viacom had the same break-up strategy in 2005 when it separated its viacom businesses, like movies, mtv and nickelodeon, from its cbs network, which included tv, radio, and book publishing. pulling apart what has taken years to put together takes a while. kraft hopes to spin off its global snack foods business-- oreo, trident gum and cadbury-- into a new company called mondelez. kraft announced the split last august with the goal of completing it by the end of this year. porter bibb is a managing partner of media-tech capital partners specializing in media companies. >> welcome back. news corp shares actively trad, stocks shooting up to a four-and-a-half-year high. clearly an endorsement of this idea. does that put add pressure on murdoch to make it happen? >> >> i think it's going to happen. the real surprise is that it hasn't happened sooner. this idea has been kicking around the news corp aboard room for five, six years, and everybody from rupert's kids to the manager of the company have been positing they could create new value for the parent company by spinning off the print side.

the idea is to follow what was the viacom model when viacom split from cbs to try to hive these off.news corp. and fox news channel operating the "wall street journal" "the times" of london, the australian newspapers and harper collins. one note we were talking about it earlier the hacking scandal and how this facts things. unclear is ultimately the answer because the murdoch family would still own both so the idea of separating them could make it easier for some of the licensing issues on the tv side but again not clear, since the in your dock family would still control -- >> whether or not it's a buffer. >> whether or not it ultimately serves as the buffer which chase carey who runs the place is pushing for the value they hope to create in terms of separating the papers from being a drag on the other business than this buffer issue but of course that could be another consideration. >> a motivator. >> you bet. >>> in our global headlines, greece named a new finance minist minister. spain and italy holding short term debt auctions earlier today. spain paid the highest rates since nov

. >> tom: we're talked about nickelodean and viacom or cartoon network. how does it impact their possible response in the years ahead? >> i think the best phrase that comes to mind is if you don't like change, you'll like irrelevance less. it seems brash for some major brands like nickelodean but we're talking about a wise and powerful plan strategy disney has unleashed we haven't woken up to yet and made it easier for mum. it's all about making it easier for mum. she's confuse and doesn't know what to give her children and has little to afford. >> tom: are you talking with the mickey check strategy that will brand healthy food in the grocery aisle. >> i believe that's the trajectory and disney has shown it can manage assets and acquiring those it needs. here's a situation that's a new market but i believe it can pull it off. what more do you want, mum, disney a brand we all trust and now you have a character that is literally going to give you the confidence that this is good for your child. >> tom: is the role traditionally held by a government agency q

viacom.s it. back over to you in chicago -- or in washington. sglil take it from washington. >> thank you. >> see ya. >>> 6:51. in richmond, power crews working to restore service to some 70,000 customers after a pretty wicked wind and rainstorm. there are some home video posted on youtube that shows the storm's strength. listen to that noise, too. packed winds reaching 70 miles an hour in places. blew rain sideways out at the airport. the winds blew -- threw around debris at the diamond, the baseball stadium there in richmond. fans were in the stands and said the storm moved if quickly. some people ran for cover under the concourse, inside the bathrooms. the wind damage there damaged three sky boxes and part of the outfield wall. >> that was a thunderstorm. it had all the elements of a tropical storm, but it was indeed just a thunderstorm. >> wild stuff out there. take a look at our forecast this morning, tom. people this morning at least are going to maybe want to think about a jacket, a li

. >> you're talking viacom. >> yes, except viacom and cbs, one was not an anchor around the other. so you had similar multiples there to a certain extent. it's a negative -- there's a negative multiple associated with it. it's not getting any multiple at all, the publishing business, which still makes money. they've got a couponing business in there, a bunch of stuff in there. when it comes to litigation risk, maybe that goes to a certain extent with it while the overall risk may not. you kind of segregate that to a certain extent. a lot of reasons why it would conceivably make sense. no doubt investors will call investor relations and or chase carrie, the cfo or rupert and say, we love the idea. the end of the physical year is just a few days away. >> any sense as to which side karey will take? >> definitely with with the media. and rupert would be chairman. you'd be talking about a chase carrie led entertainment company. there's no doubt it would get a higher multiple. a blended multiple, maybe it gets up to aechb to eight times. that's not bad. >> it's been a winner to begin wit

. >>> the point here is that when you looked at viacom stock, great to overlay what happened with viacom when they did the split, there was an initial bounce the news and then there was a real flat line and people were worried, they said this really means nothing, just a lot of financial engineering shuffling the decks but if you look at cbs and viacom independently you would argue there was some value. >> this was a $9 stock two years ago. rich greenfield, very well respected analyst came out with a note saying he's raising his price target on newscorp to 30 bucks a share. because of the split. he likes what he sees for the results. 30 bucks. >> there it is. about 7.5 bucks to go. so some money to be made if he's correct. >> of course we're watching what's happening in europe today. leaders gathering for yet another summit today. they pointed out this is the 20th significant summit. traders are reluctant to make any big moves ahead of the summit. david, good morning. the euro is below 1.25 for several days in a row at this point. what i don't understand if we think europe is on the verg

here you don't have the same value in the publishing side viacom had on their sides.he way i play it is when they issue the one issue stock, the stock that trades in a third market or second market, not on the big board as a regular weight stock, you can buy media properties and short the overall one issued, which is the printing after that. >> three big names in retail under pressure today after one of the top analysts on the street downgraded shares of macy's, nordstrom's and saks. let's welcome debra, retail analyst at citigroup. joins us on the fast line to break down at the high end. debbie, your calls getting talk. let's take them one by one. what do you see as a problem with macy's? a well respected stock on this panel and certainly among traders and investors. >> yes, thanks for having me on. across the board, i think what we're starting to see is weakness at the high end. macy's does have exposure in the new york market with both the macy's location and two bloomingdale's locations. we do believe there will be a measured space of shared services and come in b

we'll talk to the president of brigham and women's hospital. >>> he's the head of a media empire, viacom now. ♪ [ no audio ] >>> my mike's here. it's here. sorry, hi, i'm becky. it's joe kernen, andrew ross sorkin. counting down to father's day, with patriots owner and kraft group ceo bob kraft along with his sons jonathan and joshua. jonathan is president of the new england patriots and president and coo of the craft group and joshua ceo of the boys and girls group of boston and president of the patriots organization. we've been keeping on eye on the equity markets. the dow futures are up by 8.5 points, s&p futures up fractionally and we'll continue to watch as we get closer, 8:30 is when we'll get a big number. >> three of them, a triple dose of data coming in less than 30 minutes. we have weekly jobless claims, the may consumer price index and first quarter current account deficit all coming at 8:30 a.m. eastern. >> and on our global headline this is morning, moody's investor services cutting its rating on spain, it lowered the country's bond rating three notches to eaa3 from a-3, jus

was the first african american owned company traded on the new york stock exchange, he sold it to viacom 3 billion dollars, give or take a few dollars here or there and remained the chief executive officer through 2006, in 2007, he was named u.s. today's one of the 25 most inluential business leaders in 25 years. that was an amazing accomplishment. robert l johnson everyone [ applause ] >> thanks charles, for that introduction, and you forgot to tell everyone to go to the stock exchange and buy my hotel stock. rlj lodging trusts. thank you for this invitation, i'm delighted to be here as a guest of congressman west, congressman west, i am proud to say i'm a voter in his distract. even though i did not vote for him. i say that because -- everyone knows i'm a democrat and been a democrat all my life. the one thing that i find most important about the fact that congressman west is speaking out as voice on african american issues, because i want to quote something john connors here when he said that the congressional black caucus was formed, he said that we should approach politics with no p

i actually wanted to see if there were major media companies, i mean people -- the time warners, viacom, i think they were, axle springer, other big organizations, that if you had a more open media policy would be prepared to come in, because what concerned me was, was that you needed -- it wasn't necessary just to have other media owners, it was necessary to have other media owners with heft, with the ability to put major investment in and, frankly, with the type of global media position that i could see the world moving to. so i didn't have any -- some people took a different view from me. i had no belief that if you turned bits of the media over to british as opposed to foreign owners you were going to necessarily get a fairer crack of the whip. >> okay. the last point is the 2004 referendum on the european constitution. we've covered, of course, with mr. straw and with lord mandellson. the position from their evidence is that really that had nothing to do with the position of the murdoch press. is that right or not? >> yeah. and it wasn't the murdoch press's position, it was the maj

it will also come in part from lawsuits that have taken place and decisions coming down involving viacom -- rosetta stone is another one that had a lawsuit recently, decided by a higher court in their favor and send back to a lower court. i think all of this will ultimately lead to a greater focus on solving this problem in a more cooperative fashion. i would hearken back to what was done by henry hyde, and that is bring the parties together. everything from the electronic frontier foundation to, again, movie studios and recording industry and so on, and put them in a room together and say, "let's come up with a new way to solve the problem." hopefully most of those solutions are not legislative because legislation is always slow moving and the business models are changing far more rapidly. nonetheless, if there are legislative solutions coming forward in the future, i would expect they would come out of that type of a discussion and would move forward with hopefully a lot more consensus than we had earlier this year. >> would you be an active participant? particularly if republicans ret

this or other conversations of great minds go to our website and conversations in the great minds viacom. coming up after the break the department of justice is telling florida governor rick scott to stop his war on voting but will he listen all that and more in tonight's big picture rumble. of american power continues. things are so bad. might actually be time for a revolution. and the troops are going to drink your starbucks there's a surprising greeting here. you know sometimes you see a story and it seems so you think you understand it and then. some other part of it and realize that everything you thought you. are welcome is a big issue. here you want to. look into the aloneness so they'll get the real headline with none of them are the problem with the mainstream media today is that they're completely disconnected from the viewers and what actually matters to those viewers and so that's why young people just don't watch t.v. anymore if they want news they go online and read it but we're trying to take those stories that people actually care about and transfer them back in t.v. . to

we did not hear from viacom. show is over. >> "closing bell" is coming up next. see you tomorrow.hat time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place. we supported the marshall plan that helped europe regain its strength. and pioneered the atm, so you can get cash when you want it. it's been our privilege to back ideas like these, and the leaders behind them. so why should our anniversary matter to you? because for 200 years, we've been helping people and their ideas move from ambition to achievement. and the next great idea could be yours. ♪ like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-bas

i wanted to see if there were -- the time warner's of this world, viacom other big organizations, if you have a more open media policy, they would be ready to come in. what concerned me is it was not necessarily just to have media owners, it was necessary to have media owners with haft and the ability to put major investment in. with the type of global media position i could see the world moving to. some people took a different view from the. if you turned bits of the media over to foreign owners, you were not necessarily going to get a fair crack of the of what. >> the 2004 referendum on the european constitution, we have covered this. it did not have much to do at the murdoch press? >> the mud -- murdoch press and the majority of the media would have been in favor of a referendum on the constitution. jack straw wrote me a memo saying it's going to happen. i thought the right thing was to take the initiative. >> i'm sure you want to draw a explicit attention to 0575, where you have six examples where the government turned down the positions of the murdoch media. the increase in the

viacom is in positive. what does it mean for the business model?they will be turning over owners. the "wall street journal" probably has different prospects because it has more of a clear cut payroll model. most investors would rather have exposure to entertainment. >> what happens to many of those print titles? let's face it for murdoch he did support the press and the "times" in the uk is a good example if it wasn't subcy diub. >> you wouldn't need to put a dividend on the growth stocks because it's all about growth. i want would enable two, three years down the line to come back. >> how does it impact other companies in the sector? >> i think all conglomerates are up for grabs. we saw last year mcgraw-hill, standard & poor is breaking itself up. others will follow. >> you mentioned bskyb. you think the long term area, the bid for them trying to buy bskyb. this will enable home to come back and get their asset. >> that's right. assuming all the investigations show no serious wrongdoing, yes. you're distancing the current management and distancing

studios found it largely impossible to do business in china because of government imposed limits but viacoms on board with the yet unnamed movie service and mgm could be next. >> big market if that takes off. congratulations, iphone. it's your birthday. apple is celebrating, give us the fifth, only fifth anniversary of the game changing iphone. if you can remember the first iphone retailed for $599. remember that. >> yeah. the days of 2007. >> first of its kind to lack a physical keyboard. it's sold 218 million iphones and raked in $150 billion. apple stock up 366%. >> wow. >> blackberries, sorry rimm, maker of blackberry down 83%. >> i think i'm one of the last sort of surviving owners, i feel like an endangered species with my blackberry. >> i'm going write those down. those stats are worth recording. >> it amazes me it's only been five years. the tablet is only 2 1/2 years old. revolutionary changes in computing in such a short period of time. >> seems like they have been with us forever. >> what do you think about the iphone, blackberry, rimm's future. send us an earn mail at worldwide@

it is similar to what viacom did when it split off cbs. news corp. stock yesterday -- i can't remember what it did. we'll have that coming up. >> investors have the stock over the last year or so and they split off the entertainment business and publishing business, they will not be equals. it is 90% of operating profit publishing 10%. think that one over when you think about the future of publication. >> particularly media rules in this country may enable them to come back at some point. >> exactly. >>> anyway, a look at how the eurozone crisis has impacted eastern european economies, hungary gets set to unveil its latest rate decisions. acceler-rental. at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. >>> >>> moody's has downgraded 28 banks and cut the sovereign rating. moody's was citing the exposure to commercial real estate as two main reasons behind the actions. stephane is with us. in terms of stock performance th

viacom up 1.3%, time-warner up 1.5%, disney up 1.5%, cbs.ctor right there. i know publishing also, even some of the newspaper companies. not clear why any of them would necessarily be benefiting from the plan to split off news corp. >> "new york times" is higher by 3%. i asked david of rbs, analyst, some intrinsic reason it would be split across the board. >> it's a trade. >> right now it is working. got your final thoughts from mcdonald's ceo jim skinner right after this break. hi, i'm phil mickelson. i've been fortunate to win on golf's biggest stages. but when joint pain and stiffness from psoriatic arthritis hit, even the smallest things became difficult. i finally understood what serious joint pain is like. i talked to my rheumatologist and he prescribed enbrel. enbrel can help relieve pain, stiffness, and stop joint damage. because enbrel, etanercept, suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous syst

but to single out viacom needs as they were going to have a lower manufacturing rate except for you i think it's absurd. congress should be picking winners are punitively picking losers as they were going to get a lower rate for everybody pay you. you are too big. that is bad tax policy. >> i agree. i'll close, mr. chairman garrett other than sometimes we do want to incentivize and manufacturing expert, i do understand how extracting oil from the ground as manufacturing has that would make everyone that went so well with water a water company that should be subject to getting the same deduction. i don't think it makes a type of tax policy relay, based thank you for your answers. >> thank you on the senator. before he turned to senator biden, it's only considered. 199 was enacted as we all know to replace something called this his t.i. and the law to counter the advantage that it countries had. the european country was rebated. in fact, the subsidy for exports. so that country is next for subsidy. we took our a shame, taken to wto illegal apparently then came up with a 199 manufacturin

meantime viacom has issues, the ratings of dora the explorer. >> felipe duped was on "squawk box" earliertalking a bit about that. >> nickelodeon, and just needing to refresh content and what they need to do there. that stock has been hanging in there. they have their own pretty good deal. all those deals helping a lot in terms of the content side. you know, it's nice to come into a quarter and think, okay, we've got to -- let's create more if we need to. >> sure. >> you're netflix, write ugh a check. >>> ron johnson would like a deal like that, too. he was named ceo of j.c. penney about a year ago today. he's off to a rough start. will his game plan boost shareholder value? don't forget to tweet us. our question of the day nokia announcing thousands of job cuts. we're asking you, what is the real definition of nokia? what does it mean? tweet us. we'll get your responses later on this morning. ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 let's talk about how some companies like to get between ttd#: 1-800-345-2550 you and your money. ttd#: 1-800-345-2550 at charles schwab, we believe your mon