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CNN Live At Daybreak
Iran May Be Working on More Sophisticated Nuclear Missiles; 'Hot Topics'; Disney Lawsuit
Aired November 19, 2004 - 06:28 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. From New York, I'm Carol Costello. Chad Myers is down in Atlanta.
"Now in the News."
A bill raising the federal borrowing limit by $800 billion is on its way to President Bush's desk. The House gave final approval to the measure late last night. It will raise the federal borrowing limit to nearly $8.2 trillion. President Bush is expected to sign the measure on Monday.
An FDA reviewer testified before Congress that as many as five other prescription drugs besides Vioxx may be unsafe for consumers. David Graham is credited with voicing concerns over Vioxx before it was pulled off the market.
Warring factions in Sudan have now signed an agreement promising to end that 21 civil war there -- 21-year civil war there. They signed a deal in front of the U.N. Security Council, which held a rare meeting in Kenya.
French President Jacques Chirac is in the final day of a state visit to Britain. It's part of a celebration marking the 100th anniversary of an agreement to end a colonial rivalry between France and Britain.
(WEATHER REPORT)
COSTELLO: President Bush is scheduled to leave for Chile in a few hours to attend a key summit of Asian and Pacific leaders. Protesters hit the streets of Santiago to demonstrate against the president's participation in the summit. Key issues to be discussed are the threats from terrorism and North Korea's nuclear program.
To the Iran nuclear mystery. There are more accusations this morning. A key opposition groups says Iran is working on more uranium-enrichment projects and a missile that could carry a nuclear warhead.
CNN's David Ensor has more on the Iran nuclear question.
(BEGIN VIDEOTAPE)
DAVID ENSOR, CNN NATIONAL CORRESPONDENT (voice-over): At issue is whether Iran is already working on designs for a nuclear warhead that could sit on top of this, the new Shahab-3 missile, tested in October, and designed to hit targets within 2,000 kilometers, or about 1,200 miles.
On his way to Chile, Secretary of State Colin Powell told reporters he has seen new intelligence suggesting Iran may be working not only on how to enrich uranium to bomb grade, but also -- quote -- "on delivery systems."
"I'm talking," said Powell, "about information that says that they not only had these missiles, but I'm aware of information that suggests they were working hard as to how to put the two together."
ADAM ERELI STATE DEPARTMENT SPOKESMAN: UNIDENTIFIED MALE: That's another piece of the puzzle. It is -- it deals with the issue of not necessarily the development of weapons of mass destruction, but the development of delivery systems.
DAVID ALBRIGHT, INSTITUTE FOR SCIENCE AND INTERNATIONAL SECURITY: You'd have to do a lot of engineering feats in order to be at the point of making a missile carry a nuclear warhead.
ENSOR: The problem for the Bush administration, though, is credibility. After sending Powell to the U.N. with intelligence on Iraq's weapons, much of which now appears to have been wrong, will the world take what it is saying seriously this time?
ALBRIGHT: The United States has been accusing Iran of having an active nuclear weapons program for years, and the information often has been ambiguous, or, in some cases, not very good. And so I think that if this information is actionable and is credible, then I would use it to confront the Iranians, not to just walk away from the deal.
ENSOR: The deal in question is the one agreed in principle by three European governments and Iran. Iran would suspend uranium enrichment and allow inspections in exchange for trade and respectability.
(on camera): Many U.S. officials are highly suspicious that Iran would simply use the deal to buy time to make nuclear weapons.
David Ensor, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Let's talk verbal bombs now. The battle between shock jock Howard Stern and Washington is getting nastier.
(BEGIN VIDEO CLIP)
HOWARD STERN, RADIO PERSONALITY: The death of the FCC (UNINTELLIGIBLE). The death of the FCC. Down with the FCC!
(END VIDEO CLIP)
COSTELLO: Stern was surrounded by strippers as he made these remarks, background here. Huge FCC fines led Stern to sign a deal to move his show to satellite radio provider Sirius. The FCC has no control over satellite radio. As part of the move, Stern gave away thousands of free radios and satellite radio subscriptions at this rally in New York City. This battle royal is our "Hot Topic" this morning.
Live to Washington and "The National Journal's" online "Hotline" editor Vaughn Ververs.
Good morning, Vaughn.
VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning, Carol.
COSTELLO: So, does FCC Chairman Michael Powell really care about Howard Stern's antics?
