john mackey will stay the ceo of whole food. he needed this kind of relief. leadershipw that the situation will change. i see amazon bring different models to whole foods. amazon devices into a portion of whole footwear customers can experiment with an echo or an amazon fire and taken home. perhaps product categories that will foods hasn't introduced. as a from the leadership perspective, if you look at other acquisitions, they have left the leadership teams notably intact. the message we are getting from investors is to change the experience. his amazon looking to change the traditional grocery buying experience. you just like your mobile phone and check out yourself, is that what it is about or leverage in the whole foods infrastructure? this is what amazon struggled with on the fresh side. helps with that as well. yourt's talk about amazon, team had a piece out about amazon being interested in buying slack and a messaging service. will we see amazon buying autonomous vehicles next? >> that is interesting. amazon is that it has been conservative. usually, n

john mackey, i guess he just was exhausted by these people. and he did have cannibalization.nd yes, there were problems no doubt about it, whole foods became a high cost operator. different regions, there were ways to slim it down i think he got fed up. he got fed up because you know what he was -- he is a visionary. he is. but you know, you can only take so much. these activists have made life miserable for a lot of people. and this was a savior for him. i think their model was going to be challenged. the two german entrants would come in. what target is doing, trying to figure out where it is walmart was making a big move into food. they'll still make a move. this is food deflation the fed has to think about this. >> yeah. >> we should no longer just asterisk food to inflation amazon is a deflationary force gary cohn recognizes it. he's talked about this but this is food deflation we are going to pay so much less for food i pay $5 for a gallon of milk, that's over. >> wow for a company whose reputation was for expensive food, right? the deal is being valued here at 13.7 you

and, you know, john mackey is a proud man. he had the high eest square foo dollars and has done a great job. it's almost as though nobody remembers anything they did other than the last 18 months. the courtship is easy. john mackey probably hated to go to work every day after all the changes he has made in there nothing? nothing? >> at what point do you start to say to yourself, all right you've digested enough for now let's -- >> i've got to tell you, really hoping that walgreens and rite aid -- if this doesn't want to go down, you know they want to be in pharmacy so bad. >> amazon. >> they have a huge footprint. the stocks all trade as if cvs, as if this is next anything that makes this -- pharmaceuticals, you do prescriptions. maybe you do buy one, get one prescriptions. can you imagine that buy viagara and get some lyrica. >> i forget who we spoke to. whole foods was still breaking we were asking about other sectors, building supplies, pharma his words were that they could take down the pharma industry in one night. >> peo

and to me what was sobering about john mackey's statements is how little in the near term we should expect to chafrmnge. employee benefits staying the same the culture of whole foods staying the same amazon is going to let them continue to run the stores the way they have run them sult dreams about whole foods stores turning into distribution centers. hold your horses >> i don't buy that. yeah >> right >> carl, i think you're absolutely right i don't think he wants to change anything for some period of time that, again, if you view whole foods as though they were amazon's largest customer in the food category, then in that context, you don't want to mess with them. you want to let whole foods be exactly what it is today because it has, you know, it has enormous brand appeal. fraen amazon's point of view, right now what they need to do is create the equivalent of aws to service that. there is no reason to mess with the formula at all and all these people are talking about distribution centers maybe that comes some day. i don't see that in the near term at all and i don't see that as being s

foods but plans to keep its more than 450 stores and brand intact, along with whole foods' ceo john mackey. the real worry is what it means for any other business that sells groceries, especially walmart. the country's largest grocer. walmart says this in response. quote, our customers are looking for shopping experiences that provide everyday low pricing and a mix of physical and digital channels that work best for their needs. we feel great about our position, with 4500 stories around the country and fast-growing e-commerce and online grocery businesses. walmart does have ten times the number of stores as whole foods, and has online grocery pickup at 700 locations and growing. it also has increased its fresh and organic options. whole foods and walmart do serve very different shoppers. whole foods' customers tend to be more urban, higher income, and walmart serves a lower income, more rural or suburban shopper. but investors aren't so sure that walmart won't be hurt by amazon's purchase of whole foods. when amazon enters a category, whether books, video streaming, or cloud computing, it

