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CNBC TRANSCRIPT: CNBC’S “THE STRATEGY SESSION” SPEAKS WITH MARK CUBAN, OWNER OF THE DALLAS MAVERICKS AND HDNET, TODAY

Mark Cuban
AP
Mark Cuban

WHEN: TODAY, THURSDAY, JUNE 10TH AT 12PM ET

WHERE: CNBC’S “THE STRATEGY SESSION”

Following is the UNOFFICIAL transcript of a CNBC interview with Mark Cuban, Owner of Dallas Mavericks and HDNet, today, Thursday, June 10th on CNBC's "The Strategy Session."

Portions of the interview also available at strategysession.cnbc.com.

All references must be sourced to CNBC.

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DAVID FABER, HOST: TODAY’S SPECIAL GUEST MARK CUBAN, OF HDNET, AND OF COURSE THE DALLAS MAVERICKS. MARK, THANK YOU FOR WEARING A SHIRT WITH SLEEVES.

MARK CUBAN: IT’S SHOCKING. I HAVEN’T WORN THIS SHIRT IN TEN YEARS SO IF THERE IS A CUT OR A WRINKLE--

FABER: IT ACTUALLY LOOKS GOOD. BUT THANK YOU FOR DRESSING UP FOR THE OCCASION WE APPRECIATE IT. AND THANK YOU FOR BEING HERE OF COURSE.

CUBAN: MY PLEASURE.

FABER: THE S&P UP ALMOST TWO AND HALF PERCENT ON SOME POSITIVE NEWS OUT OF CHINA AND EUROPE, BUT WE ARE GOING TO TALK TODAY, LETS START WITH THE STOCK THAT IS CAPTIVATING INVESTORS ON WALL STREET AND ON MAIN STREET ALIKE. BP. SURGING TODAY IN PART ON A RESEARCH REPORT THAT SAID PETROCHINA SHOULD COME IN AND BUY THE BULL EAGER GIANT. NOW PART OF OUR JOB ON THIS SHOW OF COURSE IS TO REPORT AND DEBUNK AND THAT IS EXACTLY WHAT WE’RE GOING TO DO RIGHT NOW. GARY, YOU KNOW, THE IDEA OF ANYONE BUYING BP IS LARGELY LUDICRIOUS PARTICULARLY A CHINESE COMPANY WHEN IT HAS HUGE ISSUES HERE IN THE US NOT TO MENTION OF COURSE THE CHINESE I REMEMBER THE C-NOTE DEAL THEY TRIED TO BUY UNICAL THAT ENDED IN A POLITICAL NIGHTMARE FOR THEM--

GARY KAMINSKY: RIGHT.

FABER: HARD TO IMAGINE, BUT IT DOES GO TO THIS BASIC IDEA OUT THERE REFLECTED IN THE MARKET THAT THERE IS VALUE.

KAMINSKY: WELL THEY ARE VERY WELL MAY BE VALUE, BUT AS I SAID YESTERDAY, I THINK IT IS VERY HARD TO DETERMINE WHAT THAT VALUE IS. YOU COULD LOOK AT WHAT THE PAST FINANCIALS OF BP LOOK LIKE, YOU CAN EVEN LOOK AT SOME PROJECTED FINANCIALS FOR THIS YEAR. BUT YOU REALLY HAVE NO IDEA WHAT THIS COMPANY IS GOING TO LOOK LIKE A YEAR OR TWO YEARS OUT. LETS –KATE IS GOING TO HAVE SOMETHING ON POTENTIAL DEALS, BUT LETS JUST TALK ABOUT SPECIFICALLY PETROCHINA. NOW PETRO CHINA JUST MADE AN INVESTMENT IN SEPTEMBER OF LAST YEAR. THEY PUT A BILLION SEVEN INTO ATHABASK OIL SANDS UP IN CANADA. DAVID, YOU KNOW OBVIOUSLY, I AM VERY FAMILIAR WITH THE AREA. I SPENT MANY YEARS—

FABER: YES. YOU ARE LIKE TAR SAND’S EXPERT.

KAMINSKY: I SPENT MANY YEARS UP IN FORT MCMURRAY. THE CHINESE HAVE SPENT 5 YEARS DOING DO DILLIGENCE JUST BEFORE THEY MADE THAT INVESTMENT. SO IT’S VERY HARD TO IMAGINE THAT JUST BECAUSE A STOCK IS DOWN FIFTY PERCENT, OR A STOCK IS DOWN, THAT THEY ARE GOING TO BE ABLE TO TURN AROUND AND MAKE THAT TYPE OF INVESTMENT. THAT’S NOT THE WAY THEY OPERATE. IF YOU WANT TO MAKE A SPECULATION, YOU WANT TO THINK ABOUT WHERE MAY PETRO CHINA DO SOMETHING IF THEY WANTED TO GET FURTHER EXPOSURE IN CANADA, IVE CITED HERE FIVE POSSIBLE TARGETS, NOT NECESSARILY TAKEOUTS BUT IN TERMS OF INVESTMENT.THEY GOT THE INVESTMENT ALREADY AND WE KNOW THAT THEY'VE LOOKED AT POTENTIAL INVESTMENTS OVER THE YEARS IN SUNCOR AND ENCANA AGAIN.I DON'T THINK THERE'S IS ANY SUBSTANCE TO THIS DISCUSSION. THAT'S NOT THE WAY THE CHINESE OPERATE.