VERVERS: Well, this is sort of a battle that's gotten personal over the last couple of months. Michael Powell was doing a radio interview, I believe in San Francisco about two or three weeks ago, when Howard Stern actually called up the show and got in an argument with Michael Powell, said that he is only in his position because of his father, accused him of conducting a witch hunt against Howard Stern and other disc jockeys like himself.
But overall, you know, this is just part of the ongoing sort of cultural war that we've seen being waged in the last couple of years.
COSTELLO: Yes, you mentioned cultural war. It went on, on David Letterman last night. Howard Stern was a guest. Let's listen to this.
(BEGIN VIDEO CLIP)
STERN: I can't be myself anymore on the radio. I'm not looking to get on the radio and say the "f" word. I'm not looking to get on the radio and make everything so blatantly sexual. That's not what this is about. I'm talking about 10-15 years ago the topics I used to talk about on the radio I'm now being fined millions of dollars for. So, where does it end?
You know, just the other night we see that on ABC a woman took off her towel in front of a football player, and now we're talking about possible fines?
DAVID LETTERMAN, HOST, "LATE SHOW WITH DAVID LETTERMAN": Right.
STERN: What's happened? I mean, it feels like we're in a religious country.
(END VIDEO CLIP)
COSTELLO: Well, there you go. We've been asking an e-mail question this morning, Vaughn. Most of our viewers say, well, they're on the FCC side. They're not on Howard Stern's side.
VERVERS: Well, I think most people want to have standards. I think everybody agrees that there needs to be some sort of standards. And let's face it. I mean, Howard Stern can say whatever he wants, but he is in the business of getting listeners to listen to his show. He's going to do what he thinks is going to draw people to his show. He's been very, very successful at that.
We're now in a time, though, that I think the other side is battling back a little bit. And everybody is trying to find out where that line is of those standards. But most people agree that there should be standards.
COSTELLO: Well, let me run this by you. You talk about radio as a business. Commercial radio as a business is going to be hurt with losses like Howard Stern. There is no doubt about that. They're going to be losing millions of dollars. Is it likely in the months to come that the people who own these big radio companies will come down on Washington? And will that matter to Michael Powell?
VERVERS: Well, I'm not sure that they have a lot of power to come down on Washington. I think what they're going to do is try to fight for their survival in this climate. And, you know, the satellite radio has been very successful so far. There are two competing companies, which will sort of go against each other. I think commercial radio will continue to thrive to some extent. But it definitely will be hurt.
COSTELLO: OK, you said it. Vaughn Ververs joining us live from Washington this morning, thank you.
Who was it that said there is no bad publicity? It seems ABC's "Desperate Housewives" is getting a whole lot of talk and ink over its "Monday Night Football" opening skit. For his part in the spoof, Terrel Owens offered an apology to anyone who was offended, but he really thinks they don't protest too much.
(BEGIN VIDEO CLIP)
TERREL OWENS, PHILADELPHIA EAGLES: Well, I don't think it's any different than little kids watching "South Park" or "King of the Hill," things of those nature. And, you know, obviously everybody knows the content that's surrounded by those shows. So, my thinking is what's the difference?
(END VIDEO CLIP)
COSTELLO: Owens added that whenever he's involved in anything, it is always front-page news.
Is this a battle worthy of the Terminator? A Texas radio host is watching an effort to counter another group's move to change the Constitution. That group of Arnold Schwarzenegger supporters wants an amendment to make it possible to elect a foreign-born president. Radio host Alex Jones says he raised $5,000 in the first two hours of his anti-Schwarzenegger campaign. He plans to run TV ads in Austin, Texas, and in Sacramento, California.
The Clinton Presidential Library opens the doors to the public today. Visitors can see thousands of exhibits ranging from peace to impeachment. Yesterday, the opening dedication in Little Rock was attended by current and past presidents, along with some 30,000 dignitaries and friends. The library and presidential center offered Clinton the opportunity to define his legacy.
(BEGIN VIDEO CLIP)
WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: The thing I want most is for people to come to this library, whether they're Republicans or Democrats, liberals or conservatives, to see that public service is noble and important, that the choices and decisions leaders make affect the lives of millions of Americans and people all across the world.
(END VIDEO CLIP)
COSTELLO: The library complex cost $165 million to build. It was paid for with private donations.
It's known as the wonderful world of Disney, but how wonderful is it really? A look at the latest earnings report as Disney executives resort to name-calling in their battle for control of the kingdom.