jeff bezos and amazon buying whole foods at $42 a share in a cash deal, john mackey to remain the ceovery quickly, we are 28 minutes away from open. a look at equity markets here in new york. are a little bit positive on the down, about -- dow, about three point, we are going nowhere on the s&p 500. that is the story on equities. abigail, what is the story? >> nice call about amazon and whole foods, and taking a look at some movers in the energy complex, the e&p trading higher in-swerve with oil, about .8%, low,ing off a some -- a and this is helping to speak energy and whiting petroleum, after the company announced it is opening the first phase of development on one of the biggest oilfields in the world. bearis is the longest stretch since august 2015. not taking a look at two relatively recent ipo stops, snapped and square, a tariff to stories here. snap bouncing off that are the oh price -- ipo at $17, hitting the price again today. surprisingly, to be on valuation ist the 2018 sale attractive, but investors seem to be buying it. and snap, we have a downgrade from credit suisse to

whole foods ceo john mackey will stay in his job. the company will continue to operate under the whole foods branding. amazon has been looking for ways to expand its grocery service. the deal is expected to wrap up later this year. >>> the senate judiciary committee has a number of unanswered questions. california senator dianne feinstein wants answers. >> the annual congressional baseball game was played last night in washington. we'll have more on the results and maybe the long-term impact. >>> the traffic situation around the bay area is looking good on this friday morning. things are relatively light. we do have problems in certain areas. we will tell you about the right to san francisco. >>> two distinct forecasts. one for the coast and one inland. if you're near the coast it's going to be in the 60s. inland, near 100. >>> welcome back. the time ms. 7:13. breaking news. if it's true it could have a big impact on the war terrorism. russia claims it killed the leader of isis. the kremlin says it killed him in an airstrike on may 2

john mackey keeps his job, but what about the path of whole foods and what is it going to look like aor two? whole foodscover directly, but it just means they can really leverage the technology that amazon has. if you look at brick and, with a lack of technology. when you have a strong online competitor require you, you have technology your disposal and the ability to really move forward in today's world, which is changing and leading with cutting-edge technology. to whathave a listen david rubenstein had to say about jeff bezos being a genius. he had the last laugh, he's one of the two or three richest men in the world with one of the most accessible companies. underestimating him is not a smart thing to do. i would say of jeff bezos thinks it's a good idea, i suspect it is a pretty good idea. vonnie: he's into the turnaround and he should know what he's talking about, at least. cory: i'm not a big subscriber in that if they've had a good idea in the past, they will again as well. there are two kinds of people in the world. investors who say i've seen it all before and it's never dif

it says whole foods ceo john mackey will remain ceo and the grocery store chain will continue to operateer the whole foods brand. the deal is expected to close later this year. >>> time now 6:27. this morning, the russia investigation intensifies! this morning, we are learning another member of president trump's administration is hiring a lawyer! >>> a new batch of recruits for san jose police and why this could be the turning point for the department. i'm jessica flores with the story coming up. ♪ ♪ ♪ you're not taking these. hey, hey, hey! you're not taking those. whoa, whoa! you're not taking that. come with me. you're not taking that. you're not taking that. you're not taking that. mom, i'm taking the subaru. don't be late. even when we're not there to keep them safe, our subaru outback will be. (vo) love. it's what makes a subaru, a subaru. >>> this morning, we're following breaking news. the russian military says it may have killed the leader of isis. plus -- >> my eyes are stinging, my throated was store. >> a man who helped tried to rescue those in the london high- rise inferno d

difference of world views of john mackey.at he's too occupied with his book, he even said they had the nerve to go after wholefoods when i was on my book tour it shows a mismatch between -- >> cultural values >> the founder from 12 years ago. >> it's interesting that he is fighting back. >> he got rid of a cfo, chairman, but he stayed. he will dig in >> any sense where this activist battle will end? >> they're making some buybacks. >> they want to put it for sale. >> potentially a sale out there, which remains a possibility. >> speaking of the grocery business, here is today's mystery chart. the stock is down 20% this week alone. you can tweet us your guesses. i gave you a clue. we'll have the answer coming up. >>> and as we head out, another check on the futures looking like we'll be green towards the open, though very, very modest moves. yesterday's selloff was kind of minimized in the afternoon we do have options and futures expirations today. "wlddexcng wl orwi ehae"ilbe right back >>> welcome back to "worldwide exchange.

