Great reporting by alex sherman over the last few days for this. The verizon sale will not include yahoo cashiers in alibaba, and verizon will be integrated with aol. Alex sherman is joining us now. You scooped this on friday. Talk us through what happened in the last 72 hours because there were still stumbling brocks tumbling blocks on friday. Alex verizon was always a favorite and we have been talking about that since january. Verizon upped its bid. In the last round of bids, verizon was still only bidding between 3. 75 billion and 4 billion. That was not the high bid. Yahoo had more or less put pressure on verizon saying if you want to buy this thing, you have been the presumptive buyer the whole time, you have to step up and increase the bid. We realize you do not want the nonessential into little property that is not part of the deal, but you still have to bump it up a little bit. Verizon figured when push comes to shove, at the very end here, that is when we will make our move. But we do not want to go too early because we do not want to bid against ourselves. So that is what happened when the final bids finally came through, which was early last week. Verizon did in fact bump its bid, and that got the deal done. Way this works is that people sharpen the pencils and try to justify the higher price. How do they justify the higher price . Alex that will be a question we might be able to find out more about in 10 minutes or so. What is verizons strategy . Why are you paying for yahoo and integrating it with aol . Yahoo has almost doubled the that aol does. You can see why yahoo would trade for more than aol, but aol has a stronger ad deck platform. You want to integrate this technology with your traffic, then marry that with verizons fledgling mobile video product. That is the general overall structure. Jon lets talk about the people in the story because yahoo is set to change the name and become a publicly traded investment company. You imagine the General Assembly in the general assumption is that Marissa Mayer will not be getting that job. At verizon, there was a sense that Tim Armstrong would run the business. Talk about marty ball seven over at for us about marty walton over at verizon. I do not think the profitability has been divvied up with who will be running what. We will be able to ask them directly on bloomberg tv what each of you are going to be doing here. This has long been thought to be Tim Armstrongs idea. You can move the clock back ost 24 months now went there were talks between Tim Armstrong and Marissa Mayer at that point. Aol was in the background, verizon was in the background. Tims not a coincidence that armstrong just happens to be at verizon and now this deal is being done. Obviously Tim Armstrong is going to be a ringleader here. What exactly his responsibilities are compared to other people at verizon, i am sure that will be answered today. David we will be talking live with Tim Armstrong and marty walden in a few moments time. Drama behind the Tim Armstrong and Marissa Mayer story they were colleagues at one point, friends at one point. He was the sales guy, she was the product person. What is the story that tells us . Alex they did a deal, so that would indicate there is not too much animosity there. They have maintained their friendship certainly to the point where there is a working relationship. But there will be attention when one person is losing their company and the other is buying it. Tim armstrong has wanted to run combined aol yahoo that is something that has been an aspiration of his for a while. Exactly what he plans on doing that Marissa Mayer has not been able to do certainly must have to do with aol assets. That is really the idea here, he must have a plan to merge aol with yahoo in an interesting way. And our their future acquisitions down the road that is part of the armstrong plan that may be Marissa Mayer was not able to do because she did not have enough firepower at yahoo alix even with yahoo , you have this verizon that is third in the digital avenue, but third by a lot compared to facebook and google. Are they happy with their plays . What will they do to fill that gap . Alex there is no doubt this is a bit of a change in strategy from verizons standpoint. They will not play this price war game, but they have been a part on thetrying to compete wireless side of it with tivo and sprint and at t. Now they are changing focus and they will invest 10 billion or digital adng the game and trying to marry this with some video mobile product. We will have to see how it evolves through the years and see if it really picks up with millennials. There is an irony that you are it that you are does appear to be the plan. David it is a fundamental shift for verizon, which is basically a subscriptionbased company, a Telephone Company. This is now an advertising fight, buying aol first and yahoo is verizon prepared to move into the advertising business . Alex they clearly are. This is an advertising play. They want to and feel like there is a lot of room that they can grasp whether or not competing directly against facebook and google or scoop up other players, it will take a lot of work to get up to one and two. It hints at our their other acquisitions down the road . Are there more digital ad plays . Twitter talks about being a candidate for acquisition. That is a hefty paycheck, a have the price if verizon wants to buy the whole thing. Is there some way that you can do a partnership there, buy a stake in twitter . To alexs point, it is the 4. 