as copyrighted choreography. other celebrities have also come forward to sue the makers of the popular 'fortnite' game ..for using their signature dances for profit... that includes rapper 2 milly for his "milly rock"... and the creator of the "floss" dance ... the "backpack kid" russell horning. let's take a look outside right now... chief meteorologist lawrence karnow joins us now with the four zone forecast. it was

epic games the company behind fortnite estimated they raked in billions they have their answer to fortnitefecting the big game makers as much as maybe the whole free to play in app purchase model that mobile introduced is leaking over to them is it clear which studios are better than it that was a surprise announcement that surge is greater than what fortnite saw when you look at this, it's also a chance to give out how it wasn't the first free the play game when you talk, they will say fortnite or epic games was the first to combine analysts will say these guys understand gaming. gaming infrastructure. how exactly put out a game that will be well received because it is competitive it's fun it's well designed and it's very social final point there, it's also easy to follow, jon. it becomes its own source of entertainment. >> on twitch or youtube. another thing investors should be excited about they don't have to buy ip from disney for these things to be lites. these are all made up. thanks morgan, back to you. >>> thank you. taking a look at markets right now. we're off the highs of the se

that's fortnite. good catch. ea, though, is very concerned about fortnite. it reported profits yesterday and said fortnite, which is doesn't make, really hurt its business, because people are playing fortnite for free instead of buying $60 ea games. you may remember netflix mentioned fortnite. what does netflix have to do with video games? everything. because your tv can only do one thing at a time, right? you can watch netflix or play fortnite. there are all kinds of businesses that are saying fortnite's killing us. >> interesting. a lot of people play it. >> yep. >> thanks, scott. >>> switching gears, 5:17 for you and this year's oscar ceremony will go ahead without an official host. this will be only the second time in the event's history where this has happened. organizers say the presenters will instead lead the show, this comes after comedian kevin hart stepped down from hosting, after past homophobic tweets resurfaced. the oscars are on february 24th. >> i'd like to watch them. it would be interesting and probably keep the show moving. >> yeah, becaus

it doesn't have to be just fortnite. >> the super bowl just passed and the nfl is focusing in on fortnitee. it is taking on over the globe, folks. so just allow it. >>> "early start" continues right now. >>> american people have a right to know and indeed have a need to know that their president is acting on their before. >> it is called presidential harassment. >> so much for unity. >> that's right, democrats defy the president with aggressive new investigations after the president warned against it. >>> the system allows people to come hereengage -- >> a violence hearing to push for a ballistic missile. parents of parkland shooting victims not having it. >>> and secretary of state admits that the threat of isis remains. we're live in the middle east. >>>

it is not about fortnite the game it is more about fortnite the business modeling and where games are increasingly free and with apex legends there's the concern and the short term that it might be harder to convince people to pony up for 60 bucks can everyone can get the high quality experiences for free. >> what is your favorite stock in this area, russ >> honestly i think right now i think ea has a good staple of franchises and pivoting and had struggles with battlefield, the big shooter franchise this past fall and seeing apex, waking up to this. i think they're in much better position than activision needing to pivot way more. >> what's going on with activision. >> massive layoffs that's been leaked the big problem with them is that as tim said their business model feels a little bit old, stodgy they need to update the franchises for the world of fortnite and apex legends. >> what if they just buy apex? >> they haven't always worked out with acquisitions. they saw success with candy crush. a lot of these games it is a big investment and you never really know. >> how would you fee

but -- you know it is very lard to compete with fortnite isn't it?it is free and two, i think that bigger story here stuart is how big the gaming industry is becoming. particularly in a merging market actually this morning when i was reading, netflix has found that fortnite is bigger competitors for screen time. that's saying something. >> i understand that google says fewer people are watching youtube because they're playing fortnite that's big. >> that is big. which i -- >> but to initial's point when companies are coming out free, they're competing were eyeballs we sue what happened with what's app they sold put for or 19 billion few years ago with no revenue stroam at that time. so once you have the eyeballs and you have customers, the revenue will come someday facebook same thing. >> what's incredible is that twitch which had is amazon's platform people can watch by the millions other people play fortnite so a secondary market as well potential >> there's a way to play it if you're into it and it is microsoft has the cloud for video gaming and g

the ceo was on today >> fortnite was a huge hit last year that's great we'd like to have all the hits, we don't always get all the hits at the same time fortnite was doing well, grand theft auto online had a record year other titles in the marketplace are doing well as long as we deliver quality, people show up that's what we've seen in this quarter and what we're projecting in the year. >> now, one question for video game investors from here, do these disappointing earnings results signal a peak in video games? i checked in with michael pacter of webbush he said no way that's because how this content is delivered is changing fast. it's not just about traditional gaming consoles anymore, but smartphones, amazon downloads and streaming platforms. he argues that's going to help drive strong growth in the future he always the sell-offs we're seeing big buying opportunities. mel, back to you. >> all right, josh, thank you. josh lipton in san francisco is this an opportunity do you think? >> so here's the opportunity, is that maybe it's -- there's a lot of -- there's a lot of competition o