KATE KELLY: A COUPLE POINTS I WANT TO MAKE HERE, GARY, SOME VESTORS KNOW THE COMPANY AS WELL AS TRADERS. RIDICULOUS TO THINK OF DOING ANY M&A. IT'S A DISTRACTION AND OTHERWISE HEALTHY COMPANY THAT HAS A TON OF LIABILITIES TO WORK WITH. BUT IF THEY WOULD DO ANYTHING, A DEBT OFFERING. AN EQUITY OFFERING WOULD DEAL WITH A CRAZY VALUATION --

FABER: WHY WOULD YOU DO A DEBT OFFERING

KELLY: TO SHOW THAT INVESTORS HAVE CONFIDENCE IN THE COMPANY AND TO DEAL WITH MORE SANE VALUATIONS.IF THEY WANTED TO RAISE CASH, THAT'S WHAT THEY SHOULD DO.

FABER: PARTICULARLY AFTER YESTERDAY WHEN EVERYBODY WAS LOSING CONFIDENCE. LET ME TURN TO YOU, MARK. SOMETIMES WE'RE FOCUSED SO MUCH IN THE FINANCIALS THAT WE LOSE SIGHT OF THE HUMAN TOLL HERE IN TERMS OF WHAT IS GOING ON IN THE GULF OF MEXICO. BUT WHAT ARE YOUR THOUGHTS ABOUT A COMPANY LIKE BP DEALING WITH SO MANY OF THE CROS CURRENTS, BOTH POLITICAL AND FINANCIAL?

CUBAN: IT'S HARD FROM AN ENVIRONMENTAL AND PEOPLE STANDPOINT, BUT IF I PUT ON A BP HAT, I WOULD TRY TO GET OUT IN FRONT OF IT. UNIQUE OPPORTUNITY TO SAY, WE SCREWED UP AND LET'S GO INTO THE AREAS AND GO INTO THE GULF AND ENABLE SMALL BUSINESSES AND SUPPORT THE FISHERMEN OUT THERE AND BE A GOOD CITIZEN AND THEN YOU CAN TALK ABOUT DOING A DEBT OFFERING BECAUSE NOW PEOPLE HAVE A BETTER FEELING FOR THE COMPANY. RIGHT NOW, THEY'RE JUST COUNTERPUNCHING AND THEY'RE GETTING THE HELL BEAT OUT OF THEM AND YOU CAN'T SURVIVE LIKE THAT.

KELLY: JUST TO POINT OUT THE GOOD AND THE BAD IN THIS NAME. CDS PROTECTION IS QUITE HIGH, 654 POINTS LAST WE CHECKED AND THEIR DEBT TRADING AT JUNK STATUS, MORE THAN THE AVERAGE JUNK BOND AT THE MOMENT AND STOCK GOT HAMMERED YESTERDAY DOING BETTER TODAY. BUT I DO THINK THAT THIS IS A SITUATION WHERE YOU CAN'T HAVE A SHORT SQUEEZE ON BP. I MEAN, THEY HAVE A LOT OF CASH,THEY'RE NOT RELYING ON OVERNIGHT FUNDING AND THEY'RE NOT BEAR STEARNS.

KAMINSKY: EXACTLY, THEY'RE ALL HARD ASSETS HERE AND THEY'RE ALL HARDASSETS HERE AND WE'RE NOT TALKING ABOUT A COMPANY WITH SIGNIFICANT LEVERAGE. IF YOU GO OUT IN TERMS OF BEING CAPITAL FISH AND DO A DEBT OFFERING JUST TO SEND THEM A MESAGE TO THE MARKET THAT WE CAN GO OUT AND RAISE THAT MONEY, AGAIN, THAT'S NOT A GOOD STRATEGY.YOU WANT TO DO IT IF YOU'RE GOING TO DO SOMETHING WITH THAT DIVIDEND. THEY COULD HAVE HAD A CLEAR POLICY RELATED TO THAT DIVIDEND WHICH IS GOING TO COST THEM CLOSE TO $11 BILLION.

CUBAN: UNLESS THEY SAY THEY'RE GOING TO USE THE FUNDING TO DO SOMETHING SIGNIFICANT. NOT JUST IN THEIR OPERATIONS BUT THE AREA IMPACTED.WE'RE GOING TO INVEST IN SMALL COMPANIES IN THE AREA BECAUSE WE NEED TO GROW THIS BACK. LET'S HELP THE AREA AND NOW THEY CAN SAY, YOU KNOW, THIS HAPPENS AND WE'RE DOING OUR BEST AND WE CAN'T CONTROL EVERYTHING BUT WE CAN CONTROL WHAT WE CAN CONTROL AND DO SOMETHING GOOD.

FABER: BACK TO THIS VALUE ARGUMENT, AGAIN, BEING MADE TODAY AND FINDING SOME FOOTING IN THE MARKWIT THE STOCK UP SIGNIFICANTLY. A LOT OF GUYS SAW --

KAMINSKY: STOCK UP SIGNIFICANTLY. IT'S NOT.

