mark mahaney. great to see you.ti. >> nice to see you as well. >> this is an interesting story. one popular late-night tv host taking a costly stand, giving up some of his own pay, we're talking millions to save several staff positions. we've got the details ahead. liz: comedy queen phyllis diller died. she was born in 1917. she was 95 years old. she died this morning at her home in los angeles. diller helped pave the way for female comics beginning her career in the '50s and rising to fame alongside the legendary bob hope. ashley: nbc trimming down the staff of its top-rated late-night show to cut costs. >> workers including the show's own host they are taking a pay cut to save other jobs on the line. fox business's dennis kneale. dennis, i always thought leno was untouchable? >> the i will imagine of leno took a beating a few years ago when he happened tonight show to conan o'brien and reneged after failing in prime time at 10:00 p.m. conan o'brien sent packing be making himself into cause celebre victim before st

mark mahaney out of san francisco. >> thank you, carl. >> thanks so much. >> let's get to our capitaly kaminsky has thoughts on morgan stanley. >> not just morgan stanley, carl. one of my colleagues left right on the camera shot, celebrating a birthday here today, says he wants to listen. that's brian steele by the way. carl yesterday barclays was out talking about this joint venture, morgan stanley smith barney and estimated there may be a $6 billion charge that citi will have to take when the value of the pieces is independently appraised given the fact that morgan stanley believes that this business is worth $9 billion. citigroup believes that the business is worth $22 billion. quite a wide bid/ask. let me explain to you why i don't think the real issue is about what citi may have to write down but why morgan stanley given the circumstances surrounding what's happening in the business right now, is going to ultimately be the winner here. and there's four things that i want to point out. right now, this business is on under significant pressure because net interest margin is upside

and mark mahaney with citi downgraded to a $9 price target. good to talk with both of you.ry going into the quarter, but 6.50? >> sure. i would say right now, we lowered it from $9 to $6.50. i think for us, a few of the concerns we had going into the quarter that billings were definitely getting weaker. the issue around goods in terms of the company taking first-party ownership in terms of the goods they were selling both happened on the quarter. and i think for us right now we are sort of stepping back and reassessing the stock. >> yeah, mark, you're in the same camp, although nine holds the promise for some growth. what are you seeing? >> the challenge is, you've got sharply decelerating growth in the two key metrics for this company. billings and active customers. so the core daily deals business is clearly slowing down dramatically faster than the company it fought in the market as well. and now the company is having to invest in new areas of growth so margins will come down with a decelerating growth story, with margins coming down, very hard to see fundamentals propel

and mark mahaney. good morning to both of you.ce on the stock, i got to imagine, anthony, you think this is all kwesqueeze to? >> yeah. i can see we've been wrong on the stock recently. we're sticking to our thesis. content costs continue to increase as a percentage of revenues. overall advertising dollars and listener hours are decelerating. that content costs don't change but mobile monetizes at a lower level versus desktop. they may be making some traction. even bulls don't expect pandora to be profitable until the fiscal year that ends 2015. >> mark, some have tried to argue mobile revenue up 86% means montization is improving. is that true or do you actually want to see a net profit before you start getting positive? >> we don't need to see a net -- a profit before we get positive. but we definitely need to see those content costs contained and mobile montization really start to rip. it looks like it's stabilized. there's still a big gap. doing about $60 per 1,000 listener hours off desktops, 20 off mobile devices. that's all