>> i wouldn't say that it is exactly because of "fortnite" but i think that games like "fortnite" aret of an effect on blizzard at this point. blizzard laid off roughly 8% workforce. community managers, people working customer service, things like that. blizzard's official message they want to focus on their marquee franchise, "overwatch," diablo. sounds like success of online games of "fortnite" making a pivot in their strategy. unfortunately that happens in historic high year when ever it comes to revenue. blizzard made $1.8 billion in revenue, compared in 2017 compared to 217 million. this caught a lot of employees by surprise. stuart: we're looking at competitor to "fortnite." electronic arts game, apex legend may be the competition "fortnite" needs. 25 million players in just the first week? is this the competition for "fortnite," this apex legends. >> i would say apex ledges is almost a virus not a game. to put that into perspective, two weeks after "fortnite"'s battle royale mode was launched they had 7 million players. in one week apex legends amassed 25 million players to pla

fortnite marshmello concert was epic hit . . .epic games just held a massive digital concert. the in-game live event featdred popular edm musician marshmellow performing a concert in fortnite where players were able to come together and enjoy what is expected to be a very entertaining show. the fortnite community's most popular twitch streamers and youtube streamers their point of view watching the marshmellow live in-game concert event. this means that even individuals who are not able to enjoy the festivities in the game at the scheduled time will still have an ability to see what happens. (ácommercialá)(áábreakáá) another day with rainfall to take us through the day interspersed by times of drying conditions. daytime highs will be among the coolest of the season so far in the uppe40's and low 50's. clearing skies later in the week. (robin) no major hot spots. bay bridge wb 80 is less then 30 min from the maze to sf. accident nb 85 at moffet blocking ( james ) coming up on the kron-4 morning news... researchers have a new view of being a slave in america... we have a look at

i'm suggesting a little fortnite because he is a fortnite player. i cannot dance. hopefully he took no lessons from me. should be a fantastic weekend ahead leading up to our cnn super bowl special 2:30 on saturday. we'll get more into that in a bit. you can see hines ward another super bowl mvp as well as coy wire. for you, back to you in new york. >> love you taking the elevator. very well done. we'll talk to you in a minute. >>> president trump apparently fed up with congressional talks on border security that have hardly begun. the president thursday called the bipartisan negotiations to avoid another shutdown a, quote, waste of time and he strongly hinted that he will simply bypass them to fund his border wall. >> i think i've set the table very nicely. i've set the stage for doing what i'm going to do. [ inaudible question ] >> i'll wait until the 15th. i think it is a waste of time. >> the president would not directly say he plans to declare a national emergency, but he is, quote, not concerned by possible legal challenges. and he also suggested that he would

>> i don't think "fortnite" is losing -- "fortnite" has 200 million users.of the top streamers, basically ea paid some of the top streamers like ninja to play apex right out of the gate. this 25 million users they had initially, they kind of had this base, this pool, to fish from, if you will, that was very different than when "fortnite" kind of got up and running. so when we think about which one has the critical mass today, i suspect that a lot of that is going to shift back to "fortnite." one of the things, apex tends to be for more slightly mature audience. first person shooter, it is a little more graphic. broader parent appeal of "fortnite" will create more sustaining power for that platform. neil: we'll watch closely. always good catching up with you, gene. thank you very much. >> thank you, neil. neil: a lot of advertisers are pulling out of youtube right now after very, very chilling accusations. we're on that after this. >> "empire" actor jussie smollett took advantage of pain and anger of racism to promote his career. this stunt was orchestrated b

and the nfl is focusing in on fortnite and how it can grow their audience. it is taking on over the globe, folks. so just allow it. >>> "early start" continues right now. >>> american people have a right to know and indeed have a need to know that their president is acting on their before. >> it is called presidential harassment. >> so much for unity. >> that's right, democrats defy the president with aggressive new investigations after the president warned against it. >>> the system allows people to come hereengage -- >> a violence hearing to push for a ballistic missile. parents of parkland shooting victims not having it. >>> and secretary of state admits that the threat of isis remains. we're live in the middle east. >>> and former top edit are thee "new york times" accused of plagiarism. and in case you didn't know, long slogan in the state of virginia, virginia is for lovers. the new york "post" has a new twist on that, virginia is for losers. we'll have the latest on the debacle facing the democrats there. good morning, welcome to "early star start". >

