Alley and jon fortt is at post nine, and along with kayla tausche, and joining us is steve case. Great to be with you, good morning. And lets talk politics, with Hillary Clinton widening the lead in the general election and a new poll gives her a 12point lead over donald trump, 4937, and 55 said they would never vote for trump compared to 33 for clinton and steve, we have been over the potential impact on the entrepreneurships and the vc and the changes because of immigration, and trade, and what is your read on the election overall right now . Well, i was over at the capital this morning meeting with the senators and the democrats and the republicans to the ask about the innovation, and entrepreneurship which is front and center, and frankly so far, not front and scenter. A lot about the topics, but not how the nature of work is changing, and the next wave of innovation is going to be requiring a different mindset from entrepreneurs and policy makers and regulators, and hopefully that is more of the focus as we move into the general election cycle in the coming months. Is the socalled gigeconomy getting an unfair wrap . Well, no, because more people are doing something that nobody has been doing ten years ago. It is a flexibility economy, and giving flexibility to consumers and many like uber and handy are getting traction. It requires people to step back, and if more and more people are a part of that and the traditional way we think of work as fulltime or parttime and now people work for Different Companies in the same day, and how you think about that and manage it. It is more common. And in the first wave of the internet, it is about risk and how you build it, and the second wave is about risk and how the mag it, and the third wave is policy risk, and can you figure out the regulatory risks and can you partner with other companies and be successful in transportation, health care and other sectors that are ripe for disruption. And you have to focus on the future, and make sure that the entrepreneurs are ripe to drive that future. And along the lines, it looks like the president ial election is about turnout, and who turns out to vote against a candidate more than perhaps who they will vote for. Do you anticipate based on what you see from Hillary Clinton and donald trump right now the presumptive nominees that you will be voting for a candidate that supports your third wave vision or against one who you think it is a detriment to the third wave vision . Well, i try to stay out of the politics to focus on the po policy to work in a bipartisan way. And how do you do one without the other . And between now and november, i hope that the discussion is about the future from both Hillary Clinton and donald trump. And donald trump has said some very strong things about immigration. I mean, a ban on muslims, a wall on the mexican border, and you have some stuff to work with there and Hillary Clinton has said some things about the gig economy, too, and you are seeing something, and what is your take . Well, we need to refine the discussion, and immigration is not just a problem, but an opportunity, and we need to win what is the global battle for ta talent lent. And we need to move the discussion forward and the primary cycle has its oeb kin micks and as we are moving into the general e e lek shurngs i hope that both of to candidates e focus on where the country needs to go with innovation and entrepreneurship, and it implicates access to cash, and crowd funding, and the equal level playing field, and not just in Silicon Valley and new york has access to the capital, and how do you deal with the flexible economy . There are things that need attention, and people need to work with each other and not just past each o ther. Some of the talk, steve is about moving back from europe, and back from mexico, and without the fact that it is Small Businesses, and entrepreneurs that create the jobs from the groundup, and a commitment from either candidate for job creation organically in this country . Well, they are talking about the Small Business, but it is important to recognize as we talked about this morning with the senate, it is not just the Small Business sector or the big business, and fortune 500, but it is the high grow startups which is the source of the job creation and the economic growth, so yes, there needs to be Small Business in terms of the regulation, and lending and yes, maybe a big business and whether it is trade or tax issue or the global tax issues, but the issues of the entrepreneurial sector across many aspects of our lives and economy really are about things about access to talent, and whether it is education or immigration, and we need to view these as three different parts of the business world, and have policies that make sense for each of them and putting the entrepreneurs and the innovators that are the job creators front and center because of what is happening in the third wave. Move on to a different topic, Mark Andreessen says he sees the big tech coming, and he said quote, we see more e deals kind of in consideration and negotiation than we have in four years. He says that he also has a team on the inside of the firm to deal with preparedness, and so is this really what the next couple of years are going to be looking for . Well, we will see more ipos and more m a and i worked with the kopg fcongress for the jobs ramping up the sarbanes regulation, and we will see the accelerati acceleration, and a lot of the companies are doing quiet filings made possible by the jobs ak, and you will see a more robust ipo market, and as mark said, a more robust m a market, and that is the trend for the next two the three years. And steve, m a, and the sort