philippe dauman, maybe he's good enough. that's the question shari should be asking.seen stocks trade up and down during the financial crisis. longer term, you're an investor, that's what you got to ask yourself and i think near term, the question, is i know i got to wrap it up, near term will be the alleged lawsuit, do they file it, stop this and how long does it go on, the impasse? liz: charlie gasparino, thank you, the news is jumping 6%. we're coming right back with sean o'haira with the greatest etfs and the worst etfs, stay tuned. .. [woodworker] i live in the fine details. that's why i run on quickbooks. i use the payments app to accept credit cards... ...and everything autosyncs. those sales prove my sustainable designs are better for the environment and my bottom line. that's how i own it. >> if the fed operates unchanged we have the uk and the e.u. battling it out for the vote next week. the president of pacer financial managers half $1 billion but has chosen to put it in six etfs. which is the best performer? >> p ghd is our global high dividend project. in

first official sumner redstone ousted ceo philippe dauman with four other board members. est on this developing story. jane. >> well, melissa, it may not quite be official, redstone through national amusements removed dauman as chairman, did they? could they soon fire him? earlier today this is what the viacom board looked like before five members, including dauman was kicked off. replaced by chairman of buzzfeed, judith, discovery, banking, car rentals, dream works. but ousted director fred salerno sent out a statement from viacom. not on his own e-mail, from viacom. hold on, ouster is subject to legal approval in delaware court. he and other independent directors are filing a brief pushing the court to make a decision on this issue asap. salerno said sadly it's not clear 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 dauman no comment. eight months ago he had his 10-year contract extended through 2018. sumner redstone called him an extraordinary ceo giving him $17 million in

. >> and sumner redstone is removing five directors of the board including philippe dauman.s with the latest. >> well, the hits just keep on coming. in part of a movie that came out of this studio attributed to its success. >> this is awesome. >> hang on, mikey. >> all right, the "teenaged mutant teenaged turtles" is a d disappoint, and the viacom profits were 1.05 and the predictions were $11.38 and it is a controversy of the demandle deal delay, and does this give more fodder to shari redstone? philippe dauman and four other board members have been ousted, but a board in delaware has to approve it, and the ousted board members are saying we are still running the show, and they are asking the court to continue that for now, and they are arguing that shari redstone is manipulatinging her father, and they say that through national amu amusements she has changed the bylaws so that any decision on whether to sell paramount would are require unanimous board approval while the opposition is saying, hey, your father has to be able to vocallize his opinions on conference calls for

made or whether they can replace five directors like they did last week including, of course, philippe daumane current chairman and ceo. the case will be a tough one, it would seem for fred salerno and mr. dauman to win, at least judging from the conversations i've had with people. it's not one that a delaware chancery judge wants to deal with in any way, so it is likely, though we can't prejudge, that, in fact, those five replacement directors will be affirmed by a delaware court. we'll see. a lot of people asking why are they going down this path. it seems hard to imagine. not between the board and mr. redstone. >> philippe dauman answered some of those questions over the weekend and pointed out this distraction is potentially damaging the kun kompany. we saw the earnings last week. the board's being replaced. they say it's a pivotal time. they wanted to get involved in some of this skinny bundle stuff but kind of missed the window. why doesn't philippe dauman take an $80 million payout and walk away and let it become sthar question? >> i don't know the answer to that one. i have not been a

philippe dauman, i think, is gone no matter what.hink he's out. he's damaged goods. a lot of bad stuff. liz: a lot of money. >> he's out no matter what. now, with that being said, look at this chart. this is how much if dauman goes, if dooley goes -- dooley eventually goes, and how much legal expenses we're talking here given the fact that sumner is suing them, they're suing sumner -- meaning the board and fred soler know and the current management -- in delaware court, and the likelihood that both dauman and dooley are likely to leave, think about how much money this is going to cost the shareholders. 95 million for dauman, 63 million for dooley. and here is where it gets interesting depending on how long this thing lasts. if it's a protracted legal struggle and then they leave, legal expenses between $3-40 million. you are talking this whole thing, and we're being, i think, conservative herere is going to cost the viacom bottom line $200 million. now, we are talking -- some this is simple math. the legal expenses is something that

philippe dauman knew that as well. he was on the outs of shari redstone, trying to flex her muscles and take control of viacom and the holding company that controls viacom and cbs, they thought she was prodding her father to do this and she did it today. cheryl: does she want to run it? sorry to interrupt you. does she want to run it? >> i think you kind of got to let me finish. the facts are porn. what she did today is fired five independent directors, five directors including dauman which fires dauman as ceo. dauman and company are firing back. what we reported is we had a lawsuit prepared to enjoin her from doing, this they filed that today or filed imminently to prevent this, and here's the rub, depends who you talk to. shari redstone says she does not want to run the company. she says her father is competent enough to run the company. philippe dauman is saying in the lawsuit, she is actually prodding him to do that, to do this to get rid of them, she wants to control the company behind the scenes and that her fath

