A Potential Mega Deal Between Charles Schwab & TD Ameritrade, An Exclusive Sit Down with John Malone, Macy’s Has a Meltdown

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 21 November 2019

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer & David Faber breakdown the possible mega deal between Charles Schwab & TD Ameritrade. Sources telling CNBC Schwab is in talks to buy TD Ameritrade. A deal between the two would create a behemoth with more than $5 trillion in combined assets. Plus, David speaks exclusively with John Malone in a rare interview from Liberty Media Day. Malone says he sees HBO having problems getting to the top in the midst of the streaming wars. Xerox sends a letter to HP threatening to take its case to shareholders. Plus, Macy’s has a meltdown as it slashes its outlook and sales miss.

Transcript

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0:00.0	Market Moving Insight and Analysis joined Jim Kramer, David Faber, and me, Carl Kintania, on the opening bell hour of CNBC Squawk on the Street.
0:10.5	Good morning, welcome to Squawk on the Street. I'm Carl Kintanilla at the New York Stock Exchange. Kramer's at one market in San Francisco as Dream Force continues and favors at Liberty Media Investor Day in New York. His exclusive with John Malone
0:22.8	is just moments away. It's been a wild overnight session of trade headlines, but we're
0:27.4	going to begin with some news in the discount brokerage front. Our Becky Quick reporting that
0:31.0	Charles Schwab is in talks to buy TD Ameritrade and that a deal could be announced as early as
0:36.2	today. It comes as industry players have faced disruption, moving to zero commissions.
0:40.8	And Jim, as you noted on Twitter, the unprecedented influence of Robin Hood.
0:45.9	Yeah, look, when you're out here, you realize that there are players, David talks about them a lot,
0:49.8	including soft bank, who just fund organizations with no real growth path for earnings,
0:55.5	but a fabulous growth path for revenues.
0:57.9	And this Robin Hood has been an incredibly well-funded sensation,
1:02.1	particularly among the younger demographic,
1:04.2	and it's very hard to fight a company where you play for free.
1:08.0	And that's exactly what disrupted this industry was venture capital money.
1:12.0	Think about it. It's been a real stable oligopoly for a while. Robin Hood starts taking you on
1:16.6	millions of people next to you know, your model is completely broken. So why not, yes, surrender to Schwab?
1:22.9	This makes so much sense. And now Swab is going to be the largest asset gather, really incredible
1:27.5	machine. I think Swab stock, if they get this done, we don't know the ratio. I'm sure David does, but this deal doesn't make Swab go up a lot more than it's up right now. David, let's talk about this deal. We've got some PayPal news as well. I mean, M&A is getting a little spicier as we get into your end.
1:44.2	Yeah, listen, this would be a very big deal.
1:47.5	Not completely, I mean, MNA is getting a little spice here as we get into year end.
1:47.4	Yeah, listen, this would be a very big deal.
1:49.7	Not completely unexpected when you look at it.
	...

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