And looking beneath to see SpongeBob and the gang. A preview of the new movie -- actually, we're going to get to the psychology of SpongeBob SquarePants, because we know many, many adults love to watch this cartoon.
But first, here's a look at what else is making news this Friday morning.
(COMMERCIAL BREAK)
COSTELLO: Maybe some of you have been following this soap opera. It's actually a lawsuit that was brought by Walt Disney Company shareholders. It doesn't seem to have hurt the stock any, but it's certainly hurting the image of the company.
CNN contributor Ali Velshi is here to talk about as the Disney turns.
ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: This story gets more and more interesting. It's a long time in the coming. I want to tell you about this. Michael Eisner is on the stand now, and the name of the court that they are in sounds like something from a Disney fantasy, the Delaware Court of Chancery, no fantasy going on there, however.
It's the trial of Disney Chairman Michael Eisner, former Disney President Michael Ovitz, and several other former and current Disney board members.
Now, if the Magic Kingdom conjures up images of friendly, warm, fuzzy characters in the minds of children, none of that was evident at the trial. This thing does, however, play out like a Disney plot. Let's sort of think about "The Lion King." The question is: Is Michael Eisner Mufasa, the legitimate king of the jungle? Or is he Scar, the tyrannical dictator?
Well, I think the investors are thinking he's Scar, and they're suing over a scar he says -- they say that Eisner left the company about a decade ago.
Now, it centers on the departure of Michael Ovitz. Ovitz is a longtime friend of Eisner. He was hired in 1995 to be the president of the company. He was fired about 14 months later. And here's the thing. When he was fired, he left with $140 million severance package.
Now, a lot of people have such severance packages. We hear about this all of the time. But the investors are saying he should have been fired for cause. There was enough evidence and the board knew that there were some problems with Ovitz, and they should have fired him for cause. And they want the $140 million plus interest back, about $200 million.
COSTELLO: Plus interest.
VELSHI: They want that back in the company.
Now, here's what they have as evidence. They submitted -- the lawyers for the plaintiffs submitted a memo about a month ago in the trial from Eisner. He wrote it at about 2:00 in the morning to his PR director. And the memo reads like this about Ovitz: He is psychopath. He doesn't know right from wrong. He cannot tell the truth. Basically, he has a character problem, too devious, too untrustworthy, only out for himself.
Now, if that's what Eisner thought of him then, why didn't he simply fire him, is what the board says -- what the shareholders say.
COSTELLO: But didn't they used to be best friends?
VELSHI: That's exactly it. They were 25 year old -- they had been friends for about 25 years. And the shareholders say that he was sticking up for his friend.
Eisner took the stand saying he was a little worried about what might happen to Ovitz. He wasn't...
COSTELLO: Being a psychopath and all.
VELSHI: Exactly. He said, I didn't want -- I wasn't trying to get his consent on being fired. I was trying to get his consent on leaving the company in a graceful way. And when Ovitz finally left, in fact, Eisner put out a statement to say that he left on mutually- agreeable terms, not that he was fired.
Eisner also testified yesterday that he -- meaning Michael Ovitz -- had lost, frankly, the confidence of the people that worked for him. He wasn't managing them well. He was off on a separate mission, which was very self-centered, to make himself look good. He was acting very un-Disney-like.
COSTELLO: So, how much longer will this trial go on?
VELSHI: Eisner should be on the stand for another couple of days or so. This has been going on for a very, very long time. And it's not a lot of money in Disney's world, but it centers on the leadership of Disney. Eisner is now, you know, on his way out as the head of the company. And then we're back to "The Lion King" thing. There is the issue of succession. Who is Simba in this thing?
And it was -- Eisner wants it to be Bob Iger, who used to run ABC Capital Cities before Disney took it on. It's very early in the morning for me to be spinning all of these media conglomerate names around my head.
Something interesting happened for Eisner. It's not a done deal. But yesterday, as you were reporting earlier, Mel Karmazin, former head of Viacom who was seen by some people as a possible head of...
COSTELLO: Disney, right?
VELSHI: ... yes, a possible future head of Disney took the job at Sirius Satellite Radio, which everybody seems to think is a smart move. Sirius investors really like that as well.
So, Iger may be closer to the top at Disney.
COSTELLO: Interesting. Fascinating.
VELSHI: Yes.
COSTELLO: Please keep us posted.