trish: one of the interesting things john mackey ceo of whole foods, interesting character himself, he. in fact, just yesterday he was quoted talking about the private equity group that invested heavily, referred to them as, quote, greedy bastards, if i can say that on air. [laughter] trish: but anyway, he didn't like them. that was yesterday. today he sold and he's staying on his ceo. do you anticipate adam johnson that there will be forthcoming management changes? this is a bitter pill to swallow. >> i don't think it's that bitter. this is his life's worth. whole foods is his whole mission. he we wanted to bring healthy food to america and amazon gives him the scale to do that. if anything, he's excited. trish: amazing what 24 hours can do. nicole: jeff bezos came out with a statement talking about the fact how much he loves the platform of whole foods and continue the way he is, mackey stays as ceo. i saw an article that's fairly new that were criticizing him. they might get rid of cfo that came on board not too long ago and he might walk away with $4 million. trish: they are very s

>> john mackey, he's going to stay put. thank you. good to have you here. dan springer.on stocks or whole food stock, you're probably loving this deal. but could this turn out to be a bad deal for smaller chains and mom and pop stores? amazon has been eating their lunch for some time now. now, well, no pun intended, they're groceries, right? max ferris says he thinks so. but carrie says this is good for consumers and everyone. i'm going to start with the good news. why is this a positive, carrie? >> this is a vertical integration as opposed to horizontal integration. this is companies not doing the same thing and working together to do everything well. amazon has been a long time trying to get in the grocery business. i've tried amazon's fresh direct. they're not doing well. it's terrible. whole foods has an efficiency problem and technology problem. >> and you think it's good for consumers. >> yes. better food with the technology behind them. >> trish: before we get to john, jonas, you don't think this is good. i think you're on to something. i think there's some concer

it will continue to be a separate unit of the company and current whole foods ceo john mackey will stilln it. experts say the deal shows amazon's concrete interest in brick and mortar stores and will intensify competition across-the-board. today's announcement comes a month after whole foods reported falling sales. >>> meantime, giant is trying to keep up with online grocery it has teamed up with a company called insta cart. customers in the philadelphia area can now get groceries brought to their door the same day that they order them. in fact, the service can sometimes deliver in as little as one hour. and your first delivery with insta cart and giant is free. >> more evidence of the on demand society in which we live. >> yeah, we want things quickly. >> we also demand a nice weekend because it's friday and we made it. we earned it. >> let's put that request in and see what we get here. meteorologist adam joseph here now and -- >> yeah. >> i don't like the sound that of. >> goingo d weekend. >> yup. >> it's going to be okay. we'll get through it. it's not going to be a washout either d

. >> let's do a history walk started in 1978 by a then-25-year-old john mackey in the state of texasoing to a mega health food chain with sales now annual $16 billion and more than 465 stores across north america. also in the uk whole foods employs 87,000 around the world and it ipo'd in 1992 at a price of just over $2. so a long way off today's price levels but still trading at below the peaks for whole foods back in 2013 whole foods has seen same store sales fall since 2015 as other grocers got into the organic health food trend and hence this push to try to shake up the company, replace members of the board, split up that co-ceo structure. and just to give you a sense as to how big whole foods is today, you know, revenue last year for an organic health foods store was at $16 billion that's, yes, that's smaller, way smaller than what kroger sold in 2016 at $100 billion worth of goods. but whole foods brought in three times more revenue than sprouts and supervalu and whole foods is supposed to be a specialty store, right, guys back to you. >> that is right, susan li thank you. with

