Well break down all the mergers and acquisitions and wheel talk to miles white about his 25 billion of st. Jude. A strong Earnings Report after the bell yesterday, the company shattered estimates and is proposing a new sale structure. And well take a look at how the day on wall street is shaping up. Lets get to m a. The deal valuing st. Jude at 85 a share. Lets keep a close eye on abbott labs stock. They expect to add to earnings. Wheel have an interview with ceo white. And a crossborder hostile for medivation. We have plenty in the world of health care so to speak. Jim, lets start off with abbott. By the way, they also have this olear deal on tap. That kaem prior to them signing a confidential agreement late in february to get this deal done on st. Jude. Theyre talking big accretion. Im looking at a stock that is down pretty dramatically. Its a cash and share deal. So it is going to have the effect of hurting the overall value of the deal. 4675 in cash and. 8708 shares of abbott. Lets see what dan miles has to say. St. Jude, they particularly lack the scale, particularly against medtronic. St. Jude said over and over again its unfair somebody can invert in our industry. They do have i think better devices. I dont know if anyone would disagree with that. You think st. Jude has better devices . St. Jude. You never made money betting against miles white. You dont sell abbott, you buy it. The factors that have been in place last year during a great m a year, this is largely cash, when you youre paying so little for what youre borrowing to pay cash, the deal is going to be a creati accretive off the bat, jim. Keep app eye on that abbott share price. Its not good. This industry is ready for consolidation big time. E. W. On its own has been strong, Boston Scientific has been strong. Whos next . The mid Level Companies trying to keep up with the medtronics. I can go on and on but everything that is moving our markets down is positive. Whether it be mark fields this morning putting up a great number for ford. Where is the Playing Field not level . Its the yen. So we get the yen strong. Raising numbers caterpillar, raising number ford, for those of these health care numbers. Our market is completely upside down today. Having a little sleep problem lately. I saw when japan did what they did. These guys are morons. Theyre not just in pajamas, theyre in feet pajamas. Jim, the idea of not being able to compete against a company that has a lower tax rate . For st. Jude. I dont want to say does it because dan starks told me it does, the ceo. Dan is really straight forward. Dan is one of these guys, hes david to the goliath of medtronic david. David, do you get david . Sorry, i got it. And we havent mentioned facebook yet. Were criminally negligent. We havent mentioned facebook, we have to mention dreamworks is halted. We are expected to see a deal today and i think everybody will assume we are going to see a deal from our Parent Company announcing the acquisition of dreamworks. That is expected momentarily, one would anticipate prior to the open. From what im hearing the price will be higher given the stock is halted, higher than had been anticipated by some who were working off yesterdays stories about dreamworks. I dont know. Hostile. Santa fee hostile. You can act by written defense. Mediva medivation is a delaware corporation. They went down the road before with genzyme. That helped them a lot. It helped them a lot. The 5250 bid is the same and here they are making it public for medevation. Its not that large after preemup over medivation. You have a 5. 8 billion deal and we cant even get to it. The Health Care Consolidation its like a gun went off. You have valiant go down there and a guys wears his hair shirt saying listen at the same time you have Major Companies making a deal, abbott making a deal. When will pfizer come back . Moments ago you thought the valiant was the peak of negativity. Its like february 10 when we got the bottom of the market because Bernie Sanders won in new hampshire. When theyre in front of congress, that tends not to be the beginning. It tends to be the end. How about the fact he apologized for higher earnings per share . Someone apologized for raising numbers, valiant. Some of the stuff they did was pretty egregious. You think, huh . I do, i do. I saw what they did with salient. I can tell you stories about that but im not going to tell because its personal. This is an amazing market. Remember yesterday what was everyone talking about, all the owe wreck . The deal is out on dreamworks. 41 a share in cash. That is well above the value of dreamworks. Thats huge its as big as Bristol Myers. I can tell you, this deal came together very quickly. As has been reported, mr. Katzenberg, who created this company and controls it with his 60 vote will no longer be a part of it. He will act in consulting agreement with nbc universal, with comcast but will not be a part of running the company at this point. That number is a big number, particularly for a company thats not expected to generate lets call it more than 200 million in ebidta. Thats years out. Maybe up to 300 million at some point. They will talk about efficient revenue sinnynergies and bring multiple ebidta down to a high singledigit level. It will be interesting what people think many people find it quizzical. I think they see the slate of the movies, what they can do in tv product, the distribution there beyond what they have. Also, theme parks down the road but i dont think theyre working that into any of the numbers. Mr. Katzenberger created quite an empire. He has a mammoth studio. There may be an ability to cut a lot of sgna. Kung fu panda kung fu panda took me by surprise. Apparently. I like kung fu panda. I watched it with my daughter