hey, that's fortnite. ea doesn't make that. good catch. the company reported profits yesterday and it said fortnite is hurting profits. fortnite is free and fewer people are spending $60 to $70 on ea video games. we were talking earlier, even netflix blamed fortnite for problems because you can only do one thing at a time, play a video game or watch a movie and a lot of people are playing fortnite. >> with netflix, movie sales are probably down, too. >> that's right. >> all trickle. >> thanks, scott. >>> what do you think of this, new this morning from the runway to the theme park. model mogul tyra banks announcing plans to open her own amusement park called modelland. the 45-year-old says the park is set to open later this year. it's expected to be located in san ma monica in southern california. the park will feature retail shops, restaurants and interactive entertainment. by the way, modelland was also the name of a book that she wrote about her life. i'm curious what they're going to serve in the restaurants, though. >> kale. >> nothin

it took fortnite to get to 25 million.ok them a week. >> we'll talk about it next hour, but i wanted to talk about chipotle highest levels in more than three years, but the stock is up 38% to start this year this is a big score for big ackman, right? >> he was instrumental i think in helping picnicle as the ceo from taco bell who has done nothing short of a -- he's changed thes fundamentals of the best, certainly one of the best ceo performances. >> does it change the narrative on bill ackman is he now starting to turn a corner >> i think any win will perhaps help you do that >> 100 million on nike in six months that was a year ago. that's two now. >> yeah, he's definitely had a better go of it of late. but, sure, anything incrementally positive will help the narrative. >> chipotle overall, it seems like it recovered a bit from the food safe shares, you get another 27% from here, guys, it's right back to record highs, something that we were not talking about. >> another thing that all the company that is we have talked abo

red.p 5%, now in the scarlet: "fortnite" raines once again.almart has over 4000 stores, 1.5 million employees, and $380 billion in revenues, and that is just in the u.s. alone. but the retailer has a tiny problem, its ad business. here with more is matthew boyle. we had no idea it had an ad business. matthew: target has one. kroger has what. they need these businesses more than ever because their core retail businesses are struggling. they have amazon stealing sales. they have dollar stores stealing sales.they need alternative forms of revenue that are much higher margin than selling bananas and avocados. we have all these people going into our stores, all these millions of people going on our website generating all this purchase data. that data is obviously valuable. the eyeballs are valuable to coke and pepsi and unilever and all those guys. at the same time, those big brands are looking for different places to put their marketing dollars. they are falling out of love with the traditional big at agencies -- ad agencies. becauserter, a fault

what is it with fortnite.estroyed, 13% pushdown on the stocks and a lot of analysts seem to be saying it's because of fortnite. explain this to me. >> i'm not a huge gamer either. i'm at the end of the age demographic. here's what it''s at work here. fortnite and pokemon go are free games. they're so competitive and hit driven. we've seen it with electronic arts and activision. they have to produce the hits. it determines how successful the companies and franchises can be. there's increasing competition. there's rumors of apple and a amazon getting into the gaming space. this will be like the movie space or teen retail. you've got to have a hit. cheryl: we were watching video of fortnite. ea has a game called battlefield which was a disappointment for the holiday. is it the game or the way the kids are playing the game? >> it's a combination of both. so in recent years we've seen these multiplayer online platform games where you are in an environment with multiple players. you can communicate with them. that's

watched their kids behavior, year, year and a half ago and watch them become obsessed with fortnitea or activision, you did very well. >> we do not have enough powerful machines to play fortnite you need the fastest running logictech equipment and there is a shortage because no one saw this coming. >> deere will have earnings friday and today b of a takes it to neutral. outperformed cat by 3,000 basis points since april highest premium to cat since 15. and we got all kinds of china trade uncertainty. >> trade deal, you're going to be bush whacked by that. i thought that -- that is the kind of call, that's a good hedge fund call. maybe downgrade it, maybe they report some number that isn't that good, but then you got to cover because even if the mnuchin/kudlow factor, that's the farmers. >> that could be a new show. the mnuchin/kudlow factor. >> that would work mnuchin is better than kudlow and cramer >> could be. and the factor in there. >> the factor. yeah we could make it the -- it could be the kudlow/mnuchin report. >> could be. coming soon. >> yeah. >> coming soon. >> how about