FABER: IT IS. STOCK IS UP 8%. SIGNIFICANT MOVE UP IN THE STOCK TODAY, OBVIOUSLY T WAS DOWN SHARPLY YESTERDAY. MY QUESTION IS, PEOPLE WERE FINDING VALUE AT 30 AND 40.

KAMINSKY: IF YOU WANT TO FOCUS ON SOMETHING, FOCUS ON WHAT'S HAPPENING IN THE BOND MARKETS. THE BOND MARKET, YOU KNOW, THE BOND MARKET ALWAYS GETS IT RIGHT BEFORE THE STOCK MARKET DOES. SO, I DO FIND IT CURIOUS THAT THE STOCK IS A HAVING A MUCH GREATER REACTION TODAY THAN THE BOND ARE.

CUBAN: I'D ALSO TRACK THE CALL VOLUME BECAUSE PEOPLE ARE SMARTER CHECKING THE OPTIONS AND SEE WHAT THEY'RE THINKING BY TRACKING THE CALL VOLUME.

FABER: STEVE CORTES, LET ME SEND IT OVER TO YOU. WE'RE WATCHING THE MARKETS AND WE'RE WATCHING THE SECTOR AND WE KNOW YOU LIKE PETROCHINA, BUT TELL US WHAT YOU LIKE, AS WELL.

CORTES: I'M SEEING THE CAPITAL FLOW TO THE EMERGING MARKET OIL COMPANIES AND I THINK BIG WINNERS AT BP WAS EXPENSE. IF YOU TAKE THE GULF OF MEXICO OUT OF THE GLOBAL OIL SUPPLY, AS FAR AS NEW EXPLORATION AND I THINK THAT IS GOING TO HAPPEN AND OTHER PLACES IN THE WORLD RISE DRAMATICALLY IN THEIR IMPORTANCE. OFFSHORE AFRICA AND CHINA AND BRAZIL, THE COMPANIES THAT ARE STRONG IN ALL THESE LOCATIONS ARE PETROCHINA AND PBR, NOT TO BE CONFUSED WITH PABST BLUE RIBBON. JUST ABOUT TO ISSUE $25 BILLION OF NEW EQUITY SO THAT IT COULD EXPAND ITS OFFSHORE OPERATIONS AND BOTH STOCKS ARE SET TO GO LONGER.

KELLY: BY THE WAY, STEVE, SPEAKING OF BP TODAY AND THE POSSIBILITY OF SOME SORT OF M&A ACTIVITY AND I WAS LOOKING AT THEIR HISTORY AND BIGGEST DEAL OVER THE YEARS AND DEFENDERS OF THE COMPANY MIGHT POINT OUT THAT THEY BOUGHTAMMACO IN 1998, OF COURSE, THEY HAVE AN AMERICAN FOOTPRINT, AS WELL.

FABER: AND OVER 22,000 EMPLOYEES HERE IN THE STATES, WHICH GETS TO SORT OF THE POLITICAL BATTLE RIGHT NOW AND THE UK, NOT PARTICULARLY HAPPY IN SOME WAYS THAT WE ARE ATTACKING.

KAMINSKY: IF THIS COMPANY IS FORCED TO DO SOMETHING TO SORT OF MONETIZE SOME ASSETS OR TO SAY SOMETHING, ONE OF THE THINGS THAT THE BANKERS MAY SUGGEST IS SOME SORT OF SPINOUT OF DOWN STREAM ASSETS AND THE AMOCO ASSETS.SO F THEY'RE GOING TO HAVE TO RESTRUCTURE SOMETHING, THAT'S SOMETHING THEY'RE GOING TO LOOK AT.

FABER: MARK, FROM YOUR PERSPECTIVE YOU MENTION THEY CONCEDE SMALL BUSINESSES, YOU DON'T THINK THEY ARE DOING ENOUGH OR AN EFFECTIVE JOB?

CUBAN: ABSOLUTELY NOT. THEY'RE COUNTERPUNCHING ALL THEIR TIME.THEY'RE TAKING BIGGER HITS THAN PUNCHING OUT.THEY NEED TO BE CORPORATE CITIZENS AND IF NOT, PEOPLE WILLKEEP TAKING SHOTS AT THEM.

FABER: YOURE A SPECUALTOR YOU THINK ABOUT GETTING INTO THIS THING?

CUBAN: OH, YEAH. YOU LOOK AT THE CALL BUTTON AND WHEN YOU SEE OTHER PEOPLE WHO ARE SMART STARTING TO BUY IN, MAYBE THERE IS SOMETHING OUT THERE.YOU SEE THE BONDS START TO REBOUND, THERE IS SOMEBODY SMART TAKING A POSITION.

KELLY: GARY, YOU POINTED OUT AN INFLECTION POINT WHERE PEOPLE LESS WORRIED ABOUT THE HEADLINE RISK ARE GOING TO GET IN, RIGHT?

KAMINSKY: I THINK ONCE THEY MAKE A DETERMINATION OF WHAT THIS IS GOING TO COST. NEVER BE DEFINITIVE.

FABER: WE MAY NOT KNOW THAT FOR YEARS.THE LITIGATION ALONE AND HOW LONG THESE MARSHES THAT HAVE BEEN IMPACTED FOR DECADES.

