now oracle is by netsuite.as been on a lot of people's radar because larry ellison who runs oracle, was the largest shareholder by far in netsuite. if a deal was going to get done, oracle was by far the most likely buyer because ellis owned such a large stake in netsuite. this is what they have been working on for the last couple of months. they're just needed to be a series of control agreements that needed to be agreed upon to allow oracle to buy it. antitrustbe some problems with this deal. but, with that said, it is still only a $9 billion deal for oracle. alix: good point. netsuite's site -- do we expect any more bidders to come in? or more consolidation in the industry? >> as far as other bidders, it is unlikely given the fact that larry ellison owns more than 40% of netsuite. it is possible that salesforce could take a look at it. they have gotten fairly close to buying lincoln. -- linkedin. if salesforce were to make a larger at decision. acquisition -- there has been a lot of back and forth, animosity

netsuite has a lot of small businesses running their operations on netsuite and that is different fromhe giant corporations that attend oracle. >> you listen to mark speak at the conference event and it's a time ordered practice for him to .ake known the salesforce should salesforce be worried at all? >> i think everyone in the sector should be worried about everyone else in the sector. i think customers are showing they want to operate in the cloud. .here's a lot of criticism it makes for entertaining journalism but customers are wanting stability to not have to buy software and not have two in three years appointments that would cost hundreds of millions of dollars and take many years and thousands of consultants to do. they want a software that's easy to use and quick to download. i know if you businesses running netsuite. who are the other dominant areas in the field and what will give them the competitive advantage? answer a different question, which is to say i think was interesting what oracle is doing is they are going after niche is right now. netsuite has a broad range but wh

oracle buys netsuite for $109 a share.tuned you're watching "squawk box" on cnbc, first in business worldwide. ♪ ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. >>> we are just seconds away -- calm down. but it's coming any moment now. weekly jobless claims. the futures have been down for most the morning. we'll take a quick look. actually, we're not going to. rick santelli standing by -- there it is -- at cme. the numbers, please. >> we are up 14,000. up 14,000 initial claims from a slightly revised 252,000 up to 266,000. just a whisker under 2.41 million on continuing claims which is a small rise. and on the june read for the trade d

netsuite is the original cloud company founded by lee ellison.ily owns 45% of the common stock. is that the same story? >> netsuite is a truly cloud business run by zach nelson. curious if there are other bidders. this is a healthy premium. if you look at the stock of netsuite, you can see the market has been waiting for some kind of deal to happen here. oracle was the best to acquire it lee ellison's stake in the company. ♪ ♪ erik: you are watching "bloomberg best." i'm erik schatzker. there was an avalanche of earnings reports this week with forecast from several all the world's marquee technology company. facebook, samsung, twitter, and more. here is a round up of the highlights. >> facebook shares soaring after hours as much as 8%. usersy and daily active --is it as good as it sounds? >> facebook has done a good job of getting the entire world on its form. it is incredible. when you look at the actual ads on facebook, what you will see are less brand advertisers and more apps install ads. in terms of trying to reach users, facebook has done a

oracle buying netsuite for $9.3 billion in cash. that makes it the second biggest acquisition ever.hat's behind the 10 plus billion dollar acquisition just over ten years ago. just had a conversation with people familiar with oracle speaking on this and i was wondering right now because larry and his family organization connected to him own about 40% of netsuite. this deal looks more expensive than oracle has been paying for cloud acquisition. so why do this now? it turns out if you look at what oracle has been up to over the past couple of years, they have been building out cloud infrastructure. paying a lot of money for the data center resources needed to become the cloud company that they want to be. they needed to get there before they could do this netsuite deal and make it flow and work and create the company and similar to if you're building out hotels you need to build the hotels before you can have the tenants actually make money. that's something behind this. also netsuite, because larry ellison invested in that company early on and had a close relationship with them, they

today netsuite almost got there, adding 18% to 108.41.racle was up 26 cents to 41.19. >>> profits falls for the fifth straight kwarlt at conoco phillips. the energy company missed estimates as low commodity prize continued to hurt its results. conoco also lowered its capital spending plan for the year but did say it would lift its production guidance. rose just a fraction to 40.26. >>> gnc posted another lackluster quarter as sales and profit fell. the nutritional supplements company also said its ceo is out. it will suspend its stock buyback and pull its full-year guidance. shares lost a quarter of their value today, down 25% to $10.28. >>> and currency headwinds took a toll on sales at colgate palmolive. the maker of personal care products missed expectations and profits did rise which was better than expected and colgate expects sales to fall this year in the low to mid-single digits. shares fell a tick to 73.75. >>> a rise in consumer spending lifted profit and revenue at mastercard, that top expectations sending shares higher. master

