Faber broke the story, a lot more on what it could mean for media content and streaming and more the vote is in, bill ackman has lost it was a pretty tough shella shellacki shellacking. Well talk to Carlos Rodriguez about this companys victory coming up. Bob lutz says we are approaching the end of the automotive era and in 20 years no one will even own a car well dig in on bobs predictions. David, first up, the latest on disney fox. Listen, yesterdays story was interesting, largely for the fact while it may not actually occur, that is disney buying many of the units of 21st century fox, the idea that 21st century fox was willing to engage in talks designed to sell a large part of the company, willing to go smaller in and of itself sends a significant signal to many of the Traditional Media Companies out there and that is the case again as we had reported through yesterday at 1 30 when we broke the story, talks had taken place over the last few weeks. They had ended although they could be revisited and ill get more on that in a second that would have essentially left fox with the fox network, the Fox News Network and Business Network and its 0 and 0s and Regional Sports networks and fox sports those assets contribute what may be as much as twothirds of the companys overall cash flow. You are talking about still a company that would not have been jettisoning most of the cash assets but selling the studio and tv production arm and nat geo, fx, star in india, ownership in hulu. We can go on from there. There were a lot of assets in play disney approached fox but fox has been thinking for some time and this is the key point i think, guys, it doesnt have enough scale to compete in the new world. We talked about it yesterday after i had broken the story its a world of netflix and amazon and google and facebook and even to a certain extent microsoft and couple of other names that they see as the dominant providers and they simply dont see the path to a certain extent to be able to get the scale they need to compete congratulations, i love when you read research. Cnbcs david faber says and everybody has to react to that which is fantastic congratulations. I think youre totally right a lot of this is about tv content and a lot of this is about what we watch on netflix if you look, great work this morning, if you look at what we watch, we watch things like simpsons, the longest running tv show and family guy we watch this kind of tv cartoon that fox owns and then we also watch action figures, these are also owned by fox. Then the Fox Technology people yesterday, they have a fantastic slate but looks like the slate that disney would want to have so i do think theres this deal makes so much sense i cant believe they dont take it to the finish line. The market react yesterday to our report was quite positive. Dont forget, fox had been a heavily shorted stock and down on friday and up as much as 10 yesterday and importantly perhaps more importantly, disney shares were also up as much as 2 you understand from the disney perspective when you look through. The direct couto consumer offerg in 2019, one will be sports but the other will be entertainment. And its the Star Wars Franchise and marvel franchises, what if you could add avatar and a lot more what they like to call intell lekt youll property but mainly shows to the pipe they are bringing to the consumer in a direct way jim, you mentioned the simpson simpsons, the screen shot, they foretold fox they have the logo and they say a division of walt dismy company which is hilarious. There it is. Does it point to disney feeling they dont have enough a. M. Monmmo to go direct yet. I think they saw an opportunity and trying to advantage. It certainly wouldnt hurt to have a more robust offering. The best shot of most. Theyve got when you think about scale, they certainly have it, lets not forget the parks it depends how you want to define that in terms of content but theyve got the most scale but when you look at the rest of media, and you look at what has happened, jim, weve talked about the discovery deal with scripps and reception that has gotten investors stilg n s still not c domesticically it has enough scale and that becomes the question for so many of these companies. I dont think they do have enough scale because i dont have anything i must watch right now. You mentioned a franchise, it is so important im glad you brought it up avatar can be star wars, when bob iger is trying to figure out, ive got to broaden that. There could be twenty avatars and go back to tv content. Why has not fox levered simpsons far more than it has the answer is because they dont have a place to put it but disney does. If you get hulu, you have something that looks like netflix. They were talking about stopping amazon this year i keep hearing netflix. This is the way to stop netflix. And listen, the idea now that fox is willing to entertain potential offers for a lot of the company is not going to be lost on other providers out there. By the way, the amazons in the world and apples, you never know apple was the other name i didnt mention as part of that group of companies that really are redefining potentially the landscape and broadly speaking media. They all conceivably could line up our Parent Company, its hard to see a path there, comcast owning Nbc Universal but theres always interest when things are at least potentially for sale. So well see how this goes i do want to come back to the fact that they are not talking right now. Ive heard Different Things from different people