again recently. I was busy working on the Bristol Myers interesting. That tells you something about your life and mine. Facebook proposing a group of nonvoting shares, which would give Mark Zuckerberg more earnings on the company. Were focused on the long term. Facebook has always been a company where we can early on we received general offers for companies trying to buy facebook and our structure helped us resist that. They would be class c shares, essentially given as a dividend. Mobile revenue is up 75. Clinic, clinic. Youre talking about a company that was created for advertisers. Its very strange. Im reaching for my phone. Facebook is unique for this. This is what it works on. And the amount 82 mobile. You can order. You watch the canvas, the canvas ads and then you click. Thats why i thought the most important thing on this call, everyone should go and read this is a lowes campaign for a call to action with millennials. So there you go. Millennials, yes, you really reach them tluch this device and they use this device and everybody else has been hurt by this device. Apple has made these guys into a Great Company because this is what i use for facebook. Why hasnt twitter done it . This thing is a juggernaut. The engagement for facebook is stunning. The average log on is for 50 minutes. You have to consider this is the first stop for millennials and many others to consume media period. So the larger issue also or question is can old media, so to speak, can you compete with these guys as this becomes more and more the norm, where you go to consume media . Guardian has a piece out this morning that says Mark Zuckerberg owns the internet, plain and simple. Thats a little aggressive there. I think it says a lot of great things about we go to where the eyeballs are but i think that they are sympatico. She says you want to augment your tv campaign, you come to us. Tv is still the new tv. This is not an antitv. 75 of incremental ad spending over the last year has gone to facebook and google. Theyre splitting all advertising spending not even splitting. Facebook is taking more it have. They lowes, you are always see those ads. But the effective ad is the point and click here. If youre annoyed that zuckerberg wants to maintain control like this, your answer is what . Go buy Something Else . More control. The more control, the higher the stock goes. I do not want to go up against this guy. Do i not want to compete against him. Most people say its not just they built an apartment complex so they can hire all the science guys. But they also did something i thought that david would have mentioned right up front. David, theyre using real accounting. Theyre using gap, theyre saying that the expense of hiring people with stock matters. This was an answer to many of the questions that david raised at the beginning of the week. You know why theyre doing that . Because of you. Because they can. Do you imagine what twitter would report if they had done that . Look, i wasnt contacted by twitter to take the top job yet. Its still early. Going up against these guys, you know, this is like going up against this is like a death star. Its a death star for everybody else. Going up against mike tyson when he was 19. Man, mike tyson. Remember him with the license and the driving . I just remember when he was 19. I met him. Hes an intimidating presence. I always had this with me, mike tyson handshake. Got it. When we come back, an exclusive with miles white on his deal with st. Jude and Andrew Liveris of dow as they prepare to merge with dupont. Paypal, raytheon, all of them pretty good, a lot of raises today. More from squawk on the street and post 9 in a minute. Jake reese, day to feel alive well be with you shortly. Yeah right. Xerox Predictive Analytics help companies provide a better and faster customer experience. Hello mr. Kent. Can i rebook your flight . Im here Customer Care can work better. With xerox. Wait im here mr. Kent . gasp shark diving xerox personalized employee portals help Companies Make benefits simple and accessible. From anywhere. Hula dancing . Cliff jumping Human Resources can work better. With xerox. Dow chemical just reporting first earnings topped expectations. This is the fourth consecutive quarter growth. I talked to liveris this morning. I think it gave us the opportunity to do this terrific deal with dupont. We have had, as you said, 14 straight quarters of earnings growth, our market cap has been rising, Strong Performance these last many years gave us the right to have the structure that creates three new focus companies, that includes the new dow, that will be very focused. If you look at the markets that grew on the quarter, infrastructure, packaging, our ability to grow margins in those businesses and the outlooks being so strong for those markets will focus downd, were going to create 300 billion shareholder value. So sell, buy, i dont know what you would call it. Lets call it a merge and spin to create three growth companies. Lets object about where the merger is. I spoke to ed breen last weekend. The two companies are proceeding very well along the course of merging and splitting the three. We have a new antitrust department activism. Its the most active theyve been brg reagan. Im wondering if someone might say this is creating a dominant c company. We cant have this happen, the farmers have to be protected, we got to stop this deal. Dare i say its exactly the inverse. This is a Growth Company that gives the farmer more choices. Its pro competitive. Its not just the seeds point you just made but its the chemistry point. If you follow all the players in this space, the farmer looks for an integrated solution because theyre getting less and less choices as, you know, weeds get resistant to current