KAMINSKY: THERE'S A COUPLE THINGS THAT WILL GIVE MORE CERTAINTY. TO MARK'S POINT F THEY COME OUT AND SAY WE'RE GOING TO SUSPEND THE DIVIDEND.WE'RE GOING TO SUSPEND THE DIVIDEND AND SUSPEND INDEFINITELY UNTIL WE HAVE IDEA OF WHAT THIS WILL CAUSE, THAT WILL DRIVE PEOPLE TO COME UP WITH A VALUATION AND I THINK THERE WILL BE AN UPSIDE THERE. THAT'S SOMETHING THAT THEY'RE DEBATING.WE DISCUSSED IT HERE. IT'S SORT OF A SOCIAL SENSITIVE TOPIC IN THE UK.I DON'T KNOW IF WE REALLY APPRECIATE IT THIS MUCH, BUT A TREMENDOUS AMOUNT OF PEOPLE THAT OWN THIS, PENSION PLANS AND INDIVIDUALS IN THE UK THAT RELY ON THIS INCOME AND THAT'S WHY IT'S BECOME SUCH A SIGNIFICANT SOCIAL STORY, POLITICAL STORY, AS WELL AS MARKET STORY.

FABER: AND, OF COURSE, THERE ARE GOING TO BE CONTINUE TO WATCH ALONG WITH EVERYBODY ELSE RIGHT HERE ON STRATEGY SESSION. THE S&P OFF THE HIGHS OF THE DAY. UP NEXT, HE HAS BEEN A CLIENT AND A COUNTERPARTY OF THE FIRM, WE'RE TALKING ABOUT GOLDMAN SACHS. WHAT DOES MARK CUBAN THINK OF THE MESS THEY'RE IN NOW?

FABER: YOUR SCREEN IS GREEN EXCEPT FOR GOLDMAN SACHS. SHARES DOWN 3% ON NEWS THAT THE SEC IS POSSIBLY LOOKING INTO ANOTHER INVESTIGATION OF THE COMPANY'S MORTGAGE BUSINESS. KATE KELLY HAS BEEN WORKING ON THIS STORY ALL MORNING. KATE, WHAT DO WE KNOW ABOUT THE SECOND, EC, LET'S CALL IT INVESTIGATION. WE ALREADY GOT THE COMPLAINT, OFCOURSE, REGARDING ABACUS AND THIS IS A DIFFERENT DEAL.

KELLY: THIS COMPANY HAS SEEN NOTHING BUT HEADACHES WHEN THAT ABACUS COMPLAINT WAS FILED AND NEW REPORTS EVERY FEW WEEKS. THE SEC SUBPOENAED THE BANKS LAST YEAR TO GET INFORMATION ABOUT THEIR CDO DEALS AND SINCE THEN MORE ACTION ON ADDITIONAL DEALS.THE SEC IS LOOKING INTO THIS HUDSON DEAL, BUT I THINK IT'S PART OF THE BROADER PROBE, DAVID. I'M NOT SURE THIS IS A UNIQUE OR NEW THING.

FABER: JUST EXPLAIN TO ME, THEY HAVE A COMPLAINT AND, OBVIOUSLY, PROCEEDING.WE CAN TALK AND HEAR A LOT ABOUT SETTLEMENTS, BUT THAT COMPLAINT,WHY WOULD THEY ADD ANOTHER? IS THIS TYPICAL OF THE SEC?

KELLY: I DON'T KNOW NECESSARILY THAT WE'LL SEE A NEW COMPLAINT BUT WHAT'S GOING ON IS THEY'LL CONTINUE WORKING ON THE ABACUS INVESTIGATION AND THEY ARE IN SETTLEMENT TALKS RIGHT NOW AND IT WILL BE WEEKS, POSSIBLY MONTH BEFORE ANYTHING COMES TOGETHER.THE MARKET SEEMS TO THINK THAT THE MAXIMUM FINE IS SOMETHING LIKE $1 BILLION AND GOLDMAN WOULD LIKE TO LOOK FOR SOMETHING ELSE.ALSO CHATTER IF LLOYD BLANKFEIN'S JOB WOULD BE ON THE LINE FOR ALL OF THIS. I'M SORRY, ON HUDSON, I DO THINK THAT IF THERE WERE A SETTLEMENT, IT WOULD PROBABLY BE WRAPPED AROUND ALL THESE PENDING INVESTIGATIONS.

FABER: SURE, SURE.

KELLY: I DON'T THINK WE'RE LOOKING AT A PARTICULARLY NEW PIECE HERE. I THINK THIS IS PART OF THE CONTINUING CBO PROBE.

FABER: PART OF THE DRIP, DRIP, DRIP PROBLEM THAT GOLDMAN IS SAYING. IT'S THE SEC ONE DAY AND HUDSON WAS A $2 BILLION CEO IN WHICH THEY TOOK THE ROLE OF PAULSON THAT HE TOOK IN THE DEAL WAS GOLDMAN THAT WAS SHORTING THE MORTGAGE MARKET THROUGH THIS PARTICULAR --

KAMINSKY: THERES 2 THINGS HERE. NUMBER ONE, STARTING TO LOOK LIKE THERE IS NO WAY THERE WILL BE A SETTLEMENT BEFORE THE END OF THIS QUARTER, JUNE 30th.