the netsuite deal is about ten times seals.se two stocks are already trading at ten times sales so if the management and the boards would sell, it would be a significant premium from here and then we get into a period where, you know, they are basically paying mid-teens times sales for assets that only have about a billion, billion and a half in sales and then you say to yourself how does that really move the needle in a company with 50 billion or $150 billion in sales. >> a new segment. i'm bringing to "fast money," a new segment called the alarm segment and whoever is talking when the alarm goes off gets a hug. there you go. >> let me talk here. >> come here, brian. welcome to the first -- >> got the heisman. >> there you go. >> on a bigger note. >> sorry, folks. >> things happen and it's live television. >> what i noticed from this deal, brian, that s.a.p. is along on this strategy, probably a head start two to four years on this strategy that oracle is trying to catch up with. >> on a -- >> having said that, there are other

they are going in for netsuite the cash deal. there try to ship more deals to the cloud.tware includes e-commerce and customer relationship tools. the cash deal. scarlet: that is the bloomberg business flash. in the next hour, we look at deeper at oracle deal with netsuite in an effort to boost its cloud services strategy. more on that next. ♪ amanda: 1:00 in new york, 6:00 in london. scarlet: welcome to bloomberg markets. ♪ >> from bloomberg world headquarters, good thursday afternoon. amanda: in this hour, we are covering stories from toronto, washington and azariah. -- former federal reserve chair told bloomberg today that we will have more highlight of the interview this hour. >> oracle -- the cloud computing firm is not other than oracle chairman -- >> credit suisse kelly returns to profit in its second-quarter. eliminate -- a limited hundreds of jobs and comments are coming up. first, we head to the markets desk were julie hyman has the latest. earnings season is not doing much in the way of market direction. julie: investors seem more focused on these individual co

cory: netsuite is a truly cloud business run by zach nelson.ll be curious when the filings come out to see if there are other bidders. you can see the market has been waiting for some kind of deal to happen and oracle is the most likely acquirer with larry ellison's personal stake in the company. ♪ erik: you are watching "bloomberg best." i'm erik schatzker. there was an avalanche of earnings reports this week with quarterly results and forecasts from several of the world's marquee technology company. facebook, samsung, twitter, and more. here is a round-up of the highlights. >> facebook shares soaring after hours as much as 8%. as facebook beats on prop it -- profit. monthly and daily active users -- is it as good as it sounds? >> facebook has done a good job of getting the entire world on its platform. it is incredible. if you look at advertisers, they are following where people are. when you look at the actual ads on facebook, what you will see are less brand advertisers and more apps install ads. in terms of trying to reach users all over t

agrees to buy financial software maker netsuite 49 $.3 billion.akeover seen as a way for oracle to advance its business in the cloud and better compete against rivals like salesforce, microsoft, and sap. i want to bring in our bloomberg intelligence analyst in new york. the first things that makes this interesting is larry ellison's connection to both referred to as kissing cousins traded are there any governance or regulatory issues here? >> it doesn't look like it great he's not going to be part of the devoting area. i don't think that's the case. this is one deal that has been talked about in the software industry for a long period of time, as to when will oracle finally by netsuite in terms of extending its cloud applications portfolio. so i won't expect that. emily: how much will this help oracle compete with microsoft, sap, salesforce? >> at the end of the day, just like any legacy software company right now, oracle is trying to move its portfolio of hundreds to the cloud. -- products to the cloud. companiesn sap buying to enhance their port

. >> among today's top stock to watch check out netsuite. oracle buying that company $109 per share. all cash. you're looking at that trading almost at the takeout price. >> quick check on the markets before we go. the leaderboard -- we don't have time. markets down 22 on the dow. go ahead. take it. >> okay. join us tomorrow. watch some golf, hillary tonight. see you tomorrow morning. >>> good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer on the new york stock exchange. wondering what the busiest day for earnings is this is it. plenty of reports to unpack, software m&a, clinton accepting the democratic nomination, global stocks treading water, europe flat, keep your eye on bonds as we get q2 gdp this time tomorrow. earnings, the busiest day of the season. majors like facebook and ford on the move, dow chemical, inside look of the quarter from andrew. >> hey, you get on to my cloud. oracle buying netsuite for $9.3 billion citing strats you-like synergies. >> the final day of the demo

