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First on CNBC: CNBC Transcript: CNBC's David Faber Speaks with Leslie Moonves, CBS Corporation President and CEO, on CNBC's "Squawk on the Street"

WHEN: TODAY, FRIDAY, MAY 8TH

WHERE: CNBC'S "SQUAWK ONTHE STREET"

Following is the unofficialtranscript of a FIRST ON CNBC interview with Leslie Moonves, CBS CorporationPresident and CEO today on CNBC's "Squawk on the Street." Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000378003and http://video.cnbc.com/gallery/?video=3000378001.

All references must besourced to CNBC.

SIMON HOBBS: SHARES OF CBSMOVING SLIGHTLY LOWER AFTER THE COMPANY REPORTED EARNINGS LAST NIGHT. LET'S GETOVER TO DAVID FABER. HE IS LIVE WITH IN NEW YORK WITH CBS CEO. OVER TO YOUDAVID, GOOD MORNING.

DAVID FABER: THANKS, SIMON,THAT IS RIGHT. WE ARE HERE ACTUALLY AT THE HEADQUARTERS. OUR HEADQUARTERS.THANK YOU FOR COMING OVER HERE.

LESLIE MOONVES: THANK YOU. IT'S GOOD TO BE HERE. I FEEL LIKE I'M AT ENEMY TERRITORY HERE AT THE HOMEOF NBC.

FABER: WELL, WE CERTAINLYDON'T FEEL THAT WAY. BUT YEAH, I KNOW. WE WALKED THROUGH, WE SAW JIMMYFALLON'S PEOPLE.

MOONVES: RIGHT. EXACTLY. YOUKNOW, HEY. JIMMY'S GREAT. NBC IS GREAT. AND WE LOVE COMPETING WITH THEM.

FABER: WELL, I'M GLAD YOUMADE THE TRIP ACROSS THE STREET OR A COUPLE OF BLOCKS. LET'S START OFFTHOUGH, YOU, OF COURSE, REPORTED EARNINGS LAST NIGHT. A GOOD NUMBER BY MOSTMEASURES. THE STOCK NOT DOING MUCH TODAY, LESLIE. BUT PEOPLE ARE FOCUSED ON THEUPFRONTS AS PERHAPS THEY SHOULD BE AND WOULD LOVE TO GET A TAKE FROM YOU ONWHAT YOU ARE SEEING THERE. BECAUSE THERE HAVE BEEN POCKETS OF WEAKNESS,IT SEEMS, IN TERMS OF ADVERTISING SALES. HOW ARE THE UPFRONTS?

MOONVES: WE ARE EXCITED. NEXTWEEK, NEXT WEDNESDAY IS OUR UPFRONT PRESENTATION. THE OTHER NETWORKS GO ACOUPLE OF DAYS BEFORE THAT. WE ARE ANTICIPATING VERY NICE INCREASES IN CPMGROWTH. WE ANTICIPATE MORE VOLUME. ONCE AGAIN, WE THINK BROADCAST IS THE ONLYSAFE BET OUT THERE. A LOT OF CONVERSATIONS ABOUT DIGITAL ADVERTISING ANDOBVIOUSLY, WE ARE AN IMPORTANT PLAYER IN THAT. WE HAVE A LOT OF DIGITAL SITES.

FABER: YOU KNOW, IT IS FUNNYYOU MENTION THAT. BECAUSE OF COURSE, AS YOU KNOW, I INTERVIEWED BARRY DILLERABOUT A HALF HOUR AGO.

MOONVES: EXACTLY.

FABER: HE WAS TALKING ABOUTDIGITAL ADVERTISING AS SORT OF BEING AN UNENDING SEA. AND THEREFORE, YOU NEVERREALLY GET THE MONEY YOU WANT.

MOONVES: WELL, IT'S TRUE.THERE IS SO MUCH AVAILABLE. THERE ARE SO MANY SITES. THERE ARE MILLIONS OFWEBSITES AND MILLIONS OF PLACES TO PUT YOUR MONEY. IT'S AN UNENDINGSUPPLY OF INVENTORY. NETWORK, THERE'S SCARCITY, THERE ARE SPECIFIC NUMBERSATTACHED TO IT. AND YOU KNOW WHAT YOU ARE GETTING. AND NO MAJOR PRODUCTCAN EVER BE LAUNCHED WITHOUT THE USE OF NETWORK TELEVISION. THAT'S WHYBROADCAST IS ALWAYS GREAT.

FABER: ALWAYS GREAT?

MOONVES: ALWAYS GREAT.