KELLY: I THINK THAT'S UNLIKELY.

KAMINSKY: WHAT THE NEXT FOCUS ON GOLDMAN AS SHAREHOLDERS AND PEOPLE IN AND OUT OF THIS STOCK IS HOW WAS THE QUARTER?

KELLY: RIGHT.

KAMINSKY: DID ALL THIS NOISE ACTUALLY IMPACT THE QUARTER? WE HAVE ESSENTIALLY THREE WEEKS LEFT IN THE QUARTER NOW AND WHAT IS GOING TO BE THE RESULT OF THIS QUARTER, THIS SECOND QUARTER WITH EVERYTHING THAT HAPPENED? THAT WILL BE THE SORT OF NEXT MAJOR MILESTONE BECAUSE THIS SETTLEMENT, AS YOU REPORTED, IS NOT GOING TO HAVE --

FABER: THE KEY QUESTION, GARY, THAT MANY WERE ASKING.HAVE YOU STARTED TO LOSE CLIENTS. I'M CURIOUS, MARK, YOU HAVE BEEN A CLIENT AND GOLDMAN HELPED YOU STRUCTURE A HEDGE ON YOUR YAHOO! STOCK AND MADE YOU THE MAN YOU ARE TODAY.

CUBAN: I THANK THEM EVERY DAY.

FABER: BUT I'M CURIOUS, GIVEN YOUR EXPERIENCE WITH THEM, WHAT YOUR THOUGHTS ARE NOW AND WHETHER YOU DO BUSINESS WITH THEM.

CUBAN: I DON'T DO BUSINESS WITH THEM BUT IT'S INTERESTING BECAUSE BACK IN THE DAY BACK THEN YOU LOOK AT GOLDMAN AS AN INVETSMENT BANK YOU LIVED TO DO BUSINESS WITH. THEY COULD MANAGE YOUR WEALTH AND YOU COULD TRUST THEM ACROSS THE BOARD. YOU LOOK AT GOLDMAN TODAY AT LEAST FROM MY PERSPECTIVE, YOU DON'T KNOW WHAT BUSINESS THEY'RE IN. THEY ARE THE ULTIMATE FINANCIAL SYSTEM HACKERS. THEY HAVE CAPITAL AND EXPLOITED EVERY WHICH WAY THEY CAN FOR THEIR BENEFIT AS WELL AS THEIR CLIENTS AND THEY'RE NOT THE INVESTMENT BANKERS WE USED TO SEE BACK IN THE '90s.

KELLY: THEY ARE SUSTAINING REPUTATION DAMAGE AND THE LARGE AGRICULTURAL BANK DEAL.

FABER: DESPITE WHAT WAS A RISING STORY AMONGST THE PRESS, CERTAINLY.

KELLY: THAT WAS A VERY INTERESTING STORY AND THEN, AGAIN, THEY WERE IN CHINA EARLY. HANK PAULSON WAS BEATING THE DRUM ON CHINA TEN YEARS AGO.

FABER: 70 TRIPS TO CHINA.

KELLY: HE WAS RECOMMENDING THIS BOOK FOR PEOPLE WHO WANTED TO LEARN MORE ABOUT THAT. THEY WERE EARLY AND SUCCESSFUL AND THEYRE STILL DOING IT SO LETS KEEP IT IN PERSPECTIVE.

CUBAN: GOLDMAN IS ALWAYS GOING TO DO THE GIGANTIC DEAL. BUT THAT IS NOT WHO THE TRADITIONINAL INVESTMENT BANKER IS. YOU WANT THEM TO BE WHAT PEOPLE ASPIRE, THE COMPANY PEOPLE ASPIRE TO DO BUSINESS WITH.

FABER: GOLDMAN IS THE LEADER OF WALL STREET IN MANY WAYS AND NOT AS THOUGH THEY SUDDENLY CHANGED AND EVERYBODY HASN'T.

CUBAN: THAT’S TRUE. THERE ARE NO TRADITIONAL INVESTMENT BANKERS ANY MORE. LOOK AT THE NUMBER OF COMPANIES GOING PUBLIC AND YOU LOOK AT THE BIG CHINESE COMPANIES AND THE BIG PRIVATE EQUITY COMPANIES LOOKING TO GET THEIR MONEY BACK LIKE TOYS "R" US. YOU DON'T SEE, RIGHT NOW THERE ARE SO MANY UNIQUE COMPANIES BEING STARTED BECAUSE OF ALL THE CHANGES IN THE MOBILE INDUSTRY. WE SHOULD SEE A GROUND SWELL OF SMALL COMPANIES GOING PUBLIC.THERE SHOULD BE A TON OF EXCITEMENT ABOUT ALL THESE NEW INVESTMENTS IN THE MARKET THAT SMALL INVESTORS CAN GET THEIR ARMS AROUND. THERE IS NOBODY TO TAKE THEM PUBLIC. THAT HAS CHANGED.

KAMINSKY: I WAS GOING TO ASK YOU, MARK, DO YOU THINK THAT THE GROWTH COMPANIES, THE GROWTH COMPANIES THAT WERE SO IMPORTANT A DECADE AGO, IF THEY WANTED TO GET FINANCING, IS IT EVEN AVAILABLE TO THEM TODAY?

