mr. dauman did not speak about the feud, itself, but he did talk in detail about the sale of a 49% staken the studio. he said it would involve an investor coming in, and tax efficient, and the at a tributes of any party we are talking to is such that it will create more value operationally than if they were alone within viacom, and it would unlock what is $10 or more per viacom share if we with can bring it to the conclusion, and the big key there is "if" and given the bylaws set by the controlling entity would are require a deal with the paramount which includes a deal with sumner redstone and his daughter. and sumner redstone saying that he does not anything occurring with paramount, and mr. dauman's comment s th comments this morning may be one way for him to at least communicate with sherry redstone, and sumner redstone, because it does not appear that there is any communication, whatsoever taking place with them, and saying, look at the value that we may bring to bear here, if you let us move ahead with the deal. in the change of the bylawmusem they they would rule against it, but t

mr. dauman as chairman and ceo of viacom. mr.nder the point for a minute, but did not respond. and i did not pursue the issue. carl, that's where things stand. >> on the heels of the french open it's almost like the ball goes this way, you watch, you watch it that way. it's not going to end any time soon. >> no, and we're waiting for when the big move is made to replace that board and ceo. >> on that note we got about five and a half minutes until the opening bell. art cashin joins us here at post nine director of floor operations with ubs. >> good morning. >> are the feds whistling past the jobs number we got on friday? >> well, i think she's in kind of a difficult spot. i don't think she wants to write off the idea there might be a hike. everybody particularly stanley fisher is desperate to keep that up there. so they've got some of it. i think she's going to leave it as everything's a live meeting. if anything she may say we told you we're data dependent, so far the data's been not good. but if it gets better then we will go a

mr. dauman and mr. abrams but in his view they ignored his wishes." ng to speak loudly so sherry and sumner redstone can hear him. he can talk all he wants about the potential value of the deal but it appears based on the statements once it gets to the board level they're not going to vote in favor and it's unclear whether you get a buyer willing to engage in negotiations given that possibility. >> given the possibility it would be blocked. >> exactly. >> national amusements, redstone senior and sherry have the power to change unilaterally the bylaws of viacom without the rest of the viacom board -- >> that is correct. written consents to viacom that amended viacom's corporate bylaws effective immediately, that was june 6th when we first reported it. there has been no challenge, a lot of challenges on various things but none to this as of yet from vie extra com's board of directors which stands in opposition to the controlling shareholder for whom they serve. >> a company will ultimately have underlying value but you wonder as a shareholder why would y

mr. dauman are planning a countersuit saying mr. redstone is mentally incompetent to make such a move. they had the lawsuit, from what i understand, locked and loaded was the word i heard from the viacom board members. what's interesting in this drama is philippe dauman is obviously the ceo, and sumner wants him out. a guy named fred solerno one of the five he wants out. these are independent board members. i will tell you this, this story is not over today. there's going to be a lawsuit, there's going to be an injunction or they're going to seek to join this move and we're going to be talking about this for a long time. this is -- let's put it this way, in terms of corporate governance, they're going to say sumner redstone is just not competent, mentally competent enough to run this company. liz: the market loss of this news, the stock steadily jumped up 5.63%. by the way, it looks like a done deal here because it says removed. he has removed these people. >> let me just be clear. this is what we reported a couple weeks ago. they have a locked and loaded lawsuit in delaware court whic

mr. dauman.t happened. it has not yet happened. and they have a little more time it would seem given they now can potentially make sure no paramount deal happens at least unless it's one they want to happen. and finally, i'd come back to the court hearing today and to that trust, which of course in the event mr. redstone is deemed yes competent, it is interesting to note he would then step off the trust and as is also the case his former wife would also step off the trust if he's deemed incompetent and two new members would come on. those two members are the two members put on in place of mr. abrams and mr. dauman. so you get back to a situation says even if you were deemed incompetent, four of the trustees that would be on the trust in that case would still seemingly be those in favor of what mr. redstone and his daughter shari are in favor of, namely making changes at viacom. so i'm not sure any of this matters. >> i don't even think there's a corporate analog. i mean, i'm thinking about unita

mr. redstone's lawyer filed a motion to dismiss the plaintiff's complaint in massachusetts. if you recall, philippe dauman george abrams arguing in a massachusetts probate court that mr. redstone is under the influence of his daughter shari and he's been removed and as director of national amusements because of undue influence and therefore should be undone. in a motion to dismiss, redstone's lawyers say things like this, you say he doesn't have the capacity any longer is not even at issue here because the trust provides that for all purposes they're under, sumner shall be deemed mentally incapacitated only if he's judged by a court of proper jurisdiction, the board of trustees, the trust we're talking, the certifications by three doctors. plaintiffs are not alleged that neath ore f these conditions have occurred. kelly, they're saying get this thing out of court. dismissed judge. we don't want to be dealing with this trust issue. of course, the other court that comes into play is in delaware infront of chancellor bouchard. we do not have a date yet as to when that will be made or whether they can replace