we call it the fortnite fall out. electronic arts take two activision getting destroyed >> totally we used to be a big fan of electronic arts and we're not now. we saw the writing on the wall to the extent it's become a hit game when it's two companies that controlled the hit, that was fine now you have new companies like fortnite that are created by venture capitalists and a lot of private equity money and throw a hundred billion dollars into an industry and say create games. they'll do it. >> i think it's hard for the guys to compete in the way they used to. now that it's not a single player universe and playing with multiple participants anywhere around the world, it becomes a form of entertainment that's different from the traditional video game that they have created. i think it's a industry to compete. >> nobody would use this pull back in the game >> there are new methods that did not exist in the old duopoly or three competitors making video games. selling the game is getting you hooked they are selling you cl

for using the dance without permission in 'fortnite' and the 'n-b-a 2-k series' games.tried to get the dance copyrighted as part of the lawsuits, but the copyright office said, the famous moves are just a "simple dance routine" which does not make it eligible for registration as copyrighted choreography. other celebrities have also come forward to sue the makers of the popular 'fortnite' game ..for using their signature dances for profit... that includes rapper 2 milly for his "milly rock"... and the creator of the "floss" dance. (anchor) we have breaking news... (anchor) we now want to send things over to .... (reporter) >> get the green flag ready. it's time for the "countdown to daytona." can austin dillon drive the number 3 to victory lane two years in a row? we're joined by defending series champ joey logano, last year's daytona 500 runner-up bubba wallace and the king richard petty. and we'll show you how teams fit their way to success. it's all coming up on "countdown to daytona." ♪ ♪ >> welcome to "countdown to daytona." i'm dan lucas. we are inside the motorspo

is it the fortnite effect? dom chu here with the numbers. >> still in negative territory across all three indices but off session lows the dow just in the past couple of moments dipping into positive territory just by up by one basis point. the s&p still off by about 5 points nasdaq off about 0.3%. a big part of the trade is the semiconductor industry the semiconductor etf, the vaneck vectors up. it's up about 26% since the lows on christmas eve and it's trading above its 200-day moving average or longer term trend for the first time since october 4th. also watching this stock of the day, snap inc, the parent company of snapchat. huge gain. 25% to the up side after user metrics come in better than expected also losing less money than expected but this was a stock that ipo'd at $17 per share. got as high as $29 and as low as around $4 and up to $8 and change right now back to you, kelly nbc universal, parent company of this network, and owner of snap inc. >> not that we're rooting it to go higher. thank you, dom

and big money on the table for the fortnite world cup.l those stories coming up this monday morning. joining me to break it down, dagen mcdowell, mitch rochell and michael block. great to see you this morning. >> great to be here. big money in fortnite. amazing. >> no question. this is a big -- this is really a big week. you have china, you have north korea and you have a ton of economic data and the markets are he very optimistic about the week ahead. dagen: jay powell testifying for two days, in front of congress. there's a purchaseing managers report out of china, i think on friday, we get gdp this week. maria: it's kicking off to be a pretty good deal week. ge is selling his pharma business to danaher. this is a huge deal. as we know, the new ceo at ge has been saying, they need to tinseling assets, pay down assets to get back to -- the stock is up 4% on this deal to sell biopharma business to danaher for $21.4 billion. >> at the end of last year people were wondering if this could be a going concern. maybe not. looks like there are b

>> fortnite was a huge hit, admire that.e time they were doing well grand theft auto had another record year and red dead redemption two has sold millions of units at the same time that other titles in the marketplace are doing well in the entertainment business we're not picking and choose among competitors. it's not like going to the grocery store. in the entertainment business you select only what you really want if there's nothing that you want you buying in on if there's a lot that you want you'll buy all of it. as long as we deliver quality we'll show up. that's what we've seen in the quarter and what we're projecting in the year. >> the fortnite effect isn't just a competition for eyeballs but that it's free to play and that could be a headwind to some of the models if consumers get used to that idea. >> fortnite is a robust title for a free play environment. that speaks to the success of its hit. i'm not sure can you extend that to the rest of the market. when we put out a high quality title like nba or red dead rede

did you anticipate it would be this big, fortnite? ted: yes.] >> i think it, a lot of people lagarde -- not you -- i think it caught a lot of people offguard -- not you. it happened for a lot of people. ted: the management people at epic have been in the industry a longtime. their ceo as a good touch with the publishers and the studios and understanding what is going on. what he was able to do was make an exchange. i will give you for free a real communal piece of software that will activate friendships, viewing -- i think it is the first multiuser game that was designed to be easy to follow. we play in league of legends, overwatch leagues. if you have not played the game, new to it and get dropped in front of a television, it is hard to understand what is going on. fortnite, you can understand it. it is building a platform that is global and worldwide. teams, and owners, the league developing interest partnerships whether it is intel, tech companies -- is that how you do it going forward or acquisitions of you guys getting closer and closer? t