CUBAN: THERE ARE TWO QUESTIONS THERE. ONE, CAN THEY GO PUBLIC? THE ANSWER IS NO. NOBODY EVEN TO DO BUSINESS WITH AS AN OPPORTUNITY --

KAMINSKY: YOU SHOULD BE STARTING AN INVESTMENT BANK TO FOCUS ON THAT.

CUBAN: WE TALKED ABOUT THAT, RIGHT? I HAD THOSE CONVERSATIONS ALREADY. I WAS TELLING DAVID EARLIER IN THE PAST YEAR I INVESTED NINE OR TEN COMPANIES $250,000 OR LESS BECAUSE THE COST TO START A TECHNOLOGY COMPANY IS DRAMATICALLY LESS. WE'RE ACTUALLY SEEING A HUGE UPSWING IN START UPS. YOU GUYS WERE TALKING A COUPLE DAYS AGO ABOUT THE AMERICAN WAY AND THE AMERICAN SPIRIT AND IT'S EXPLODING AND IT'S AMAZING RIGHT NOW, BUT WALL STREET DOESN'T SEE ANY OF IT AND THAT'S A BIG PROBLEM.WALL STREET IS NOT IN THAT BUSINESS ANY MORE.

FABER: ISNT THAT GOING A LITTLE TOO FAR. GOLDMAN SACHS HAS A LOT OF BANKERS WHO ARE STILL TRYING TO RUN AROUND AND GET A CEO TO PITCH THEM SOME BUSINESS.

CUBAN: IF THEY DID, GOLDMAN SACHS SHOULD TAKE THEM PUBLIC.IF ANYBODY WANTED TO TAKE A COMPANY PUBLIC, YOU WOULD THINK GOLDMAN COULD, BUT WHERE ARE THEY?

KELLY: I THINK THERE IS NO DOUBT ON WALL STREET THERE HAS BEEN THIS GROWING EMPHASIS ON THE BIG FISH, MAYBE NOT ENOUGH SEEDING AND HELPING OF BIG COMPANIES.

CUBAN: THEY WENT PUBLIC. THE MINUTE THEY BECAME PUBLIC THEY WERE LIKE ANY OTHER COMPANY.

KAMINSKY: THE CULTURE USED TO BE THE INDEPENDENT PARTNERSHIPS AND THE INVESTMENT BANKS DID FERTILIZE THOSE RELATIONSHIPS AND THEY DID WANT TO SPEND A LOT OF TIME AND THEN YOU HAD THE RESEARCH SETTLEMENT WHICH GOT THEM MOVING AWAY FROM THE SMALL COMPANY AND SEEMS TO ME LIKE WHAT MARK IS SAYING GOOD OPPORTUNITY RIGHT NOW FOR WHICHEVER INVESTMENT BANKS WANTS TO SEIZE ON THAT OPPORTUNITY.

CUBAN: IN THE TECHNOLOGY COMMUNITY, THIS IS THE MOST EXCITING IT HAS BEEN IN TERMS OF START UPS BECAUSE THE MOBILE EXPLOSION THAT WE'VE SEEN IN MORE THAN TEN YEARS AND NOBODY ON WALL STREET THAT IS TAKING IT OUT TO THE PUBLIC.

FABER: CUBAN AND COMPANY.ALL RIGHT, WE'LL BE BACK RIGHT HERE ON "STRATEGY SESSION"

FABER: CAN'T TALK TECH WITHOUT BRINGING MARK CUBAN INTO THE ONVERSATION. THE SECTOR THAT MADE HIM A VERY WEALTHY MAN BACK IN THE DAY.YOU EQUATE THE PERIOD WHERE YOU WERE STARTING TO GROW UP WITH THIS PERIOD IN SOME WAYS OF THE COMPUTER REVOLUTION WITH THE MOBILE REVOLUTION.

CUBAN: IT'S 1985 ALL OVER AGAIN. BACK IN THE MID-80s IT WAS APPLE VERSUS MICROSOFT. DEVELOPERS HAD TO DECIDE DO I WRITE FOR THE MAC OR DO I WRITE FOR WINDOWS.YOU SAW AN EXPLOSION. REMEMBER BACK WHEN THERE WERE 10 SPREADSHEETS WE HAD TO CHOOSE FROM?

KAMINSKY: BEFORE WE GET INTO THAT, THEY PUT THIS PICTURE UP HERE JUST FOR YOU. YOU SEE APPLE VERSUS YAHOO!

CUBAN: OH, MY. YOURE KILLING ME GUYS.