of the bummed out m a looks like the 11 ki kings lane deal got b bath and beyond for a steal. I mean, you could have exits both ways, and they are very different types of exits. Yes on the m a, and there are exits where the Companies Need to sell, and the valuation s s lower than last round, but also, m a with linkedin, it is a premium to the public valuation, whether it is public or private valuation, and depends on the strategy, and the product and the team, and the momentum. But i do believe that when we back the companies at revolution, we have a built to last mentality, and thinking of built to last, and building an Iconic Company that is ultimately going to go public is a strategy. Some Companies May decide to sell because of the strategic or the financial reasons burk in general, the buys yas with aol how do you get public and then use the currency to do other things strategically including tuckin acquisitions. And generally, we like to back the companies that are built to last and not built to flip, and then often thinking of the ipos and we are pleased to to see the ipo market strengthening and i think that it will continue to strengthen over the next couple of years. Steve, we have 168 unicorns working with at this point, and how many of those are going to end up having to sell rather than going public . Well, the market in the last couple of years and the late stage Growth Market has been frothy in places like Silicon Valley, and less so in the areas like detroit or pittsburgh where the cash valuations are lower there, and it is not the mania that is happening in places like Silicon Valley. No question, some down rounds either in the private market or when the companies go public or the m a transactions that are lower at valuations. At revolution, we are trying to stay out of that unicorns, but stay with the startups with the strategies that will bear fruit in the next couple of years. And to you think that money then starts to go other places like massachusetts and california and for sure. And more broadly, steve, you have seen the number of counties that are accounting for most of the startup growth, and new business growth, and it is like 20 counties. Yes, and lit broaden, and we will see that, and it will accelerate in the third wave as the rest will rise, and the regions are getting more access to the funding, and access is a way to venture lease more startup firms. You are seeing Great Success in baltimore with under armour, and chipotle, and there is a 4 billion street there in provo, and Virtual Reality has magic leap in Fort Lauderdale in florida and not Silicon Valley or boston. So the whole strategy is why we have raised the 25 Million Growth Fund is to invest in entrepreneurs in other places, and the valuations tend to be lower than if the companies were in San Francisco or new york, and so it an arbitrage opportunity that we are capitalizing on, and we believe it is going tok is ale it is ra the wave in the next two years. Fascinating. And now, the forecast is that facebook is going to be all video in the next year. We are seeing a decline in text, and if i have a guess it is video, video, video. And that comes with Mark Zuckerberg after an appearance with jr. Ri seinfeld. When i came out with Facebook Live when i came out, i did a couple of the Facebook Events and i was struck by how profound that platform is and how great the technology is doing, but also driving the audiences. So their focus on the video makes sense. It is going to continue to be a more important part of the business, but while individuvid more important, other media forms including text is going to be important as well. But they have done a great job of not just expanding from the social media platform to be a Broader Media platform, but embracing video, and Facebook Live is a platform to watch. And steve, when that facebook vp made that statement, was she overstating her case a little bit . I mean, they have got not only 360 video, but also 360 images putting into place, and people still need text to xhup kate what is in the video, and sometimes you want to browse it, and you dont want the audio up, and still a real important case for instant articles and things like that five years from now on facebook . Yes, probably, and that is what is said is that the momentum is, and the puck is and where the Strategic Focus s and that is accurate and makes sense, but to assume that all other forms of media is going to be disappearing is taking it too far. We have seen that with the internet evolving from the first wave to the second wave to the third wave and you are seeing the evolution, but even something that is very popular and email is still used and these things ared ed things are what we are doing is too ambitious in replacing other forms is too much. And in recent weeks, it has been about microsoft, and linkedin, and i would like to hear your perspective of whether the giants will swallow up some of the pressured companies that john was mentioning. Well, there will be, and ak sell ration of the m a, and linkedin is a big deal. It has a big platform been around for a while, and mic microsoft thought it was 50 premium on the Public Market valuation, so there are going to be some of of the Larger Companies that are established brands that are acquired by the bigger players and not just tech company, and some of the fortune 500 companies are realizing in the third wave that tech is important, and even in the automobile industry, and health care, education, energy, food, transportation, and some of the big players are also looking at the m ,a and it the smaller growing companies and not the bigger established companies, but you will see a lot of m a, and it is going to