Squawk Pod Host / Narrator (1:58)

And finally, we're remembering Reverend Jesse Jackson, an iconic American leader in civil rights and politics. President and CEO of the National Urban League, Marc Morial joins us.

Marc Morial (2:11)

He was someone that challenged the status quo, but he was also very much a diplomat in understanding that to move the needle for equal opportunity and civil rights, you had to also be in dialogue with those that sometimes you disagree with.

Squawk Pod Host / Narrator (2:27)

It's Tuesday, February 17th, and Squawk Pod begins right now.

Joe Kernan (2:34)

Stamp Becky by in 3, 2, 1. Q, please.

Becky Quick (2:39)

Good morning, everybody. Welcome to Squawk Box right here on cnbc. We are live from the NASDAQ market site in Times Square. I'm Becky Quick along with Joe Kernan. Andrew is off today.

Becky Quick (2:50)

Meanwhile, the US And Iran are set to hold a second round of talks over that country's nuclear program as the US Beefs up its Military presence in the region. Reports say that President Trump's envoy Steve Witkoff and his son in law Jared Kushner are expected to attend the talks in Switzerland. Speaking on Air Force One last night, President Trump said he would be indirectly involved. Yesterday, Iran's foreign minister met with the UN's atomic watchdog on X. He said in his words, I am in Geneva with real ideas to achieve a fair and equitable deal. What is not on the table. Submission before threats. Over the weekend, Reuters reported that the US military is preparing for an operation against Iran that could last weeks. If President Trump that gives the go ahead. Seeing some interest on betting sites from people that have had some success in the past with anticipating this type of thing before the end of February. I think was it is weird to be able to bet on something on the outcome of war, on the outcome of whether there is. And then I was thinking, what if it's just a really. I guess it means anything, a military effort. What if it's targeted or if it was small or does anything count? Who goes in to decide whether you get paid or. Or not.

Becky Quick (4:09)

That's complicated. That's complicated. It's one of many problems that arise. Markets. Yeah, I guess they are the deciders.

Becky Quick (4:17)

Because you know, I won a soccer game. You remember when I did. Yeah, you're kind of high. I won that soccer that big. It was the final. I won it because I picked a team that won but it was tied in regulation so they didn't win until the, the, the, you know, goals that or the things that, you know afterwards. Yeah, that's how they won. So they didn't pay them. It was a tie. The end of the thing was a tie. So they have ways of. You just gotta watch.

Becky Quick (4:44)

Well, that's the vigorous right. House always wins.

Becky Quick (4:48)

Hyatt Hotels chairman Thomas Pritzker announcing he's going to retire following the release of documents related to convicted sex offender Jeffrey Epstein and Ghislaine Maxwell. Pritzker will leave his post as the hotel chain's executive chairman immediately. Recently released Epstein files show that Pritzker maintained contact with Maxwell as well as the late financier following his guilty plea in 2008 in Florida on charges related to soliciting prostitution, including one charge involving a minor. In a statement, Pritzker said that he deeply regretted his association with Epstein and Maxwell. And in his words, I exercised terrible judgment in maintaining contact with them just every week. It's just the people that guy knew, it's just mind boggling. There's no one he didn't know.

Becky Quick (5:42)

Did you hear that he was also involved? He called himself a World Economic Forum concierge, where he would get better rooms for people and different things along the way, too. And he was speaking with the guy who had.

Becky Quick (5:51)

You mean Davos? Yeah, Epstein.

Becky Quick (5:54)

Yeah.

Becky Quick (5:56)

See, I should have tried to get in touch with.

Becky Quick (5:58)

That's why we wind up with the.

Becky Quick (5:59)

Rooms we're in, because we're basically. Cause we didn't know him. We're in a former TB sanitarium is.

Becky Quick (6:05)

Where we are, which I like. I'm not complaining.

Becky Quick (6:07)

Oh, you don't.

Becky Quick (6:07)

I'm not complaining about it.

Joe Kernan (6:09)

All right.

Commercial / Advertisement Voice (6:09)

Well, we're back.

Becky Quick (6:10)

We made it.

Becky Quick (6:11)

There is more fallout from the Epstein files as well. Reports say that entertainment executive Casey Wasserman will sell his talent and marketing agency following the release of flirtatious emails that he had exchanged with Ghislaine Maxwell. Wasserman is also the chair of the 2028 Los Angeles Olympics organizing Committee. And last week that group's executive committee backed Wasserman to continue in his current role with the Games.

