21st century fox prepared to offer for the 85 a share for time warner. E joins us now with more. Another big deal Rupert Murdoch is known for, but he got rebuffed. Jeff bewkes, who runs time warner inc. , he thinks it is better for the company to remain independent. He has been selling off assets. When he first took over, he sold aol and timeun off warner cable. Recently, hes been off recently, he spun off time inc. It is a much cleaner and more focused company in terms of being a pure play Video Entertainment business, which would fit in with fox. Was in google rumored to be a better for time warner . Bit mores a farfetched. We dont have reporting that the kids anything real with any kind of Silicon Valley company. Philosophically, it makes sense that some of the emerging Silicon Valley companies with want more content. Youtube, it is a business that has not found its footing. It is growing but it is unclear what the Business Model is. Time warner has a great Business Model. Whether it is google or facebook or a Silicon Valley company, they would like to have because it is a content company with a figured out business. That is more far afield. There are not any real discussions. The thing with fox makes more sense from a Balance Sheet and philosophical perspective. Isnt there a little bit of the old Rupert Murdoch taking a stab at some of his rivals . We know the rivalry between when he started fox news and cnn. What may be great for report murdoch wouldnt it be great for Rupert Murdoch to be able to acquire his rival . Fox news isy since the undisputed leader in cable news right now. If a deal were to happen, regulators would look at that and say you cannot own both fox news and cnn. Chances are he would want to spin off cnn. I think ultimately what he really wants is to bulk up his company. The reason for that is consolidation happening on the distribution side Time Warner Cable and comcast merger, at tdirectv merger. It makes sense for content companies to get bigger. Thank you for joining us. Our Bloomberg News reporter on the story. I will bring in david kirkpatrick, author of the facebook effect. Matches Rupert Murdoch who wanted to put time warner in play. Some of the big Silicon Valley companies were rumored to have won a time warner wanted time warner. I would downplay the idea that google would want to buy time warner. They would experience something comparable to what they experience when they bought motorola. A company with an inferior Business Model. They did not know what to do with it. They figured out how to get rid of it. Google has pretty much all the Silicon Valley companies have way better Business Models in the long run. They have much better margins than time warner. Time warner is a great media andany, much more efficient slimmeddown. It makes a lot of sense for Companies Like companies to combine with one another. Fox and time warner have overlap in their capabilities, and scale and efficiency matters for this industry. I would not be surprised if eventually either or both companies combined either with each other or with some other analogous company. Those companies have to grow and double down on their contemporary, their old Business Model. It is not equivalent to google and facebook. I think time warner is feeling some of the old Media Businesses, including television, feeling the pressure on them from the Digital Media companies that are arising. All the content being generated on social media. Fox, is not 21st century maybe just for philosophical reasons that they might never come together, who else do you think could be in contention here . Good question. Theres a lot of movie studios, who knows whether sony sony might want to get maybe sonys video assets could be combined with time warner. The rest of sony does not look very good these days. There is a lot of european companies. , theseinese companies are global markets. Look at how transformers did better in china than any other country. These movie studios are now recognizing when they make a movie, they are making it for a global audience. When you talk about potential partners for any companies, you have to look globally. It could be even a bollywood company. You, david kirkpatrick. For more on the m a environment egadeals,a of m billionaire investor rupert roth. Founder of the distressed investment boutique firm, who knows about mergers. Whats the biggest question when you see this news about Rupert Murdoch . A very logical thing for murdoch to do. I agree with your other speaker. , just as instion is pharmaceuticals, everybody is getting for everybody else. You wonder if this will start a feeding frenzy. Comcast and Time Warner Cable. And you have got dish might be a possibility there in terms of being in play. Does it look healthy to you . Does look like it is being done for reasons or out of desperation . For timerdoch bid warner was a logical thing. I do not think anybody could say it was a silly idea. Its a very good idea. Because . It is good because you do need to become it is good because you do need the consolidation of content to be a fair match against the consolidation of distribution. Everything is getting bigger and more global and everything is getting more instantaneous. The interesting question is if cnn were to be spun off, who is a logical buyer . Kind a different of content. Shows like yours or many fox shows depend on interviews with particular people. Not just world events. A structural problem with cnn, it has been a passive recipient of input from the outside. Do you think this would get by regulators . If they agreed to spin off cnn, i do not see why not. Comcast and Time Warner Cable, that deal is not