mr. dauman remains the ceo, and in question as to whether he is going to be staying in that job.nd if in fact, he does for longer than you think, did you jump the gun with the buy rating? >> you know, look, we are making a very strong guesstimate of what going to happen next, and timing is important, and we have put that in the report that though it could drag the on longer than we think, and it is feeling like it is moving in a rapid pace, and i don't believe that over the next six months we won't see closure to this and you can tell by the investors of the movement of the stock over to the last 24 hours tls, therea lot of pentup desire to buy viacom and not just from the management change, but the merge wer cbs, because there is a two-step process, and one is to get rid of the current management team and board and the second is the catalyst to put the two companies back together that never should have been separated and you will create a lot of value for the shareholders of vie xwra -- viacom by reuniting with cbs. >> and who to replace dauman? >> les moonvez, and viacom has lo

mr. dauman as well. they've ousted the five directors including ceo philippe dauman.hey have gone to delaware court to have that declared league and this is what the company said, because of public statements by the existing directors that they would challenge any removals and to maintain stability until those issues are resolved. national amusements filed paperwork to affirm the validity of their actions. we'll keep you posted. the stock is up almost 5.5%. bill and sara, back to you. >> we'll keep an eye on that. >>> the sector, worst performer this year. former wells fargo's dick kovacevich. listen to what's happening. >> it's increasing. of course, they don't add anything to revenue, and so they have to cut costs or profits are going to go down. what should happen is the industry will need to consolidate, and the only reason it isn't consolidating is the regulators don't want that to happen. if it was a normal situation, you'd find the banks being acquired. they need to advertise that over a bigger customer base. >> let's talk about thachlt joining me to debate whe

mr. dauman leaving in sort of a time period. >> it's a kinder, gentler corporate environment, going against what they really want to do. you used the term paralytic. this is a company not doing much at all. paramount, they keep talking about a great slate of movie. every time you look at the slate of movies, you realize more losers. not a great slate. no one in hollywood thinks that it is. i wonder if there's anything creative going on there. it would be great to get together with cbs in terms of a bailout. cbs is tesla and these guys are solar city and cbs ain't going to play solar city. >> that's a nice analog, jim, i got to give it to you. coming up, more "squawk on the street" on this very busy day straight ahead. a good car has to maneuver quickly. that's also true of a good car company. people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cities, all around the world. doing that required dozens of data centers, designed for speed and performance. we built our business on the ibm cloud. because that's what the ibm cloud i

mr. redstone twice in the last few weeks on the day he removed dauman and abrams. indicating he's clearly displaying his preferences. it's far from over. there's a petition in l.a. superior court to ratify his move and say it shouldn't even be taking place in massachusetts anyway since mr. redstone conducts all of his business in california. again, the main point, this is just the softening u. it was a week ago e was with you talking about the fact that manufacture of the board members at viacom were bracing for the possibility of being removed by mr. redstone. that hanls happened this week. but that doesn't mean it's not going to happen. and based on the reporting i've done, i expect it will happen in the not too distant future and much of this is targeting up, if you will, the target before they finally drop the big bomb. >> was going to ask. how is this expected to play out because right now you have this war of words and lawsuits and press releases and what have you between these two sides. >> i think what will happen is at some point we're going to get word th

mr. redstone is being manipulated and used by his daughter. basically saying this is a plot by shaarei redstone to take over the country. as for daumanhs ago he had his 10-year contract extended through 2018. sumner redstone called him an extraordinary ceo giving him $17 million in stock awards at the time. his total compensation over the last four years has been 4d 25 million. the more this showdown rachets up, the more investors improve. shares up 14% in the last monday. by the way, there is a clause in dauman's contract saying if he is fired early without good reason he can be compensated as much as three times his annual salary and bonus. so tens of millions of dollars. melissa. >> quite a parachute. jane, thank you. >>> yesterday we spoke exclusively with voi com coe tom frese orrin who said a board shake-up was the key to saving viacom. he had choice words for the company and philippe dauman. >> they came in as a team and they can go out as a team if that happens. the board needs to be replaced, bring people from entertainment business, popular culture who can add something, understand the business maybe a bit more. >> let welc

dauman and the board of directors. coming after a legal battle to see who will be mr.ing person and shari redstone is that at this point. >>> apple reportedly plans to issue bonds. bonds in taiwan. for the first time, the aim, to raise a billion dollars. the planned offering will help apple secure solid partnerships with its partners. taiwan is home to its massive supply chain which includes iphone manufacturer fox con. >>> under armour cutting sales outlook citing sports authority's banks ruptcy and litigation. saying it will only realize a quarter of the revenue it had been expected to get from the retailer. checking on shares of under armour in the premarket, down 4.5%. >>> nike down-graded to equal weight from overweight at morgan stanley. price target being cut to $60. morgan stanley analysts argue the us apparel category is weakening. the stock is down by 3.3%. >> the analyst has been interesting in this space. i would say within the last six months he's put out two 50-page reports negative on under armour. he has been sort of negative on that name. now it's inte