Zillow buying trulia 3. 5 billion all tock. Jack lew, oped calling for antiinversion tax legislation. Economic data capped off with monthly jobs report. Dollar tree acquiring Family Dollar 8. 5 billion, the value of Family Dollar 74. 50 a share, 24 prepare premium to the close friday. Comes more than a month after icahn called for Family Dollar to sell itself, thought it was going to be somebody else. Dollar general the name for a long time, we thought because of the great synergies that deal would bring, not without antitrust impedestrianti antiimpediments but Dollar General not the name, its dollar tree. Carl icahn may take credit but the approach made in march by dollar tree prior to mr. Icahn publicly coming into the shares. And so we know hes got a great nose, a great feel for these kind of situations. It was previous to that that Family Dollar told us it was at least exploring alternatives they did open up that process in the winter. They got approached by dollar tree. The big question that everybodys asking, where is Dollar General . Based on conversations ive had they were aware of the process. I dont have the answer to whether or not they believed they were only bidder and therefore were not moving with all apparent speed. Also, the decision by their ceo to step down next year may have figured into their not participating here. For this deal, its 11. 3 times trailing 12 months ebitda, that is march to march 14, a high multiple. Dollar general in 2005 or 06 done at 11. 1 times. Theyre saying we got a great multiple. Without Dollar General being a part they did well for shareholders. Dollar tree stock above the top of the collar, socalled collar where conserve val ushg if it were to fall, it rising sharply. Anything above 59, whatever it is, 59. 84, 59 excuse me, going to trigger the top of the range, 59. 98, thank you. So it is trading above that. Well, look, ive got to tell you, someone who follows the sector closely, dollar tree has been a magnificent operator. They had a focused yes, its end a dollar, we have named brands, yes, stores are clean, i want to contrast, however, Family Dollar never understood the pricing factors, theyve got a lot of stores that werent nice looking at all, youve got a dollar tree management coming in, creating the largest dollar chain into n. A mark where we always see stock prices up, always think that people in the country are doing well and we go out into the real world and this is where people shop. Thats me, well, i go to dollar tree quite a bit. I have a fabulous one near dollar tree, everythings a buck or less. The dollar tree format Family Dollar is multiple price points. And they will be moving into that. See the tweet . I do like i go to dollar tree quite a bit. Heaven on earth at dltr . The candy aisle. The candy aisles extraordinary. A lot of these are next to a harmon or cvs and you match the prices and youre blown away. I know the sometimes its smaller but my managers assured me over and over, i believe if the stuff is just as fresh. I think it really is. Amazing, people do not understand from new york city, i find theres a big bias, dollar tree is a place you go for all of your seasonals. Its july 4th, you go to dollar. Its halloween, go to these are just exciting places to go. I know that sounds hard to believe. They are. They are clean, wellmanaged, beautiful. Theyre going to be a larger operate, as we know. Before we move on to another big deal, one that we one with big napes 305 million breakup fee, Voting Agreement, not that important. Talk about this because still a possibility that Dollar General will reconsider, perhaps try to go over the top . Something ill be trying to find out or report on. 16 Voting Agreement with trian and Howard Levine saying theyll vote in faber of the deal, 305 million breakup fee that would give another bidder pause, perhaps, not that its unusually large, it is not. No financing contingency. But you know, well see from here. In terms of consolidation in this arena, walmart choosing not to play, in terms of getting bigger but goingite o ing its o. Dollar general stock going down, not participating in a deal that has more synergies than the 300 million synergies in this deal. Remember, these are urban places to shop. Family dollar used to love the idea, finding that area in the lower middle class area by the way, in are keeping brands, theyre not going to merge brands. Le reason is running the Family Dollar brand. Right. And on the board. Howard is a universally liked individual that does, i think i know it sounds strange can come into play, no one wants to dunk howard. The largest retail deal of the year. In fact the fourth biggest ever, biggest since macys bought may, if you can believe that. Really . Yeah. Incredible. Yes. I will tell you that if you get that Family Dollar management out in terms of the way the stores look, you bring dollar tree in, youve got a juggernaut, a price point that people underestimate. The barbell, its tiffanys and dollar tree. Theres little room in between. Walmart and target struggled so much. Two online Real Estate Firms hooking up, zillow agreeing to acquire trulia for 3. 