is this because john malone, a media malone -- a media mogul wants a trophy or does he want the grandnetwork? >> we could do a whole separate show on american billionaires who have wasted portions on buying sports teams. vanity atbe some play, but viewers like watching fast cars go around a formula one track and that is what people are going to want to watch. here is what his group is doing, along with discovery. they are in talks about taking over the 35% stake from cbc and nieman brothers has another 13% stake they get you to a 49% stake. that values the company at $8 billion. they are still $1 billion apart. the current owners think it is about $9 billion. when you get to the price range, we are talking about another half $1 billion. -- another half a billion dollars. we can maybe really do an entire show on stock cars and formula one. are notle in the world qualified to talk about those things and it is you and me. >> why is formula one still attractive to malone? >> we can talk about the business reasons. we can break down what formula one has done stock wise. the revenue is abou

john malone.s real life m&a telenovela. >> it is a fascinating story, a very soap opera-ish line. first, you have the names alone. the chairman of ferrari is good enough for a tele-novella. di montezemolo. donald mckenzie, they own the majority of formula one. john malone, the darth vader of cable from liberty media. they are in thi together. -- they are in this together. >> john malone is a dressed down, midwest kind of guy. he is not that -- >> you don't like the darth vader moniker? >> he is not the personality usually want. most gloriousthe and successful racing team in formula one history. they had the most famous and respected drivers in the 1950's. of course.umacher, and of course, formula one is the most important racing league in the universe. it is huge names. formula one is dependent on ferrari. lately, the chairman has been saying we do not like the way things are going. we do not like the rules, you cannot develop your engines during the season. they do not like fuel limitations, they

we're talking about john malone.ally, buy it for $132, for that you get about $100 of sirius xm stock, and you get about $35 worth of charter communications. there's another $30 worth of other assets, $5 of debt. worth $160, and you get john malone and deal making skills for free. liz: do you play the arbitrage deal with directv? >> so one of ways that warren buffett has made money over the years is risk arbitrage. liz: explain to people what that is. >> so you buy directv today for $83, and. >> 9-12 months you'll get $95. clash 28.50 -- liz: that seems simple to me. >> well, it is risk arbitrage because there's risk. namely, what's at&t's stock price going to do over that time? you're hedged a little bit, will the deal close? will the regulators block it? my belief is, yes, they will, and i think the 14% implicit return there compensates you for that risk. liz: and, scott, does it play into whatever liberty or directv or any other stock might do in general that the economic data are starting to look better and, ther

coming up, john malone wants to get into the auto racing industry. there is one major roadblock in his pursuit. lookve a behind-the-scenes at the award-winning series game of thrones from one of the show's. we will see if he gives us any clues as to what will happen in sunday's season finale. any >> john kerry is in london speaking about the growing violence in iraq. obama is moving rapidly to decide on a response to iraq -- the situation. he calls it a wake-up call for the leaders there on the ground. also says the u.s. has discussed military options for iraq. if you want to listen in on what secretary of state john kerry is saying about this, you can click event channel. meantime, jim, before i let you go, on a later note i want to talk to you about sports. that is your second love. the ceo ofterday to .eoples corporation he talks about how he nearly bid for the clippers. i want you to hear what he said. >> looked at the return on investment donald sterling is going to make for horrible behavior. for $12t that team million and he is selling it for

and then john malone. cheryl: he has 2.2 million acres.ould find in the state of delaware. twice as big as delaware. stuart: ted turner. cheryl: 2 million acres. he has property in 12 states and argentina. i kid you not. also john malone, he has been buying land in ireland and has some overseas properties as well. they have been snatching up land at a record price. seattle. a $15 an hour minimum wage. we will talk to one of the city council members. they all voted for it. coming up. ♪ stick with innovation. stick with power. stick with technology. get the flexcare platinum from philips sonicare and save now. philips sonicare stuart: president obama said out to transform america and looks like he's doing it. massive student debt and 1-third 18-424-year-olds eat at home. the president, an alleged deserter from the taliban dream team, kills the cold industry to look good to the united nations. welcome to the second hour of "varney and company". headlines is noon hour, tuesday. seattle votes for a $15 an hour minimum wage. city council member

john malone and discovery communications team up to seek a major stake in f-1. welcome