CUBAN: NO DOUBT. BUT YOU GO BACK THEN AND THEN ALSO IN THAT PERIOD REMEMBER WE WERE EXCITED BECAUSE A 90 MEGAHERTZ PC AND THE PENTIUM CAME OUT AND YOU WERE GOING TO GETA NEW PC WHEN IT GOT FASTER AND NOW WE ARE SEEING THE SAME THINGS WITH PHONES RIGHT NOW YOU GET THE HTC INCREDIBLE AND SUPER FAST AND YOU GET THE NEW SPRINT PHONES THAT CAME OUT AND SUPER FAST, WHICH CREATES OPPORTUNITIES FOR NEW APPLICATIONS.AND, SO, NOW THE APPLICATION DEVELOPERS ARE DECIDING, iPHONE ANDROID OR BOTH.WE'RE SEEING THE EXACT SAME SCENARIO.THE LEARNING POINT IS BACK THEN WE SAW AN EXPLOSION IN THE NUMBER OF APPS. RIGHT NOW WERE SEEING AN EXPLOSION IN THE NUMBER OF APPS. MILLIONS OF APPS.YOU CAN'T GET TO THEM ALL JUST LIKE YOU COULDN'T GET TO THE PC SOFTWARES BACK THEN. BUT THERE IS GOING TO BE A COLLAPSE IN THE NUMBER OF APPS AND THERE WILL BE BIG WINNERS, BUT THE COST TO LOSE DOESN'T COST AS MUCH AS IT USED TO. BUT THE WINNERS WILL BE BIG.

FABER: IS THERE CAPITAL THERE? WE WERE TALKING IN THE LAST SEGMENT, YOU SEEM TO INDICATE A LACK OF CAPITAL GOING AFTER THESE IDEAS.

CUBAN: WELL IT DOESN’T TAKE AS MUCH CAPITAL BUT NOT THE SECOND ROUND.SO, OKAY, AS AN ANGLE INVESTOR, YOU'VE GOT COMPANIES, THINGS THAT I DO AND PAUL GRAHAMS OUT THERE DOING THE SAME TYPE OF THING JUST SEEDING COMPANIES. FOR $25OK YOU CAN GET GUYS GOING, BUT NOBODY TO TAKE THEM TO THE NEXT LEVEL.

KELLY: IF YOU'RE A RETAIL INVESTOR, MARK, HOW DO YOU PLAY THIS?

CUBAN: YOU DON'T.

KELLY: IT'S ONLY FOR THE SOPHISTICATED INVESTOR.

CUBAN: YOU HAVE TO BE CAREFUL, RIGHT, BECAUSE I CAN'T TELL YOU OF THE 100 PITCHES I GET A DAY 90 OF THEM ARE CRAP AND YOU HAVE TO BE ABLE TO DISCERN WHICH IS WHICH AND YOU CAN TELL A GOOD STORY, BUT IT'S HARD TO TELL THEDIFFERENCE.

KAMINSKY: THE ONE THING YOU DO KNOW, THE TOWER COMPANIES, THE ONE THING THAT YOU KNOW IS YOU DON'T KNOW WHO WILL WIN WITH THE APPS AND YOURE NOT SURE WHO IS GOING TO WIN IN TERMS OF CUSTOMER ATTENTION TO THE HANDHELD DEVICES BUT THE TOWER COMPANIES HAVE SOMEWHAT OF A MONOPOLY AND THEY WILL, THE MORE PEOPLE USE APPS AND THE MORE PEOPLE WHO USE SERVICE YOU'LL HAVE TO CONTINUE TO BUILD SERVICES.

FABER: MARK, IN A WAY, THIS CHANGES EVERYTHING. WE'LL TALK ABOUT THE FACT THAT PEOPLE WON'T BE USING THEIR PCs AND HOW YOU DELIVER THINGS THAT CHANGES EVERY BUSINESS.

CUBAN: ONE OF THE BIGGEST CHANGES TO THE ENTIRE ECONOMICS OF THE BROADBAND INDUSTRY IS WHEN AT&T DECIDED TO PUT CAPS ON.

FABER: TIERED PRICING. HAVEN'T EVEN STARTED YET BUT JUST TALKED ABOUT A COUPLE WEEKS AGO.

CUBAN: BRILLIANT MOVE FROM MY PERSPECTIVE AND THERE WAS A RISK FOR PEOPLE TO SAY, YOU KNOW WHAT, I'M USING MY iPAD INSTEAD OF MY LAPTOP OR DESKTOP AND MAYBE I'LL DISCONNECT MY LANDLINE INTERNET JUST LIKE I DISCONNECTED MY PHONE AND JUST USE WIRELESS. DO YOU HAVE A LAND LINE AT HOME?

KAMINSKY: DO YOU HAVE A LANDLINE AT HOME.

CUBAN: TELEPHONE YEH.

KELLY: YEAH.WE WERE JUST TALKING ABOUT THIS –

FABER: AS LONG AS IT DOESN'T AFFECT CABLE.

CUBAN: AND YOU KNOW WHAT AND INTERACTIVITY IN CABLE WITH EBAY THAT'S A WHOLE OTHER AREA OF OPPORTUNITY THAT WE'RE EXPLORING THAT PEOPLE AREN'T LOOKING AT.

FABER: WE WILL LEAVE IT THERE. CANADIAN REGULATORS GIVING THE NOD TO CARL ICAHN TO ALLOW HIM TO PROCEED WITH HIS BID FOR LIONSGATE. WHY DOES THIS MATTER? MARK CUBAN OWNS MORE THAN 5% OF THE COMPANY SO HE'LL WEIGH IN.

FABER: I LOVE THAT. GOT TO LOVE LEGENDARY INVESTOR CARL ICAHN. HAVE I DONE MY CARL FOR YOU. I'M A POKER PLAYER.

KAMINSKY: IT'S A MOVIE BUSINESS.

