Good tuesday morning. Welcome to squawk alley. Im Carl Quintanilla here is jon fortt. Morgan brennan is at the International Astronautical congress more from morgan and amazons jeff bezos in a moment well begin with Wework Softbank plans to take control of that company valuing it between 7. 5 billion and 8 billion. A huge drop from where it was valued, also cutting adam newmans stake down to double digits good morning to our guests good morning. Mike, i know that youre f m familiar with softbank, softbank a big investor in uber why is softbank doing this with wework is this an existential moment for them are they at risk of this investment taking them under this is a real crisis for softba softbank the story the past few years is uber is a huge high point or low point, and wework and how they valued the company, but soft bank, a huge vision bank came flooding in giving companies that arguably shouldnt have been propped up more runway and a longer time to survive and vcs out here say this is distorting the economics of how the values should work the companies that are supposed to die out are not dying out because they have so much money coming back into it. I think softbank, this is a humbling moment for softbank and theyre trying to save their investment any way they can. Cameron, channeling my financial malcolm x here, feels like chickens coming home to roost perhaps for softbank is this helpful for the market at least its contained to softbank, wework and the landlords involved its not the Broader Market and it could have been this is a case where you have a major investor with their flagship deal coming in to make sure they save their investment. It may be 8 billion or 9 billion versus 47 billion. The 47 billion was a false number its not the market as a whole supply and demand saying the company is worth that amount if the company is still solvent and goes forward, its great for the market and other startups in the real estate and ondemand space. Given how expensive it is turning out to be to under wiwid voting structures, can we safely say that pendulum has swung as far as it can swing . I think so. The excessive power put in a small handful of employees or ceos will probably swing the other way. Mike, well see what softbank thinks about that. Ive been beating this drum since uber i thought the peak of it was uber you guys and i were here two years ago. You know, we were talking about the ouster of travis kalanick. Yet we dont seem to learn from that so i wonder, you know, part of the game has been keep the founders happy so we can invest in the company and now i do wonder if that pendulum has swung the other way. At the same time, you know, maybe well be back in two years ousting another founder and marveling at how horrible things are. Who knows. Mike, what is the lesson here for employees for investors . If you look at travis kalanick, if you look at adam newman, these founders seem to have made out great. Newman walking away with another billion plus while the Company Appears to crumble the wework employees, meanwhile, thought they were in for a great thing a few weeks ago. Now theyre questioning what theyre in for. Totally i think this era of the cult around founderers as and this fr worship is coming to an end. Travis, i thought the high point i think newman exemplified this i think maybe earlier on with the sergeis, larries, zuckerbergs of the world, there was a point to following people with true vision now you have people like newman who are in it for themselves getting 1 185 million consultin fees for winding down the company and firing a bunch of laying off a bunch of employees, which is really just a horrible joke and awful for all the employees involved so is the lesson are these people learning a lesson, or is he going to ride off into the sunset and invest in another round of companies i dont know maybe the end point is like lol nothing matters. Yeah. Well, we also want to get your take on facebook ahead of Mark Zuckerbergs testimony tomorrow on capitol hill. You also got facebook announcing new Election Security measures yesterday. Cameron, they talked about some steps that theyve taken to get inauthentic voices off of the platform showed some of what these folks have been posting, kind of pretending theyre locals when theyre not. A whole range of political messages trying to inflame everybody and everything is this significant, you think, that facebook has taken these steps . Have they shown enough that theyre serious this time around is it too little too late . Theres going to be heavy scrutiny and suspicion put on facebook regardless of what they do because of what turned out for the 2016 situation since then their somewhat defensive and cavalier approach to consumer data and privacy where they said were on top of it, dont worry. Theres still suspicion on the part of regulators its not too little too late this is a step in the right direction. Election years are massive booms because of campaigns the easiest thing to do is say well take no political ads. They would take a huge hit to revenue. Zuckerberg says it wouldnt be that much if thats the case, say no to all political ads, remove that from your system then you at least eliminate part of the problem i wonder what that would do to engagement . I dont know maybe some would it would be better, wouldnt it some might see it as a draw some might say i wont learn as much about politics. I mean, part of the dilemma, i think, for facebook is that the most engaging content on the platform seems to be the most inflammatory and insane stuff. So i think you can make an argument that, you know, theres it would be hard for them to sort of say lets tamp it down. I do think, to be fair to the company, you know, two, three years ago they had no idea any of this stuff was going on, they werent looking for it actively. Now they had so much heap from washington, from the press, from users, now they cant afford to be caught off guard in 2020. So i do think theyre sort of swinging the other way they have35,000 people working on security. That said we dont know what we dont know who knows what sort of weird manipulations will come around the 2020 election. Mike, we want to congratulate you on the development of your showtime series based on your book will we be able to book you from here on out or do we have to talk to your people . Its Hollywood Mike now just get in touch with my people no no of course not. You guys are great thank you so much for always having me. Always great to have you, mike great to have you as well, cameron. Thank you. Still to come, a big show on squawk alley. Also fcc chair ajit pai live from the mobile World Congress and later, jon favreau will join us from the vanity fair summit in l. A. Talking about the future of media, streaming, content, disney and more. Dow up 51. [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Jeff bezos making headlines about space. Morgan brennan is there live jeff bezos took the stage to receive an award earlier this morning. Heres the big news from his time on stage. He announced his other company, blue origin is partnering with some of the biggest companie and most wellestablished companies in the space industry to bid on the nasa contract to quite literally land humans back on the surface of the moon blue origin will partner with Lockheed Martin, Northrup Grumman and draper to return americans to the surface of the moon in 2024 this is a National Team for a national priority. We could i could not be more excited to be doing it with these partners this is the kind of thing its so ambitious it needs to be done with partners. This is the only way to get back to the moon fast this time were going back to the moon were not going back to the moon to visit, were going back to the moon to stay so, through this partnership, blue origin will be the prime contractor its building the socalled descent element. This is called blue moon behind me on display at iac theres a transition spacecraft that will take astronauts from a lunar orbiting space station called gateway, which is a separate competition, to a lower orbit near the moons surface. There is an ascent vehicle that will return the astronauts to the gateway, thats what Lockheed Martin is working on. Its expected to be reusable draper will provide all of the flight avionics. The Flight Control systems what this actually means, why this is significant, you have one of the biggest names in the socalled new space era teaming up with some of the biggest, most established of the old space names for this contract this is a government competition closely watched. Now, in terms of the actual value of this competition, we dont know the numbers yet nasa has been moving quickly on this bids have to be submitted for this contract next friday, november 1st its putting this team of heavyweights in competition with boeing, which is actually also here is presenting these little cards of the mockup of its lunar lander and possibly spacex, which is expected to potentially bid with its newest rocket that is under development, starship guys we love to watch musk versus bezos. Those new developments in space. Thanks for bringing those to us, Morgan Brennan up next, the nba season and the world series both kicking off tonight. Well talk to super agent Drew Rosenhaus on the other side of this break the annual Enrollment Period is here. The time to choose your medicare coverage. Begins october 15th and ends december 7th. So call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits. 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I can tell you go watch the movie china hustle that i green lit and produced look at the commentary i have on china and ipos and chinese stocks listing on the american exchanges. Ive been very clear there are things i think theyre doing wrong to disadvantage american citizens, particularly financially. Its not a matter of not willing to speak up against china. Youre okay with what Darrell Morey said he can say whatever he wants. Drew rosenhaus joins us from miami. Good to have you back. Good to be here. I dont think we had a chance to touch on what silver and the league and what everyone has been through and whether or not that gets the season off on the wrong foot i think once they Start Playing basketball it will get back to whats going on on the court and not off the court. Im not sure the fan is really too worried about what china thinks of the nba. I think theyll be focused on how many points their star players scored and who is winning and losing the games