VELSHI: Oh, it's going to be -- a movie edition is going to be out soon.
COSTELLO: I want to hear more about the memos that have come to light.
VELSHI: Oh, yes, they're good.
COSTELLO: Your news, money, weather and sports. It is 6:46 Eastern. Here's what's all new this morning.
Anti-Bush protests have been going on in at least two Chilean cities. President Bush and the leaders of 20 other Pacific Rim nations are gathering in Santiago for a summit. Topping Bush's agenda is getting a consensus on ending North Korea's nuclear program.
A star-studded gala to raise money to find a cure for victims of spinal cord injuries turns into a tribute to Christopher Reeve. The New York event raised $1.7 million.
In money news, someone else will walk in the shoes of Nike's co- founder, Phil Knight. He's stepping down as president and CEO of the athletic shoe and clothing company. He'll be replaced by William Perez, the top man at SC Johnson & Son.
In culture, the Museum of Modern Art is ready to reopen in New York City. It's been closed for more than two years while $425 million worth of renovations were done. And in sports, Roger Federer advanced to the semifinals of the tennis Masters series finale in Houston, Texas. Federer beat Lleyton Hewitt 6-3, 3-6, 6-3, to remain undefeated in the round robin tournament.
(WEATHER REPORT)
COSTELLO: Chad, you love SpongeBob, don't you?
CHAD MYERS, CNN METEOROLOGIST: I do. I love his house.
COSTELLO: This little pineapple.
MYERS: I want to live in a pineapple.
COSTELLO: Well, you know, a lot of adults love SpongeBob SquarePants and his friend, Patrick, because of silly things like this. We're going to get into the psychology of SpongeBob and review the movie, too. This is DAYBREAK.
(COMMERCIAL BREAK) (BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Deep beneath the world's greatest ocean lives a sponge unlike any other.
UNIDENTIFIED MALE: Hurray! Bubble fight!
(END VIDEO CLIP)
COSTELLO: If you have had a stressful week, and we're right there with you, we have an idea. Go to Bikini Bottom tonight and soak up the happy world of SpongeBob SquarePants. Yes, SpongeBob SquarePants the movie, opens tonight.
Tom O'Neil from "In-Touch Weekly" is here to explain the absorbent star's appeal to those over the age of 25.
I cannot believe how many adults love this cartoon.
TOM O'NEIL, EDITOR, "IN-TOUCH WEEKLY": I know.
COSTELLO: Why?
O'NEIL: And it's not sophisticated. This is a show that distinguishes itself by not making the pop culture references to Britney and Justin that the others might. It's not cynical in the way that "South Park" is or "The Simpsons." But what this show has in spate that no other show has in the cynical age is heart.
There was an episode on the other night where the two best friends, Bob and his buddy, Patrick. Patrick kept going, well, Bob, you're my best friend. Not just my best friend, you're my bestest (ph) friend. And they're not afraid to have this. Don't you agree? Even your favorite character -- because we were talking about Plankton -- sometimes you root for them. COSTELLO: Oh, definitely so. It's such an optimistic show. And the relationship between SpongeBob SquarePants and Patrick, it seems familiar somehow. Let's get a little example of that.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Good. Now keep your eyes shut. With my mermaid's magic and my one-tail fin, I command the two of you to turn into men. Open your eyes.
UNIDENTIFIED MALE: Huh, I don't feel any -- oh, my gosh, Patrick, you have a mustache!
UNIDENTIFIED MALE: So do you!
UNIDENTIFIED MALE: Oh!
(END VIDEO CLIP)
COSTELLO: It's just so child-like. But the relationship between the two, you know, there has always been rumors that these characters are gay. We've heard those floating around.
O'NEIL: Right.
COSTELLO: But where does that come from?
O'NEIL: From the excessive heart. These characters care so much about each other in a genuine way that it feeds those kinds of rumors. But where this pairing of buddies comes from is the tradition of -- you can go back to Fred and Barney, you know, from "The Flintstones," who were a recreation of Ralph Kramden and Ed Norton from "The Honeymooners." And the formula is the main character is stupid, but the best friend is stupider.
COSTELLO: And it seems to work and make us all happy. Go figure. The other interesting thing about this as far as its appeal to children is there's a lot of, like, underwear jokes in it, you know, SpongeBob SquarePants...
O'NEIL: Right.