FABER: DESPITE WHAT SEEM TOBE SOME CHALLENGES. I MEAN, YOU HAVE MANAGED THROUGH THESE YEARS, AND WEHAVE TALKED ABOUT IT MANY TIMES TO FIND SO MANY NEW REVENUE STREAMS. AMAZINGLYENOUGH, I THINK, WHAT IS IT, 40% OF YOUR REVENUES NOW OR – DIDN'T EVEN EXISTFIVE YEARS AGO?

MOONVES: LOOK, OUR WORLD ISCHANGING SO RAPIDLY. THE MOST EXCITING THING FOR US, AND WE TALKED ABOUTIT ON THE CALL, AND WE ARE GOING TO TALK ABOUT IT AT THE UPFRONT, RIGHT NOWWITH OUR CURRENT PROGRAMS THAT ARE ON THE AIR AT CBS, WITH DVRs, WITH ONLINEWATCHING, WITH CATCH UP, THERE ARE MORE PEOPLE WATCHING OUR CURRENT SEASON OFSHOWS THAN WATCHED 11 YEARS AGO. SO THE THOUGHTS OF THE DEMISE OF NETWORK TELEVISIONHAVE BEEN GREATLY EXAGGERATED BECAUSE ONCE AGAIN, YOU NEED TO BE A NETWORK, BUTYOU ALSO NEED TO MOVE FORWARD WITH THE DIGITAL PROPOSALS AND DIFFERENT WAYS TORECEIVE YOUR CONTENT.

FABER: RIGHT. WE ARE IN THEMIDST NOW OF WHAT SEEMS TO BE SEMINAL CHANGE AND THE WAY PEOPLE WATCH CONTENT.

MOONVES: CORRECT.

FABER: WE TALK OFTENTIMESABOUT THE BUNDLE SORT OF STARTING TO CHANGE. ALTHOUGH PLENTY OF PEOPLE STILLTAKE IT. BUT DOES THAT QUESTION YOUR BUSINESS MODEL? EVEN PEOPLE STICKINGDIGITAL ANTENNAS NOW ON THEIR SETS TO GET CBS FREE. DOES THAT BECOME A THREATTO YOU?

MOONVES: FRANKLY, THE SMALLERBUNDLES, FOR US, AND WE ARE ONE OF THE FEW COMPANIES THAT FEEL THAT WAY BECAUSEWE DON'T HAVE A LOT OF SMALLER CABLE CHANNELS. WE ARE CBS AND SHOWTIME. THOSEARE OUR MAJOR BRANDS. IN A SMALLER BUNDLE, A BUNDLE LIKE VERIZON IS TALKINGABOUT, OR SONY IS TALKING ABOUT, OR PERHAPS APPLE, AS WELL. THE SMALLER BUNDLEWE WILL BE A MORE IMPORTANT PART OF IT. IN A 20-CHANNEL UNIVERSE OR A500-CHANNEL UNIVERSE, YOU HAVE TO HAVE CBS. YOU CAN'T LIVE WITHOUT US. IN ASMALLER BUNDLE, PERHAPS WHERE PEOPLE ARE PAYING MORE FOR THE CHANNELS THEY WANTBUT LESS OVERALL, WE ARE GOING TO GET A BIGGER PIECE OF THAT PIE. NO MATTER HOWYOU RECEIVE YOUR CONTENT, YOU HAVE TO HAVE CBS.

FABER: THAT'S A NICE THOUGHT.

MOONVES: IT'S A NICE PLACE TOBE IN THE WORLD.

FABER: IT WOULD SEEM TO BE,BUT IT HASN'T STOPPED YOU FROM GOING DOWN THE STREAMING ROUTE, IF YOU WILL. CBSALL-ACCESS.

MOONVES: CORRECT.

FABER: STARTED ONLY RECENTLY.BUT I'M CURIOUS, WHAT KIND OF TRACTION ARE YOU SEEING?

MOONVES: IT STARTED LASTOCTOBER. IT'S ONLY BEEN UP FOR SIX OR SEVEN MONTHS. WE ARE EXTREMELY PLEASED.WE ARE NOW SIGNING UP A NUMBER OF OUR AFFILIATES. SO RIGHT NOW YOU CAN RECEIVETHE WHOLE PACKAGE INCLUDING LIVE STREAMING IN 55% OF THE COUNTRY. THE MAJORITYOF PEOPLE ARE USING IT FOR CATCH-UP OF SHOWS THAT ARE CURRENTLY ON THE AIR.THIS SEASON, PAST SEASONS. THE NUMBERS, WHICH WE ARE NOT GOING TO REPORT, AREBETTER THAN WE EXPECTED. AND ONCE AGAIN, AS I SAID, WE DON'T CARE WHETHER YOUWATCH IT ON CBS OR YOU WATCH IT ON CBS ALL-ACCESS, OR DVR, WE ARE STILL GETTINGPAID FOR IT.

FABER: HOW MUCH AM I PAYINGFOR THAT AGAIN?