on both sides in terms of the likelihood that they will reengage, hard to know, but certainly possible but its not lost on any of the other companies as well that there is a possibility for at least prying these loose from fox as they would embrace this idea slimming down to become a sports and news company with a broadcast network, not with a studio but similar to cbs. Why wouldnt cbs want to merge . Why wouldnt cbs want to get together with these guys conceivably unless theres an nfl clause i dont know. I dont know, there are two Family Controlled Companies and those some people have asked me, why in the world would james and lock lan, the murdoch brothers, why would they want to give up their opportunity to run a very Large Company they may be looking at the world in a very realistic way but that said, they are still Family Controlled Companies and that makes it very difficult to imagine a cbs fox tieup. One thing is certain david, in terms of being in play right now . No, i mean i think the main takeaway from the story has to be that if youre a Media Company in the traditional sense of that word, youve got to be thinking about things in a way you hadnt previously and thats why i think the story has been met with a lot of wow, because the idea that fox and its management and board of directors would embrace potentially this idea that we dont have enough scale, were not going to be able to get it, so well go the other way, is a key that a lot of media executives evand ive heard from a number of them, saying, okay, let me think about this. How can you not be big enough if youre fox. 100yearold company, tremendous library, and worldwide reach and they are not big enough . To davids point, thats why yesterday was so aamazing. The world changed that quickly . Thats incredible. You know it did you know it did. Just like hemingway . I mean, you know it has, it has this has been the year sat here and talked about it, the cord cutting. Total surprise. Its called faux surprise. I do think that i listen to a fox presentation about trying to get in touch with the consumer are you kidding me its true, fox is trying to figure out how do we get in touch with people to watch our stuff. Remember when you put out great stuff and everybody watched and that was like in philadelphia we called it three, six and ten three stations, fox wasnt involved i think this is incredible, spending a fortune trying to figure out how to get people to find them. It used to be so easy but the clutter is everywhere, everybody has a channel. The faber channel. The knfox network would be dilutive of contend i remember channel 29, you needed that special clicker and round thing on the top of the tv that ring. Lets get to sales force noungsing it is forming the new Strategic Partnership with google at the dream force conference last night about the new partnership. You look to google and see this incredible world of information and see the advertising but you also get Google Analytics and Google Analytics coupled with sales force and service and marketing means that both of our customers are going to have Customer Insights they never had before thats really exciting. Jim, what a win for alphabet. Whats the impact on others, including amazon well, look, this is antiamazon, even though amazon is a great partner with sales force. Sales force wants to be schwittswi switzerland. We call her wonder woman, she said it and i was like wow, lets call her wonder woman. They have an incredible set of data you hook into them and its an end zone, wow, were in the end zone, theres nothing else wrong, amazon has the data and then they put it to work with you with their own eco system. Now google has an eco system that makes it lets say youre wall mart want to do stuff at Google Google therefore has more data that can be put to work as yours challenged by the mike crow soft she just hoped she could have the largest web service. This makes it so its actually believable maybe one day the dream will come true for them meanwhile, theres the guidance from sales force itself about 19, looking for revenue, thats another put another 20 on the board well, look, this Company Wants to be a 20 billion sales company. A huge amount of deferred revenue you cant see. I remember when people felt this was a company that really didnt have a business or that it was just making up the numbers this company has a huge amount of cash and has tremendous scale. When you go to the different booths as i did, there isnt anybody who doesnt use them you need sales force in order to be able to connect with already, here we go, millennials. I hate them. Why does everybody what about else we have we dont matter. Do we need bleed . If you poison us, do we not die . Youre just a drain. They like to lose me. Were not used by older people come use us. You had your chance, you were 26 once, we all were. Man was i in charge then. Still to come this morning, a live and exclusive interview with Carlos Rodriguez after winning the proxy battle against bill ackman. If the s p avoids a half percent decline today, it is the longest streak without one since 1968. Were back in a minute adp shareholders reee leked all ten of thecompanys directors, thats a loss for bill ackman who sought three of the seats. Hey, leslie. Hey, carl, thats right im curious to hear from you what do you think the message the shareholder sent to you today is it felt like a resounding support for our ten candidates so were very happy. Feels like a big victory and mandate for us to continue on the path were on with the strategy