it has always been john mackey's dream at whole foods to bring healthy living to everybody.hat's why he opened a store in newark, new jersey and one in downtown detroit. in some ways, he is fulfilling his dream to really make whole foods, you know, the standardbearer for healthy eating for everybody. julia: but the problem is everybody is now doing it. that is the problem, the challenge that hold foods has. they still remain. the price point, particularly, nites.ight -- four commo what does amazon do to change since the management will not change? that's a great: question. whole foods has a price problem -- you are exactly right. amazon will solve that price problem likely very quickly. they produce an enormous amount of cash flow. as big as this acquisition is, it is still not that big for amazon. what was a huge investment for whole foods to get those prices in line -- that is something i think amazon will take up pretty quickly. it is not great for competitors. suddenly, you have whole foods, which was really struggling as kroger moved in and, to a degree, walmart moved i

whole foods ceo john mackey will remain the ceo of the grocery store chain after the deal closes.in, amazon buying whole foods. we'll continue to track this, but this is brand new news just into the newsroom. >>> netflix has reversed itself, says it will take part in a net neutrality protest next week. other websites, including amazon, are taking part. the fcc under president trump plans to reverse moves made by the same fcc under president obama made to protect net neutrality. >>> tech stocks continue to decline. apple has lost 7% over the last five trading days. in fact reuters points out if you take the five top biggest tech companies, their combined losses just in the past week is enough money to buy the airplane maker boeing for cash. >>> shares of snap, the parent company of snapchat, have fallen to $17 a share. that's the company's ipo price. so put another way, the company is no more valuable now than it was when investors first bought in. >>> and jetblue has started testing facial recognition at boston's airport. so instead of a ticket, you'll just walk past the scanners

whole foods job by reputation, activist shareholders, and john mackey finding a kindred spirit .n justoth very headstrong founders operators. emily: whole foods is a relatively small grocery store player. how does this disrupt the rest of the business? olivia: it has a huge impact. i have no doubt that right now, grocery chains are scratching the heads, holding emergency board meetings on how to deal with this massive threat. especially more disruptive, seener startup companies as competitive threats to amazon and the way they would deliver groceries. oordash and several others have onn building their business the idea they could be a miniature amazon. interestingn relationship with whole foods. bolivia: this company has positioned itself as a competitor to amazon in the space of groceries and has a five-your partnership will foods, who is actually an investor in the company. put $30 million into this startup that is now worth $3.4 billion. i imagine the it's the cart -- scratchingt ceo is their head wondering how they fit into this. they were not expecting this to happen. it sounds li

see it's trading above that price expectations there's going to be more to come whole foods ceo john mackey amazon we're not exaggerating the e-commerce giant announced that it would buy the grocery chain for $13.7 billion. according to a transcript of a company town hall meeting mackey spoke out about the deal saying it was love at first sight because a little over six weeks after we met on this blind date we're officially engaged he also said we can't consummate the marriage until we're actually officially hooked and this is not a tinder relationship so, full disclosure, john mackey endorsed my book very similar political views we had dinner once as part of that whole process and i have no doubt that this is -- he is a guy who feels nothing, this much, everything is this much. and i have no doubt that this is the way he talks about it. >> you're in, you're all in. >> we're going to hear a lot more about this. that's an interesting stock to watch, too since that deal was announced and what people are anticipating and seeing we are going to talk a little bit more about this later in the sho

now as for whole foods, it will continue to operate as a separate brand and john mackey will remain as ceo you may recall whole foods has been under significant pressure from activist hedge funds. they've been criticizing the company for its poor performance recently and they had called on whole foods to sell itself well, they just did. whole foods today trading the a levels not seen since may of 2015 the stock is up $9 at 40 cents a share or more than 28% that is not the case with the other grocery store stocks they are all sinking on this news ostensibly concerned about amazon getting into their business, literally. kroeger, super value, they're down double digits kroeger lost 30% this week sprouts and costco down 6% even the european grocers like those big in the uk and europe are down as well let's bring in our own sara eisen and the rest of the supermarket stocks for oppenheimer. he just raised his target toed 45dz from $40 saying that another bid cannot be ruled out. welcome. hey, do you really believe that another bidder could step in for whole foods and, if so, who? >> as i loo

