CNBC Transcript: Disney CEO Bob Iger Speaks with CNBC's Julia Boorstin Today

The following is the unofficial transcript of a FIRST ON CNBC interview with Disney CEO Bob Iger and CNBC's Julia Boorstin on CNBC's "Closing Bell" (M-F 3PM - 5PM) today, Tuesday, May 8th. Watch video of the interview on CNBC.com here!

JULIA BOORSTIN: KELLY, WE SEE DISNEY SHARES MOVING MORE THAN 1.5% HIGHER AFTER THE COMPANY BEATS EXPECTATIONS ON BOTH THE TOP AND BOTTOM LINE. THE COMPANY REPORTING REVENUE OF 14.548 BILLION, THAT'S 9% REVENUE GROWTH, BEATING EXPECTATIONS OF JUST $14.1 BILLION. EARNINGS PER SHARE, EXCLUDING CERTAIN ITEMS, COMING IN AT $1.84 PER SHARE, THAT'S UP FROM $1.50 A YEAR AGO, AND THAT'S VERSUS EXPECTATIONS OF $1.70 PER SHARE. SO BEATING ON THE TOP AND BOTTOM, AND LOOKING AT WHAT'S DRIVING THAT GROWTH, MEDIA NETWORKS, WHICH IS ALWAYS UNDER SCRUTINY WITH CONCERNS ABOUT CORD CUTTING ACTUALLY BEATING EXPECTATIONS ON BOTH THE BOTTOM AND THE TOP LINE, BUT LOOKING AT WHAT'S REALLY DRIVING THAT UPSIDE SURPRISE, IT APPEARS TO BE BOTH PARKS AND RESORTS AND STUDIO ENTERTAINMENT, BOTH REPORTING OF THEM REPORTING BOTH EARNINGS AND REVENUE - OR I'M SORRY -- EARNINGS AND REVENUE THAT'S BETTER THAN EXPECTED WITH THE EXCEPTION - AND STUDIO ENTERTAINMENT - THAT REVENUE COMING IN MUCH BETTER THAN EXPECTED. AND,OF COURSE, ON THE HEELS OF STRENGTH OF "BLACK PANTHER." SO, STRENGTH PRETTY MUCH ACROSS THE BOARD THERE, PARTICULARLY IN PARKS, RESORTS AND STUDIO ENTERTAINMENT. NOW I WANT TO BRING IN DISNEY'S CEO, BOB IGER, THANK YOU SO MUCH FOR JOINING US HERE TODAY.

BOB IGER: PLEASURE.

BOORSTIN: A LOT HERE IN THE EARNINGS REPORT, BUT BEFORE WE GET TO ALL THE NEWS ABOUT SKY AND FOX AND EVERYTHING GOING ON WITH YOUR ACQUISITION IN THE WORKS THERE, I WANT TO FIRST GET INTO WHAT'S DRIVING THE RESULTS. WHAT IS GOING ON WITH YOUR MEDIA NETWORK DIVISION? ARE THE DECLINES WITH SUBSCRIBER LOSSES STARTING TO MODERATE? WHY ARE THE RESULTS BETTER THAN EXPECTED?

IGER: WELL THEY HAVE STARTED TO MODERATE A BIL DECLINES THIS QUARTER WERE LESS THAN THE DECLINES SEEN IN THE PRIOR TWO QUARTERS. WHAT YOU'RE SEEING IS CONTINUED GROWTH IN THE NEW, WE CALL DMVPDs OR THE DIGITAL DISTRIBUTORS, AND THAT'S GREAT FOR A NUMBER OF REASONS BECAUSE THEY CARRY ALL OF OUR CHANNELS, AND WE THINK IT'S A VERY CONSUMER-FRIENDLY PROPOSITION. SO THE GROWTH OF THOSE IS OFFSETTING, TO SOME EXTENT, THE LOSSES ON THE MORE TRADITIONAL PLATFORMS. SO THAT'S OBVIOUSLY HELPED A LOT.