fortnite, you can understand it.g a platform that is global and worldwide. >> nba team owners, teams, and the league developing interest partnerships whether it is intel, tech companies -- is that how you do it going forward or acquisitions of you guys getting closer and closer? ted: partnerships are very important. we right now are very focused on giving a lot of value to our media partners. i think gaming and gambling -- i was head of the nba media committee. i saw that they wanted our content but they were very nervous about what the future would hold because it is not so much cutting the cable. it is that young people never will sign up for it. in this two-screen universe, if you can create an environment where people get deep into the data and engage before the game, during the game, after the game be communicating, it is good for the media partners. and then it would be good for the league, the owners and the players. emily: that was monumental sports ceo ted leonsis. coming up, surveymonkey reported its fourth

how much is fortnite you cuting into the business?l the hits. we can't seem to get all of them. we have some of the biggest like grand theft auto. other people's hits probably large the audience. entertainment is not a substitution property, not a property that you must have. if there's a number of things you want, if you can afford it will consume them all. just by way of example, our last fiscal year, fortnite was a huge hit then, grand theft auto online had a massive year. we think it's great that there are other hit titles in the markets. hillarythe.maria: how do you ks going? how do you keep this kind of growth. >> our challenge is to get up everyday and think about how do we entertain, cap a captivate or consumers. maria: new games. >> we are driven by quality. we're driven by a mission to entertain and the people who work at take two pursue their passions and their passion is to be at the forefront of the business. we find that revenues, monetization, profits and the like always follow that passion and the quality of our work.

can the videogame maker turn around amidst competition from fortnite? russia is planning to sever itself temporarily from the global internet to prepare the country to deal with a digital attack that would leave it cut off. is this the future of global cyber defense? first, to the top story. president trump struck a conciliatory note on trial trade -- china trade talks, saying he would let an upcoming tariff deadline slide. the president said he could let the deadline slide for a little while if the side are near a deal, though he is not inclined to do so. he told his cabinet that there are no plans yet for him to meet president xi jinping next month, meantime u.s. officials are in beijing for talks starting thursday. bloomberg news is standing by in washington with more. what did the president have to say? >> the president said he was talking to reporters after a cabinet meeting and was asked whether the deadline for trade dispute to be resolved between the u.s. and china was a hard one for march 1, which was the date we expect more tariffs to be levie

cheryl: i'm learning all about fortnite. you would be proud of me. weeks ago. i'm kidding. ism getting there. i haven't played a video game since a atari. even old fox can learn things. lauren: we start with this, empire actor jussie smollett set to appear in court this afternoon. he's now facing felony charges for allegedly filing a false police report in connection with his claim of being attacked late last month. so far, smollett has not surrendered to police and his legal team is maintaining that he's innocent. as for his role on the show empire, one report says producers are considering suspending him. in the meantime, new developments in the russia investigation, fox news learned that the special counsel, robert mueller's probe is wrapping up soon with william barr confirmed. the report suggest this probe might be ending soon. it's unclear whether the results will be made public. it's up to william barr. a date is set for michael cohen to appear on capitol hill. he will testify next wednesday before the house oversight committee. plus, newly re

plus, fortnite concert going viral.ere. ♪ i love the way you know who you are and to me it's exciting. ld♪ you know it's meant to be. and just chow down midday? -you mean, like, lunch? -come on. voted "most likely to help people save $668 when they switch." -at this school? -didn't you get caught in the laminating machine? -ha. [ sighs ] -"box, have a great summer. danielle." ooh. danielle, control yourself. i'd like to slow it down here with a special discount for a special girl. danielle, this one's for you. maria: welcome back. new chairman for papa john's, lauren simonetti with headlines now. lauren: investors are liking it. the company announced that jeffrey smith, the ceo of starboard value and activist invest pment firm will now lead the troubled company. starboard value will make a $200 million investment in papa john's. smith will replace founder and former ceo john schnatter who stepped down in late 2017 following a series of controversies. take a look at shares of papa john's. they're trading 6.5% to the upsi

other celebrities other celebrities have also come forward to sue the makers of the popular 'fortniteg their signature dances for profit... including rappper 2 milly for his "milly rock"... and the creator of the "floss" dance... the "backpack kid" russell horning. (grant) that wraps up kron 4 news at nine...(vicki) but our primetime coverage continues at the top of the hour. pam moore and ken wayne are here with kron 4 news at ten....guys? (pam) thank you grant and vicki.... next at ten... the massive job of restoring a marin county neighborhood is underway... after a fast- moving mudslide wiped out two buildings during yesterday's morning storm. plus -- we are keeping an eye on the sierra as back to back winter storms rolls through.bringing white out conditions and slick, dangerous for drivers.ti emergency in order to fund the border wall. we hear from those against the decision... including governor gavin newsom. (ken) don't go away...hour three of kron 4 news in primetime starts right after the (ken) a national emergency ha