5 billion. The deal expected to close in 2015. Stay tuned for a live and first on cnbc interview with zillows ceo Spencer Rascoff at 11 00 a. M. Will this eliminate the possibility hes going to become a cohost . We make jokes about spencer, hes the most open ceo ive come across. He did say he would destroy trulia, when he was on mad money basically that didnt work out. No. Hes making them happy or shareholders conceivably. Its all stock, of course. Its one valuation for another valuation, creating what i assume significant costs cost savings and i mean im curious to see how the stocks are reacting. We see zillow down a bit. Zillow ran up so much, such an open secret, those who have used zillow, two zillows, the zillow in the rest of the country and the zillow that didnt work in new york, bought a listing system in new york and zillow came on strong. Speak to the big Real Estate Companies that are public, theyve embraced zillow. Initially they wanted to put zillow out of business. They have no choice. This is one very expensive on earning stock. Its now up there in the pantheon of stocks almost like yes, tesla, almost like twitter, hard to value now. But it is become overnight its not a monopoly. 444 shares of zillow, implied price this hit not long ago. I dont know if youve had time to do the math in terms of a multiple here, i have not. When i was getting may up, i know it seems natural. Never. Nobody would know. 100 million in annualized cost 2016. Baby steps. Thats a ways away. Another story keep both brands and flint will report to rascoff. Trulia site was kind of leapfrog zillows one time, zillow came back. These companies are really fabulous at mobile. Zillows mobile app made zillow do quite well its one of the few companies that mastered mobile in an effective way. At the same time, expensive. Quite a multiple theyre paying at this point. Well check in on this as we get more data behind it. Could another tax inversion deal be in the works . Ho hospira, moving abroad for tax purposes. Calling on congress to pass retroactive antiinversion ledgization as soon as possible. He writes, reform will make the United States an even more attractive place to do business and ensure capital and talent are allocated more efficiently in pursuit of High Economic returns rather than low tax bills. Its interesting, some discussion of whether the president could do this through some executive action without congressional approval. I asked jack lew that during our alpha conference, we know the irs, you can do a rule making process here, it could scare everybody because what would happen the general councils and the Legal Counsel involved in the m a would say, wait a second, theyre not waiting for congress. Theres a belief, the republicans will say this is all theyre all trying to raise rates, democrats, how they want to do this, democrats are saying republicans, its never going to happen. In the end, lew disagreed with me, there is a bill a way to do rule making that would scare off people, saying the benefits may not be yours the way you think they would be and that would freeze this. I believe it does not take congressional action. I have a minority view but im starting to get traction in this view. An executive action in some way that can change those to halt it in. Yes. Right now everybodys running for opportunity, as i pointed out last week, i think it was, theres more coming. Sense then weve had two new announcements. People want to get in close a deal before the end of the year. Right. If you that, you will be okay despite what the president might have said about retro activity if they were to get something done to april of this year. The idea next years more likely you would see even the idea of competitive tax reform, perhaps, and then some part of that including invergeance and retro activity. This year, people feel the playing field, the yardage ahead of you, run down it as quickly as you possibly can and get in on the inversion before it runs out. Medtronic covidien often cited as being a fantastic deal, two great companies. Pfizer downgrade today. We saw i tell you, some big cap drug companies, pfizer, glaxosmithkline all reporting this week, by the way. Tide turned against these guys in terms of research. But i do believe that when you look at i interviewed st. Jude med a fine company, sensing its unfair in their own cohort. But they have to figure something out. I noted that small deal a few weeks ago, because it was this spin version, is what they call it asset dropdown, now two more times with mylan, the abbott labs subsid dears why potentially the hospira deal with danone. Theyre like, they dont feel great about. To generate enormous profits from the sale because you have anxious companies willing to do an inversion. Did you respond to cubans tweet, any company that does this, im selling your stock immediately. Im responding the business is to try to get rich, one of the things ive thought about mark, ive known mark since the 80s, cubans wants people to be wealthy. One thing people cheer for cuban i believe that but cuban wants people to be wealthier. Im a man of marks, always have been. Cuban is doesnt like whats happening except if you own the shares and he said point blank, its great for shareholders until they close the loophole. If youre an individual shareholder, it generates Capital Gains tax, a new corporation, paying Capital Gains. The fact is, most of the companies are owned by institutions, they dont care, just gets passed along. If youre an individual holder or paying a big tax bill because of inversions, another thing. By the way, if youre the management, youre getting grossed up, theyre not paying that bill. Theyre not paying that bill in these deals. The ceo and senior managers, thats wrong. Thats wrong. Yes. To be a ceo bananas. Look, i felt the market looked im not ill use it, topiness to the market last week, being companies that deliver good earnings and stock werent going up, that was different from three weeks ago earnings season. The company im watching now, ill get to it, reported really good numbers and its not going up. Its almost as if whats left going up right now is takeout. And you need to see a broader market. Thats not what