BOORSTIN: UPSIDE SURPRISE AT THE PARKS AND THE STUDIO, SOUNDS LIKE YOUR - RAISING PRICES AT PARK IS NOT DISCOURAGING VISITORS?

IGER: WELL WHAT YOU'RE SEEING AT THE PARKS IS OUR CONTINUED INVESTMENT IN THAT BUSINESS, AND MANY RESPECTS ON THE BACKS OF GREAT INTELLECTUAL PROPERTY, CLEARLY, DRIVING GROWTH IN THE BUSINESS, AND WE'RE SEEING THAT GLOBALLY, WHICH IS GREAT THEY COME TO INTERACT WITH THE CHARACTERS THEY KNOW AND LOVE ON THE BIG SCREEN AND THE SMALL SCREEN, SO THAT'S HELPED A LOT. WE'VE SEEN NO NEGATIVE IMPACT ON PRICING INCREASES, BUT IN PART, AS WE'VE INVESTED MORE, BOTH IN THE ACTUAL IP THAT'S IN THE PARKS, BUT ALSO IN THE EXPERIENCE, YOU KNOW, THE ABILITY TO BOOK ATTRACTIONS IN ADVANCE, ET CETERA, AND SO ON IS MAKING FOR A BETTER EXPERIENCE OVERALL, AND SO WE'VE SEEN PRICE ELASTICITY THERE, AND THEN SO OF COURSE ON THE STUDIO - WE HAVE JUST PHENOMENAL EXECUTION WITH GREAT INTELECTUAL PROPERTY. "BLACK PANTHER" OBVIOUSLY LED THE WAY IN THIS QUARTER, AND I CAN'T SAY ENOUGH ABOUT THE PERFORMANCE OF THAT TEAM.

BOORSTIN: NOW OF COURSE THERE ARE QUESTIONS ABOUT HOW MUCH BIGGER YOUR STUDIO MIGHT GET, SHOULD THAT FOX ACQUISITION THAT'S IN THE WORKS GO THROUGH. AND NOW CNBC HAD SOURCES TELLING CNBC THAT COMCAST IS PREPARING TO BID $60 BILLION IN ALL CASH, WHICH WOULD TOP YOUR $52.5 BILLION OFFER IN STOCK FOR FOX. WHAT'S YOUR PLAN SHOULD FOX GO THROUGH WITH THIS OFFER? I'M SORRY -- SHOULD COMCAST GO THROUGH WITH THIS OFFER FOR FOX?

IGER: WELL, I'M NOT GOING TO SPECULATE AT ALL ABOUT EITHER WHAT THEY'RE DOING OR WHY THEY'RE DOING IT. I CAN ONLY SAY, AND REITERATE, THAT AS YOU KNOW, WE MADE A DEAL IN DECEMBER THAT RECEIVED UNANIMOUS APPROVAL, WHICH IS IMPORTANT, BY THE 21st CENTURY FOX BOARD. WE'RE IN THE PROCESS OF FILING WHAT WE NEED TO FILE TO GAIN BOTH REGULATORY APPROVAL AND SHAREHOLDER APPROVAL. WE'RE CERTAINLY EXCITED ABOUT THAT ACQUISITION AND WE'RE GOING TO REMAIN CONFIDENT THAT IT'S GOING TO GO FORWARD.

BOORSTIN: IF YOU'RE EXCITED ABOUT THE ACQUISITION, HOW MUCH MORE ARE YOU WILLING TO PAY SHOULD FOX MAKE THIS BID AND TOP YOUR BID?

IGER: AGAIN, I'M NOT GOING TO SPECULATE ABOUT EXACTLY WHAT'S GOING TO TRANSPIRE AT ALL, AND I'M CERTAINLY NOT GOING TO SPECULATE ABOUT HOW THAT MIGHT IMPACT US. WE MADE A GOOD DEAL, ACTUALLY A DEAL THAT SHAREHOLDERS REACTED QUITE FAVORABLY TO, AND WE'RE GONNA REMAIN CONFIDENT IN OUR ABILITY TO CLOSE.