MOONVES: $5.99 A MONTH. ABARGAIN.

FABER: A BARGAIN. AND YOU AREFINDING PEOPLE ARE WILLING TO PAY THAT NUMBER OR AT LEAST ABOVE WHAT YOU MIGHTHAVE ANTICIPATED, ALTHOUGH AGAIN, YOU ARE NOT GIVING US THE NUMBERS.

MOONVES: WELL, LOTS OF PEOPLEARE SIGNING UP FOR IT AND IT ALSO SHOWS THE VALUE. IF WE ARE GETTING $2 A SUBELSEWHERE, PEOPLE ARE PAYING $5.99 FOR MORE OF THE CBS PRODUCT.

FABER: I WANT TO BRINGSOMETHING ELSE UP THAT HASN'T BEEN TALKED ABOUT – AT LEAST WE HAVEN'T. IN 2016THERE IS A SPECTRUM AUCTION COMING UP. THE FCC GOING TO – AT LEAST AS OF NOW.THIS COULD CHANGE.

MOONVES: CORRECT.

FABER: START SELLING OFF SOMEOF THE BROADCAST SPECTRUM TO WIRELESS COMPANIES.

MOONVES: RIGHT.

FABER: SEEMS TO BEUNSATIABLE, THE APPETITE FOR WIRELESS COMPANIES FOR SPECTRUM. ARE YOU GOING TOBENEFIT FROM THAT? IS THERE A POTENTIAL HERE OF A WINDFALL FOR CBS?

MOONVES: WELL, WE HAVE 27TELEVISION STATIONS. 13 OF THEM ARE CBS STATIONS THE REST ARE CW OR INDEPENDENTSTATIONS. WE ARE ABSOLUTELY GOING TO LOOK AT THE POSSIBILITY OF SELLING OURSPECTRUMS. NOT IN THE CBS STATIONS NECESSARILY. SOME OF THE OTHERS. THENUMBERS YOU HEAR ARE ASTRONOMICAL FOR SMALLER TELEVISION STATIONS. SOMEWHERE INTHE NEIGHBORHOOD OF $200 MILLION PLUS. OF COURSE, WE ARE GOING TO EXPLORE THEPOSSIBILITY OF BEING PART OF THAT.

FABER: YET ANOTHER POTENTIALREVENUE STREAM.

MOONVES: ANOTHER POTENTIALREVENUE STREAM THAT DIDN'T EXIST FIVE YEARS AGO.

FABER: BUT THEN THERE AREPEOPLE WHO WILL SIMPLY SAY, OK, GREAT, YOU'RE MANAGING TO KEEP UP, BUT REVENUESOVERALL DON'T GROW THAT MUCH IN THE WAY YOU REALLY INCREASE EPS IS BY SIMPLYSHRINKING THE AMOUNT OF SHARES OUTSTANDING. BUYBACKS ARE A VERY IMPORTANT PARTOF WHAT YOU DO. IS THAT THE WAY CBS CONTINUES TO GROW?

MOONVES: WELL, OUR BALANCESHEET IS IN EXTREMELY GREAT SHAPE. THE GREAT NEWS IS, OUR EPS HAS GROWN FOR 21STRAIGHT QUARTERS IN A ROW. SO WE ARE SUCCEEDING BY EARNINGS, OUR EARNINGS AREGOING UP EVERY YEAR, AS WELL AS SHARE BUYBACKS. SO WE ARE NOT DEEPLY IN DEBT.WE ARE NOT OVERLEVERAGED. WE HAVE THE ABILITY TO INVEST MORE IN CONTENT WHICHIS IMPORTANT TO US. ALSO, WE ARE IN GREAT SHAPE TO DO WHATEVER WE WANT TODO. BRINGING VALUE TO OUR SHAREHOLDERS IS IMPORTANT. SHARE BUYBACKS, DIVIDENDSREMAIN IMPORTANT. BUT ALSO INVESTING IN OUR CONTENT REMAINS IMPORTANT.

FABER: ONE OF THOSE KEYSHAREHOLDERS IS YOUR CHAIRMAN, MR. REDSTONE.

MOONVES: YES.

FABER: SOME REPORTS OUTYESTERDAY THAT THEN MR. REDSTONE FELT HE NEEDED TO RESPOND TO SAYING, I HAVENOT DECIDED UPON MY DEATH, AND MAY IT BE MANY, MANY YEARS OF COURSE FROM NOW,WHO IS GOING TO TAKE OVER AS CHAIRMAN. IS THAT CORRECT? IS THAT YOURUNDERSTANDING?