thankfully the games are here and we can put this controversy behind us. The fans may not care but the league cares about china and not upsetting whatever apple carts they built there what are they supposed to do stay silent on issues that other people think are worth speaking about . I do think its very important that they support Darrell Morey and his right to express himself, his opinions about the freedoms and china and thing going on there i am glad the league did not discipline him at the same time the nfl is disciplined with china theres a balancing act. You have to do the right thing as it relates to daryl morey and the ability to express yourself and say what you believe in. Support human rights at the same time maintain poant government and important country that are big fans of the nba internationally. Little slip of the tongue there. I think you might have mentioned the nfl, which leads to my question about players the nfl had its anthem controver controversy. Nba has this Hong Kong China thing. What do you tell players about how to decide what to speak up about and whatn not to . I think the best advice is not to talk about it its a hot potato. I would tell my clients this is not necessarily something you want to dive into. You know, leave this to the league, the nba, league office, and focus on things that are more pertinent to you because on one side its a sensitive issue where you want to support morey. On the other side theres a revenue stream in china. But i leave it up to each individual client. If they have a strong opinion either way, thats their prognos prerogative. Im not sure individual players want to jump into this minefield. That may be better for the owners and adam silver i think nba players have been conditioned to believe they have a little more freedom of speech relative to, say, other leagues until you find a situation that lebron found himself in. What was your reaction to that lebron is a great ambassador of the game. He has a lot at stake i would assume as it relates to International Basketball and, you know, he was on the fence. He was criticized by it for some thats an example of why i would recommend to my clients who are in the nba not necessarily to touch on this one. It might be best not to comment. Right right. Drew, on the one hand politics is everywhere. Its a hot button issue. On the other hand were talking about sports a lot, live sports is still the biggest game in town, in media what do you think all of this does to the value of live sports as more of these bigger tech players like your amazons, facebooks, googles get in bidding wars over it i think amazon, netflix, google, all of these platforms, apple tv that are interested in professional sports broadcasting, this is a whole new revenue stream, this is a whole new game and its huge. Its gigantic. Its a game changer. Make no mistake. If im broadcast television, abc, espn, nbc, cbs, im fox, theres a lot more competition now for professional sports. And, you know, the amazons, the netflix, apple tv and others, yahoo, google, this thing is blowing up lets face it t, the ratings fo professional sports are the highest in industry in broadcasting yeah. So everybody wants a piece of that yeah. Finally, we had you on a few weeks ago to talk about antonio brown. Viewers want to know if you think hell play in the league again this season. Yes, i do yes, i do. I do expect antonio to play again this season. Hopefully we will get the nfl investigation behind him in the near future and he can sign with a new team i said theres interest in him from teams that are looking for the investigation to conclude and i fully expect antonio to be playing this season. Drew, i think its one of the more serious conversations weve had given the news of the day, the issues at hand we always appreciate you coming on thank you so much. You bet it was intense Drew Rosenhaus. As we go to break, keep an eye on shares of under armour, kevin plank saying he will step down as ceo january 1st, and plank will transfer to executive chair and branch chief shares at session highs here dont go away. We will offer to the wireless customers and the fios customers exclusive with disney plus we will bring that one year for fre free and of course this is part of our strategy were extremely happy to partner with disney for that super content they have shares of netflix taking a leg lower this morning down by more than 3 on this news that disney plus will couple with verizon exclusively. Joining us today is goldmans heath terry. This roundtrip it made going to 3. 08 on the print and 2. 67, you can forgive people for having whiplash what do you make of it we knew there would be an overhang going into the launch of disney plus people are concerned about the increase in competition from the streaming side what we think it misses is the other side of things how are consumers spending over 85 of their Media Consumption time Traditional Television ratings are down 16 year on year thats accelerated every year for the past five years. You look at the amount of content spending going into Traditional Television thats declining significantly you look at the scripted television being produced there. So were missing the big picture here because it really doesnt matter how much money i