we should point out it took fortnite two weeks to hit that same mark. electronic arts admitted its surprise to do an unannounced launchutas risky, so far it seems to be paying off. the stock rose 16% to $97.60. ell goodyear's earnings below expectations and sales were down 5% in the most recent quarter. the company blame currency headwinds and weakness in brazil and china whi offset growth in europe. goodyear fell 9% to $18.69 it touched a 52-week low in the process. >>> the aluminum parts manufacturer arconic said it plans topin off one of its two main businesses and slash its dividend. the move comes after they rejected a $10 billion buyout saying shareholders would benefit more from a re cructuring. thpany also abruptly replaced its ceo. arconic was down 3% to $17.10. >>> sonygs buy back its own stock for the first time ever. a little more than $900 million worth. it is the second major japanese company to unveil a buyback this week. softbank made a similar announcement earlier in the week. sony shares rose just about 3% to $44.29. >>> wells fargo sa

i suggested a fortnite dance. we'll see how that plays out. that is all ahead. should be an outstanding game sunday. and don't forget a super bowl special right here on cnn, 2:30 on saturday. hines ward, coy wire, andy scholes and patrick mahomes, the story of the league in the nfl this season, the kansas city quarterback joins us as well. christine, back to you. >> can't wait for that. >>> president trump apparently fed up with congressional talks on border security that have hardly begun. the president thursday called the bipartisan negotiations to avoid another shutdown, quote, a waste of time. and he strongly hinted that he will simply bypass them to fund his border wall. >> i think i've set the table very nicely. i've set the stage for doing what i'm going to do. >> 21 days? >> i'll wait until the 15th. i think it is a waste of time. >> the president would not directly say he plans to declare a national emergency, but he is, quote, not concerned by possible legal challenges. and he also suggested that he would no longer work with nancy pelosi, accusing her

epic and investment in in fortnite. it is the perfect communal game.t's kids getting together and , they are talking with their friends, and it has become a platform. >> that has become a juggernaut. did you anticipate that? ted: yes. [laughter] >> touche. >> what is it about fortnite? it caught a lot of people off guard. it really came out of nowhere to a lot of people. ted: the management team, the leadership team of epic's long time in that industry. the founder and ceo has a good touch with the publishers and studios, understanding what's going on. he was able to make an exchange. free a realyou for communal piece of software that will activate friendships, activate viewing. i think it's the first multiuser game that was designed to be easy to follow. carol: catch more of our conversation with ted leonsis in our bloomberg businessweek extra podcast. amy brooks is the nba's president of t marketing and business operations -- team marketing and business operations. she talked about the league embracing social media. >> only 1% of our fans will ever c

some of that to the fortnite craze going on.position where they are now price matching amazon to give people the ability to go to the store, touch it and say if you can find it on amazon for cheaper, we'll honor the price and give it to you there. these are working out in a way that is working. >> look at the stock in 2016 it was at $26. and today it's at $70. this pricing structure, these new plans they've unveiled seems to be working for now. >> we're not even talking about the fact they boosted their dividend 11% >> and buyback >> and from consumer perspective, i would add best buy almost has an advantage on amazon because of the geek squad. because somebody will install it for you as opposed to -- >> i see -- ordering a tv from amazon they're so enormous. >> i totally agree >> somebody install it >> seriously >>> shares of campbell's soup getting a boost after he company beat on the top and bottom lines. helped by the snack that smiles back, goldfish, v8 juice and pepperridge farm >> so for better or worse, we're now going t

. >>> plus "fortnite," the game has real competition.gends" baking for the night's record for downloads. you're watching the second hour of "varney & company." ♪ stuart: we're down 100 points. 25,800 is the level. we had news this morning from something called the philly fed. it's a look at the mid-atlantic states, manufacturing, state of the economy. ashley: right. stuart: it showed a four-point loss on the index when an increase had been expected. that is primarily what's taking the market down this morning or so we are told. >>> dominoes pizza, didn't sell as much pizza as they thought they were going to sell. that stock is down 8%. really taking it on the chin. >>> jack in the box, that stock is up. revenue beat estimates, more importantly it is considering putting itself up for sale. when you do that, tend to go up, 3% up for jack-in-the-box. >>> a times square billboard criticizes congresswoman alexandria ocasio-cortez over amazon's decision to pull out of new york. the billboard says, "hey, aoc, thanks for nothing." she responded

