Blow to the worlds biggest tech company. Were going to start off with football fans breathing a sigh of relief ahead of Aaron Rodgers new york jets debut. Disney and charter inking a deal to end a blackout that was keeping espn and all of disneys cable linear channels blacked out for all spectrum customers in new york and around the country. Shares of both stocks higher today, but who came out on top in this deal . Cnbcs julia boorstins got the latest. Julia . Well, melissa, sources on both sides are describing this as a winwin. Disney and charter calling it tron t transformative, and gives new appeal to charter tvs business, wheel at the same time, increasing the reach of disney with ads. And also, disneys payment for that app. Now, disney ad supported tier will be included in spectrum packages, what they call a wholesale arrangement for all of spectrums video subscribers. Espn will be included spectrum tv select plus video packages. When espn plan ching its direct to consumer flagship service, it will be made available to spectrum tv select customers, as well. Plus, charter says it will sell all of disneys direct to Consumer Services to its broadbandonly users. Now, the buy rating on disney, writing, quote, we believe that todays deal reflects a todayoff from linear economics, but to sixes both disney and charter to drive value amid the shift toward streaming in a digital future. So, there are some signs of the bundle certainly getting skinnier, charter is dropping some of does knees smaller channels, including freeform and disney xd, but for but the benefit for disney is far outweighing that, because theyre going to get new come sensation for disney , and that reach increases the potential for that streaming ad business. Meanwhile, charter has a new po, all the extra access to apps, in order to hold onto its pay tv subscribers and retain that part of its business. Melissa . All right, julia, thank you. Julia boorstin. Is there really a winwin situation, tim, as a shareshoulder of disney, i ask you . Its really hard for me to understand this. On some level, it and the joernl coined this a referendum on the future of tv, and whether this really helps define that, it seems like disney had major, major concessions here in terms of their ability to control their product. And it was always supposed to be about dtc, the problem is, if you dont control the pipes in a lot of the cases, this is where you end up. It does seem to me, we learned a couple things. Espn probably more valuable than it seemed yesterday. I believe. Thats one of the outcomes here. Espn appears to be more like garbage than it did yesterday. So, it is a case where i just think disney maybe finds that the broader distribution is the more profitable model and it kind of gets back to the new form of tv, i mean, whether its netflix that started this with an adsupported tier, by the way, very positive for netflix, so, if you think about it, maybe this is just linear tv 2. 0, i mean its obviously not, but it feels like people are ready to watch tv with ads and adsupported model and thats where everybody wants to be again. Its six of one, half dozen of another. Its not clear right now who won. I think its sort of winwin. When i look at the alternative, it was bad to disaster. Bad for charter, not a disaster, though, but for disney, i think it would have been a disaster, actually. So that we didnt end up there, i do think thats better for each side, but if you look at the stocks reaction, charter felt happier about the deal than disney shareholders. But all right, this wasnt the break that we were expecting, the huge change, but its a change, and its its not luke its like its over. The dynamics are going to continue. Yeah. I dont know if its a winwin. It seems like 11th hour, needed to get something done, i mean, the way disney traded today, it wasnt particularly all that inspiring. It opens on the highs, basically closes, not on the lows, but around the lows. No bounce whatsoever. Didnt trade a lot of volume. Traded 25 million shares today, typically trades 15. Maybe if it traded 65, 70, closed on a high, wed have a conversation. Charter is interesting. 11 times next years numbers. They speak at a conference on the 13th. This stock, even with a 30 bounce over the last year or so, is still cut in half from its alltime high. At least you can make, i think, a case that theres some momentum theres no momentum behind disney. I go back a year ago, it was a conference, and he said linear tv is dead, he was praising netflix. We had julia on that day, i think, talking about it on the show, so, its interesting when tim just said, its about the pipes, again, its about distribution, and look at the outperformance of a comcast, a charter, that thing. So, the jury is still out on here. I agree with espn. I mean, that is the thing. That is the thing that they are going to quickly move to monetize. And i think its interesting, we talked about it a few weeks ago, they brought back a couple of the guys that were instrumental in, you know, helping him prior to his, you know, leaving the company a few years ago to figure this thing out. And i think this is going to be a really important thing that this move, whatever they do, i think, really determines the future of this ecocompany as a media company. I think it does underscore the weakness in terms of the offerings on espn . You as a viewer were looking to watch u. S. Open on espn and were disappointed yeah, i mean so, what is this package serving . And where is disneys strength in the streaming business . It cant kill off linear tv, not that it wants to, but that seemed to be sort of the inevitability, right, that people were jumping to, this is going to be eventually the march to the end of linear tv. Hasnt really done that. Theres a place for both, at least, for now. Yeah, it was a tough weekend in my house for a lot of different reasons. Im not even sure there is football in new york after last night, so lets be clear. I just think that the fact that were talking about a Spectrum Plus bundle thats going to include, you know content that disney i mean, on some level, that sounds really bullish. It sounds like and the fact that were going back to an adsupported model when dtc and streaming, were going to