he said the tie-up was not a necessity for publicis.focus. we'll have plenty more analysis on this over the course of the next hour. meanwhile, staying with the m&a theme, apple is reportedly close to a deal to buy beats electronic for $3.2 billion. if it happened, it would be the company's biggest acquisition ever. beats is the head phonemaker and streaming music operator founded by jimmy ivan and rap star dr. dre. reports that apple has been looking for a subscription-based music service to complement it's i-radio ad based offering. analysts question whether beats is worth the price. joining us for the first part of this hour is daniel morris, global investment strategist at tia cref. a huge amount of m&a news out this week. what extra support is this providing for investors? i always -- once we get to huge amount of m&a deals, i always get the view we must be near a market top. >> well, hopefully that's not our view necessarily. you are asking yourself what will companies be doing with the cash they have, if one outlet for that is m&

publicis has a few acquisitions in the pipeline.this is not going to be a stable landscape. sitting in the executive offices of one of the big advertising holding companies, increasingly, you do not necessarily see your competitors in the ad agency across the street. you see it as google, apple, facebook. the largest advertising agencies, these are gigantic layers -- players. thiswas the idea behind merger -- that they would have the half to take on silicon valley. you have to take a look at the second-tier of ad agencies. they could certainly have targets on their back at this point. >> gentlemen, thank you very much. jonathan ferro and matt campbell. an apple payday for dr. dre. sale. billion why apple ceo tim cook could be making the company's biggest acquisition? why does this make sense? >> there was a lot of cash that apple has. at the core, there is a lot of corporate cash that wants to be put to use. beats.ets hardware from they sell these headphones. ferro onsk jonathan which model he has later. it is a hardware company. ap

publicis, how big will the hangover from this deal failure be?t companies, are they in your sites are not? >> not really. that done very well already, mark. their classic cyclical companies. it picked up remarkably well, operating modules have recovered. blicis and omnicom wanted to get together to drive down costs. employees today are probably breathing a great sigh of relief, because we all know this would have met more jobs being lost. >> in an era where we are seeing so many deals announced on a daily basis. >> i think that is right, mark. bear in mind, a lot of the m and a deals are driven much more by cheap money. this is more of a strategic deal. i think now we are starting to see some of these economists pushing back, saying, wait a minute, you can't have me and my competitor as your client. are always clashes of ego. in the advertising industry, it is obviously one of the worst places for that. >> i want to turn to telecoms. we did get numbers from telefonica. earnings fell 14%. much in line with estimates. this deal makes it the most po

because they're giving out all their data to publicis.hat tells me they don't know what to do with it. it is a problem internally with facebook. its stock hasn't acted well. it's basically gone sideways after coming off its highs. >> mr. shorty pants. is facebook a short here? >> this is predicated on the belief that people who use facebook want to see video ads and see these stories played out. go look at these people's news feeds. i think this is going to be the banner ads of 15 years ago. do whatever you want with public of is, doesn't matter. people will reject it sooner than later. that simple. >>> why bill fleckenstein says the next flash crash is right around the corner. he joins us live to explain. >>> later, dan nathan is back in action with another name that's already give the grim reapary run for its money. the stock that may be heading for an early grave. that's next. de>>who's got twond rhooves and just got ae. claim status update from geico? this guy, that's who. sfx: bing. and i just got a...oh no, that's mom. sorry. claim

and publicis called it off. beats,s looking to buy which was cofounded by hip-hop mogul dr. dre. cristina alesci, it is a big price tag. >> it is a huge price tag, but at the end of the day, apple and music have been together for a long time. it is part of the brand and the revenue stream and it has fallen behind both in the hardware space and the streaming space. brings applenics the headphones that everyone wears. on the music streaming site you have beats music that has garnered a lot of attention. i do not know how successful it has been on the business side because they have not released numbers. >> right, so is it worth $3 billion? complex many analysts would agree that it is not worth -- >> any analysts would agree that it is not worth that much. what is concerning is that you've never had apple acquire a brand, ever do big deals. billion dollar deal for what essentially boils .own to a brand that is cool it is not a new technology. it will not move the needle on the technology front. apple has a lot of money. overseas but the money is not accessible. debt tos had to issue

that publicis is better in a digital sense.t helps with the focus on markets. there was a slack first quarter, up strongly in april. the business as a whole is strong. i think we feel good about fast growth markets. digital is the second pillar. want them to, we be 45% of our business. real data we have a business. it is strong and growing. that is of fundamental import ance. fourth, getting our people to work together. those four propositions -- it may also say something about don draper is not dead. ego and -- ♪>> hold on. >> power is still important. >> i know you are in beijing. i need to get a straight answer from you. is joan dead? draper is not dead, is joan dead? she is a partner. >> never. >> it is not as of mergers and acquisitions are or into the advertising business. look at the young and rubican. omnicom andabout made it ahat challenge? >> i think it was german for reasons surrounding power and ego. addressed the strategic issues. neither company could deal with the clunky solutions. this is difficult to execute. m