BOORSTIN: BUT YOUR STOCK IS DOWN SINCE THAT DEAL WAS FIRST ANNOUNCED, AND YOUR OFFER FOR FOX IS IN ALL-STOCK, COMPARED TO COMCAST WHICH IS IN ALL-CASH. WHAT DO YOU MAKE OF THE DIFFERENCE THERE?

IGER: WELL I - AND AGAIN, I'M NOT GOING TO SPEAK FOR YOU KNOW, WHAT SOMEONE ELSE MIGHT BE DOING. THE OFFER THAT WE MADE RECEIVED UNANIMOUS APPROVAL BY THE FOX BOARD, SO THEY OBVIOUSLY BELIEVED NOT ONLY IN WHAT WE WERE PAYING, BUT HOW WE WERE PAYING FOR IT. THE COMBINATION OF THE ASSETS IN TERMS OF A CURRENCY, THE COMBINATION OF THE 21STCENTURY FOX ASSETS THAT WE'RE BUYING AND DISNEY IS OBVIOUSLY, VERY ATTRACTIVE, AND GIVEN THE STRATEGIC BID AND THE VALUE GOING FORWARD, PARTICULARLY IN A MEDIA WORLD THAT IS TRANSFORMING RIGHT BEFORE OUR EYES IS OBVIOUSLY QUITE ATTRACTIVE, AND WE BELIEVE, THEREFORE, THAT THAT CURRENCY WILL BE ATTRACTIVE LONG-TERM.

BOORSTIN: ONE PART OF FOX THAT'S APPEALING TO BOTH YOU AND COMCAST IS SKY. AND COMCAST HAS NOW MADE ANOTHER OFFER FOR THE REMAINDER OF SKY. ARE YOU WILLING TO LET SKY GO IF THAT MEANS YOU CLOSE THE FOX BID?

IGER: WELL, WE'RE AS PART OF THE 21st CENTURY FOX ACQUISITION, WE BUY THE 39% THAT 21st CENTURY FOX ALREADY OWNS. WE KNOW THEY'VE BEEN IN THE PROCESS OF TRYING TO BUY THE REMAINING 61%, AND THAT'S PENDING REGULATORY APPROVAL. SHOULD FOX BE SUCCESSFUL IN BUYING THAT 61%, WE WOULD STEP INTO THEIR SHOES, AND ULTIMATELY, OWN 100% OF IT, BUT UNDER ANY CIRCUMSTANCES IF THEY DON'T, WE WILL OWN THE 39% THAT WE'LL BE BUYING AS PART OF THE ACQUISITION AND WE FULLY INTEND TO HOLD ON TO THAT.

BOORSTIN: AND HAVE YOU TALKED TO RUPERT MURDOCH ABOUT ALL THIS NEWS, WHAT HE THINKS ABOUT THE PLAN FOR SKY, ESPECIALLY WITH COMCAST NOW COMING IN AT THIS HIGHER PRICE?

IGER: I TALK TO RUPERT ON A FAIRLY REGULAR BASIS ABOUT A NUMBER OF THINGS, INCLUDING ABOUT SKY. I DON'T HAVE ANY - THERE ARE NO HEADLINES THERE.

BOORSTIN: DO YOU WANT TO TELL US WHAT YOU AND RUPERT HAVE DECIDED TO DO ABOUT COUNTERING COMCAST'S BID FOR SKY?

IGER: NO, I DON'T WANT TO EVEN SPECULATE THAT THERE WILL BE ANYTHING THAT IS DONE.

BOORSTIN: OKAY AND -

IGER: I WON'T SAY ANYTHING MORE.

BOORSTIN: YOU MENTIONED REGULATORY APPROVAL, WHERE DO THINGS STAND NOW? ESPECIALLY AS WE AWAIT A RULING ON THE AT&T-TIME WARNER MERGER. ARE YOU CONCERNED FOR YOUR PROSPECTS?