made an investment in fortnite and it is the perfect communal game. kids getting together and playing a game, five on the island and talking with their friends. jason: did that become bigger than you thought? that has become a juggernaut. did you anticipate fortnite. >> yes. [laughter] jason: what is it about it? people off lot of guard. not you, apparently, but to a lot of people. >> the management and leadership spent a long time in that industry and their founder ceo really has a good touch with the publishers and the studios and understanding what is going on, but what he was able to do was make an exchange. i will give you for free a real communal piece of software that will activate friendships, activate feeling. firstk it is the multiuser game that was designed that would be easy to follow. carol: catch more of our conversation in our bloomberg businessweek extra podcast. find it wherever you download your podcasts and at bloomberg.com/podcast. amy brooks is the nba president of marketing and operations and is the chief innovation officer. the

ashley: "fortnite" we know has 200 million players.apex legends, got 2 million downloads the first day, hit 10 million players in less than 72 hours in just three days. it is the same model as "fortnite." free to play model. it's a bit different. you pick from eight different characters. "fortnite" you make your own avatar. bottom line this, is a hot, hot game. what they call the battle royale genre. dozens of players launched into a make-believe world. they battle for survival. the game is over in 30 minutes. win or lose. you go on to the battle royale game. it is very addictive. we didn't think "fortnite" could be overcome, in this world there is another hit title coming down the pike. this one is called apex legends. electronic arts and respawn entertainment are companies to hide it. stuart: 20, 30 years ago, when my hand-eye coordination was perfect. not today. ashley: there you go. stuart: next case, the new york police department going after ways, navigation app, because it alerts users to where police are. ways says it helps the

epic has it in fortnite and take two interactive has it nba2016.r copyright law. it's none t fun to watch, right. starbucks has now unveiled its starbucks zodiac car. it'chart.it's got beverage recommendations based on your sign. if you're a cancer like me, a honey citrus mint tea. a pithey're launching an all-day dining cafe in shanghai. they'll serve brunch and booze. they're feeling the heat from a growing number of independent coffee shops and start-ups. charles, you are a scorpio. espresso shot for you, sir. that's your recommendation. i think that kind of fits. charles: it does. that's what i drink, espresso, usually usual. cheryl: michael, iced macha agree tea. >> that's michael. cheryl: sagitarius, mango dragon fruit starbucks refresher. >> i'd rather have ice cream. >> mango dragon fruit. >> you want the toy story ice cream. >> i thought men had the dragon blood anyway. >> booze at starbucks, i might start to like it. >> you have to go to china. >> it's all about engagement. starbucks does these things where there's game prizes and pieces,

i'm sure you all heard of "fortnite." is it taking over this video game industry?he model it uses, can play for free? is that a new competitor for the big guys in the gaming industry? we'll get into that when we come back on "cavuto: coast to coast." we'll be right back. $4.95. hydroponic farms. robotic arms. ♪ $4.95. delivery drones or the latest phones. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. (get-together, especially after ibeing diagnosed last yearto go with my friends to our annual with advanced non-small cell lung cancer. (avo) another tru story with keytruda. (dr. kloecker) i started katy on keytruda and chemotherapy and she's getting results we rarely saw five years ago. (avo) in a clinical trial, significantly more patients lived longer and saw their tumors shrink than on chemotherapy alone. (dr. kloecker) it's changed my approach to treating patients. (avo) keytruda may be used with certain chemotherapies as your first treatment if you have advanced nonsquamous, non-small cell lung cancer and you do not have an

obviously global phenomenon of fortnite saying one hand bringing more users, new users to the video gamether hand he did call fortnite a competitive force an i'm sure they'll try in the conference call to say it's all kinds of business models including the free to play model. as for job cuts, we saw reports that they could be coming. apparently maybe even significant ones the company saying that the press release in fact de-prioritizing initiatives that are not meeting expectations and reducing certain nondevelopment and administrative related calls. i certainly expect more on this conference call to kick off at 4:30 eastern back the you guys. >> josh, thank you very much for the color, the shares are down more than 3% after hours, mike after having a pretty rough patch. >> stock already, you know, basically in free fall not getting relief a massive guide down for the quarter and for the year even after the numbers are caught for 2.10 and eps this year, close to a 20 times earnings and not screening out as cheap and the reflex -- >> is it an active vision problem? >> combination the grou