. >> oracle is moving to the cloud and netsuite is the original cloud company..d by larry >> and the family owns a lot of common stock. >> netsuite is a truly cloud business. it was a side project for larry ellison and expertly run by zach nelson. it will be curious to see if there are other bidders for this because you want to see where trading. you can see the market has been waiting for some kind of deal to happen there and oracle is always the most likely to acquire with larry ellison having a personal stake in the company. ♪ erik: you're watching "bloomberg best." there was an avalanche of earnings reports with quarterly results and forecast from several of the world marquee technology companies. facebook, samsung, twitter, and more. here's a roundup of the highlights. afterebook shares soaring hours up as much as 8% as facebook be on sales and profit and monthly and daily active users. is it as good as it sounds? >> facebook has done an incredible job getting the entire world on its platform could i, if you look at advertisers, that is where they are. ther

oracle and netsuite, oracle's buying netsuite for 9 billion. larry elliss is co-founder of oracle.ss he gained value, does he not? >> more after the break. >> and those are the stories, and the pga championship tees off today. and moments from now, i believe. do we want to take a look at a pure play in golf? that would be callaway golf. i think the stock is actually down today. yes, it is down 7%. nicole, come in, please. explain why callaway is down when the pga starts. >> well, the company basically has been seeing a tough time of it. it was break even and pretty much in-line. going forward, they see a cautious tone, the stock is down 7 and a half%. they're giving the good spin to it. we've seen the categories in every region. they have the big guys under their umbrella. i mean, nike and under amour they compete with, but they have the winner of the british open. and how about phil michelson, a close second and now kick it off at spring, new jersey. we'll see if they can steal the show. stuart: if you want to take a fleer on any of them. gasoline, 2.14. what it means, gas has com

that's where netsuite lives. who else is in that enterprise space where we wouldn't talk about them in our day-to-day lives but the i.t. heads at our companies would? >> i think sales force is the one that really sticks out. you can look as recently as just last year when there were all kinds of speculations floating around about microsoft and sales force. it's how you do your payroll. i get paid every month. when i go online, i can check who's paying me. it's in the cloud. those are two that are obvious ones that stick out. >> it's a company that was sort of people soft, built all over again by the people who built people software, basically drummed out by larry ellison, when oracle did its takeover. workday is there, but it's unclear where it might end up. they're very close to sales force and mark benioff, so sales force sort of plays as a potential acquirer, because it's been so successful in the cloud, from an application and increasingly platform perspective. but also potentially acquired by the likes of mi

oracle by netsuite 45 $.3 billion, acquiring the cloud $5.3 billion. acquiring a company that he controls separately. yet another development in the big beer deal. shareholders have signaled that they favor the deal from ab inbev. the idea that these major shareholder support the deal giving more credence to the idea that perhaps it is going forward after all. also watching the drugmakers today. astros and a cover reported its earnings today. -- astrazeneca. the ceo said the pipeline of products could attract buyers come opening the door to a potential deal. u.s.ng up 8% in the e has been a frequent target of takeover chatter or speculation. it is a sector security stock and those have been in focus in recent days with the hacking of the e-mails of the dnc. if you did a word search on over theand fireeye last year, you would find it very frequently. vonnie: let's check in on the first word news this afternoon. hillary clinton will take center stage tonight, hoping to convince americans that she is the person best qualified to run the country. the forme

oracle had an offer to buy netsuite.are,ich sells has been trying to shift more sales to cloud-based products. a fast food chain says it will add 5000 jobs by the end of next year. $2.6 millioninvest to make respiratory and biologic medicine. they're the biggest, british drugmaker. let's head to the markets desk were julie hyman has the latest. julie: i am looking at a lot of mood-related movers. with chipotle. -- we willy 2.6% start with whole foods. they fell by 2.6%. speaking of more competition, we are watching kroger. not moving on earnings, rather it is a downgrade. walmart's testy a price reduction has spread to additional markets, and that the pressure kroger. though shares down by 2.4%. me a significant gains to point out in food. grub hub up 23%. that is the rest of the gain in two years. the company raising its 2016 revenue above forecasts, after second quarter sales. hershey coming out with earnings 9%.share a hershey representatives say they will not be commenting further on the offer -- 3:19 in london. 10:1