IGER: WE'RE FILING IN MULTIPLE JURISDICTIONS AROUND THE WORLD INCLUDING, OBVIOUSLY, THE UNITED STATES AND THE EU, AND OTHER TERRITORIES. WE DON'T BELIEVE THAT THIS ACQUISITION IS SIMILAR IN NATURE TO THE ACQUISITION THAT'S CURRENTLY UNDER SCRUTINY BETWEEN AT&T AND TIME WARNER. WE THINK IT'S ACTUALLY QUITE DIFFERENT. I MENTIONED EARLIER FEELING CONFIDENT THAT OUR DEAL IS GOING TO GO THROUGH. THAT'S NOT ONLY A CONFIDENCE IN THE ABILITY FOR US TO CONVINCE FOX SHAREHOLDERS THAT THIS IS GOOD FOR THEM, BUT WE'RE ALSO CONFIDENT IN OUR ABILITY TO GAIN REGULATORY APPROVAL THAT WE'LL NEED IN ALL OF THESE JURISDICTIONS.

BOORSTIN: YOU MENTIONED THE BENEFIT OF HAVING FOX'S ASSETS, ESPECIALLY IN THIS NEW DIGITAL LANDSCAPE. HOW MUCH ARE YOU COUNTING ON THOSE ASSETS TO BUILD UP YOUR DIRECT TO CONSUMER OFFERINGS, BOTH WITH Hulu AND WITH WHAT YOU'RE WORKING ON WITH THE NEW DISNEY APP?

IGER: WELL, FIRST OF ALL, WE'RE LAUNCHING, AS YOU KNOW, TWO NEW SERVICES. WE ACTUALLY LAUNCHED ONE ALREADY, ESPN-PLUS, WELL AHEAD OF THE FOX ACQUISITION, AND NOT RELIANT AT ALL ON THE ASSETS THAT WE WILL BE BUYING. NOW IN THIS CASE, IN SPORTS CASE, WE'LL BE BUYING THEIR REGIONAL SPORTS NETWORKS, AND THE WILL BE A COMPONENT, ULTIMATELY, OF SOME FORM OF DIRECT TO CONSUMER PROPOSITION, BUT THE DIRECT TO CONSUMER SPORTS PROPOSITION THAT WE'VE TAKEN FORWARD, AND THAT WE'LL CONTINUE TO RUN IS NOT THOROUGHLY DEPENDENT UPON GETTING THOSE ASSETS. ESPN HAS A NUMBER OF ASSETS ALREADY. WE CONTINUE TO BUY MORE. IN FACT, TODAY, WE ANNOUNCED AN ACQUISITION OF A UFC, AND THEY'LL BE A NUMBER OF UFC EVENTS, ULTIMATE FIGHTER CHAMPIONSHIP, ON THE ESPN-PLUS APP. AND THEN THE DISNEY APP IS MEANT TO INCLUDE DISNEY, PIXAR, MARVEL, AND STAR WARS LUCAS FILM, AND SO THAT'S NOT DEPENDENT AT ALL ON THE FOX ACQUISITION. HULU, OBVIOUSLY, ALREADY HAS ACCESS TO CERTAIN FOX ASSETS, AND IT HAD BEEN OUR INTENTION SHOULD WE OWN 21st CENTURY FOX, AND THUS GAIN A 60% STAKE IN Hulu TO CONTINUE TO FUEL Hulu WITH MORE INTELLECTUAL PROPERTY FROM BOTH COMPANIES.

BOORSTIN: NOW YOU MENTIONED ESPN PLUS APP. IT'S ONLY BEEN OUT FOR ABOUT A MONTH. CAN YOU TELL US HOW IS IT DOING SO FAR?

IGER: I CAN'T GIVE YOU SPECIFICS IN TERMS OF SUBS, BUT I CAN TELL YOU THE REACTION HAS BEEN QUITE POSITIVE FROM -- FROM CUSTOMERS. WE'VE SEEN PRETTY GOOD ADOPTION RATES FROM WHAT WAS FREE, THERE WAS A TRIAL OFFER TO PAY, TO BASICALLY SUBSCRIPTION, THAT'S BEEN QUITE POSITIVE. THE APP SEEMS TO BE PERFORMING QUITE WELL, IT CONTINUES TO ITERATE, MEANING WE CONTINUE TO SEEK WAYS OR FIND WAYS THAT WE CAN MAKE THE USER EXPERIENCE EVEN BETTER. I LOVE IT. I WATCHED IT - I WAS WAITING THE OTHER DAY FOR MY SON AT A BASKETBALL PRACTICE WATCHING A YANKEE GAME LIVE ON MY iPAD. IT WORKED PRETTY WELL. SO I - WE FEEL GOOD ABOUT BOTH DIRECT TO CONSUMER PROPOSITIONS WE ARE TAKING OUT, AND, AGAIN, NEITHER OF THE TWO I SPOKE OF IS DEPENDENT UPON ASSETS WE'LL BE BUYING IN THIS ACQUISITION.