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

been waiting for clear and decisive action, and that is what we are getting now, and really, philippe daumanannot win, and the current board cannot win. whether or not the lawsuits in massachusetts or even now the one filed in delaware prove successful, the reality is that the sumner redstone trust which controls national amusement that if he is incapacitated the vote is going to go to same way, and whether philippe dauman and viacom wins the lawsuit, it is going to end the same thing, the board and the management team are getting fired like it or not. >> and for argument sake that mr. dauman remains the ceo, and in question as to whether he is going to be staying in that job. and 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 t

they have taken multiple steps to slowly cut philippe dauman members, board long-time allies of sumnerone out of their lives. it all started about a month ago when they took philippe and george abrams off the board of national amusements and off a trust that will gather the redstone family's assets. steadyhen, it has been a dribble of new statements. this has been the big one that everybody has been waiting for, taking philippe off the board and changing the board such that national amusements has the vote to change management. cory: in terms of that, they own 80% of the stock. they have been charging in this direction, but we think this is -- reporter: a lot of the statements have been by representatives of sumner. there have been a lot of representatives in this situation, which has prompted the viacom people to say that sumner is being manipulated, but there is no real evidence because nobody can see sumner. cory: exactly. does it matter? reporter: the burden of proof is on fire, and their people. there have been a lot of statements, so on and so forth. those are valid under law. it

sumner redstone has moved five members from the board, including ceo philippe dauman.is the result of the battle raging. these two men once they as these, but not anymore. lucas joins us from los angeles. why is this happening now and not six months ago? reporter: well, if you look at the way that national amusements has been, they have been very methodical. they have taken multiple steps to slowly cut philippe dauman and other board members, long-time allies of sumner redstone out of their lives. it all started about a month ago when they took philippe and george abrams off the board of national amusements and off a trust that will govern the redstone family's assets. since then, it has been a steady dribble of new statements. fighting back-and-forth in the press. this has been the big one that everybody has been waiting for, taking philippe off the board and changing the board such that national amusements has the vote to change management. cory: in terms of that, they own 80% of the stock. they have been charging in this direction, but we think this is -- reporter:

philippe dauman could be on the verge of losing his seat as ceo, although he's holding on tight, andng list of replacement candidates. peter chernin, formerly of 20th century fox, jeffrey catsen bigger and -- catsen burg and les moonves. charlie's going to add one more name to that list. >> it's mr. miller, a private equity firm run by shari redstone, and he used to work for news corp.. he's been around media, particularly digital media, and that's the name we are hearing would be what has been termed to me as a fallback candidate. now, here's why. let's go through some of these banners i have here just so we can hit the news. many media executives from what we're hearing, i'm hearing this from senior people in the media industry, many are balking at replacing draw marne. they're being -- dauman. they're saying no way because the rift has gotten so nasty, and they really wouldn't be in control, as you know. shari -- liz: oh, that's key. >> and sumner to whatever extent he's in control, would be in control. what i'm hearing is that catsen burg has indicated he is not, not interested i

tome, arguably, these moves remove the board of directors and potentially remove philippe dauman as the the company to make. viacom has struggled. you can make an argument that this is the right thing to do. under the subterfuge and question marks about who is doing this, is it sumner, is it shari, the right moves maybe mean made -- being made in a way that's uncomfortable. david:hat's what is -- that's what is so unique. you have courtroom struggles. i don't remember a circumstance -- i think shari redstone, his daughter, is doing all the talking. that have to be resolved in the courts. alex: it's a weird situation where you have someone who is still in control, but who is not capable of speaking. some of the viacom directors who are being asked to leave want to see wu -- sumner face-to-face. alix: viacom was in trouble before any of this happened. the idea that companies are finding increasingly difficult to find that organic growth -- some wind up paying really high prices for that. troy: the problem for investors is it's very hard to figure out exactly what's going on beneath the ho