have pricing power, was supposed to be the model. And thats something that kind of brings you back to the legacy players. So, i realize that the content that disney has, at least, i think the sports content is worth paying for, i want it, i have to make sure i have it in the right vehicle. I dont need the underwater basket weaving that comes on their dedicated offering. So, sorry, im a little frustrated. Im frustrated with the stock, im frustrated with sports, and i dont think we know right now, other than we know that charter seems like they got what they wanted. Right. Dont laugh at me, come on. Is that on the ocho . When they have the crazy can you throw up a 10, 15year chart of disney . Its truly, absolutely astounding. Its flirting with those march 2020 lows, right, where it basically everything was being thrown out then and you have to go all the way back, 13, 14, but we started talking about the streaming capabilities, we talked about how did knee wanted to capture a little bit of the netflix pixie dust and making content moves, making some Digital Technology moves, that sort of thing, that stock went from 50 to 100, a year, year and a half or so. And if you look at it, its right back, you know, below those levels here. And really feels like theres the streaming multiple was something that disney got in the early days of announcing disney . And they were getting something like, a lot of analysts on the street were doing the hybrid multiple. They value the parks at one thing and then they put a revenue multiple on the streaming business, but that revenue multiple, the street used to be between eight to ten times the streaming number and layer in the multiple on parks. Now theyre at four times, if im just looking at jpmorgans report here, and i think thats fair. It was the growth they were getting the benefit from. Netflix is not about the growth, its really about the profitability and the free cash flow. And thiss something thats extraordinary and what makes, again, their streaming business very different. Getting back to the stock reaction, that is the case, do you think any part of the valuation changed based on this deal . Because if the answer is no, its no surprise that disney stock barely moved. I think the market answered that question today. I dont think in my opinion, i dont think theyre rewarding it at all. I dont think it has i dont think it means, obviously it means something. In terms of the stock, in terms of traders, they dont seem to care about this. Its trading, to me, like this wants to have a 75 handle at some point, and then you have a day where it trades maybe 100 million shares and washes everybody out and you have your capitulation moment. For more on the deal, lets bring in rich greenfield of light shed partners. Hes on the fast line for us tonight. Ill pose the same question to you, rich. Is this really winwin . Or is there really a winner here . I mean, look, disney had to do this deal, melissa. Like, when you look at the existential risk to espn from a permanent drop, and you have to give it to chris winfrey, he went to he really pushed harder than weve seen anyone push on disney and on espn. But iger, look. Iger is an amazing negotiator and he got a deal done. Did charter get everything they want . No, i dont think charter got everything they want. They certainly wanted lower penetration requirements for espn in terms of packaging, but look, they got doisney being included at a low wholesale rate. For charter subscribers, the viewers watching fast money right now, disney caved on that, and thats not something disney wanted to do, heading into this negotiation. So, i think you have to give charter the win, but its not as big of a win as charter would have liked, and disney avoids the collapse of espn. Did the nfl bully these guys into coming to a deal . I mean, thats a really good question, melissa. I dont know. Id say every Sports League, disney is wedded to every Sports League is wedded to espn, or the vast majority are wedded to espn, not to mention things like fc, as well. Everybody wants espn to survive. I dont think espn was viable if it lost all charters 14 million subscribers. I dont think you can recover from that. So, i think this gets you to survive. Obviously, theres still going to be significant financial headwinds. I mean, i would look at their you had two doors for espn. Bad and worse. Bad was accepting a deal you probably didnt want to take, worse was not being carried at all, and having to suffer through stepup in sports right season, so, this is better than the worst case scenario, but i dont think so, the reason why you guys were talking about the stock rs reaction this is t a clear, like, obvious huge win for walt disney. This is doing what they need to do to continue to, you know, have an jongoing linear busines, theres still real challenges how they transition espn into a viable dtc business. Im talking the true core espn going fully dtc, thats not an easy transition to pull off. Rich, its karen. How do you think this what do you think the future holds for them, Warner Brothers discovery, paramount, how do you think those play out . Karen, you are asking the most important question out of all of this today as she does. Is this a new paradigm . Is this the new construct in which all programmers, meaning media companies, i dont care if its your company, nbc universal, paramount, does everybody now, when theyre doing a deal for Linear Cable Networks or Broadcasting Cable net works, do you have to include your streaming at a wholesale rate as part of that bundle . Thats obviously something that never happened before, charter has deals coming up with several other big media companies. I believe all of them are going to have to do this. Thats going to be cable safe now, given that disney just agreed to it. And does this become what comcast does if you think about comcast, they used to include peacock as part of your video package. They started making you pay for it. I wonder if that holds up if its peacock, paramount plus, everybody who subscribes to linear tv packages just get all of the streaming services, and that really changes the future of streaming, its more about the bundle again, funny enough, its more about the bundle and less about actually