COSTELLO: ... Bikini Bottom. I mean, they're always, like, SpongeBob is always losing his pants and his underwear shows up and everybody laughs. But it really appeals to kids as they really are and says to children, you know, it's OK just to be a kid. You don't have to be a smart-aleck. You don't have to outsmart your mom and dad. It's just OK to like silly things.
O'NEIL: Yes, right. And how often do you see that in pop culture? It's so rare. This show is so extraordinarily hot. It debuted in 1999. It has never been out of the top 10 most-watched cable shows. Not only does it beat DAYBREAK, Carol, it beats wrestling. Wow!
COSTELLO: That's just incredible. And movie reviews have been good on this, right?
O'NEIL: Oh, it's even winning over the hearts of cynical crusty critics. It's a terrific film. It's not going to be "The Incredibles" this weekend, but it's going to come in at No. 2.
COSTELLO: Tom O'Neil, thanks for joining us on DAYBREAK. Interesting stuff.
Who is the hottest act on MTV in Europe? We'll tell you.
But first, you are watching DAYBREAK for a Friday morning.
(COMMERCIAL BREAK)
COSTELLO: Oh, see, we're both dancing.
MYERS: Ready to go.
COSTELLO: Europe's hottest acts were there, Chad, but Americans won 11 of the top 12 MTV Europe Music Awards.
And there they are. Outkast was in; so was Usher. They shared top honors for the night. Britney Spears won best female artist, and the Black Eyed Peas won for best pop group. Oh, I love them, too.
Music fans across Europe picked the winners by voting online and with their cell phones.
MYERS: Carol, the word is now that because there was not a paper ballot trail, they all want recounts.
COSTELLO: Get out of here! Hey, Chad, (UNINTELLIGIBLE)?
MYERS: That's easy for you to say.
COSTELLO: Yes. No, it really wasn't. But for those of you like me who don't speak German, it means the king is in Germany.
MYERS: Yes.
COSTELLO: A new exhibit there features 300 pieces of Elvis memorabilia, including the king's military uniform and his handwritten notes on how to pronounce the words to a traditional German song.
MYERS: What we didn't see were any, like, you know, little Elvis impersonators. They weren't there. Now, this was in Germany...
COSTELLO: Because those Germans are a lot smarter than us.
MYERS: If this was in Vegas there would be 100 of them there. Carol, have a great weekend. Enjoy the Northeast.
COSTELLO: You, too. And, you know, to our viewers, thanks for staying with us through kind of a difficult transition period to New York. But it all went kind of smoothly, don't you think?
MYERS: It went great.
COSTELLO: Yes. Thank you, Chad. Have a great weekend. I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.
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Aired November 19, 2004 - 06:28 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. From New York, I'm Carol Costello. Chad Myers is down in Atlanta.
"Now in the News."
A bill raising the federal borrowing limit by $800 billion is on its way to President Bush's desk. The House gave final approval to the measure late last night. It will raise the federal borrowing limit to nearly $8.2 trillion. President Bush is expected to sign the measure on Monday.
An FDA reviewer testified before Congress that as many as five other prescription drugs besides Vioxx may be unsafe for consumers. David Graham is credited with voicing concerns over Vioxx before it was pulled off the market.
Warring factions in Sudan have now signed an agreement promising to end that 21 civil war there -- 21-year civil war there. They signed a deal in front of the U.N. Security Council, which held a rare meeting in Kenya.
French President Jacques Chirac is in the final day of a state visit to Britain. It's part of a celebration marking the 100th anniversary of an agreement to end a colonial rivalry between France and Britain.
(WEATHER REPORT)
COSTELLO: President Bush is scheduled to leave for Chile in a few hours to attend a key summit of Asian and Pacific leaders. Protesters hit the streets of Santiago to demonstrate against the president's participation in the summit. Key issues to be discussed are the threats from terrorism and North Korea's nuclear program.
To the Iran nuclear mystery. There are more accusations this morning. A key opposition groups says Iran is working on more uranium-enrichment projects and a missile that could carry a nuclear warhead.
CNN's David Ensor has more on the Iran nuclear question.
(BEGIN VIDEOTAPE)
DAVID ENSOR, CNN NATIONAL CORRESPONDENT (voice-over): At issue is whether Iran is already working on designs for a nuclear warhead that could sit on top of this, the new Shahab-3 missile, tested in October, and designed to hit targets within 2,000 kilometers, or about 1,200 miles.