MOONVES: YEAH, WELL, HE ALSOSAID, WHICH WE ALSO BELIEVE IN, THERE ARE BOARDS OF DIRECTORS AT BOTH COMPANIES– THEY WILL DECIDE WHAT THE FUTURE IS. SUMNER HAS GIVEN ME THE SUPPORT TO RUNTHIS COMPANY. HE'S BEEN VERY SUPPORTIVE. CBS HAS BEEN RUNNING REALLY, REALLYWELL. WE ARE VERY EXCITED ABOUT THE FUTURE AND IT IS SOMETHING THAT AS YOUSAID, WE HOPE HE LIVES ANOTHER FOR 50 YEARS AND ALL WILL BE WELL.

FABER: HE IS 92 OR SO YEARSOLD.

MOONVES: NOT YET. HE WILL BE92 I THINK IN A FEW WEEKS.

FABER: RIGHT. YOU FEELCOMFORTABLE IF IN FACT WHEN THE DAY COMES?

MOONVES: WELL, WE DON'T TALKABOUT WHEN THE DAY COMES. I FEEL COMFORTABLE HOW CBS IS NOW AND HOW IT WILL BEIN THE FUTURE.

FABER: ALRIGHT. WELL, A DAYTHAT HAS COME OR IS COMING IS LETTERMAN SIGNING OFF.

MOONVES: SAD DAY.

FABER: IT IS A SAD DAY.

MOONVES: EIGHT MORE SHOWSLEFT ONLY.

FABER: YOU FEEL CONFIDENTCOLBERT CAN PICK UP WHERE HE HAS LEFT OFF?

MOONVES: NO QUESTION ABOUTIT. NO QUESTION ABOUT IT. LOOK, WE ARE VERY SAD TO SEE DAVE GO. HE IS A LEGEND.BUT STEPHEN COLBERT IS PHENOMENAL. PEOPLE WHO KNOW HIM, KNOW THE SHOW IS GOINGTO SUCCEED. OUR 12:30 SHOW WITH JAMES CORDEN IS DOING EXTRAORDINARILY WELLRIGHT NOW. SO WE THINK WE'RE GOING TO HAVE A GREAT LATE-NIGHT PROGRAM WITHCOLBERT AND CORDEN.

FABER: HAS FALLON GOTANYTHING TO WORRY ABOUT? WE JUST WALKED THE HALLS –

MOONVES: FALLON ISSPECTACULAR, WE LOVE HIM, BUT HE'S GOT PLENTY TO WORRY ABOUT.

FABER: AND FINALLY,MAYWEATHER AND PACQUIAO.

MOONVES: YES.

FABER: YOU WERE INTIMATELYINVOLVED, IT WOULD SEEM AT LEAST IF REPORTS ARE CORRECT, IN SORT OF MAKING THATHAPPEN. SINCE THEN, THERE'S A LOT OF PEOPLE WHO ARE NOT HAPPY AND THERE'S SOMELITIGATION. ARE YOU AMONGST THEM WHO PERHAPS ARE UNHAPPY THAT HE HAD WHAT WAS ASERIOUS SHOULDER INJURY?

MOONVES: FIRST OF ALL, I WAS THE MEDIATOR. I BROUGHT BOTH PARTIES TOGETHER AND I SORT OF ACTEDAS A REFEREE, AS IT WERE. AND PUT SOME OF THE ISSUES TOGETHER AND I WAS THE ONEWHO WAS ENTRUSTED WITH IT BY BOTH SIDES.

FABER: AND YOU DID IT. WHICHNOBODY HAD BEEN ABLE TO DO PREVIOUSLY.

MOONVES: NO. IT WAS TERRIFICTHAT THE FIGHT CAME TOGETHER. WE DIDN'T KNOW ABOUT ANY SHOULDER ISSUES, I WASTHERE IN THE SECOND ROW, I SAW TWO VERY WELL-TRAINED ATHLETES GOING ATIT. ONE WAS BETTER THAN THE OTHER. HE WON THE FIGHT, WE DON'T KNOW OF ANYISSUE WITH THE SHOULDER.

FABER: PACQUIAO THREW 400FEWER PUNCHES THAN HE TYPICALLY DOES, LESLIE.

MOONVES: MAYWEATHER IS HARDTO HIT.

FABER: BUT ARE YOU CONCERNEDAT ALL ABOUT THE LITIGATION?

MOONVES: NO. I DON'T KNOWANYTHING ABOUT IT, I'M NOT GOING TO COMMENT ON THE LITIGATION. AS I SAID, WEDIDN'T KNOW ANYTHING ABOUT A SHOULDER PROBLEM AND WE SAW TWO PRETTY GOOD GUYS.

FABER: YEAH, I BET. I WISH IHAD BEEN THERE. LESLIE, AS ALWAYS VERY MUCH APPRECIATE YOU TAKING THE TIME.

MOONVES: DAVID, THANK YOU.

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