Becky Quick (6:37)

The US Military in a fight with AI startup Anthropic. This is an Axios report says Defense Secretary Pete Hegseth is close to cutting business ties with the company and labeling it supply chain risk. And that would mean that any company wanting to do business with the Pentagon would have to certify it doesn't work with Anthropic. The report says the dispute is centered on how the military might deploy Anthropic's AI model Claude, with the company not wanting its technology to be used for mass surveillance of Americans or to develop weapons that fire without human involvement. The news follows a Wall Street Journal report from over the weekend that said Claude was used in the military's operation last last month to capture Venezuelan President Nicolas Maduro.

Joe Kernan (7:31)

Tease will be next.

Squawk Pod Host / Narrator (7:34)

Coming up on Squawk Pod, the countdown clock is on for Paramount Skydance if it wants to present an offer for Warner Brothers discovery. Another one that is. CNBC's David Faber breaks down today's news from the media merger saga.

Joe Kernan (7:49)

It's going to be an interesting seven days that should, that should conclude at least who is going to be the buyer here, not the antitrust side.

Commercial / Advertisement Voice (8:03)

For adults with Crohn's disease or ulcerative colitis symptoms, every choice matters. Tremphya offers self injection or intravenous infusion for from the start, Tremphya is administered as injections under the skin or infusions through a vein every four weeks followed by injections under the skin every four or eight weeks. If your doctor decides that you can self inject Tremphya, proper training is required. Tremphya is a prescription medicine used to treat adults with moderately to severely active Crohn's disease and adults with moderately to severely active ulcerative colitis. Serious allergic reactions and increased risk of infections and and liver problems may occur. Before treatment, your doctor should check you for infections and tuberculosis. Tell your doctor if you have an infection, flu like symptoms or if you need a vaccine. Explore what's possible. Ask your doctor about tremphya today. Call 1-800-526-7736 to learn more or visit.

Schwab Market Update Announcer (9:00)

Tremphyaradio.Com this episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and subscribe@schwab.com MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.

Commercial / Advertisement Voice (9:32)

Early birds always rise to the occasion for summer vacation planning because early gets you closer to the action. So don't be late. Book your next vacation early on VRBO and save over $120. Rise and shine average savings $141. Select homes only.

Squawk Pod Host / Narrator (9:50)

You're listening to Squawk Pod with Becky Quick and Joe Kernan. Here's Becky.

Becky Quick (9:55)

Let's talk about the latest corporate news. Warner Brothers Discovery is reportedly considering reopening sales talks with Paramount Skydance. A Bloomberg report notes Warner's board hasn't decided on anything yet and still has a deal in place with Netflix. Last week Paramount strengthened its offer for Warner Brothers. Among the sweeteners that they lashed out here with is a so called tickling fee that would be payable to Warner shareholders if there are any delays getting regulatory approval for a deal that could signal Paramount thinks its offer has a better chance of passing muster in Washington. By the way, don't miss an exclusive interview with the Netflix co CEO Ted Sarandos that's coming up this afternoon on Closing Bell.

Becky Quick (10:37)

Overtime has been interesting to watch this play out because it looked like Netflix was in a pretty good position and there's just some shareholders still at Warner that that think that maybe even if Netflix prevails that that Netflix would have to match a higher bid from Warner.

Becky Quick (10:58)

Yes.

Becky Quick (10:59)

And they just want Paramount. Yeah yeah yeah yeah yeah yeah yeah. Would have to match that that higher bid from From Paramount.

Becky Quick (11:06)

Well, look, it's been convoluted. It's hard to know exactly what the board's thinking, although the board has come out pretty frequently and said, here's why we think this is a lesser deal, even though you're looking at the numbers of it. But you're going to hear shareholders who say, we just want, you know, show me the Benjamins, show me the money on this stuff. And that could lead to shareholder lawsuits.

Becky Quick (11:26)

I don't know about the body language from the Trump administration. I don't know what goes on behind the scenes there because we know he's pretty close with the Ellisons. And I don't know whether at different times, but he said, I'm not going to get involved.

Becky Quick (11:36)

He said, I get involved with it. Right. All right, some breaking news just crossing the wires. Warner Bros. Discovery setting a special meeting date of March 20th. And they're unanimously recommending that shareholders vote for the Netflix merger. But at the same time, it's giving Paramount an opportunity to negotiate a better deal on this, too. They say that they're going to have seven days to come up with their best and final offer. And I'd have to say, Joe, this looks like a poop or get off the pot moment. They keep saying they're going to come up with better offer. They're saying, you got seven days to do it. Netflix is giving them these seven days to negotiate that. But stop saying you're going to address these issues, come up with a better offer, or we're going to move ahead with this vote come March 20th.