done. That has to go through regulatory scrutiny. It makes me think from the wilbur, talking about media companiesion and getting bigger, dont you think regulators are going to say wait, what about the independents here . I dont think there is any proof that Large Companies in the Media Business have staffs that are any less independent than before. I dont think there is any evidence of that. Youou know Rupert Murdoch, have been with him at sun valley many years. Sure. What is he like as a dealmaker . He is very determined, smart, and focus. When he gets into something, he does not go away so fast. Would you advise him, being that he got rejected the first time around . He may not be happy to have that in public today, but what would you advise him . It took him a while to get the wall street journal. Look how determined he was there. Look how clever he was and the way he maneuvered through the family and the intricacies of it. I do not think this story is over by a long shot. Stay with me, more about the roth. Vironment, wilbur bank of america out with results, secondquarter profits slid at the countrys secondbiggest bank. They spend 4 billion dollars on litigation costs. Herewith a breakdown, Erik Schatzker. What stood out for you . More of the same from brian moynihan. The man has been trying to put bofa i try to get beyond its legacy. Not happening, four billion dollars a litigation expense, almost all of the four Legacy Mortgage related issues. To 2. 3ought profit down billion dollars for the quarter by 43 . 650 million cost for a settlement with aig. Lets look past mortgages and figure out how bofa is doing on its own relative to wall street. The report card there is not so great, either. Helps understand why shares are down. Look at loan growth, for example. 0. 5 ,loan growth was contrast with positive loan growth for other wall street banks, including citigroup with 4. 4 yearoveryear. Training resident, trading fared a little better, not as bad as citigroup and as well as jpmorgan are golden. On cost management, this has been a big issue for brian monahan. Bank the least efficient and spends most relative to revenue. Noninterest expenses down to 13. 1 billion. 9 , moreits staff by than 22,000 jobs. Brian moynihan still has a lot of work to do. Much, eriku so schatzker. Staying with the big stories. Rupert murdochs offer to buy time warner. What you must did for electric formerhat one of his executives of to do for city buses. Breaking news, more on the 21st century fox bid for time warner. Rupert Murdoch Company confirming they put in a bid for time warner and are willing to pay more than the 85 a share price for this company. Which was valued at above 80 billion. The company also said that the board of time warner declined to pursue, as we already know, this are not that they currently in talks with time warner. They are confirming yes, they had put that proposal in place to the time warner board. We will keep you abreast of any more developments on this front. Moving andtime, shaking this hour, former secretary of state Hillary Clinton did everything she could last night to avoid saying whether she will run for president. She appear on the daily show, jon stewart tried to get her to comment on the prospect. Do you like commuting to work or a home office . I spent so many years commuting, i prefer a home office. [applause] that works. Do you have a favorite shape for that home office . [laughter] lets say, would you like to have corners . [laughter] is so know, the world complicated, the fewer corners [cheers and applause] thats a hint. Sometime before any candidate moves into the white house. President obama is making a push on domestic Economic Issues like immigration, infrastructure spending, and theres a large portion of the Democratic Party that does not want any part of it. Im joined by billionaire investor and wellknown republican supporter will Barack Wilbur roth. And Phil Mattingly joining us as well. Why are democrats distancing themselves from the president. His approval rating. 40 s,u are down in the your candidate to not want to be seen with you. In 2006. T with bush the Biggest Issue is the president is a fundraising giant, he can raise a ton of money. What else can they do to help candidates, they are struggling. Wilbur, what do you think of a Hillary Clinton presidency and how much trouble does that signal for republicans . Or does it . First of all, it is a million years from now until it comes up quick. But it is still a long way. A lot will depend on what happens in that congressional races in the fall. Republicans will likely maintain control of the house and get close to, if not taking control of, the senate. That is a very different math from the math there would be if you have the Current Situation where there is a division of power between the two parties. There is no incentive now for the republicans to work at all with the president. If thats the case, we are looking at pretty much stalemate for the next couple years. Well, i dont think so. I think if you had republican control of both houses, you can get legislation passed. If. Hats a big them a question would be does the president sign it. That is different from the present point, as long as he can get harry reid not to bring things up in the senate, it does not get to his desk. How likely is it that the republicans are close to taking control of the senate . It is moving more and more in that direction on the daily basis. The math looks good for them. When you went into the cycle, you thought maybe they were five or six seats they could play in. They are expanding the mat but even they are expanding the map, democrats have to