oracle has agreed to buy netsuite in a $19.3 billion deal. space , in the customer relationship management space, to complete work effectively against microsoft and salesforce.com. looking for something interesting, brandon barnicle says this is what will see a lot more of in the states. he named specific retails for sports.com and adobe among others. we may have some word big deals i had. vonnie:. thanks. let's check in with corny collins. theresa may is back on the road today seeking allies. she is traveling to slovakia and poland, both countries skeptical of assets of the membership. ofdreds of thousands citizens are dependent on jobs in the u.k.. the former prime minister of finland said negotiates and have just begun. >> peoples are looking at the nitty-gritty, but as an eu member, i can tell you this is going to become located. we are talking over 100,000 pages of secondary legislation. we are talking about commitments on the legal side, which go very deep. it is going to be a long, long process. stubs said the eu usually goes through t

the redwood insurance company offered to buy netsuite for $9 billion. they were the first company to use digital cloud technology. the technology of the two companies will complement each other and the buyout will boost oracle's standing against other cloud xugt rivals. >>> the u.s. navy is honoring a local ledge whoend has made a national impact. late san francisco supervisor harvey milk is getting a ship named after him. milk was assassinate shortly after becoming the first openly gay politician here in california. his dealt in 1978 came shortly after his election to the san francisco board of supervisors. here's the ship. take the look. it's an oiler which provides support for other navy shipments at sea. there's been a push from political leaders in california to name a ship after milk since the repeal of the military's don't ask don't tell policy a few years ago. milk came from a navy family. he himself was commissioned in 1951 and served as an officer on a submarine rescue ship during  the korean war. he rose to lieutenant before his honorable di

oracle announcing to buy netsuite. shares are up 18%. dr.ay made his way over to the tell straighter. what do you see from unusual activity in this stock. >> not surprising we see a lot going on in the cloud space and it's not just zen and other big cloud plays. zen is one that i've been watching close bye but it's fireeye. it's down to $17. it's getting a lot of love today at the september call strike. so when you look at that stock, 6.5% today it's making a nice move with these september 19 calls. they started buying them right around here. let's call it 70 cents and have spiked them up over $1.05 and they're looking for more. there was a rumor about cisco. so there's a lot of chatter about that name. i bought it. i intend to hold it for at least a month because i love it down here in the mid teens and i think it could get into the mid to high 20s if indeed we get some m and a. >> there have been some insider buying by the chairman trading, over $4 million worth of stock has been purchased, but you look at the november 44 call, so they're

ruling party to be connect with a generation that was becoming disillusioned with the authoritarian netsuite of the regime. the proposed reforms to the penal code pass and both houses of mexican congress. the chamber of deputies ready initiative is was approved by a vote of 116-1, the only negative vote came from carlos sanchez rdenas, a socialist deputy. he insisted that the repressive spirit of the provision would live on in the new section of the penal code that would -- was being proposed in its place. indeed to replace the passages covering social dissolution, new articles to find new crimes, including sabotage and for the first time, and heroism. calls was --sm clause was actually far harsher. explosives and other violent means against persons, things, or public services to produce along, fear, or terror. or to attempt to undermine the authority of the state or pressure the authorities to make a determination. terms of domestic and international conditions that prevailed during the 1970's, this reform that the mexican regime in a better position to meet the challenges that it would con

more m and a technology, oracle is acquiring netsuite. a deal valued more than $9 billion.% on the news and other tech names in the news, apple, facebook, facebook crushed the competition and the stock is up 4% this morning after the earnings beat and that was after the bell yesterday. a surging revenue of growing user base, a growing mobility. stuart varney joins us with more and whether or not this momentum lasts. good morning to you, stu. >> i can't answer that question, you know, i used to try to forecast the trump market, but i've given that up. i don't know about the momentum for facebook, but i do know that this is a very significant technology company. its role in the world is extraordinary. i'm not so much interested in the profit that is made, i'm interested in a couple of numbers. number one, 1.1 billion, the number of daily users that facebook has. and 1.7 billion, that's the number of monthly users that facebook has. seems to me that this is the glue of the world. we're all passing around videos living and sharing each other's lives on video on facebook. and th