be shifting from entrants to more exits and that is the focus for us at revolution. One of the reasons for the folks the read your very good book. Appreciate the plug. Steve gates joining us from d. C. Thank you. Thank you. And now, the dow is up 73 point, and the nasdaq is up 21. And of course, we have the fed meeting wrapping this afternoon, and largely decided to stay pat on the Interest Rates, but we are see what happens in a couple of hours and oil is continuing the pullback on the disappointing inventory there, and hopefully after getting a warning letter from the fda for serious violations at a food preparation facility in massachusetts. And the stock of whole foods is down on that news. Cisco is also are falling after being downgraded to neutral by goldman sachs. Goldman is the biggest loser on the dow, but the dow is of course still positive. Carl . And when we come back, the drama at viacom continues. Sumner redstone pays a visit to paramount. And also, the government officials are still trying to figure out how the Russian Hackers broke into the dnc. And we will talk to one of the stars of veep and our arrested Development Conversation with tony hale when squawk alley continues. Incredible bladder protection in a pad this thin, i didnt. Think it would work, but it does. Its called always discreet for bladder leaks, the super. Absorbent core turns liquid to gel. I know im wearing it but no one else will. Always discreet for bladder leaks. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. In media news this morning summer redstone is making appearances in viacom and paramount within the last week. He met at paramount with the studio chief brad grey and then at viacom he met with lez moon vez. And now joining us is Ben Silverman who is with promulgate i ing. Thank you. And what are we supposed to be thinking of viacom when there are comments of redstone and shari and other players . Well, it is unblooelievable p opera in our town, and everybody is obsessed constantly with ins and outs and i know that shari redstones favorite show is jane the virgin which i produced for the c with, and i have had at great relationship with cbs and they have been an incredible partner, and i have seen the amazing work of les mo moonvez, and he is a champion of the content that he produce, and he has been smart to the wait, and the showtime trade is extraordinary to me, so when i look there, i have to lean there. Obviously on the viacom side, you are nervous as you look to the partner to supply to, and you are wondering if there is changes in the executives and new structures so i can see why there is concern, and i cant imagine going to work everyday and having to the read about your bosses like that. And when he visited paramount and met with les moonves he did not get out of the car and they came to him. Does that mean anything to you . Is i dont want to comment, but i would imagine the photoop of him navigating out of the car might not have been worth the trouble, so i like the description of that, and i would read into it everything that you would read into it. And the volume of the content that is not adsupported whether on netflix, amazon, and it seems to have helped to create a different level of content, and im curious, how is this unbundling trend that the whether it is moving quickly or slowly that we are starting to see unfold, how is that going to be affecting the type of content that people are getting to consume . Well, what is surprising to me is that the content has not evolved as much as you would think. There are onehour and halfhour Television Shows and some more serialized or procedural and no laugh tracks, but there are still dramas, and game shows and comedy shows and reality shows and my thought is that i am a fascinated when the screenwriter and the code writer gets together, and you look at Virtual Reality, and that is going to be interesting, but it is shocking to me of how the formats of television produced has not changed so is much. And are you going to get with the gamers in Silicon Valley . I am working closely with apple who is an Amazing Company and culturemaker, because when you brought up the advertising part of the equation, they are sitting on the fence looking n and part of the four giant company, and massive oligopoly, and are they holding onto the traditional system, because it enables their system to work so well, but if im an advertiser, i am looking at the digital delivery transform my content and how do i get close to the culture other than buying a 4 million ad at the super bowl, and it is tough when that culture is created elsewhere. When you are uk ttalking abo the screenwriters and the code writers and example of what that could look like . Well, facebook individuvideo up on the show, and im long on where they can go and enter that world, especially around Facebook Live. I also look at oculus which is a quiet killer inside of the organization, and they will put money behind okay culus are, bee it is defensible to wall street of technologyled versus funding content which they could potentially get punished for, and they are encouraging people in my community to work with the ok oculus teams now, and we have had subsequent meetings with them to talk about ways to bring our creativity and match it up with the codeled technology. Are it is clear that facebooks m. O. Is engagement, and clear what netflix wants the do, but what about apple . We see them toying with the time warner acquisition, and original series on apps, and where do we see apple entering the marketplace . From what i know as a yuser s well is how extraordinary the apple tv interface is and how dynamic apps as television can be. And thinking of the cnbc a