8 billion deal for a 200 billion company. We all know the name yahoo , but it is a small deal for verizon. Bet they are making a huge on a company that is so huge. Alex sherman, wonderful reporting over the last three days. We will have the big players with us this morning. Verizons executive Vice President , marty walden, and aols ceo, Tim Armstrong. Away from the big corporate story to the big story over the weekend, the g20. I want to bring in enda curran on the g20. It often says the same thing and then they reproduce it again and again. What have we learned from this weekend . Enda good morning, jon. This meeting came a month after brexit sent shockwaves across ae world, and there was feeling that policymakers are hearing the antiglobalization wave. They are hearing the rise of populism and they are trying to push back because the communique put an unusual emphasis on inclusive growth and sharing the wealth. Of course, as always, with the g20, they are short on tons of steps. Nonetheless, there seems to be a recognition that perhaps there is a new push to do more on the physical side for those who cannot afford it. We are seeing that in canada, korea, china, even the u. K. Talking about boosting the bootstraps there. There was another pledge to do more. That remains to be seen, whether they will actually deliver. Putting pen to paper in a g20 committee k, going home to their respective in a g20 communique, and going home to the respective parliaments is a different story. Jon may be a shift where they acknowledge populist politics and that they have to do more in terms of fiscal policy and structural reforms. We begin the week and investors look to one thing, the potential for more stimulus from the likes of the bank of japan. Our survey points out that expectations are right up here, so what can they deliver . Enda they are sky high. There has not been much anticipation for governor kuroda to deliver since he took office in 2013, which begs the question, is it being set up for disappointment. Do when theyboj are ruling with helicopter money . Order, cut theto negative rate deeper. Or pull a surprise out of the hat. But no doubt about it, it is yet another week of high anticipation on governor kuroda. Enda curran in hong kong on the g20, thank you for joining this program. David, i think it was you who came over to me once with a series of communiques from the g20. There is a word change here or there, but not much. Jonathan, last week it was cleveland. Now the president ial race moved to philadelphia, where the Democratic Convention begins today. The democrats have followed suit on drama. We are joined by megan murphy, reporting from philadelphia. What is gone with these leaked emails, and why do we care about them so much . Megan it does seem like inside baseball, causing turmoil in the Democratic Party as they prepare to kick off their convention. Debbie Wasserman Schultz was forced to resign yesterday after it was showed that she was actively involved in what was leading into Hillary Clintons campaign and favoring her campaign over Bernie Sanders. To have the chair of the partys committee resign on the eve of the convention is drama like we have not seen at one of these conventions in many years. It looks like the democrats are going to rival the republicans for a convention that is full of news. David it is pretty clear that Hillary Clinton and her kmart Hillary Clinton and her campaign are trying to move past it quickly. She tried to set a different tone. Mrs. Clinton i am not going to engage in that kind of insult fest that he seems to thrive on. Whatever he says about me, he is free to use up his own airtime and his own space to do. I am going to talk about what he has done, how he has heard people in business. David megan, there you have it. What are they trying to do this week in philadelphia . Megan i and not sure that is a different tone. Hillary clinton is very sanguine about the fact that this is going to be a very brutal campaign, where he has branded her lying, crooked hillary. Cleveland was an incredible rocky, unconventional convention. Donald trump has gotten a little bit of a bump this morning, showing that he is pulling even with her. What she will face and what the true challenge is for her, she will try to set a positive message this week. She will have barack obama, joe biden, Michelle Obama speaking for her. At the end of the day, it will be a true war, with independent voters weighing up two very unpopular candidates. Who are they going to vote for, even though not a lot of independent voters really like either of these two candidates . David i saw a cnn poll that had trump ahead by three points or so, which is not surprising coming off his own convention. What does Hillary Clinton need to do to persuade voters, to win this thing . Megan the white workingclass voters they call them reagan democrats, people who have felt very disenfranchised, disaffected by the economic shifts we have seen, people who have been struck out of the labor markets and who have struggled to get back into work, people who feel like the American Dream is no longer theirs. Those are the voters they are both competing for, and that she needs to win over with a positive message that i have a better vision for america than donald trump has. David that is megan murphy reporting from philadelphia. Alix from the drama in philadelphia to stocks. Verizon is paying 4. 8 billion for yahoo s core assets. And tim marty walden armstrong will be joining us to give us the details and what happens next. Suspended inis premarket trading. This is bloomberg. Jon from new york city, this is bloomberg. At anp 500 closing friday alltime high. Futures doing their thing, firm, stable, positive. In europe, equities are on the charge with the dax up by a full percentage point. Business confidence is out today, showing in access showing an absence of any real brexit anxiety. In the fx market, dollaryen stable around 1. 06 around 106. But overwhelming amount of economists are spending stimulus from governor kuroda. In the commodity market, brent and wti near twomonth lows. Brent crude is at 45. 