chemicals and pests get resistant to them and therefore the seeds that you used to have resistant to those chemicals are no longer available. Up need different answers and Different Solutions and this new ad company will actually provide a pro competitive Growth Opportunity for farmers to have different suppliers. And integration costs. Have you to scale up r d. In chemistry, in biology, in big data. That confluence of needs by farmers creates the opportunity to create the number one ad player in the space competing with the othering about players. Where are we in that cycle . The commentary is a little downbeat on that. Maybe im a little too bullish. Can you rein me in . I dont think i want to rein you in. If you look at our outlook on the markets i mentioned already, im going to throw in agriculture, agriculture is definitely going through one of their normal correction cycles so out there is the beginning, pick your favorite row crops, corn, soy, cotton, you know humanity is going to need more of those. You saw our results in agriculture. We had flat margins but declining sales because increased inventories, especially in latin america, which has its extra problems but we produced good margins because of our new product launches. Its back to the first question. New farm solutions, the farmers will need that for sustainable agriculture. Despite all of that you look at our performance on agriculture and we were very, very happy with the margins we got there. Thats jim with Andrew Liveris earlier this morning. When we come back on cramers mad dash, well count down to the opening bell. Coming up, miles white, his Company Buying st. Jude on a 25 billion deal. Futures still down off of the bank of japan. More squawk on the street straight ahead. This just got interesting. Why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card all right. Were doing one of those seated mad dashes. Well go right to the opening bell. What do you want to talk about . Earlier on money, there was a negative on sarepta, some sort of drug that could work. Adam, who has correctly chronicled this thing the whole way from the street. This is saying that Janet Woodcock has spent time with the parent and the children of this terrible disease and that maybe this is the fda finally saying, listen, we cant reject drugs that can work. Overriding the panels recommendation, is that what youre saying . Which happens. Not often. The fda is saying these people are in dire need, you got to give them something. I think this would be great personally because the safety profile is very good. For a drug that may or may not work but would hurt anybody, give them something. What a crime it would be if it works and they didnt give it to them. Anyway, pointing that out. Anyway paypal. There has been a negative guy, gene muncer. Hes starting to talk about his negative thesis being derailed. Dan schulman delivering, delivering, delivering, muncer slamming, slamming, slamming. The idea of potential ecosystem deals with visa and mastercard, bring paypal into the card. This is the millennials credit card money. Dont forget venmo. I still use cash. I have checks. Theyre dynamite. I do think that paypal in an ecosystem and sarepta. Ive seen your wallet. You have a George Costanza wallet. Sometimes he throws his money on the floor. Thats about to explode, that wallet. Theres the opening bill of the s p. On the big board it is s p global, formerly known as mcgrawhill international and the ryder cup captains for the european and u. S. Teams. You mentioned mastercard. We should go back to what charlie sharp, ceo of visa, when they reported, that stock was down 4. At the end of daft, it was down a buck and change. These two companies are doing very well. Visa is hard to explain, theyre getting costco from american express. American express was slamming costco. I wouldnt sell visa, i wouldnt sell mastercard, i would buy paypal. Ford, record operating margins. North america opnet nearly doubles. I thought it was a terrific quarter. The operating cash flow 2. 7 billion is terrific. Europe pretax, ashia pacific, theyve got suvs people like over there. South america, i dont know. Valet reported a profit. I dont know how that could be. They did say south america would be the market not in the black for the year. Its an alltime record quarter after a record year. We grew our top line, we grew our bottom line. Our tremendous performance across the portfolio of our business and we reaffirming our guidance to have year that is as good as if not better than last year. What do you think about these numbers being sustainable . I think theyre fine. My problem has been from the beginning, the subsidizing nature of the japanese government. We all seem to forget that when you look that toyota and honda sold 2. 5 million and 1. 5 million cars here. This business is going to come back to ford because that stronger dollar is going away that has hurt ford. People are selling what they should be buying. Caterpillar is a huge winner, ford and gm is a huge winner here, ibm and hp are huge winner. Cocacola. You sell those stocks off of the end being strong . You go to college to get stupid . Beats and raises out of aetna, out of raytheon. Raytheon, this is the Third Straight defense contractor. I got to go on the conference call. Lockheed martin was amazing. North r Northrup Drummond was amazing. Im going to take over for a minute. The on tecontent, which is onlyg more highly valued, as in the case of dreamworks, but dreamworks is going to be up sharply given that 41 a share allcash deal. They expect the deal to close in the Fourth Quarter of this year. Its a big price. When you look at the highest price targets out there, they were based on a ten multiple to ebidta being discounted back. Ther