whole foods krae john mackey is expected to stay on. the chain has about 460 locations worldwide. deal is expected to close later this year. >> big surprise this morning. >>> queen elizabeth and prince william met today with volunteers near the site of the deadly high rise fire in london. the two also spoke with firefighters who responded to the disaster. the fire killed at least 30 people when it engulfed the 24-story building early on wednesday morning. dozens of residents are still missing at this time. the tower houses as many as 600 people and 120 apartments. at the end of the visit prince william promised he would return. >>> a massachusetts woman will learn her fate today after pressuring a friend to take his own life. ahead we're at the courthouse for this decision in a groundbreaking case that >>> america's opioid crisis >>> america's opioid crisis claimed the lives of two brothers in texas. >> i kept thinking that i was going to fix them, that if i -- if i got them in a different school, just -- had them in the right rehab, whatever it was, i just didn't have an understa

and yesterday we didn't talk about whole foods because john mackey, he's the ceo, he was saying that- a bunch of greedy bastards that's janet trying to put whole foods in play. i'm not saying that's disingenuous, but remember walmart wants to own food. amazon wants to too, but there's only so much they could do although the packaging for cold foods isn't bad for amazon we order a lot of amazon food now. but this walmart is not to be reckoned with. i mean, they are just coming in with guns blazing. they're unbelievable. >> yeah. kroger is going to be the focus at the open for sure brief pivot to politics here special counsel robert mueller reportedly expanding his investigation beyond russia's role in the election according to "the washington post. the probe now includes an examination of whether the president attempted to obstruct justice. he tweeted they made up a phony russian story. now you're witnessing the single greatest witch-hunt in history led by some bad and conflicted people he doesn't overtly confirm the obstruction report from "the washington post. he doesn't say who he

think this basically epip mizes the conflict here between lawsuit of whole foods the founder and john mackeyere is a tremendous gap between those world views. you don't disrespect the guy who 37 years ago founded a vegetarian supermarket should be running a $12 million company. most of the investors think he has been pre occupied with his time and efforts and lots of things outside the company. >> we will see if john wants big changes at whole foods he has been a little resis and the to that. next, it's 1977, you have $100 bucks and a choice lit get you a share of index or a share of berkshire hathaway, here's how they explained it to mike >> it's going up to 100 peak down back to 100 in may of '77 at the same time a stock got there for the first fund, though berkshire hathaway, that was the big one. way before the split that's a $250,000 stock. that was 100 all parody with the s&p 500. 250. >> thousand. dollars per share. >> per share. >> apples to apples, berkshire's been to 250,000 t. s&p has done well, people are buying the wrong index it's amazing i think one of the real things for me h

that mission comes from its founder and ceo, john mackey.le uncomfortable in the skin of her foods, high-priced reputation. his mission has always been to bring healthy eating to everybody. this is fulfilling a lifelong mission he has had. perspective, they really want to become bigger and more dominant in consumables but they did not have the credibility especially in flash. when you look at our research, the whole foods brand really goes well beyond the urban elites who shop it. it's incredibly strong throughout society. it's an incredible brand. instantaneously, amazon gets that brand and guess the credibility of fresh. we think it's a very good merger for amazon. the core of it is brand and culture. most mergers you know fail on culture more than anything else. the whole foods brand is more upscale in most people's mind. can they cut costs without undermining the brand? >> i think they can. brand's upscale to a degree but it's also about quality. a funny story. when they lose -- when the news broke the mold my wife called me and said is

john mackey telling his employees after the deal was announced, i think we're going to see a lot of technologyove is tracked by artificial technology and ail go rhythms. >> you have to offer customers options. that's what people are demanding now. >> reporter: and this week, amazon introducing its prime wardrobe service, delivered to your doorstep. just the latest retail disruption. >> amazon's record of dominance sends a shutter of concern through the supermarket industry. peapod is the country's internet grocer. but they say they welcome healthy shoppers to two around. >> i don't think anybody saw this coming. so, inevitably, the question becomes, do you see it as a threat? or do you see it as an opportunity? we see it as both. >> reporter: as ceo jeff bezos makes an aggressive move, another industry bracing for what comes next. >> our strategy doesn't change. it makes us feel a lot more bold and aggressive about making big bets. >> reporter: the whole foods acquisition is not a done deal. the market is bracing for a possible bidding war if an amazon rival puts in a better offer. earlier thi