41. A quick look at the bond market. Yields on the front end of this was curve, coming up four basis points, though still overwhelmingly negative at 1 . Alix unreal. You know what is also unreal . Yahoo eaking news about and verizon. Marissa mayer is planning to stay into the company. It is important for me to see yahoo into the next chapter. Marty walden is saying they will come back when ready to talk about leaders. The statement was that Marissa Mayer would be leaving yahoo on any type of sale of its core business. Now that might not be so clear. For more m a as well as deals and earnings, John Gonzalez joins us now for more. Jonathan, great to see you . M a really coming back. Average premiums are 25 right now. What does that tell you about the overall state of the market . John it is a really big deal. One of my concerns after the brakes at issue was that corporate activity would try up and that that would be a damper on the banking sector, on the market more broadly. That is absolutely not the case. The market is wide open for market volatility. David why does this seem to be the tech sector . Alix energy has not seen the pop we have been looking for. Jon the fact that there is deal activity going on there right assume yahoo is really about yahoo as opposed to something broader. We also see in health care that the sector has jumped back into favor, which is a group that had fallen out of favor. Alix which leads us to the other big theme of s p, which is earnings. 128 S P Companies have reported. Is it because expectations were so low, that we are seeing some kind of clawback in topline growth . Jon the answer is yes. Last earnings season, remember, the market had just fallen apart and earnings estimates came tumbling down in april. A big makeup is that we are seeing. Of 6 is huge. Ch david the important word is beat. Year over they are down yearoveryear. What does that do to priceearnings ratios . Jon lets talk about the growth rates. You have to throw out the energy sector, which is the reason the overall growth rate is as negative as it is. If you take out the earnings for the energy sector, we are going to see positive growth rate more broadly. As far as the pe for the market, right now under 17, i do not see that as a problem given where Interest Rates are. Alix jonathan, thank you so much per jonathan golub. Lots more coming up with you. We want to turn back to the big deal of the morning, verizon announcing it will buy yahoo s operating market. Marty walden joins us, as well as Tim Armstrong. Thank you very much for joining us in this very big deal on this monday morning. Tim, i want to start with you. What was the interest of yahoo from the verizon aol standpoint . Tim we have collectively come up with some scale goals for the company, and we want to be competitive in the next generation of how digital is taking over the world from a Consumer Media standpoint, so we let out a set of 2020 goals when we did our deal last year. The main goal is to get to 2 billion consumers by 2020. For us, the yahoo brand is an excellent brand, the yahoo team is an excellent team, and it fits into the larger strategy. From our standpoint, if you look at what we announced 12 months ago on our original deal to what is getting announced today, you will see a line of straight focus and straight strategy focus. David this is not a big surprise. Yahoo had been in decline. It had been losing money. How quickly can you turn that around and put it together with aol and the other verizon asked next other verizon assets . It is going to take a lot of work. We understand that it will take some work to integrate it, but we are confident that there are brands that people love and there are billions, as tim said, in terms of audience that we can that the that that we can bring to the platform. It is hard work putting two companies together, but we feel like we have the right talent and leadership to make that happen. Specific . Ou be more we expected you to say that they are great assets, but can you identify the assets that verizon of that can make the job yahoo that others cannot. when we bought aol, it was obviously about tim and his talent and the acid capabilities. He had a great brand, but we were not at scale. Is alreadyhose two the right start for us. But we also have been investing and content assets across verizon, so you have seen us go from licensing linear content and moving into ownership, a Company Called complex, which we have a 50 ownership in. We are building out our digital channels. We are making investments in mobile, which is incredibly scale theon how we business. Our goal is to take all of those content assets and bring those across the digital platform that bring more people to the platform and ultimately make the flywheel spin. Jon a lot of people would say when you merge two companies, it is difficult because people lose their jobs. But when you move two pieces of technology, that is very difficult. How will you do that . Tim taking a step back is probably the most important time in global advertising, a 600 million industry a fraction of it is digitized at this point. Advertising will be as easy as ecommerce. We will be building with yahoo , buying a set of platforms and assets to attack the 600 billion industry. Now, thee we sit integration is going to be focused on a planning process with yahoo . One of the things that has happened with the auction dynamic, we have not had it tremendous we have not had a tremendous sense to sit down. The reason this deal is different, you will go everywhere from mobile video at scale with incredible content from the nfl and nba all the way through our ad tech landforms and systems. From a combined entity, we will serve over one billion consumers with some of the best brands in and we work with Silicon Valley all the time. We have multiple offices there. The yahoo team we have spent time with, i think we both have a similar strategy and similar outcomes. There may be synergies in the deal, but the deal is about growth and we will focus on the growth areas. Synergies have synergies will come, but it has to be about strategy and structure. Alix talk a little bit about who will be running what. It was the popular belief that were so why are that Marissa Mayer