On his way to Chile, Secretary of State Colin Powell told reporters he has seen new intelligence suggesting Iran may be working not only on how to enrich uranium to bomb grade, but also -- quote -- "on delivery systems."
"I'm talking," said Powell, "about information that says that they not only had these missiles, but I'm aware of information that suggests they were working hard as to how to put the two together."
ADAM ERELI STATE DEPARTMENT SPOKESMAN: UNIDENTIFIED MALE: That's another piece of the puzzle. It is -- it deals with the issue of not necessarily the development of weapons of mass destruction, but the development of delivery systems.
DAVID ALBRIGHT, INSTITUTE FOR SCIENCE AND INTERNATIONAL SECURITY: You'd have to do a lot of engineering feats in order to be at the point of making a missile carry a nuclear warhead.
ENSOR: The problem for the Bush administration, though, is credibility. After sending Powell to the U.N. with intelligence on Iraq's weapons, much of which now appears to have been wrong, will the world take what it is saying seriously this time?
ALBRIGHT: The United States has been accusing Iran of having an active nuclear weapons program for years, and the information often has been ambiguous, or, in some cases, not very good. And so I think that if this information is actionable and is credible, then I would use it to confront the Iranians, not to just walk away from the deal.
ENSOR: The deal in question is the one agreed in principle by three European governments and Iran. Iran would suspend uranium enrichment and allow inspections in exchange for trade and respectability.
(on camera): Many U.S. officials are highly suspicious that Iran would simply use the deal to buy time to make nuclear weapons.
David Ensor, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Let's talk verbal bombs now. The battle between shock jock Howard Stern and Washington is getting nastier.
(BEGIN VIDEO CLIP)
HOWARD STERN, RADIO PERSONALITY: The death of the FCC (UNINTELLIGIBLE). The death of the FCC. Down with the FCC!
(END VIDEO CLIP)
COSTELLO: Stern was surrounded by strippers as he made these remarks, background here. Huge FCC fines led Stern to sign a deal to move his show to satellite radio provider Sirius. The FCC has no control over satellite radio. As part of the move, Stern gave away thousands of free radios and satellite radio subscriptions at this rally in New York City. This battle royal is our "Hot Topic" this morning.
Live to Washington and "The National Journal's" online "Hotline" editor Vaughn Ververs.
Good morning, Vaughn.
VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning, Carol.
COSTELLO: So, does FCC Chairman Michael Powell really care about Howard Stern's antics?
VERVERS: Well, this is sort of a battle that's gotten personal over the last couple of months. Michael Powell was doing a radio interview, I believe in San Francisco about two or three weeks ago, when Howard Stern actually called up the show and got in an argument with Michael Powell, said that he is only in his position because of his father, accused him of conducting a witch hunt against Howard Stern and other disc jockeys like himself.
But overall, you know, this is just part of the ongoing sort of cultural war that we've seen being waged in the last couple of years.
COSTELLO: Yes, you mentioned cultural war. It went on, on David Letterman last night. Howard Stern was a guest. Let's listen to this.
(BEGIN VIDEO CLIP)
STERN: I can't be myself anymore on the radio. I'm not looking to get on the radio and say the "f" word. I'm not looking to get on the radio and make everything so blatantly sexual. That's not what this is about. I'm talking about 10-15 years ago the topics I used to talk about on the radio I'm now being fined millions of dollars for. So, where does it end?
You know, just the other night we see that on ABC a woman took off her towel in front of a football player, and now we're talking about possible fines?
DAVID LETTERMAN, HOST, "LATE SHOW WITH DAVID LETTERMAN": Right.
STERN: What's happened? I mean, it feels like we're in a religious country.
(END VIDEO CLIP)
COSTELLO: Well, there you go. We've been asking an e-mail question this morning, Vaughn. Most of our viewers say, well, they're on the FCC side. They're not on Howard Stern's side.
VERVERS: Well, I think most people want to have standards. I think everybody agrees that there needs to be some sort of standards. And let's face it. I mean, Howard Stern can say whatever he wants, but he is in the business of getting listeners to listen to his show. He's going to do what he thinks is going to draw people to his show. He's been very, very successful at that.
We're now in a time, though, that I think the other side is battling back a little bit. And everybody is trying to find out where that line is of those standards. But most people agree that there should be standards.