you want, to be down right now. It is a busy week for earnings. Of course from everybody, oil, pharma, media, insurers, well get the jobs number on friday, q2, gdp this week as well. Well break it down. First on cnbc interview with blackberry ceo, john chen, hear what he has to say about the smartphone makers valuation. Squawk on the street is back in a minute. Is very individual. White chocolate lovers dont like dark chocolate. Milk chocolate lovers dont necessarily like dark or white. Before we couldnt really allow the consumer to customize their chocolate. We needed a scalable Cloud Solution allowing them to select what they are looking for. Now there is endless opportunity to indulge. Customization is made with the ibm cloud. The ibm cloud is the cloud for business. Weits not justt wed be fabuilding jobs here,. Its helping our community. Siemens location here has just received a major order of wind turbines. It puts a huge smile on my face. Cause im like, this is what we do. the fact that iowa is leading the way in wind energy, im so proud, like, its just amazing. Digest. Six dow components xuing exxon mobile, twitter gopro, twoday fed meeting, slew of economic reports, the q2 gdp advance number, jim, theyre saying this is last big week of news and data until you get to the end of august. Really is. Its funny, eight weeks a year that were just got to bring your game. This week its interesting, the stocks you mentioned. Theres expectations are low, exxon, expectations low, clorox reports, whole foods coming in with a lower bar. The analysts have been negative, cautionary on these. That kind of helps. Last week, we came in with a higher bar, its almost as if the psychologys trading week to week. There may be it may help the stocks that people are looking for a little bit less. What im worried about, ipos, supply. Dont want to see too much supply because thats what overwhelmed up in march. Youre not going to get it until ali baba in september. The synchro anies. I think thats going to be taken up. Virgin america filing. Yeah. You can smell branson saying strike while the easterns hot. One of the things i didnt like about last week the only airline that benefitted from the earnings was united, which has been considered to be the poorest of carriers. I think that im focused on yahoo which will take the alibaba money and reinvent. Yelp regarded as being the zillow of the Food Restaurant business. I keep thinking if yahoo were to come after one of the companies with the cash, buy yelp horrendously expensive acquisition but it would get buzz you see what happened with zillow, zillow, analysts saying 50, 60, 70, zillow overvalued. In meantime zillow kept winning accounts with big Real Estate Companies, im saying that the extended social Media Companies which is what zillow was, which is what yelp is, they are going to be coveted by aol. Its all stock. Yahoo s not issuing stock. But look, the yahoo right now is the yahoo youre not going to recognize a year from now. Really . In a good or bad way. Good way. Shareholders better hope so. Why do we say that . Look how well the stocks done. Its alibaba. Has there been a turn . Has there been a turn in the core business . Honestly, why do we wear about why a stock goes up . What is its aings with ing what multiple should i assign the company now that i know what the value of alibaba is, they are selling less, theyre still selling. We were discussing last week whether alibaba buys yahoo . I mean, yahoos going to have a lot of capital. When a Balance Sheet is as great as yahoos a lot of things that can happen that are positive, thats all saming. Who got to you . Who got to you . Who got to me . Who got to you . Somebody tie you up in a room . Something happen we havent discussed. What happened . Alibabas going to work are you jim . Okay. Making sure. Alibabas going i gave a lecture this within thats where it happened. Somebody got to him at the library. Alibaba, the way to play alibaba all right. Alibabas got great growth characteristics. I have been pushing vip shop on you for some time. You have. One click, they call me one click cramer ive been clicking on vip shop. Cramers one click cramers mad dash as we count down to the opening bell. Squawk on the street continues. With all the opinions about stocks out there, how do you know which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of Fidelity Investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Rock steady steady rockin all night long all right. Lets mad dash it for a monday, six minutes before the opening bell. Chipotle. Yes, chipotle, citigroup from 647 to 793. People are saying a like a cheaper stock. I was i was thinking gus frame. Well managed operation. Very well managed. These guys are not doing that. No, these guys are i want to explain to people periodically, a 26 stock is not necessarily cheaper than a 700 stock. Now, chipotle has a my multiple. There was a profitable First Quarter but this is this is, after gopro, the best acting ipo in the last couple of weeks. Be careful. If you like chipotle, play chipotle with chipotle. They are doing extraordinarily well. Even the stores where they have the signs which say, listen, we do not have Natural Organic beef because of a shortage. The samestore sales in those stores which you thought would be affected are just as strong as they were before. Chipotle doing many things right. Im trying to get chipotle. Pushing them to split, on air. Sure. Thats thats becoming a high priced stock. Keep your Retail Investor out. I dont want the Retail Investor confused. 17 samestore sales growth. What kind of multiple . By far the highest. I mean were worshipful of companies that hav