. >> and when we return, the fortnite effect. we'll look at the video game world next plus, we're heading right toward another government shutdown. can a deal be reached in time to avoid that same thing that happened over christmas happening all over ainga heighty heitkamp will join us to talk about that and much more. stay with us okay, paint a picture for me. uh, well, this will be the kitchen. and we'd like to put a fire pit out there, and a dock with a boat, maybe. why haven't you started building? well, tyler's off to college... and mom's getting older... and eventually we would like to retire. yeah, it's a lot. but td ameritrade can help you build a plan for today and tomorrow. great. can you help us pour the foundation too? i think you want a house near the lake, not in it. come with a goal. leave with a plan. td ameritrade. ♪ the company who invented car vending machines and buying a car 100% online. now we've created a brand new way for you to sell your car. whether it's a few years old or dinosaur old, we want to buy yo

so after telling us for a year that "fortnite" didn't matter and wasn't affecting them, suddenly they'vea battle royale free game instead of a premium game, which it has taken a big tax on their earnings i think people were really disappointed by that and also "battlefield 5," yet another failure in the shooter mode from ea so i think they've taken numbers lower three times in the last two quarters so that all is bad for outlook and these are expensive stocks so while they own their ip, so that's okay in the end, they have a real content problem at ea today >> and you have been busy, laura, i would think >> i have. i'm on the wrong side of a lot of trades today. today's a bad day in my world. >> all right well, we'll let you get back to it and appreciate you taking some time with us. laura martin >> and still to come, what the ceo of spotify told us this morning about its latest podcast acquisitions a lot more "squawk alley," straight ahead don't go anywhere. . >>> welcome back to "squawk alley. european markets closing momentarily. seema mody joins us now with today's action seema. >> a

besides fortnite gaming which by the way, ten cent and epic games really own, these companies are feeling the heat from apple and amazon which have their own subscription services gearing up to go into gaming. none of this bodes well for activision blizzard which reports next week so it's getting pulled down in sympathy here. activision down 10%. company shares are at a two-year low, even retailer game stop anies tis in the red, down 2%. >>> you know who is game to talk the markets? get it? get it? the floor show. let's begin with teddy. we are middling around but we have been so much worse. we are climbing up. what does that tell you? >> that tells me it's a pretty boring day. but it also reminds me, you have heard it a million times, never sell a dull market short. it's just one of those days where we just can't seem to get out of our own way. tomorrow, big earnings day. i think we get 180 companies reporting tomorrow. we're smack dab in the middle of the sweet spot of earnings. they have been much better than expected on balance, 75% thereabouts have beaten of the s&p 500 so it's not u

specifically, fortnite.umber of developers by 20% this year to ramp up new content for its biggest franchises, like call of duty. activision is up higher in the premarket. cheryl: who knew fortnite could december matdessimate these oth. a warning if you plan to buy your valentine perfume. tracee: bargain hunters beware. fake designer makeup and perfume may contain toxic cyanide, arsenic, urine or rat droppings. this warning was issued after counterfeit items estimate sed to bed tobe worth $51,000 were d in a perfume factory in london. it can leave users with long-term health problems. officials suggest only buying these products from reputable sellers. gerri: even reputable products sometimes have issues with what they're made of. thank you for that. cheryl: she's like sorry for the bad news. we still love you. taking a look at futures this morning, as you can see this on optimism over china/u.s. trade talks and a possible deal to avert another shutdown, investors liking this. the nasdaq is up 24. coming up,

during the toys "r" us period you pivoted to a digital first retail mix i hear things like nerf fortniteabout magic -- i'm starting to think what happened with electronic arts in the last few days you may have some battle royale kind of features buried within hasbro about to come out, don't you? >> we really do, in fact, we've been working for some time on magic arena, magic arena is an online game you can play magic the gathering. we're in open beta right now just through the fourth quarter in our open beta and had 350 million people play the game they're spending on average eight hours a week playing the game we just announced our esports initiative and have a $10 million prize pool we've got more announcements about when we'll launch. we'll have pro players playing magic the gathering. it's now a top ten game an twitch being viewed. so there's magic the gathering, in terms of nerf, a brand-new array of innovation coming for that brand fortnite is certainly coming in the spring as well as overwatch as we get into the fall we'll have more proprietary innovation and frankly innovations w

taking the key from fortnite launching tetrus19999 lets you against 29 other people. have i got this right? >> vee yo metric game remember the tetris but like a game of survival you go and play and a 99 players you want to be the last person stapgding could it pick up as much as fortnite i don't know. >> selling off a nintendo. it is interesting kind of like this -- battle royale kind of -- scenario. this so popular where you jump in and you all play and it last about 30 minutes. whether it can even rival fortnite i'm unsure. >> joel has a look to straighten me out about this. [laughter] just yesterday i'm a professor of a college just yesterday i asked one of my students creating game she's got 300,000 invested in her game and spent two years developing this so i asked a student like how many hours do you spend playing gameses? you would not believe the answer. some of them play up to 40 hours a week. right 40 hours week. i asked -- [laughter] that kind of a hastings from netflix made a joke on conference call saying biggest competition is fortnite but netflix. >> i