KELLY: LISTEN, IT'S NOTORIOUSLY EXPENSIVE BUT THIS COMPANY HAS INTERESTING FRANCHISES.

FABER: I WANT TO TURN TO ONE OF THE BIGGEST HOLDERS, $7 A SHARE DO YOU TENDER INTO ICAHNS TENDER FOR LIONS GATE?

CUBAN: IM HERE TO TELL YOU I REALLY THINK I'M GOING TO TENDER AND I WILL HAVE A CONVERSATION WITH THEM TODAY AND MOST LIKELY TENDER MY SHARES.

FABER: WHY?

CUBAN: I HAVE MY REASONS, I DON’T WANT TO GET INTO BUT I THINK IT'S THE RIGHT MOVE FOR RIGHT NOW AND THE RIGHT MOVE FOR THE LONG TERM FOR THE COMPANY AND FOR ME.

FABER: THERE YOU GO, A LITTLE BIT OF NEWS ON LIONS GATE. OF COURSE, YOU KNOW THE NEXT SHOW IS GOING TO HAVE A FRIEND OF OURS, MEL KARMAZIN. A FRIEND OF MINE. WHAT ARE YOUR THOUGHTS ON SATELLITE RADIO?

CUBAN: YOU KNOW, IT'S BEEN GREAT. MEL HAS DONE A GREAT JOB SINCE THE MERGER AND NOW HES IS ON TRACK AND PROFITABLE AND I THINK NOTHING BUT UPSIDE FOR HIM.REALLY ESTABLISHED HIMSELF AND THEY'RE IN EVERY CAR. THAT'S WHERE YOU NEED TO BE.

FABER: MELISSA LEE IS RIGHT OVER HERE WHERE SHE NEEDS TO BE TO TELL US WHAT'S COMING UP ON FAST MONEY.

MELISSA LEE: YOU KNOW, DAVID, THAT INTERCHANGE BETWEEN BURNS AND ICAHN A VERY HEATED DEBATE. AS AN INVESTOR, YOU HAVE TO WONDER IF YOU STICK WITH THIS STOCK NOW THAT CARL ICAHN YESTERDAY HAS OFFICIALLY SAID THAT HE'S NOT GOING TO EXTEND THE OFFER AND HE'S NOT GOING TO RAISE HIS OFFER PRICE EITHER. NOW, AS YOU MENTIONED, DAVID, OUR GUEST ON THE HALFTIME REPORT MEL KARMAZIN OUT THERE, YOUR POWER PLAYER WANTS TO ASK OUR POWER PLAYER

FABER: A QUESTION. MARK, YOU HAVE A QUESTION AND YOU WANT TO BE VERY FRIENDLY BUT MEL IS THERE.

CUBAN: MEL, WHAT ARE YOU DOING WITH HOWARD?

KARMAZIN: MARK, AS YOU KNOW, I HAD CONVERSATIONS WITH YOU AND I WANTED TO HIRE YOU TO COME DO A SHOW AND YOU TOLD ME YOU WERE CONCERNED ABOUT THE FACT THAT SATELLITE RADIO WAS UNRESTRICTEDAND YOU WOULD HAVE DONE SO MANY THINGS TO GET YOURSELF FINED AND YOU COULDN'T AFFORD TO TAKE THE SHOW. IF YOU COULDN'T AFFORD TO TAKE THE SHOW, NOW I'M STUCK TO HAVE TO TRY TO NEGOTIATE WITH HOWARD.

CUBAN: GOOD, I LOVE THE SHOW.

FABER: MEL, HI, JUST WANT TO SAY HI.

KARMAZIN: HI, DAVID. NICE TO SEE YOU.

FABER: LOOKING FORWARD TO YOUR APPEARANCE COMING UP.

KARMAZIN: HOW COULD I FOLLOW MARK? YOU GUYS MIGHT BE A GOOD TEAM. YOU SHOULD TAKE IT ON THE ROAD.

FABER: MR. CUBAN I KNOW YOU CAN'T COMMENT ON LeBRON JAMES, OF COURSE, A BIG STORY HERE IN THE NEW YORK AREA.

CUBAN: THIS SHOW IS ABOUT MAKING MONEY AND YOU GUYS ARE TRYING TO COST ME MONEY.

FABER: WE WOULD NEVER WANT TO DO THAT. YOU HAVE HATS HERE. HOW ABOUT, WE HAVE THE KNICKS, OF COURSE, WE HAVE THE CAVALIERS AND THE CHICAGO BULLS.

CUBAN: YOU KNOW WHAT, I CAN'T TALK ABOUT IT.

FABER: YOU DON'T HAVE TO SAY A WORD.

CUBAN: WHEREVER ANY FREE AGENT GOES, IT REALLY DOESN'T MATTER BECAUSE IT ALL ENDS UP HERE -- THE MAVERICKS. LOVES THOSE MAVERICKS.

FABER: WE DIDN'T GET A CHANCE TO TALK ABOUT THAT.

CUBAN: THANK YOU SO MUCH, GUYS. APPRECIATE IT.

FABER: THAT'S IT FOR ALL OF US ON "STRATEGY SESSION." SEND IT OVER TO MELISSA LEE. THANK YOU.

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