Becky Quick (12:22)

David Faber joins us now. David, all over the weekend, you know, I saw other financial types all saying, look, there's things under the surface here going on in terms of Paramount and Warner Brothers and something is likely to be happening. Can you make sense of what it actually means, David, if you were Kalshee, if it was David Kalshee, would your numbers on Netflix prevail, Would that be going down on Netflix prevail? Yeah, I think it would.

Joe Kernan (12:51)

Without a doubt it would be going down. I think that's reflected in Warner Brothers stock price going up the stage Morning Joe as well. They've got their seven days now. Interestingly, as you just noted, they did not get the could lead to a superior proposal that we might have thought they would given the enhancements that Paramount made a week ago to its bid. That seemed to address many of the concerns the Warner Brothers board had. But they did come up with the seven day. They got the waiver from Netflix. Netflix, of course, continues to have its ability to match whatever it is that Paramount does come up with and come up to, so to speak, in the next seven days, if they do, as was made clear in the press release, one of their advisors reached out to the board and indicated if they actively engage, as I expect they will this week, they will pay at least 31, if not more, because they indicated that's not best and final. So I certainly think in answer to that question, your odds have to go down on Netflix winning and up on Paramount, how much you can make your own gal. Look, I guess we have it right, because. Right. We have a partnership with them, don't we? Yeah. So there it is. It's going to be an interesting seven days, you know. And will Paramount be able to address not just Price, but also some of these other concerns that remain? Because even though they seem to address many of them, Warner Brothers has responded by saying, well, you said one thing in the press release announcing the enhancements, but in the merger agreement you offered us, you really haven't changed very much. Now, the Paramount side would say, well, when it comes to things like interim operating agreements, we can't put that language in there. We don't know exactly what it is. We have to talk to you and a few other things. One of the main concerns remains this overall LBO structure question. You know, that. That the state of the cable industry is such, and particularly for Paramount's cable networks, mtv, Nickelodeon and the like, that things could continue to decline to such an extent that when you got to close, this would almost not no longer be an ongoing entity. And there. How can we believe that they'll even be there at close? Or will they tell their banks to pull because they know it would just make them insolvent if they were to actually buy Warner Brothers at that point. And so they're still trying to say, you got to figure something out there. What would that be? Maybe an agreement where Larry Ellison would agree to put in more equity in Paramount if in fact it was no longer an ongoing entity at the time of close. But they're getting closer here. Paramount would be to at least getting their chance, Joe, to go best and final. Remember, of course, one of their complaints, whether rightly or wrongly, was, well, you didn't tell us at the end of the process that it was best and final. So they're getting that chance. They've been seeking for a long time. We also know a timeline now, right? We got the 20th for the vote of March, the shareholder vote. So just about a month away, we've got this seven days and then they'll set up for sort of iss, which continues to be important, the proxy advisory service to weigh in as well, a couple of weeks before that vote. Whomever may be the deal may be with by at that point, David, I.

Becky Quick (15:49)

Remember opinion writers a couple of times said they needed to be convinced why Netflix really wanted those assets so much that it maybe didn't make sense. At the same time, it was made clear over the weekend that, that Warner Brothers was really walking a fine line because Netflix could bolt at any time, and that's what they were worried about. You know, they might want to entertain a higher offer, but they certainly don't. That's why they've always said, we love Netflix, we want to go with Netflix, because they definitely don't want Netflix. But look at that stock price. Yeah, if I were Netflix, I'd be, I don't know, I'd be like, take, take her, she's mine. Whatever that old movie was from the 60s. Can we look at the stock price?

Joe Kernan (16:32)

I mean, it has been brutal.

Becky Quick (16:33)

Now they'll say, listen there, not Warner Brothers Netflix.

Joe Kernan (16:38)

Right, Netflix. Not Warner Brothers Netflix. I do the same thing on my show. Yeah, there you go.

Becky Quick (16:44)

Yeah, well, I don't, you know, but.

Joe Kernan (16:46)

Yeah, it's down 25%. Now, listen, the last bit lately, you know, you had that weird sell off on Friday because of that new app from ByteDance and other concerns about what video is going to look like in terms of AI and what you can create. But there's, there's no doubt that that stock has been hit hard. And I do wonder how disciplined Netflix will be if they're given the right to match because Paramount has reached an agreement of some kind with Warner Brothers guys. So, you know, we'll see what we get from them. They continue to say, nice to have. Not a must have, I'm sure what that means. Exactly. I guess, if you take it seriously. But it's going to be an interesting seven days that should, that should conclude at least who is going to be the buyer here. Not the antitrust side, but at least who is going to be.

Becky Quick (17:30)

Well, we didn't even talk about that. I'm wondering whether there's any undertones from the Trump administration. You know, the conspiracy theorists would think that they might be, I don't know, intimating that, you know, we know how close the Ellisons are to the president.