philippe dauman, viacom. except her going the other. stop me when i'm oversimply fig.ese moves today, are they perceived then as sharrie redstone trying to move in her own way and move power away from, you know, the current leadership there? >> of course, what sharrie redstone would say is this is not me doing this, but this is my father, sumner redstone, and they would refer you to drchl spar which was issued on friday at least when i read it which indicates in the opinion of this gentleman, the psychiatrist, that sumner redstone is capable of making these decisions. but, yes, its is clearly saying to the board of viacom right now, it's saying we're in charge and we're going to do what we need to do. one of the key points of contention between the two has been the potential sale of the minority stake in paramount, sumner redstone and shar are redstone. clearly sending the message that says we don't want you do anything there potentially, at least as long as we need to agree to anything that's done. as i've said many times, this is stilt not the final shot. that will h

this may have had the effect of stopping in its tracks any hopes philippe dauman and the board had iny stake in paramount, but the key here is just this continued really territory i've never seen trot on where you have a board and open revolt against controlling shareholder, of course saying that that shareholder in the form of mr. redstone, a 93-year-old gentleman who just turned 93 last week, is not competent and is therefore not making the decisions but is actually in the hold of his daughter shari. >> wow. we may debate his confidence, his legal team's confidence isn't getting a whole lot of debate. i mean, they are doing the job that he is asking them to do. >> they are. and they've added to that, in fact. you're now talking about law firms in the national amusement sites, carl, are ones we know well. so, yes, they are -- they're at war. and it goes back and forth. and i know it can be hard to follow, but you need to step back and consider a couple of key things, which is one what if you are at viacom right now? what are you doing? you're kind of paralyzed. yes, in case of paramo

so yesterday her father, presumably fired five board members including philippe dauman.aware court has to approve these removals. it looks like the fired board members are not leaving. they're suing. board member fred salerno leading the faction asking the court to keep the current board in place for now and to quickly negate the redstone move to fire them. salerno saying redstone would not have done this and saying his daughter is, quote, the puppet master pulling the springs. investors seem to like it. stock up. former ceo tom freston, no fan of dauman's leadership talked up some of the new board members like kenneth lerer or judith mchale who worked with freston back at mtv before she went to run discovery communications. >> it's fair to assume that, with clear management direction, with this reconstituted board that's going to certainly want to hit the ground running and take quick action, that there will be positive things happen for viacom in its future. >> well, analysts seem to want change. btig has upgraded viacom to buy. rbc capital to a sector perform. that's

comments from executive chairman and ceo philippe dauman about unlocking the value at paramount pictures. what's going on there? >> it's interesting. it's the first time we've heard him speak since what's going on with sumner redstone. they would, these are the details he gave us -- sell 49% and give it to a company in china. it would add as much if not more than $10 a share at vie con. the key is whether it would pass muster with the entire board of directors. why is that important? it would require a unanimous report. that remains very much unclear, particularly given some of the comments we've gotten about mr. redstone's views including from a dr. spar. he was displeased, that's mr. redstone. mr. redstone said he clearly suppresses feelen. in his veal they ignore his wimpet. will it be enough to allow those actually negotiating right now will want to continue that with the yid individual. sumner red stoep and his daughter shari. >>> we've got minutes to go before the close. >> i'm trying to think which tragedy fits the bill. we're going to have the latest response to apple's revenue t

countersuits continue in the fight between sumner redstone and his former trustees including philippe daumancompany mr. redstone controls. on friday lawyers representing mr. redstone filed a lawsuit in massachusetts court saying mr. abrams and mr. dauman were motivated by self-interest in asking that court to deny their challenge to be reinstated as trustees on that irrevocable trust that will control the stake in national amusements, which then holds 80% of stakes in cbs and viacom. the probate and family court where they originally filed suit to be reinstated as trustees saying mr. redstone was under the undue influence of his daughter, shari. mr. abrams and mr. dauman file yet again in support of their motion for expedited discovery in trial and request for an immediate hearing saying that the medical report that was submitted on friday by mr. redstone's attorneys from a dr. spar, a psychiatrist, they claim was a one-sided uncross examined and distorted view of mr. redstone's mental condition. by the way, it is worth reading that report from dr. spar. and of course as i've said previously