COSTELLO: Well, let me run this by you. You talk about radio as a business. Commercial radio as a business is going to be hurt with losses like Howard Stern. There is no doubt about that. They're going to be losing millions of dollars. Is it likely in the months to come that the people who own these big radio companies will come down on Washington? And will that matter to Michael Powell?
VERVERS: Well, I'm not sure that they have a lot of power to come down on Washington. I think what they're going to do is try to fight for their survival in this climate. And, you know, the satellite radio has been very successful so far. There are two competing companies, which will sort of go against each other. I think commercial radio will continue to thrive to some extent. But it definitely will be hurt.
COSTELLO: OK, you said it. Vaughn Ververs joining us live from Washington this morning, thank you.
Who was it that said there is no bad publicity? It seems ABC's "Desperate Housewives" is getting a whole lot of talk and ink over its "Monday Night Football" opening skit. For his part in the spoof, Terrel Owens offered an apology to anyone who was offended, but he really thinks they don't protest too much.
(BEGIN VIDEO CLIP)
TERREL OWENS, PHILADELPHIA EAGLES: Well, I don't think it's any different than little kids watching "South Park" or "King of the Hill," things of those nature. And, you know, obviously everybody knows the content that's surrounded by those shows. So, my thinking is what's the difference?
(END VIDEO CLIP)
COSTELLO: Owens added that whenever he's involved in anything, it is always front-page news.
Is this a battle worthy of the Terminator? A Texas radio host is watching an effort to counter another group's move to change the Constitution. That group of Arnold Schwarzenegger supporters wants an amendment to make it possible to elect a foreign-born president. Radio host Alex Jones says he raised $5,000 in the first two hours of his anti-Schwarzenegger campaign. He plans to run TV ads in Austin, Texas, and in Sacramento, California.
The Clinton Presidential Library opens the doors to the public today. Visitors can see thousands of exhibits ranging from peace to impeachment. Yesterday, the opening dedication in Little Rock was attended by current and past presidents, along with some 30,000 dignitaries and friends. The library and presidential center offered Clinton the opportunity to define his legacy.
(BEGIN VIDEO CLIP)
WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: The thing I want most is for people to come to this library, whether they're Republicans or Democrats, liberals or conservatives, to see that public service is noble and important, that the choices and decisions leaders make affect the lives of millions of Americans and people all across the world.
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COSTELLO: The library complex cost $165 million to build. It was paid for with private donations.
It's known as the wonderful world of Disney, but how wonderful is it really? A look at the latest earnings report as Disney executives resort to name-calling in their battle for control of the kingdom.
And looking beneath to see SpongeBob and the gang. A preview of the new movie -- actually, we're going to get to the psychology of SpongeBob SquarePants, because we know many, many adults love to watch this cartoon.
But first, here's a look at what else is making news this Friday morning.
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COSTELLO: Maybe some of you have been following this soap opera. It's actually a lawsuit that was brought by Walt Disney Company shareholders. It doesn't seem to have hurt the stock any, but it's certainly hurting the image of the company.
CNN contributor Ali Velshi is here to talk about as the Disney turns.
ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: This story gets more and more interesting. It's a long time in the coming. I want to tell you about this. Michael Eisner is on the stand now, and the name of the court that they are in sounds like something from a Disney fantasy, the Delaware Court of Chancery, no fantasy going on there, however.
It's the trial of Disney Chairman Michael Eisner, former Disney President Michael Ovitz, and several other former and current Disney board members.
Now, if the Magic Kingdom conjures up images of friendly, warm, fuzzy characters in the minds of children, none of that was evident at the trial. This thing does, however, play out like a Disney plot. Let's sort of think about "The Lion King." The question is: Is Michael Eisner Mufasa, the legitimate king of the jungle? Or is he Scar, the tyrannical dictator?
Well, I think the investors are thinking he's Scar, and they're suing over a scar he says -- they say that Eisner left the company about a decade ago.
Now, it centers on the departure of Michael Ovitz. Ovitz is a longtime friend of Eisner. He was hired in 1995 to be the president of the company. He was fired about 14 months later. And here's the thing. When he was fired, he left with $140 million severance package.
Now, a lot of people have such severance packages. We hear about this all of the time. But the investors are saying he should have been fired for cause. There was enough evidence and the board knew that there were some problems with Ovitz, and they should have fired him for cause. And they want the $140 million plus interest back, about $200 million.
COSTELLO: Plus interest.
VELSHI: They want that back in the company.