the deal will be first managed by publicis in the united states before being rolled out in the rest of world. the partnership will be focused on video advertising on facebook as well as messages on instagram. it will get access to the user data of facebook to estimate the advertising performance and the potential on the social network, both publicis and facebook declined to comment. obviously for the shareholders it will be good news. not lenly becau not only because of the value but in terms of media. that will be a speculation after the failure of the deal announced two weeks ago. >>> a russian billionaire has been ordered to pay his ex-wife $4.5 billion to settle a six-year divorce ruling. the ruling was passed by a swiss court. he will lose half of his wealth. he's known as the fertilizer king. he's currently the owner of the football team monaco. he's ranked the 78th richest person in the world by lloyds. >>> tensions ramp up between the world's two biggest economies. we are going to be in beijing after the break. [ female announcer ] there's a gap out there. that's keeping you fr

we are divorcing before getting married, that's how publicis chairman is describing the breakup of a megamerger that would have created the world's largest advertising company. -- on the con had agreed to bring their companies together but the merger fell apart after the two sides were not able to agree on how to run a company. neither side will have to pay a termination fee. the yahoo! ceo marissa mayer and sam altman posted a fundraiser for president obama last night. the $1000 per cd that was held in mountain view. another fundraiser was hosted earlier in the day are up to 30 guests paid more than $32,000 each to attend. amazon sunday delivery services now available to 15 additional cities. amazon prime chapter's -- amazon prime shoppers will be able to order something on friday and have the option of getting it delivered on sunday or no additional cost. this is part of an agreement between amazon and the u.s. postal service. apple could soon be dancing to a new beat. it is nearing a deal to buy eat electronics for $3.2 billion. people familiar with the matter say the two companie

people put this list together and said let's dash a little black people in there to get a little more publicit to axl rose? >> people were surprised by axl being so high or just high on the list. who is your choice? >> i'm so embarrassed. i have the musical taste of 150 year old men. it is kind of like the magical fruit for me. i listen to taylor swift and i say what a nice young woman. i'd like to do something with taylor but i can't remember what it is, you know? so i grew up listening to middle of the road like frank sinatra type stuff. i still think he's the greatest singer who ever lived. >> old blue eyes. old blue everything. keep going. >> all right. joanne, you have to say curt cobane so we can make another reference. you're saying one of the jonas brothers should have gotten higher on the list. >> he deserves a lot of love. so here's the thing. we were just talking about range here. >> yes. >> for example frank sinatra doesn't have a huge range. i don't think range necessarily means great singer. for example lord, the singer who sings about drugs, she is above whitney houston, who di

you would have heard about this deal, omnicom and publicis. it is your industry.st be intriguing. >> the deal has collapsed. it is interesting, early morning news for me. it is interesting why it has not worked out. when you have two different companies like that, it will be difficult. >> the perils of a merger of equals. >> shawn thompson, the creative director. would you ever marry someone after meeting for the first time? we will tell you about some couples who actually did. ♪ >> welcome back. here.s hans nichols is in berlin. away with ake it picture that could give me in trouble in germany. it is a baby in utero flicking off the ultrasound. three months later, the sweet little girl also gives her mother the bird. it is a big deal here to get -- to give someone the middle finger here. that? do we top >> it is impossible. >> i have a serious story. we have live pictures from red square. the victory day in moscow officially kicks off. i went with a story from the guardian. shawn walker went inside this town in the far east of the country to probe the siege menta

publicis and omnicorn group terminated.imply that could not be overcome. people on madison avenue questioning what's behind the scenes now. tesla facing a familiar battle once again. in missouri, the state legislature is considering a deal that could ban direct sales to consumers bypassing dealers. it would be the fourth state following texas, arizona and new jersey. i don't know how much the lobbyists are getting paid. they are at least doing their job for the dealers. i hate this. boeing remains ahead of airbus in the yearly battle for jet sales supremacy. 280 net orders for jets through the end of april. the financial times reporting apple in talks to buy beats. i'm in a little bit of pain about this. morgan brennan joins us now with more. morgan? >> good morning, andrew. $3.2 billion. that's how much apple is expected to pay for beats electronics. this is not a done deal. but at that price it would represent the biggest acquisition apple has ever made for a company. why are they going after a company that makes high-end

look at publicis/omnicom.t fell apart because two ceos couldn't figure out who would sit in the corner office. >> they were saying the people below them couldn't figure it out. >> we know what that always means. so i think that issue that you just mentioned is in fact a very, very key one. >> yes. >> it isn't just him. is also the other people around there. these people, you know, do want to see -- do want to continue in that organization. directv has done a very, very good job of building up its business. it is a nice business. i was going to say little business. it isn't quite a little business these days anymore, is it? that deal because it isn't, you know, it doesn't have some of the issues you have about what's going to happen with the work force and so on. much more complimentary than the last deal we were talking about. >> interesting. great to have you on. >>> let's give you a look at what's on today's agenda. >> april retail sales out at 8:30 eastern. by 0.6% it will rise when you exclude autos. at 8: