cbs and viacom. the rift started friday when redstone shocked his long-time friend, removing delmon, along with fellow board member george abrams, from redstone's trust which controls 80% of cbs and viacom voting shares, kicking them off the board of holding company national amusements. >> the interesting thing to me here is the checkmate move that sumner redstone played. earlier this year he kicks out his girlfriend, tes her off the will, out of the trust. delmon supports him in that. she's arguing mental incapacity. two months later he kicks him out. neutering his ability to apply the mental incapacity issues. >> reporter: but today kelmon and abrams sued to challenge their unexpected removal and they did indeed cite redstone's diminished mental capacity, saying he has a neurological condition that's characterized by dementia, impaired cognition, and slowness of mental processing. redstone responded to the suit by filing a petition asking the court to confirm the validity of his actions. removing d

. >>> plus, drama at viacom. what the redstone saga means for shareholders. >>> and gearing up for tiffany earnings. the najarians face off in a bull/bear debate. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. the e-class has 11 intelligent it recognizes pedestrianss. and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class. lease the e350 for $499 a month at your local mercedes-benz dealer. billions are spent to confuse and, dare i say it, flummox the american public. "save 16% on car insurance." "switch now..." well at compare.com, we say enough's

what does it mean for the direction of viacom?think it puts the control of this company very much in a question mark situation, and i think that for viacom, a stock that trades at a 7 or 8 pe, like 50% below the peers, is a value kind of focused investor, you have to think is there some potential in this uncertainty around control that could potentially end up unlocking the real asset value here, which i think is meaningful and not much recognized by the market. >> so the idea is really that basically the control is going to be taken away from redstone and the company possibly sold? >> yeah. >> is he aware of this possibility? do you think he would try to block that from happening? >> i think it's impossible to talk about an acquisition of viacom with sumner. i'm not sure you can have the discussion. more generally he seems clear that he doesn't want to sell. you know, maybe they shouldn't sell if they don't get the right bid, but you can't have that discussion. i think if he is no longer in control, which is essentially philipp's

more twists and turns in the viacom saga.complaints from the board about access to redstone. david faber has the latest details when "squawk on the street" comes right back. >>> good morning everybody. i'm sue herera and here is your cnbc news update at this hour. president obama meeting with vietnam's president at a formal welcoming ceremony outside the presidential palace in hanoi. the president is trying to bolster trade ties with the communist nation. a bit later at a news conference president obama lifted the u.s. arms embargo to vietnam. >> we've agreed to continue deepening our defense cooperation including patrol boats and training for vietnam's coast guard and to work more closely together in responding to humanitarian disasters. and i can also announce that the united states is fully lifting the ban on the sale of military equipment to vietnam that has been in place for some 50 years. >>> syrian state tv says at least 65 people have been killed in a series of suicide bombings and explosions in coastal cities that ar

coming up more twists and turns in the viacom soap op era.hareholder eric jackson is calling for a shake-up at the company for months. he is going the join us next. we told you with the heat sector, tech is running away with it. financials are just behind. real is touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there is only one place where real and amazing live. seaworld. real. amazing ♪ [engine revs] ♪ ♪ [engine revving] the all-new audi a4 is here. billions are spent to confuse and, dare i say it, flummox the american public. "save 16% on car insurance." "switch now..." well at compare.com, we say enough's enough. so we constantly scrutinize millions of rates... answering the question once and for all, who has the lowest. just go to compare.com and get up to 50 free quotes. choose the lowest, and hit purchase. so you can get back to whatever it is you civilians do when you're not thinking about car insurance. comp

this could be a momentous day in viacom's history. mention that because something i reported earlier this week which is either more let's call it, well, maybe even more likely though we don't really know which is that the board of directors of viacom today could get notice at some point that it's been replaced. and that's somewhat shocking in and of itself. >> what? >> see. you weren't paying attention then you were. >> true. i was texti ining my wife. >> this goes to a report i had earlier this week, board members i've spoken with and others expect that at least there's the possibility that sumner redstone, the controlling shareholder of course of viacom, could change the composition of the board of directors. that would be done perhaps by calling a meeting of the shareholders of which he and his daughter shari represent 80%, given their 100% ownership of national amusements which controls 80% of viacom, and were that to take place they could immediately throw out the board including of course chairman and ceo philippe dauman. this w

viacom ceo was removed from the trust that will control both ceo both cbccbcs and viacom. this hollywood soap opera for us. >> viacom ceo was sumner redstone's right hand for three decades. he was his health care proxy. but today doman sued to challenge his and fellow board member george abrams removal from redstone's trust which controlled 80% of cbs and viacom voegt shares. also the removal as directors of feeder and holding company national amusements. he is challenging redstone's meantal capacity saying in the suit that redstone is afflicted with a neurological disorder that can be characterized by dementia, impaired cognition, a slowness of meantal processing, a loss of memory, apathy and depression. redstone in the last hour filing a petition asking the court to confirm the validity of his actions for moving doman and abrams as trustees. redstone's attorney saying it is telling that doman is raising the question of mental capacity for the first time since he's been removed when just months ago in court documents he pronounced mr. redstone engaged, attentive and as op

the fact that viacom was behind is part of the reason why -- >> you said it. >> is viacom coming backad you believe it's a value play? >> nothing i've seen the moves they've made. they're not going to move the needle. the things they're doing now is not going to get them to digital faster. it's not going to get them to the point in a place where they can take advantage. >> okay. we're going to thank ed lee. the next installment -- >> we're going to come back to this. it's going to happen. >> the soap opera. >> continue to battle. >> yeah. we'll be back. >>> when we come back on the fed. the markets s in volatility. check out oil prices this morning. they're down but you have to keep things in perspective. this is a new contract. the july contract, essentially oil is very little change where it closed on friday. the drop of 1.7%. only a few cents off. where it closed on friday. stay tuned you're watching "squawk box" on cnbc. first in business worldwide. with usaa is awesome. homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as

can they find content for viacom?ate viacom. "the walking dead," "mad men," "breaking bad." >> that's not viacom. >> i understand that. but josh sapan is the creator of that. look what happened with katzenberg. somebody found animation. now do you create it? how do you create series for the new over the top? >> they have the right management team in place. which is to say are you a supporter of flphilippe. >> he's not going to pick scripts and green like product. he hasn't done that. he is basically what you found back in the '60s and '70s with the movie moguls. sumner was one of those that bought viacom in the mid '80s. paramount -- >> as a shareholder do you want him in that role or not? >> as ceo? >> as ceo. >> i think there is time to wait for this to occur. the answer is what -- >> wait for what to occur? >> andrew, it's simple. 80% vote. right? >> okay. >> that's going to determine it. ask sherry. does she want it. >> sherry doesn't want him. i am asking you what you want. >> i want whatever is good for the comp

you've got zilinks, western digital, vertex, netflix doing well, viacom b, so viacom, again, is thise over the past couple of days but it appears right now the stock is one of the big percentage gainers on the nasdaq certainly. the one lagger here appears to be gold, down $22. but there's viacom, and you can see that it is jumping about 3.5%, perhaps some more clarity. it's been such a soap opera there over summer redstone, the executive chair who had stopped getting paid and of course the ceo of viacom being removed from the board and certainly as a trusty. let's get to lori rothman, because you look at many of these names moving higher, everything down at the nyse. what are traders saying that is sparking the market at the moment? >> liz, i've got great news for you. server buzz. the eu -- i'm sorry out of europe, i was looking at different notes. i apologize. there was a survey taken in europe about whether or not the uk is to leave the eu and to get my thoughts organized here, and it basically suggested the result of that survey was that the uk should remain in the eu. so that wa

will viacom ceo fellowship and the rest of viacom's board survive summer redstone's blast?atest in the reality tv drama. investors can't get enough of because guess what? viacom stock is jumping right now. don't go away. charlie breaks it next on countn there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. you wouldn't take medicine without checking the side effects. hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck. amazing sleep stays with you all day and all night. sleep number beds with sleepiq technology give you the knowledge to adjust for the best sleep ever. save $500 on the memorial day special edition mattress with sleepiq t

viacom is up about 8%.eriod of time -- ten years, rather, fox, 20th century fox is up about 46%, and time warner, can we get it, is up 38%. so you've got, you know, you've got other companies that have done pretty well over the years. >> of course, ours is doing great. liz: ours is doing wonderful. >> yes. liz: comcast doing even better. >> by the way, i just want everybody to know this before i get into monsanto, we have the best ceo, the smartest ceos -- the guys running our ship are the best. just so you -- liz: of course. [laughter] but, charlie, he green lit a lot of great shows. he was there under the most successful tv show ever, "jersey shore." >> i think the last five years is something -- liz: the transformers at paramount, a huge -- >> but here's what it really comes down to. i'm not a doctor. was sumner competent over the last five years, four years, three years or just the last couple months? liz: i don't know. >> that is a question for shareholders, and they could be sued for that. liz: monsan

all right, new day, more drama on the viacom/cbs front.oments ago sumner redstone, the controlling shareholder of both companies, the former chairman of both companies, former ceo as well at one point, announced what we've already heard had been potentially in the wings. new trustees for his trust, the sumner redstone irrevocable trust and new directors to national amusements. remember, it is national amusements, the private company that he controls 80% of which then controls roughly 80% of both viacom and cbs's voting shares. he has announced that national amusement's general council ted janikowski and former media analyst, used to be smith barney, i think, will now take the place of phillippe dauman and george abrams on the trust as well, mr. redstone's oldest granddaughter, kimberly will take the two seats that have been vacated on the board of directors of national amusements. this of course not a surprise given what we reported yesterday and the lawsuits that have already started flying, one in probate court in massachusetts seeking t

. >> at viacom the drama continues.he current board, well, it's not going to go quietly vowing to dig in. and this is what's amazing, fight its controlling shareholders hold over the company. >> and a new name at the top, debt on the highest paid ceos and why the pay isn't moving the direction you may think. >>> first up we head into the final trading session of may. the nasdaq leading the month more than 3%. if the gains hold this will be the fourth year stocks have major averages have gone positive for may. no selling and going away necessarily. mike, your point this morning is stocks have been able to rally in an environment where a rate hike looked more and more likely. >> exactly. although it's hard to say if the market is fully kind of digested that idea that we're going june, july. but today's personal spending number kicks you in that direction again. been a strain in the market for well over a year. we'll see if there's really enough energy behind this move. >> meanwhile, is the debate about june or july? is it

and you're left with viacom.ich i think is an extraordinarily viable company. >> let's say things don't change. and philippe is still in charge. >> because you get activists like karen finerman coming in and saying -- >> no, i think- >> but you understand what i'm saying. >> but the voting truck tur, fast forward 40 years. when the original structure was in place, everyone was fine with it, right? as we are now. as i am now. it's interesting to see -- never in my wildest dreams looking at viacom then would i imagine it would deinvolve into the viacom now. >> i think it was 1979, i had surgery, i was in the hospital for a while, i got totally hooked, totally hooked. there's the music. victor newman, stud. stud today 40 years later. just saying. >> still ahead, one of our traders is pushing the buy button. he'll explain why right after the break. show me movies with romance. show me more like this. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and

the fact that he is deemed to have mental capacity of cbs and viacom means we probably won't see manyer lawsuits, and worth noting that this means that we won't see his voting control in cbs and viacom passed from him to a trust. redstone controls 80% at cbs and viacom, when he dies or is deemed incapacitated, those votes will be pushed to a seven person trust. now it seems there's no pressure for that to happen. it is interesting now that testimony is out from friday. we will see if that prompts people to raise questions about whether or not he should still have controlling stakes in the company. but immediate pressure is gone. i want to read one last quote from the courtroom. the judge saying the court has no business interfering with his prerogatives, furthermore, herzer's own doctor said where there is lack of trust, there's no reason -- the proceeding is not reasonably necessary to protect interest of the patient. i think it removes an element of uncertainty. we will see as people go back, reread that testimony, that we all got friday afternoon laced with f bombs as john pointed

viacom and cbs moving down. cbs down nearly 2 1/2%. at oil snapping three days of gains. concerns more in the market about the shake-up in saudi arabia and appointment of a new oil minister. those energy stocks helping to drag the market lower on a day where the volume isn't that high. consol energy down 6% as you can see. latest from the new york stock exchange. more from "cavuto: coast to coast" next. neil: you are looking live in chick he go where they're conducting people plan fet first. fair economy illinois pushing for 23 billion in new revenue come from variety of taxes on wealthy. traders at cme and elsewhere, to put things up for everything from education to more bus service, train service, better transportation. it covers a panoply of issues. a lot of this sounds familiar, the same city was crap pelling with same frozen the budget issue. same democratic legislature and republican governor, people are getting angry. seeing played out across "the globe" in greece. protests in athens. ashley webster joins these things. jeff floc

scherzer viacom trading higher on news the ceo is being replaced as a trustee. -- shares of viacom.ramount is precious to sumner redstone. he fought this bitter takeover battle in the 1990's. he and barry diller paid $10 he's never wanted to sell it. david: we are learning more about the way he's managed behind closed doors. what have we learned? chris: two new trustees that one was a teaching assistant with sumner redstone at boston university. joel is also known to the financial community. they're are the new face of this trust that will take over when sumner ultimately passes. he filed suit in massachusetts yesterday saying sherry redstone was pulling the strings here. that andhe latest on him? chris: he's going to argue these new appointees show this is sherry taking over the family trust. sherry is the president of national amusements. sumner filed suit in los angeles trying to have these moves allocated. it is massachusetts versus california. this? how surprising is phillipe was such a close confident. sherry's been on the outs for a long while. chris: it is shakespearean dram

if you're a shareholder viacom, this thing is ripe for a lawsuit.e been talking to a lot of securities lawyers. the notion that sumner redstone in a matter of weeks went from totally competent or, you know, i can't remember the exact words that phillipe dumond use ad couple months ago, basically said he was competent to where he is describing him now, seems to stretch credulity. if you're a shareholder, you're saying mr. dumond, you're the ceo. if what's his name wasn't all with it, why didn't you tell us? and i think, you know the board of viacom has got some explaining to do on this sumner redstone i would say sixthed last five or six years increasingly stranger behavior. we could go through the litany. i've written stories on this and columns. the question becomes when is it, you know, the, when is it that a board has to step in? clearly it seems like this board with phillipe dumond on it, with sumner redstone, until recently the executive chairman of viacom, via his holdings through national amusement, seems like they wait ad little too long. so

back in a moment. >>> the fight for viacom continues.hilippe deman is filing to block some of redstone's efforts to oust him and fellow board member george abrams and trying to block new trustees. the yale school offing management dean for executive programs is joining us now, jeff, and tell us about the p performance has not earned rave reviews, but on the other, there is no clarity into sumner redstone's decisions, and the decision process on his end of thing, and if you are the investor, and what outcome should you be pushing for here? >> well, as an investor, what you will often see is the break of the value of the businesses that are run by what i have termed a monarch, and i have wrote a book about this type of thing called "a hero's farewell" and the monarchs are 6% to 8% of the u.s. industry. you will find them heavily in the media industries, and jeff bewkes and rupert murdoch are exceptions, but there is a lot of uncapped value, is you would like to see it delivered in other hands. right now, the stock is down by half, and this

viacom is major laggard. unfortunately a lot of drama surrounding sumner redstone has a lot to do with that. the fact he is being distanced, this is not a young man say that. being distanced more and more from day-to-day operations bodes well. there is a lot of catching up to do. >> this is great move. viacom has a lot of assets because they're unable to unlock true value and don't have management. board is taking control and unlocking value those assets. much necessary need. it definitely lagged a lot of other media companies. david: quick, one word answer, first to you, jonathan, viacom tomorrow, up or down. >> up. i will go up. david: kevin? >> way up. david: good stuff the thanks, guys. appreciate it. melissa: concern of leaders meeting with facebook ceo mark zuckerberg in less than an hour. we'll take you live to menlo park for an update. david: while donald trump is meeting with a foreign policy icon, henry kissinger, one of trump's advisors walid phares, joining us what is being discussed behind closed

daughter sherry ousting viacom executives.hey are raising back arguing that the 92-year-old lacks capacity to make changes on her own and is ma nip plated by her story. redstone plans to add general council to the seven person as we well. >>> now you better grab your best pr pro and saddle up. we'll have more on that from viacom. >>> when we come back, a rare sit-down interview with the bank of japan head, haruhiko kuroda. here's confident that japan has enough inflation to hit the target, next. >>> and first happy birthday wishes to george osbourne who turns 45 today. he's been chancellor since 2010 and a member of parliament since 2001. he also just tree leased the -- release released more information. we'll have much more on that when we return in a few minutes. argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪ cathy's gotten used to thee sme...in her kitchen rbage...r. yup, she's gone noseblind. sh

viacom shares down 50% over the past two years. send shares higher on friday. what's next? solerno is trying to meet with redstone and dauman is going to court next week. >>> when we come back, we'll have more of this morning's stocks to watch. plus veteran hedge fund investor steve cohen is fed up with the lack of talent in his industry. now he's doing something about it. we'll take you inside his trading school when "squawk box" comes right back. ♪ i-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated, responsive support. with centurylink as your trusted technology partner, you're free to focus on growing your business. centurylink. your link to what's next. the first stock index was created over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't ab

it owns two major media companies, viacom and cbs.ontrols both of them through an 80% ownership. his daughter, sherry, has a piece of it, and it's been, you know, i think for the last ten years it's been this sort of soap opera about control of that company. sumner redstone's various girlfriends, his relationship with his daughter and whether she will run the a company when he goes. and most recently, if he's competent to run the company. remember, until recently, he was the exive chairman -- executive chairman. i will say this, charles, there's two stories here. there's the sordid stuff about his former caretaker who thinks she's being screwed over and fired unfairly, and she deserved some money from the redstone estate and from sumner redstone and maybe even sherry redstone, because i believe she's filed a lawsuit against her too. charles: yeah, 100 million. >> the judge threw out the case, but she's going to appeal. then there's the other story, and this is key for anybody who owns a share of the stock. full disclosure, i don't own

viacom boardholders are speaking out.n the notes, the independent director said the board will fight in court. this sums as sumner redstone and his family battle with the leaders. the family controls 80% of the class a voting shares. earlier this month, they added to his legal team to a legal campaign to oust ceo chairman philip domer. many believe redstone's daughter sheri is behind the push to get rid of domer. and as you can see, viacom, over the last three months performing pretty well. >>> as for border markets, strong gains 2% to 3% for the main indices. all three indices remain in the green for the month of may today, the last trading day. looks like they'll be able to hold on to the markets. early fractionally, the dow up by nine points. julia, back to you. >> thanks so much, wilfred. quite right. as you mentioned the dow down, 0.5 of a jump. i'll quickly show you what happened to the nasdaq over the month of may as well. gains for the nasdaq as well. that's significantly stronger, actually given the losses that w

>> for viacom, that could be a good limbo. the viacom stock has done horribly. 35% decline.ut even this past week alone it's up 13.5%. there must be thinking that this would shake up at least at the very least yield better management of the better company. >> absolutely. i think that is the key reason it's been up. the people i speak to do not expect in any way that shari redstone and/or mr. redstone would seek to sell the company. it is on the idea that new management will be installed. but for now, it has the infect of parldzing everything at the company. and so there is frankly a hope on all sides on even on the sides of the directors i believe that something get clarified quickly. i should point out if this does occur as i reported earlier, they will immediately file suit in delaware to have it stayed under something called statute 225 for those of you who care about corporate governance and delaware law. >> they being dauman? >> yesterday, led by the lead director actually, tyler. >> well, is there a way -- we talked about this yesterday off the air. when you look at th

he had been moved from the trust that eventually will determine the fate of viacom and cbs, all part of the battle over sumner redstone's mental capacity. have you seen a chapter like this? in or out of meadia? >> this is like a classic drama that should be aired and would have huge viewership on cbs. the dichotomy of choice could not be greater. on one hand, you have shari redstone a nice smart forward-thinking executive. on the other hand, you have philippe dumon, he grew up in new york as phil doman so don't be impressed. he befriends the billionaire, sucks millions out of the company. there are two words for this. abject failure. >> if you hold a lot of viacom and cbs stock and when the headlines are about you leaving the company or being stripped of certain powers, the stock goes up, you are between a rock and a hard place, no? >> what's crazy, this is exactly the opposite sort of distraction that viacom needs if it will fix what's going on. this is a business that is going to be in decline. every business model it has is going out the door as we turn to things like streaming an

it is based in fact, basically -- liz: can we see a viacom chart?allowing them to remain as executive chairman. liz: at 38. >> did the board do you any favors by allowing redstone to stay in as long as he has as executive chairman. this is a guy, the question is was he confident. he didn't sound so great, it took that lawsuit to get them to step down. liz: shares are down 1.8%. dow jones is saying viacom's board voted to stop -- we were perhaps a little cheekily calling it the steak and sex situation because he had an ex-girlfriend, he loves sex. charles: she said he wasn't competent and was losing it. the question is forget about steak and sex. that gets the headline. was sumner redstone competent over the past couple years to be executive chairman? that means you are running the company in a lot of ways. liz: a lot of mistakes, we at foxbusiness do our best to hold their feet to the fire. charles: i am not a medical expert. liz: the writer for vanity fair a year ago. william cohen. charles: sound like a mobster. charles: liz: willie conan was my p

after redstone viacom ceo phillipe dumond from the trust that will assume voting control of viacom. david: meanwhile we're keeping a close eye on gun owners or at least one state is. why hawaii is looking to be the first-in-the-nation to begin a new fbi database. you want to hear about this. melissa: the head of the va appear to downplaying long wait times at va hospitals by comparing it to go to disney world. david: oh, boy. melissa: that was a bad choice. david: ouch. melissa: more on the big backlash ahead. david: hits just keep on coming. fresh attacks from donald trump and hillary clinton as both candidates pivot to a very nasty general election matchup. >> ask yourself, how can anybody lose money running a casino, really. ♪ . . . . if you take multiple medications a dry mouth can be a common side effect. that's why there's biotene. it comes in oral rinse, spray or gel, so there's moisturizing relief for everyone. biotene. for people who suffer from a dry mouth. i don'or wonder whether i theshould seek treatment.c. i am ready. because today there's harvoni. a revolutionary trea

moving on, viacom's independent director is vowing action in an attempt to oust them from the board. it is saying that redstone is not acting competently, and their stock is up over the weekend, and we wondered if the late night and holiday weekend news, but still waiting, and what do we think will happen? >> i could not predict. this is the saga that keeps getting more dramatic, more in-fighting, and more personalities, and safe tos a qume it is going to continue. i am feeling like this is the not the hugest company in the world. it is 17 billion, and it seem likes a lot of draw marks and not that it is not a great company, but i am frankly a little surprised that we are all paying attention to this, and still in the news, and i think that it is going to be in the news for a long time, and everybody is going to dig in the heels, and you strong personalities here. >> well, $18 billion is not zero, and it is a sizable media company, and lot of the household brand names in the portfolio, but mike, what is funny to me is that the board is writing the letters to the shareholders to talk

shery: what does it mean for viacom shareholders?have been suffering for quite a while now. >> on one hand and just as another dose of uncertainty that they didn't need. and it brings up other questions, what will happen with proposed sale of paramount. this is something they have been exploring. according to the statements today he says he is opposed to this. and what will it mean for the leadership of fire, if it's decided that he is of sound mind in making these decisions. you have to imagine that he's not going to sit by and watch his ceo continued to fight against him. so there are more questions than answers at this point. thank you so much for joining us there from los angeles. a 22% increase from the original bid. will they ever share the same roof after the $75 million investment? paul sweeney joins us now. let's are with this investment. paul: a private individual made the investment in the company. it's widely perceived to be a investmentt type of on behalf of the management of tribune to make their position stronger as th

viacom has dropped 50%.he stock has ridge more than 15% since redstone removed aman from the trust. and many believe redstone's daughter sheri is behind it. >>> still to come on "worldwide exchange," india has a message for apple with stores in their country. first, you must do something else first. we'll tell you what that is, coming up. >>> before we head to break, this date in history, may 31st, 1927, the final ford model t. ford produced more than 50 million model t cars between 1908 and 1917. the model t was named the most influential car of the century. there we go. still much more to come on "worldwide exchange." nnected tor and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated, responsive support. with centurylink as your trusted technology partner, you're free to focus on growing your business. centurylink. your link to what's next. ♪ ♪ (charge music) you wouldn't hire an org

melissa: escalating battle with viacom. viacom independent directors preparing for legal battle to keep their seats. the directors are vowing any possible effort by redstone to rethem from the media company. i mean, john, you start to forget what this company is all about. there is so much fighting at the top and it is juicy and everyone is talking about it but underneath all of it is mtv, nickelodeon, comedy central, what do you think of this? >> viacom has been a mess for the past year. investors have not been happy with phillipe due dauman spending the money. they have tremendous content. nickelodeon, mtv, b.e.t., comedy central. viacom looks attractive and 3.6 dividend deal on company that generates a lot of cash. i think all the infight something real distraction for the stock. melissa: gary, it is definitely a distraction shun as people watch infighting. are they creating opportunity or distracting from a product falling apart? >> my problem is uncertainty is never good thing in either the markets or corporate america

and if it is found to be true, that is going to shift the trusts of viacom over to the seven trusteester shari and his chairman and ceo philippe dauman, and for viacom in particular, the stock is down 39% in the past year. now, there is also some other testimony scheduled for today in addition to sumner redstone, and the herzer's medical expert, and plus the granddaughter karen, and if there is time, also testimony from the viacom ceo philippe dauman. and that by videotaped video. >> quite a day. and now, the markets are looking at the dow down 30 point, and shaving some losses, and the s&p is down 30%, and the nasdaq down half a percent after the nasdaq added lower than expected 160,000 jobs in april. and we will be joined by rick santelli and ed lazear in a moment. >>> twitter an square both having a rough month after disappointing quarter. square is on track for the worst day since going public down now close to 20%. jack dorsey joined kayla on the "closing bell" yesterday saying that he is trying to stay focused. take a listen. >> we focus on what matters and what matters is actua

melissa: breaking news on viacom an sumner redstone's drama.ior correspondent charlie gasparino has exclusive details. charlie. >> you know, sumner redstone drama, sherry redstone drama, phillipe dumond drama, we have battle royale between the redstone family trying to force dumond out as ceo. they forced him out of the trust that oversees viacom and cbs. they're looking to push him out totally. we understand sherry redstone is making moves internally. filed a lawsuit to get the board to remove dumond as ceo. what is happening board of directors of viacom is sticking by dumond. what we understand, fox business network has learned, that board is basically poised to file a lawsuit in delaware chancery court, generally where you fight the corporate battles out, to prevent that removal. if she should go in there, convince her dad, remember her dad, sumner controls 80% of the company. he is apparently had falling out with dumond as his health has slipped, she is stepping into the fray. she does not get along with dumond. by virtue of the old man's 8

viacom is not alone in underperforming in media stocks.nthem and cigna are big during over there -- bickering over their upcoming deal. they are accusing each other of violating a merger agreement and fumbling submissions to regulators. both of those stocks are trading lower. shery: we are seeing shares of apple rallying today. what is going on there? julie: there is a report from the taipei-based economic daily that apple has asked suppliers to prepare production iphone78 million of the seven series. it flies in the face of what has been a lot of pessimism about iphone seven demand. apple shares up by 1.6% in appleshare seeing something of a list this morning -- and apple shares seeing something of a lift this morning. mark: technology shares are the best performing industry group of the stoxx 600, which is down today iff the 1%, led by chemicals, autos, basic materials, oils, and guess. as. they are making an unsolicited $62 billion all-cash offer to buy monsanto. it will create the world's biggest supplier of farm chemicals and genetica

from my deep dive, i looking at a chart worthy of any reality show, because this is viacom, the ownerunt pictures, and he can see that the market value has gone up and down this reassertsedstone control over the company. from the low point until now, they have recovered about 40%. this week, redstone removed a ceo of viacom and another board member from a family trust that will oversee his affairs and there have been a lot of questions raised about viacom and cbs, which they also control. it is not clear what sparked the decision, it could be made to anger someone, or it power play -- or a power play with his daughter, so this is great hollywood drama. this is the best. alix: scarlet, and her soul, is like an entertainment tonight reporter, so that is why things like this really appeal to her. -- ir: i thought this was will talk about apple, because i think this is interesting. it has only been a big part of the stock market, especially over the course of the last couple of years, where they are almost always moving the same direction of the market. the s&p 500, it is the biggest way,

. >> we'll continue to follow the redstone drama and viacom, the new york post may be targeting.hey'll find out if the board was led after the ceo dumar. comments yesterday on the saga. >> i think it puts the control of this company very much in a question mark situation. and i think for viacom, a stock that trades at 7 rate p.e., 50% below the peers as a valued focused investor, you have to think is there some potential, certainly in our control, that could potentially end up unlocking the real asset value here. which i think is meaningful and not very much recognized by the market. >> here's a look at shares of viacom. >>> some other stocks to watch, video conference maker polycom it would be better than the current buyer from canada's mattel. >>> the company's forecasts coming in short of investments shortly because they had to halt introduction of image sensors because of earthquake damage. those sensors are used in apple ioffense and a large part of sony business down. >>> and "wall street journal" reporting a fight tour chico's. >>> moody's downgrades the deutsche bank agen

redstone stepping down as chairman of body cbs and viacom. if redstone is deemed mentally competent that will shift control of his 80% voting stakes in cbs and viacom to seven trustees including his daughter sherry and felito mann. there will surely be questions asked about who knew what and when. the court had its first problems of redstone in a videotaped testimony played for the judge. a transcript was then released to the public in which redstone made ample use of f-word and another derogatory term to describe herzer, saying she stole money from him and doesn't want her in his life. when asked if he loved her, he said no, he hated her. he says he's happy with his daughter sherry in charge of his care. judge cowan told herzer's attorney the burden is high to show why redstone's testimony and desires should not be respected. stressing that redstone's welfare is the most important thin dr. steven reid who examined redstone on behalf of manuale herzer testifying redstone's mental status was severely compromised and he didn't understand the co

the drama inside the walls of viacom just ramped up. been constant speculation swirling about what could happen to ceo philip, we are now hearing his fate could be decided possibly this weekend and could be announced after the memorial day. charlie gasparino, what are you hearing? >> listen, that is clearly the rumor going around at viacom headquarters that sherry is going to make her move against fellowship, the ceo and try to dislodge him. here's what we know from the fellowship side, sources telling fox business network that support of viacom, that fellowship is basically preparing for a major legal battle if that's the case. . liz: so support him. >> to support him. they are planning to file suit, what i understand, file a lawsuit, they have the lawsuit drawn up, they just have to file it if she makes her move. they're preparing a major lawsuit that prevents her from what they would describe as an illegal attempt to remove the ceo of a company above the board's wishes. so what we have right now here is an interesting potential stand

both companies, that would be viacom and cbs. and you can be sure that the investors of both those companies kept a very close eye on this trial. now, viacom down 2%, cbs down nearly 3% today. all of this of course bought by the original lawsuit by manuela herser, the ex-girlfriend that helper for sumner redstone. she is one that brought the lawsuit. upset the judge said, look, mr. redstone never set foot inside of the l.a. courtroom but media mogul certainly in taped testimony made it very clear in language that can not be repeated on television, that he was competent and that this woman deserved nothing. based on that the judge threw it out. he did step down as executive chairman. mr. redstone, that is, earlier this year. there have been questions from shareholders about his role in these two companies and his influence. if there was to be another suit, it would have to be brought now by the trust that has been set up, a seven-person trust that includes his daughter sherry redstone that would have to go before a judge with ques

>> if you ask me do i think cbs or viacom or biased, i would say both.s a personal view as to the value the market is putting on them. i would take these ownership issues have overshadowed what the economic worst of the companies are. cbs is doing well. viacom probably is the prospects are underrated and the prospects of the company are much stronger. people don't focus on the non-us business. they support channel five news. they are very big business in india as well. they have the leading station there for many, many years and is still at the top stations in india. and as you know, with the exception of this -- the owner of this particular -- maria: media companies in general -- >> viacom does have some significant foreign earnings and assets. having said that, the position has been overstressed in relation. >> haven't they left the succession murky for way too long? >> not irresponsible. at the end of the day, the control of the company. it's up to him and his family stew but they do. they pay the price. they pay the biggest price. they control the co

stocks we have been watching, viacom has been experiencing a lot of drama.vs, not moving much, but a developing battle going on. sumner redstone controls the company. both of them vying for control at this point. suing to block that. the redstone family is asking for that to be confirmed. it is sort of a back-and-forth situation that is continuing. just a note, those shares have performed relatively well, though some investors have not been satisfied with his performance of late. they are up 9% since he took over in september of 2006. of course, they had done a lot better last year, but along with other stocks we had seen, a pretty big downturn. david: we could do a whole hour on that. julie: yes, we could. [laughter] david: what's going on with apple? julie: continuing their recent uptrend, berkshire hathaway giving them a boost. a taiwanese newspaper reporting that demand for the latest iphone could be higher than people have an pricing in. economic daily news reporting that apple asked suppliers to prepare production for 72 to 8 million iphone seven's for

sumner redstone was he is negative chairman of viacom and cbs.o companies controlled by national music. i think in december when there was a suit filed saying he was incompetent. look at all of this evidence to show his incompetence. including handwriting that was barely legible. the stuff about his appetite for sex and state. he good barely talk. >> it gets to something really important. allowing this guy, four years, to be running the company. signing off on the paychecks. if i -- trish: those are big paychecks. >> they were some of the biggest paychecks in corporate america. cbs has decent stock performance. viacom does not. you have to ask yourself, as a shareholder, did the board to the right thing? did they live up to their fiduciary responsibility? this is slow. i read a column in the new york post. i have read plenty about this. something that was just outlandish. it has gone off the deep end recently. he said on the record, in his deposition, in this soup, i am paraphrasing, overt and competent. there is the tabloid story. >> a good inve

viacom in particular is down sharply over the past year and that's obviously now not happening in thert term. david: a saga, by definition. one of europe's most prominent business families is now taking care of krispy kreme doughnuts. paying $1.4 billion for the icon, next. ♪ is "bloomberg markets." time for the bloomberg business flash for a look at the biggest stories in the news right now. tpg has raised its first leveraged buyout since the 2008 financial crisis. last one.ize of the tpg's billionaire cofounders have transformed the private equity firm into a diversified of alternative asset classes. 300 economists from 30 countries -- openned an open late letter criticizing the existence of tax havens after the so-called panama papers disclosed. letters served no useful economic purposes. it's now in a searchable online release. that is your business flash update. one of europe's wealthiest families is branching out from coffee to doughnuts. the ryman family and austria has agreed to buy krispy kreme doughnuts. they've already built a coffee empire that includes craig -- kurig. as

these were women serving with the national liberation front or for what americans understand that the viacom. they would be coming in to be working on american bases and in those capacities they would either get information about what the u.s. military would be doing in the areas they were and where they would be measuring the distance from the base to a position in the field and later the launching attacks at a particular base. american veterans talk about this is the women would be cutting their clicks as a way to reference the distant from whenever the field position was that the attack would be launched to whip up baseless. american women served entirely in south vietnam. that is where the u.s. ground forces were. so the u.s. military was involved with north vietnam in terms of tommy and north vietnam. the u.s. troops were on south vietnam citing that the south vietnamese army against the national liberation front of the viet cong in south vietnam. american women are saved in the south. some of them are stationed in thank god. others were stationed at bases throughout south vietnam. one