being dtc. Maybe thats just recognition dtc is really hard and most companies are not cut out to compete with netflix. That makes it seem like t these, you know, streaming services will be offered more adsupported, if that is the case, if theyre going to be offered free within the bundle, but it could be an opportunity for people to sample this and say, you know what, im willing to pay for it without ads . Look, i think thats absolutely true. And i think one of the questions that i have is, when you think about the adsupported, do people like do people want to upgrade and pay more to get rid of the ads . I assume charter will offer i dont know this, but i would guess theres, like, a, hey, get it for free, but you pay extra 4, 5 to get rid of the ads thats the way beepeacock first launched. Theres a lot in process, but the good news for the consumer, if you were paying the big bundle, because youre a diehard sports fan, you are now getting more stuff as part of that, your price is obviously going to keep going up, which is a negative, but at least you are not having to say, hey, im paying for Disney Channel in the bundle and paying for disney out of the bundle, and what happens with hulu and hulu probably gets included with disney , it does seem to be a net positive for consumers, as you look at it, forgetting what it means for the companies, and im really cup use whether every other company has to follow suit now. Rich, thank you for phoning in. Rich greenfield. Guy . How do you think about this . Disney, to me, you wait for the capitulation, you havent seen it yet. Charter seems to have some tailwinds. I think it has some room to the upside. But tim mentioned earlier, netflix is the clear winner, still. Its thr s netflixs world pare those teams . Play the bills, buddy. As disappointed as i am today, enjoy it while it lasts, jets fabs. Why is disney not a value stock . Debt, for one thing, right . I mean, thats something in common with bothWarner Brothers and paramount, debt. Its interesting that tim is so frustrated over the weekend, i know it wasnt just the giants. Yeah. Some of this stuff, its getting its getting really complicated, okay . So, it used to be, you sign up with spectrum, you got your cable, you got your internet, you got your line, they put a w box in there and you have the channels. Now, you have internet, so, heres what i do. I have youtube tv and the red zone we have a lot more access to cool stuff that we couldnt get before. If you wanted the directv, you know, all access plan for nfl, but then you have to start picking off all these things. Sounds complicated. A lot more complicated than they want to get back to the pund m. It really is. Somebodys going to bundle it. Its the streaming plus bundle with an adsupport ed model, which is the same thing when i watch cable tv. Theres three things i want to watch, cnbc, espn, and news. And thats it, so sometimes you walk into a new york city diner, its 12 pages long on the menu. Its hard to make the decision. Its hard to do. Guy still gets a steak. You went down the road. I know those menus. Hot open roast beef, corn if they have it what does it mean . Gravy on top. Thats not on every menu. Every menu. Stop it, tim. You greasy spoon in your neighborhood. Chocolate shake. We have a news alert, back to news, on u. P. S. The Company Announcing financial details of its contract with the teamsters union. Frank hollands got the details. Hey, frank. Hey, melissa. Details just crossed. Important to note, shares have fallen since july 25th when the teamsters announced the deal with u. P. S. That would be ratified to avoid the costliest strike in the u. S. In the last 100 years. Today, as you mentioned, u. P. S. Released their take on the financial details. We sat down exclusively with ceo carol tome. Its not a 30 billion deal. Its a great deal for our people. Its a great deal for all the stake holders. When i look at the economics of the teamsters deal, compounded annual growth rate of that deal is 3. 3 . To put that in perspective, the yield on the fiveyear treasury today is 4. 4 . And even if you look at the historical average of the fiveyear treasury, its 3. 7 . So, we came in a number that was under a fiveyear treasury yield. Thats pretty good. All right, we did ask, again, but carol would not release the exact cost of the teamsters contract, however, u. P. S. Said that 46 of the cost of the contract would be born out in the first 12 months of that deal. And tomorrow, worldwide exchange, well have the full interview with carol tome, on the teamsters deal, the holiday peak, and a. I. And Machine Learning in their operations. Thats tomorrow. Melissa, back to you. Frank, thank you. Frank holland. Surprise to you, karen . I mean, i didnt know the numbers would be exactly. I guess its a little bit better than i thought. I like u. P. S. I like carol tome. Very good she said, we will not have a strike. Said that way before, maybe she gave up some negotiating power, but i think its better overall. Im a huge marisa tomei fan, spelling is different. Go back to february of 21, this stock has bounced from that level. You have something to trade against. Valuation is okay. The stock has gotten whacked. This might be sort of a catalyst for the stock to trade higher. We have big Union Contracts to discuss, and so, you know, im not saying maybe apples to oranges, but they noir. Coming up, were watching oracle in the afterhours session. That stocks on the move after reporting results. Bring you the details from the quarter next. Plus, diamond not banking on banks. Why jpmorgans ceo isnt so optimistic about his own seconder to. Dont go anywhere. Fast money is back in two. Ai has the power to generate solutions. But if its using unverified data, it could generate problems. Your business doesnt just need ai, it needs the right ai for your business. Introducing watsonx a platform designed to multiply output by tailoring ai to your needs. When you watsonx your business, you can train, tune and deploy ai, all with your trusted data. Lets create the right ai for your business. With watsonx. Ibm. Lets create. sirens [due at target in 5 ] copy that. Make a hard left down the alley. Networks got you covered. 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