Joe Kernan (17:46)

Without a doubt. We've wanted that since the beginning. The president has said Monopoly a number of times when he's been discussing Netflix, but I don't know where that leads, if anywhere the other thing.

Becky Quick (17:55)

And you know, I like to live dangerously. But I've also gotten to the point where, you know, you've got, you're there too. You're in the WTF part of your career. I think.

Becky Quick (18:06)

In the future part.

Joe Kernan (18:07)

We were kind of there when we were young men too, though.

Becky Quick (18:09)

We were there when we were young. We were there and now we got AI. And I found out earlier, I can say that wasn't really me saying that that was AI. We can start using that. No, but I was going to talk about Versant and I, and I got a research report that was so exciting for me for what's capable for Versant in terms of, I don't know, New age media. And it could be transformed into something along the TikTok vein. So at 28, it made me happy to see that. But what I'm getting to is that that stub from, from Warner Brothers, I mean you could say if you were Paramount, you could say, look, that thing that might not.

Joe Kernan (18:49)

That might be worth less than0.17 billion in debt. Given the Versant multiple, as they like to point out numerous times, it would be basically functionally insolvent. Now, Warner brothers in their 14d9 response. It's not the same as Versant, by the way. Versant's a great company, let me make that very clear. Of course. But they say we've got live, you know, we've got free over the air in Europe. We've got, we've got, you know, discovery.comthe.comsudbury plus our streaming service. We've got any number of other things that diversify us and, and make us not deserving. Unfortunately of the three and a half times that versus trading at in terms of ebitda, which is, I think we can both agree, Joe, ridiculous and of course incredibly cheap. And maybe you and I should be thinking about how to maybe we could together. You know, a lot of rich people totally out of whack. We know a lot of rich people already, right? The things trading at less than four times free cash flow. Joe, you want to talk about an interesting retirement, right?

Becky Quick (19:46)

Preacher, meet choir. Yeah. Okay. I want to send this to you though, David. I don't know if you saw, but there are. No one knows what the future is going to be. But there is a lot more value. I think it. We shouldn't really say things like that since we're obviously, you know, have a horse in the game. But I don't understand what new media is going to look like. I don't know if anyone does. So. Yeah. What? Oh, it's streaming. Oh, that's really great. You know, it's going to be some. I think it's content and it doesn't matter how it's delivered, does it Dan.

Becky Quick (20:17)

As long as you get paid for it.

Joe Kernan (20:18)

Tend to agree with you. And I certainly know none of us know anything, so. And nobody does. That's all.

Becky Quick (20:23)

Let's keep talking.

Joe Kernan (20:24)

All right, I've concluded.

Becky Quick (20:27)

David, this was. This was real.

Joe Kernan (20:28)

David, this was real.

Squawk Pod Host / Narrator (20:31)

Next on Squawk Pod, we're remembering Reverend Jesse Jackson legacy carrying on the torch from Martin Luther King Jr's civil rights movement. We hear from a close friend, president and CEO of the National Urban League, Marc Morial.

Marc Morial (20:47)

Jesse's influence behind the scenes with politicians, not just Democrats but Republicans and others is some is influence with corporate America. Not just in front of the camera, but behind the scenes is not one widely recognized and widely known.

Commercial / Advertisement Voice (21:09)

For adults with Crohn's disease or ulcerative colitis symptoms, every choice matters. Tremphya offers self injection or intravenous infusion from the start. Tremphya is administered as injections under the skin or infusions through a vein every four weeks following followed by injections under the skin every four or eight weeks. If your doctor decides that you can self inject Tremphya, proper training is required. Tremphya is a prescription medicine used to treat adults with moderately to severely active Crohn's disease and adults with moderately to severely active ulcerative colitis. Serious allergic reactions and increased risk of infections and liver problems may occur. Before treatment, your doctor should check you for infections and tuberculosis. Tell your doctor if you have an infection, flu like symptoms or if you need a vaccine. Explore what's possible. Ask your doctor about tremphaya today. Call 1-800-526-7736 to learn more or visit.

Schwab Market Update Announcer (22:06)

Tremphiaradio.Com this episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decision and key results and statistics that may impact your trading. Download the latest episode and subscribe@schwab.com MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.

Becky Quick (22:37)

Not every sale happens at the register.

Squawk Pod Host / Narrator (22:39)

Before ATT Business Wireless, checking out customers on our mobile POS systems took too long. Basically a staring contest where everyone loses.

Joe Kernan (22:49)

It's Crazy what people will say during an awkward silence.