we have. Continue on the path youre on this has been a threemonth process. Ackman issued 168page presentation detailing Different Things he would recommend. Is there anything you take from that plan moving forward without his position on the board . As i said multiple times, a lot of things bill raised over the last three months are things the company was already working on theres not a lot of debate about the themes hes brought up its been about pace and risk imagine. Management i would say we learn a lot but theres really no dispute about i think the companys path in terms of what it needs to do. A specific strategy was laid out during the process in communicating the shareholders and proxy Advisory Firms by increasing margins and various points laid out on that end. Do you think the proxy contest itself influenced those new strategies moving forward or was that something that was already set in motion as well. Yes, that was already set in motion weve said that a number of times. Specifically the margin improvement numbers we put out there. We have a lot of companies our own long term Strategic Plan and has numbers attached to it really what we did, we provided longer term guidance to our shareholders but thats a strategy and plan we already had in place and board already approved. Jim cramer has a question back at the new york stock exchange. Carlos, congratulations on your win i wanted to know if bill ackman hadnt chosen a kind of general sherman march strategy to sort of scorch earth, would you say maybe listen, come back a year from now he did kind of leave atlanta burning. I dont think the approach really had anything to do with it jim i dont think it would have made a difference it may have been more cordial and professional in terms of the approach but i dont think it would have made any difference at all we listened to bill and all shareholders and well continue to do that into the future well, will you followup on anything he suggested . He has issues about the number of employees versus revenue and says you have way too many buildings and that it would be easier to consolidate. Any of those things ring true . Well, i think as i mentioned to you before, the consolidation of our facilities and buildings is something we had under way for 18 months, that recently wasnt a new idea. And the question of revenue for employees, using the raw numbers and you and i have had that dialogue. Very true thank you. David . Sure, ill ask a question carlos, was this just a waste of your time . Well, i would say that the last three or four months we have described it has been highly distracting and probably not a great use of time for a small group of people but for the other 58,000 hard working associates adp has around the world, really didnt throw them off their game you saw performance in the First Quarter and i think we continue to march ahead serving our clients and delivering Great Results to our shareholder as well. Mr. Ackman said hell remain a shareholder, he is a Significant Shareholder but im been curious about his ability to convert to a full 3. 8 position but still owns 2 if he gives you a call, will you take it . Of course, we engage with all of our shareholders on a regular basis and a lot more engagement than we typically have, we have an ongoing dialogue with our shareholders and constantly listening to them. Given your answer to davids question just now, does it change the way you think youll approach these types of situations from activists in foot you future, whether its ackman or not . We hope to not face these situations again in the future as you can see, the shareholders are firmly behind the company. We have a long term oriented base very supportive of the board and strategy so we would hope that this is a message not just the big bill ackman the country has a long tradition in economics and politics of respecting a vote. And i hope that bill and everyone else will do that in this case and move on and let us move on with our business. Bill ackman said yesterday on cnbc that even if he does not win todays election, which now we know the results that he could come back in a year and launch another proxy fight if there are any missteps along the way. Does that concern you at all i hope that he moves on i think that it was a clearly very resounding victory for the board and our company. I think its largest margin of victory of any large cap proxy contest ever i think that would hopefully be a message that its time to move on i think that the pennsylvania plans and other investors that pay the exorbitant fees he charges and give up 30 of the upside will be well served to really deliver a message that he should move on and focus on Something Else all right, Carlos Rodriguez, ceo of adp coxing oming off the victory in the proxy fight against bill ackman. Thanks. Thanks, leaslie, well count down to the opening bell in a few moments. S p up four days, up 14 of 17. Futures steady on a busy morning. Its election day, nikkei at a record high, dollar at the fourmonth high. Opening bell a few moments away. Question. What is an answer and how can you measure the value of one . Today trusted answers from trusted sources are rare and precious commodities. Theyre out there but finding them on your own has never been harder. Its why at Thomson Reuters we provide you with the intelligence, technology, and Human Expertise you need to find trusted answers. The answer company. Thomson reuters. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. 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