, so the cofounder and cochairman is another one of the players you can see donald mckenzie and john maloneruns liberty and wants to buy this potentially. they are negotiating about the sale, but this is not helping negotiations at all. owners have been called. worldalk about wanting changes because they are limiting the amount of fuel the cars can use, and they are limiting the engines to 1.6, not exactly the strength of ferrari, and they have also not reached out to the new generation in social media the way that ferrari wants them to. >> so this is not an empty threat. >> it does not seem like an empty threat, though in addition to being angry about this and calling the wall street journal and telling them they would look into another form of racing, they had their driver wave the flag at lemans home which is the other form of driving they are talking about. he said he would be driving endurance racing after driving formula one, and he also told reporters he had talked to the chairman about the switch. there are a cannot do both. it would be expensive to do both. if they did switch, they

global -- john malone's cable company is planning to take over the dutch cable operator.of its dutch operations will become the ceo of the acquired brand. number nine is the list builder of single-family homes reporting second-quarter revenue that beat analyst estimates. it's on track to meet its earlier goal. >> united technology. got arospace giant contract to build a new fleet proper for the u.s. air force. building helicopters exclusively for the use of the president. number seven is a finish line. the sports apparel retailers 's profits doubled. it's growing presence has helped to boost its cup customer turkish air. >> boosting off its food business. they have built up an 8.5% taken the company and has met with management. -- jumping off the cliff of an ipo. giving investors quite a rush. million.ised $427 the ipo values the company at $2.9 billion. >> you can strap it anywhere and go around. paribas.ur is bnp as they face a u.s. fine for alleged sanction violations. number three is dupont. the chemical company reduced its earnings forecast for the year due to plungi

and john malone is off to the races.discovery communications are trying to buy a stake in a formula one auto racing team. they are valued at $100 billion more than companies. they only to work that one out. >> very good. competing forces invaded northern and western iraq. kuk is onlye from kiru 104 miles. oil has surged. now backthis morning, down with a 115 angle. our guest had seen this before and joins us this morning. i'm looking at the kirkuk pipeline, moving northwest. pipeline. how friend is that pipeline? how threatened is that pipeline? >> is 100 miles or so from where this terrorists are. knowledge, they surrounded one of the refineries yesterday. obviously, they know what they're doing. they're going to cripple the central government or what is left of the central government. obviously, oil resources are the most important assets. >> on this friday morning, do you have a price point for us where it begins to impinge the global economy and the american consumer? 120, 130 a barrel? can it be lower? >> it hit 127

under john malone. ought that when john took over and he sold it to at&t, you made 900 times your money over that 25-year span. and they almost never reported a profit in that entire period. all that happened was the debt went up and the stock went up. but he's actually creating enormous amounts of value, which is what's going on with amazon. >> do you, and do you have to as an investor, understand everything that jeff bezos is up to and the wide array of industries that he's experimenting with in order to understand the value of this name? >> i think it's really important to understand jeff's psychology, decision-making approach, how he thinks about the world, because ultimately, what's going to happen is all the capital that's being deployed is being deployed based on his vision. but fortunately, we have, as 17 years as a public company, to get a sense of how that previously has worked out. and what we can see there is that the capital deployment has really been quite amazing. and we did a mathematical

john norwood with a single to left. bdee did allow six runs. now facing a must win situation tomorrow. >> a's playing in baltimore. josh donald son for his 17th of the season. tommy maloneat defense. two outs in the third adam jones to donaldson. and machado didn't like. that the two exchanged words. machedo deep to center now in the 9th, this game tied three a piece. the defending french open chance will have a chance to win the tournament and claims he has a bad back but looks strong today. and now, nadal coming to the net. he went and knicks take on jokavich trying to become the age man to complete a career grand slam. goalus goes down the line for that winner. jokavich not too happy, breaks his racket. in memphis, ben crane is on a role, shooting 65 today to grab a six-stroke lead. lightning and heavy rain caused play to be delayed. this sports report has been brought to you by orchard supply hardware. >> tough time of the year for weather. >> yes. yes. >> thank you, rick >> join me tonight at 9:00, we're going to tell you how, why a german artist created a program seeking out and cutting off wi-fi for google glass users >> a law promises to protect cyclists in the

john norwood with a single to left. bdee did allow six runs. now facing a must win situation tomorrow. >> a's playing in baltimore. josh donald son for his 17th of the season. tommy maloneby great defense. two outs in the third adam jones to donaldson. and machado didn't like. that the two exchanged words. machedo deep to center now in the 9th, this game tied three a piece. the defending french open chance will have a chance to win the tournament and claims he has a bad back but looks strong today. and now, nadal coming to the net. he went 6, 3, 2, and 1. and knicks take on jokavich trying to become the age man to complete a career grand slam. goalus goes down the line for that winner. jokavich not too happy, breaks his racket. in memphis, ben crane is on a role, shooting 65 today to grab a six-stroke lead. lightning and heavy rain caused play to be delayed. this sports report has been brought to you by orchard supply hardware. >> tough time of the year for weather. >> yes. yes. >> thank you, rick >> join me tonight at 9:00, we're going to tell you how, why a german artist created a program seeking out and cutting off wi-fi for google glass users >> a law promises to pr