is always the possibility of others jump in down the road. >> jeff mccracken, what is it relationshipitswith vw? zf is a western europe country. trw is based in suburban detroit and it does $5 billion in the u.s. and a couple billion dollars in china. so you expand geographically. future is wave of the driver assisted technology, safety technology that prevents people from crashing into things and that is very much a trw strong suit. they're going to grow in this driver assisted technology space. so they are going outside their core area. the market seems to be encouraging companies to go outside of their core area and take a risk and expand their business in new industries. >> jeff mccracken, it is earned indication another company would there ansted -- is indication of the company would be interested? >> not at this point. it is usually exciting one more people get in and make it more of a horserace. typically, people don't get involved. but that is always a possibility. there are other auto suppliers who have a lot of money. in the case of zf, they realize they are 10th, 11th and shri

i want to bring in jeff mccracken who covers global m&a in neil sequoia, previously a managing director at time warner investments where he worked closely with various operating groups including aol, hbo, and warner bros.. gentlemen, thank you both for joining us. what do you think having worked there for many years in high-level positions? >> i think this makes a lot of sense for fox. what jeff bewkes has done is increase for time warner. for fox, it makes sense. they are pushing back on closing a deal at this point. >> you've been reporting on this from the very beginning. give us some of the details. >> it starts with a friendly lunch in new york in early june, if you will. chase dropped the idea on him of a big merger and bewkes raises three big issues. your contract is up in 18 months. my shareholders will have a concern about the structure in place at fox. heard, with the future for cnn? they don't ever get any feedback from the ceo. finally, they send a letter on june 24 from rupert murdoch addressing those concerns. we will sell off cnn right up front. second, we don't think you

them andng spoke with a reporter jeff mccracken.e was previously a managing director at time warner investments where he worked with various operating groups, including aol, hbo, time warner, all those. we started by asking what he thinks of the proposed deal. >> i think this means -- this makes a lot of sense for fox. what he has them is a shed a core assets. for fox it makes sense because they are buying a crown jewel asset. for time warner i can see why they created a lot of values. they are pushing back on a deal at this point. >> you have been reporting on this from the beginning. you know how this started to come together. give us details. >> it all starts with a friendly lunch in new york. jeff bewkes gets together with jay scarry and chase drops the idea of a big merger. one issue is what is the plan? your contract has been up for 18 months. i think my shareholders are going to have concern about this voting structure. don't get any feedback. withly they sent a letter rupert murdoch addressing those concerns. we will get tha

for more we spoke with jeff mccracken and niels akira.reviously a managing director at time warner investments, where he worked with various operating groups. emily started by asking him what he thinks of the proposed deal. >> this makes a lot of sense for fox. what jeff has done over the last 10 years is shed core assets and increase value for time warner. i think of for fox it makes sense, they are purchasing a crown jewel asset area for time warner i can see why they think they have created a lot of value. reporting oneen this from the very beginning. you know how this started to come together. >> it starts with a friendly lunch in new york in early june. he gets together with chase carey, who drops the idea of a big merger. then there are three really big issues. one, what is the plan for you. your contract is up in 18 months. second, there will be a dual class voting structure. third, the future for cnn. fox doesn't ever really get any feedback. he keeps asking for more time. and then on june 4 they address those concerns. right up f

. >> that was bloomberg news, jeff mccracken, and the managing director with emily change. in terms of the fox and time warner might just be the beginning of the battle. we're talking about some of the regulatory hurdle that has a potential deal could face. ♪ >> welcome back. one of the central road blocks to the merger between fox and time warner are potential regulatory concerns. if the two sides agree to a deal, what are the issues that can prevent it from winning government approval? emily and i spoke with former f.c.c. commissioner, and we set about asking harold if there are issues other than cnn these companies need to be concerned ith. >> if the deal goes forward, a lot will depend on how the antitrust agencies define relevant markets. it will be everything from the cable d studios to the networks, to other assets that time warner and fox have, both in the united states and, frankly, around the world. >> talk about some of the legal frame work with which the f.c.c. will look at this. >> well, the f.c.c. will look at this candidly. i don't think they have any legal f