stuart: viacom's chief is philippe dauman, he is suing over his removal from a sumner reds his lawyers. that's what he wants, a speedy trial, because of sumner redstone's health. viacom's down on that news. >>> look at this. only 38,000 jobs added in may. how can janet yellen possibly raise interest rates in the near future? steve moore is with us. steve, i don't see how janet yellen can raise rates in the immediate future given that awful jobs report from last week. what say you? >> i completely agree with you, institute. i think that -- stuart. i think that, no, so much structural weakness in the economy right now is reflected in that employment report. and the way i've been putting it is i think this is a soft business recession that we're in right now. if you look at those business numbers, corporate profits, corporate spending, capital purchases, they're all down or flat. where is the case for slowing down this economy any more than it's already been slowed down? stuart: i don't see that she can raise at all before the election. i just don't see it. i mean, unless i'm -- >> well,

last week a spokesman for redstone saying they were planning on ousting philippe dauman and the boardoming after a legal battle to see who will be mr. redstone's guiding 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

in an interview yesterday on cnbc "fast money," freston came down pretty hard on ceo philippe dauman.b right now? >> i would say no. >> some described him as an arrogant elitist. would you agree with those words? >> totally. >> totally. >> yes. and, you know, i -- has a reputation of not being a great listener. >> they're currently embroiled in a high-stakes legal battle over control of the media company. you can see more of the interview on cnbc.com. >>> when we come back, former white house chief of staff bill daley joins us. this is right after the break. stick around. "squawk box" will be right back. >>> i wa >>> welcome back to squawk. among the stories front and center at this hour. full slate of economic data. jobless claims and may consumer price index. >>> cpi forecast to rise 2% on higher gas prices. look for current account figures for the first quarter. at 10:00 a.m., the national association of home buildings monthly survey. >>> despite sluggish global growth and inflation. governor kuroda saying they'll not hesitate to take addition the measures to reach the 2% inflation

dauman. i have not been able to speak with philippe, we've detailed moneys of millions of dollars that has beenprice to achieve anything here, even its peers returns. what people fail to see says the vast majority my compensation's based on performance. i don't realize that unless the stock performs, so when the stock does not perform, i do not in fact collect the money that i'm being reported as having received. in fact, i've suffered along with shareholders because i have a lot of shares myself and in reality i've lost far more than the $54 million in this period. that's not inappropriate. i'll be reward first-degree and when the stock recovers. he sold a lot of stock. >> he did. >> i remember when he sold a lot of stock and exercised options and sold early, so i'll go back and look. but i remember it. i'm just reading this quote because this just came out. so, yeah, all right, he may own stock, he may be suffering but he also sold an awful lot of stock as well. >> i don't know, geez, i mean, the guy is well paid -- >> by the way stands to reap even more rewards if he is and when he is most l

and philippe the chairman of viecome speaking public ly for the first time since the controlli controlling owner redstone and his daughter. and this morning mr. daumanid not speak about the feud, itself, but he did talk in detail about the sale of a 49% stake in 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 mo

philippe's legal bills. there's no jurisdiction for viacom to use company dollars to fund dauman's unfounded attack on redstone's unlawful decision to remove them from the trust. especially in light of the announcement that its fiscal third quarter earnings will fall short of estimates. so the battle continues, guys. you can see the stock turning down by 1.4% on the day. no action after hours. >> very public battle. >> oh, this is -- >> you know it's going to get ugly here. >> it intensifies the argument over whose company is this. it's not even your company to pay for the legal battles for the people who were board members until yesterday. there you go. >> where is this going. >> you know what, the market thinks it's going toward some kind of catalyst to a transaction one way or the other. it's hard to know if that's the case. yet the market looks at it in view of, this is kind of a wounded animal. and somebody's going to feast on it. >> something's got to be good for the bottom line. >> this could be the beginning of change, something that clearly investors are -- >> something's changing all right. that's for

dauman's pre deceaser left office in 2006. viacom is making more global hits than ever before, such as lip sync battle airing in 96 countries. philippe in leadership to reposition key networks. the company has generated billions of dollars from emerging digital platforms while at the same time more than doubling affiliate revenues since 2006. what's your take? >> well, the pie has grown for everybody, but they've fallen down from being the second most viewed television company to the seventh. they've fallen down in terms of their ad sales growth, in terms of their ratings. the entire television business has expanded. as for certain shows set in certain countries, i don't know. they have a good worldwide network. but it's hard to think of any great shows, any big hits that have come about in the past bunch of years. >> they pointed out lip sync battle. >> is that the kind of show that you would think a media company would point out to exemplify what their success has been? >> lip sync battle is not spongebob, let's say that. but it may be very successful. it sounds like it's fun. i haven't seen it, so forgive me. >> at this point, wha