BOORSTIN: NOW IN TERMS OF ESPN PLUS, ARE YOU GONNA MAKE BIG INVESTMENTS -- ADDITIONAL INVESTMENTS IN CONTENT? WE HEAR THAT NASCAR IS UP FOR SALE. I MEAN, WHERE DO YOU THINK THE BIG BETS MIGHT BE?

IGER: WE'RE GOING TO CONTINUE TO MAKE BETS, MEANING ACQUIRE RIGHTS SPECIFICALLY FOR ESPN PLUS. OVER TIME, WE'LL HAVE THE ABILITY TO PERHAPS MIGRATE SOME RIGHTS FROM OUR OTHER SERVICES ON TO ESPN PLUS, BUT THE GOAL IS TO CREATE A SPORTS MARKET PLACE AND A GREAT DESTINATION FOR SPORTS FANS HERE AND ULTIMATELY AROUND THE WORLD. YOU KNOW, THIS -- WE -- AS YOU KNOW, WE LIVE IN SUCH A DIFFERENT MEDIA LANDSCAPE TODAY AND MOBILITY IS OF REAL VALUE TO CONSUMERS, A GREAT USER INTERFACE IS ALSO IMPORTANT, AND THAT'S WHAT WE'RE LOOKING TO CREATE WITH GREAT INTELLECTUAL PROPERTY.

BOORSTIN: AND JUST A FINAL QUESTION ON THIS NEW MEDIA LANDSCAPE BEFORE WE LET YOU GET OFF AND HEAD TOWARDS YOUR EARNINGS CALL. HOW MUCH DO -- OR -- AT WHAT POINT WILL THESE NEW DIGITAL OFFERINGS COMPENSATE FOR THE DECLINES YOU'RE SEEING IN THE TRADITIONAL BUSINESS AS THE OVERALL MARKET DECLINES FOR TRADITIONAL TV?

IGER: WELL, GOOD QUESTION. I DON'T KNOW THAT I CAN SAY AT WHAT POINT, BUT I BELIEVE GIVEN WHAT WE'VE SEEN ALREADY WITH THE ADOPTION OF DIGITAL PLATFORMS, WHETHER IT'S THE CHANNEL PLATFORMS THAT HAVE ALREADY LAUNCHED, Hulu BEING ONE OF THEM, Youtube ANOTHER, DIRECTV ANOTHER ONE, SLING ANOTHER ONE, OR WHETHER IT'S THE PRODUCT THAT WE INTEND TO LAUNCH. YOU KNOW, WE BELIEVE THAT YOU'RE GONNA CONTINUE TO SEE REAL GROWTH IN DIGITAL PLATFORMS, AND CONTINUED EROSION ON THE TRADITIONAL SIDE. AND I THINK, ULTIMATELY, THE NEW BUSINESS WILL ELLIPSE THE OLDER BUSINESS. I THINK IT'LL PROBABLY HAPPEN SOONER THAN MOST PEOPLE INITIALLY PREDICTED, AND THAT'S WHY WE'RE GOING INTO THIS IN A BIG WAY.

BOORSTIN: BOB IGER, THANK YOU SO MUCH FOR JOINING US. WE HOPE YOU'LL COME BACK AND FILL US IN ON YOUR PLANS AS A POTENTIAL BIDDING WAR COULD BE BREWING HERE FOR FOX AS WELL AS SKY. THANK YOU SO MUCH. GUYS, BACK OVER TO YOU.

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