Becky Quick (22:52)

Now transactions are done before the silence takes hold.

Joe Kernan (22:55)

That means I can focus on the.

Becky Quick (22:56)

Task at hand and make an extra sale or two.

Joe Kernan (22:59)

Sometimes I do miss the bonding time. Sometimes AT&T business Wireless connecting changes everything.

Squawk Pod Host / Narrator (23:10)

This is Squawkpod.

Becky Quick (23:13)

We're learning this morning that Reverend Jesse Jackson has died. He was a protege of Martin Luther King Jr. And helped lead the civil rights movement for decades after King's assassination. We are joined this morning by Marc Morial, the president and CEO of the National Urban League. And Mark, it's a sad morning hearing this news. What does it mean to you?

Marc Morial (23:33)

Good morning, Becky. Good to be with you.

Becky Quick (23:35)

Always good to see you too. What does this news mean to you?

Commercial / Advertisement Voice (23:38)

Mark?

Marc Morial (23:38)

Well, this is important because Reverend Jackson was one of the last living links to Martin Luther King. He, along with Reverend Andrew Young, who of course is still vital and working hard every day in Atlanta, and Zenona Clayton, a behind the scenes executive who worked with Dr. King. The connection to Dr. King, in a real way, Jesse Jackson represented that. But I think Reverend Jackson's special contribution was the way in which civil rights became part of mainstream American politics with his 1984 and 1988 presidential campaigns, which defied the odds and I think paved the way for a Bill Clinton, paved the way for a Barack Obama. But what is not well known about Jesse Jackson is that, for example, in the 1980s when Ronald Reagan was a candidate for president, he met with Jesse Jackson. And then Jesse Jackson worked with the then Reagan White House and State Department for the release of Andrew, I can't think of his name, who was a prisoner in Syria when his plane got shot down. Jesse's influence behind the scenes with politicians, not just Democrats, but Republicans and others. His influence with corporate America, not just in front of the camera but behind the scenes is not widely recognized and widely known. I think for Jesse, at the end, he was someone that challenged the status quo, but he was also very much a diplomat in understanding that to move the needle for equal opportunity and civil rights, you had to also be in dialogue with those that sometimes you disagree with.

Becky Quick (25:29)

Yeah, that's a very interesting point to make, Mark. It was the release of Lieutenant Robert Goodman from Syria that he worked behind the scenes with. Do you think that message is one that gets kind of transmitted enough today, the idea that you have to talk to all sides to make progress?

Marc Morial (25:45)

Becky no, I think that what's missing from American politics is very much that idea and that ethos that we can disagree, we can battle, we can fight over ideas and ideology, but that we need to constantly recognize that we do need to be in dialogue. The idea that in America we can be adversaries but not enemies. The idea that we can disagree but we have to continuously work to find common ground in an America which is becoming much more varied, very much diverse, with strands of political opinions. I think it's important for leaders to recognize their paramount role in in building bridges. And Jesse was, in many respects, because of the work he did, a bridge builder. While some did not see him, I had an opportunity to work with him and see him both in front of the camera and behind the scenes. And he was masterful in many, many instances in doing that. And I think today in America, his 84 and 88 campaign and that it stood for this idea of bringing people together is something I think people want to lead the nation. In the should study, he leaves a powerful legacy. A giant oak tree has fallen.

Becky Quick (27:05)

Mark Morial. Mark, thank you for joining us this morning.

Marc Morial (27:09)

Thank you.

Squawk Pod Host / Narrator (27:11)

That's Squawk Pod for today. Thank you for listening. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin weekday mornings on cnbc starting at 6am Eastern and going all the way until 9. You can catch the best bits of that three hour TV show wherever you're listening now on your favorite podcast platform. We'll meet you right back here tomorrow. Have a great day.

Joe Kernan (27:37)

We are clear. Thanks guys.

Commercial / Advertisement Voice (27:48)

For adults with Crohn's disease or ulcerative colitis symptoms, every choice matters. Tremphya offers self injection or intravenous infusion from the start. Tremphya is administered as injections under the skin or infusions through a vein every four weeks, followed by injections under the skin every four or eight weeks. If your doctor decides that you can self inject Tremphya, proper training is required. Tremphya is a prescription medicine used to treat adults with moderately to severely active Crohn's disease and adults with moderately to severely active ulcerative colitis. Serious allergic reactions and increased risk of infections and liver problems may occur before treatment. Your doctor should check you for infections and tuberculosis. Tell your doctor if you have an infection, flu like symptoms or if you need a vaccine. Explore what's possible. Ask your doctor about tremphya today. Call 1-800-526-7736 to learn more or visit trempharadio.com.