spend andy to protect members candidates. That takes money away from arkansas and north carolina. States where they desperately need resources. This map has expanded in a way where democrats will be on the disadvantage and the defensive from here on out. Are there any issues that could lets say it did swing over to the republican control at the midterm elections. Are there any issues that the two sides could get together . Immigration would be one. You think so, what made you say so . There are parts of immigration that everybody really agrees with. Letting in more scientists, letting people with graduate degrees stay here. The democrats have been holding those things that everybody agrees with hostage to the other parts of immigration. So i think rather than trying to immigration,ng for ok, here is an issue we can agree on. Now, lets go to the next issue. Increments rather than the whole gigantic menu at once. Here is an interesting way to look at the dynamic, it could shift massively january 6, 2015. This is assuming republicans take the senate, people assumed that in 2010 and 2012. If her publicans take the senate, do democrats take the position that we oppose in a unified block everything Mitch Mcconnell put on the floor . Everything john boehner puts on the floor . It is a tactic that worked for the Obama Administration in unifying your publican party. The democrats take that playbook and use it, it is done. Not have a will supermajority, we will go back 60 votes arere needed. It will be interesting to see if the frustration has reached a peak that people will come to the table and find common ground, even on smaller issues and move piece by piece for. Phil mattingly, our white house correspondent. Iq for stopping by, a lot happening. Wilbur roth of the below graph. Of wl roth. Murdochs 21st century fox try to buy time warner. You are watching in the loop, streaming on your phone and bloomberg. Com. I am betty liu. Top headlines Rupert Murdochs 21st century fox confirming it made a bid to buy time warner. They would be willing to pay more than 85 dollars a share. Yahoo shareholders will cash in when alibaba goes public. Yahoo plans to return at least half the cash it cap when the company goes public. The company has a 20 3 stake in alibaba. Tesla will be coming out with an electric rival to bmw three. It will cost about 35,000 and have a range of 200,000 miles. The car will be on sale by 2017. Almost 26 minutes past the hour, bloomberg is on the markets. Equity futures gaining, s p futures up. 5 . Janet yellen continues her second day of testimony on the hill. Her semiannual testimony on the economy. You heard her say the economy is improving but there are still a lot of concerns. She is more positive than she is negative on the outlook. Century fox confirming they did this for time warner. On the phone is jon erlichman. A. , what more can you tell us about this and whether we might see another go at it from Rupert Murdoch . Liese possibility still there in a big way. We are in the middle of a big consolidation wave that started with the large paytv players. In terms of the interesting Murdoch Family has and a businesslike time warner, you look at the positioning of the major cable channels that time warner has. We are talking about some with greater leverage, not necessarily just on the news side, but also with tnt. We know that all of the big content players are positioning themselves in the new world of cable to have the best brands. Fox was already doing that with its brands. There is an international appeal. There continues to be strong interest overseas by the Murdoch Family in growing tv assets. I think those are all the reasons why you would come together and consider doing Something Like this. It is true, of course it if ittime warner in play, is not Rupert Murdoch it might be someone else. I look at time warner shares in 85premarket, up to almost per share. If it is not 21st century fox, who else could we be talking about who could play for this company . To be continued conversations for anybody who was thinking about having strong content. There has obviously been lots of rumor of the last six months or seven months over interest from Silicon Valley in making a bold move in a push to acquire content in a bigger way. The culture clash is much different if, say, a company like google were to go after time warner than if we were to see fox do a deal. However, the amount of investment that goes into building the collection of assets that time warner has is not easy to do. On top of that, if you look at some of the Strategic Moves time warner has been making recently, they are a lot more shareholder friendly. They have not been moving with respect to making action themselves. In some ways, they have left themselves open to the possibility of Something Like this happening. React . With the others if we were to see 21st century fox and time warner get together, what would that cause others to do around them . If you are a disney, you are going to be looking at this very quickly. You are wondering about your own negotiating leverage when it comes to talking to paytv players. All of a sudden, fox and time warner assets come together. However, because we are in the midst of two major deals with the acquisition by at t of combination that we are seeing between Time Warner Cable right now and comcast, that the opportunity may be there for content players to do a deal like this. And certainly, we have reported additionally that there has been some interest in washington to get a better feel from those content players on what their reaction ultimately will be if those paytv deals are approved. Contact els, the on s