Now, here's what they have as evidence. They submitted -- the lawyers for the plaintiffs submitted a memo about a month ago in the trial from Eisner. He wrote it at about 2:00 in the morning to his PR director. And the memo reads like this about Ovitz: He is psychopath. He doesn't know right from wrong. He cannot tell the truth. Basically, he has a character problem, too devious, too untrustworthy, only out for himself.
Now, if that's what Eisner thought of him then, why didn't he simply fire him, is what the board says -- what the shareholders say.
COSTELLO: But didn't they used to be best friends?
VELSHI: That's exactly it. They were 25 year old -- they had been friends for about 25 years. And the shareholders say that he was sticking up for his friend.
Eisner took the stand saying he was a little worried about what might happen to Ovitz. He wasn't...
COSTELLO: Being a psychopath and all.
VELSHI: Exactly. He said, I didn't want -- I wasn't trying to get his consent on being fired. I was trying to get his consent on leaving the company in a graceful way. And when Ovitz finally left, in fact, Eisner put out a statement to say that he left on mutually- agreeable terms, not that he was fired.
Eisner also testified yesterday that he -- meaning Michael Ovitz -- had lost, frankly, the confidence of the people that worked for him. He wasn't managing them well. He was off on a separate mission, which was very self-centered, to make himself look good. He was acting very un-Disney-like.
COSTELLO: So, how much longer will this trial go on?
VELSHI: Eisner should be on the stand for another couple of days or so. This has been going on for a very, very long time. And it's not a lot of money in Disney's world, but it centers on the leadership of Disney. Eisner is now, you know, on his way out as the head of the company. And then we're back to "The Lion King" thing. There is the issue of succession. Who is Simba in this thing?
And it was -- Eisner wants it to be Bob Iger, who used to run ABC Capital Cities before Disney took it on. It's very early in the morning for me to be spinning all of these media conglomerate names around my head.
Something interesting happened for Eisner. It's not a done deal. But yesterday, as you were reporting earlier, Mel Karmazin, former head of Viacom who was seen by some people as a possible head of...
COSTELLO: Disney, right?
VELSHI: ... yes, a possible future head of Disney took the job at Sirius Satellite Radio, which everybody seems to think is a smart move. Sirius investors really like that as well.
So, Iger may be closer to the top at Disney.
COSTELLO: Interesting. Fascinating.
VELSHI: Yes.
COSTELLO: Please keep us posted.
VELSHI: Oh, it's going to be -- a movie edition is going to be out soon.
COSTELLO: I want to hear more about the memos that have come to light.
VELSHI: Oh, yes, they're good.
COSTELLO: Your news, money, weather and sports. It is 6:46 Eastern. Here's what's all new this morning.
Anti-Bush protests have been going on in at least two Chilean cities. President Bush and the leaders of 20 other Pacific Rim nations are gathering in Santiago for a summit. Topping Bush's agenda is getting a consensus on ending North Korea's nuclear program.
A star-studded gala to raise money to find a cure for victims of spinal cord injuries turns into a tribute to Christopher Reeve. The New York event raised $1.7 million.
In money news, someone else will walk in the shoes of Nike's co- founder, Phil Knight. He's stepping down as president and CEO of the athletic shoe and clothing company. He'll be replaced by William Perez, the top man at SC Johnson & Son.
In culture, the Museum of Modern Art is ready to reopen in New York City. It's been closed for more than two years while $425 million worth of renovations were done. And in sports, Roger Federer advanced to the semifinals of the tennis Masters series finale in Houston, Texas. Federer beat Lleyton Hewitt 6-3, 3-6, 6-3, to remain undefeated in the round robin tournament.
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COSTELLO: Chad, you love SpongeBob, don't you?
CHAD MYERS, CNN METEOROLOGIST: I do. I love his house.
COSTELLO: This little pineapple.
MYERS: I want to live in a pineapple.
COSTELLO: Well, you know, a lot of adults love SpongeBob SquarePants and his friend, Patrick, because of silly things like this. We're going to get into the psychology of SpongeBob and review the movie, too. This is DAYBREAK.
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UNIDENTIFIED MALE: Deep beneath the world's greatest ocean lives a sponge unlike any other.
UNIDENTIFIED MALE: Hurray! Bubble fight!
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COSTELLO: If you have had a stressful week, and we're right there with you, we have an idea. Go to Bikini Bottom tonight and soak up the happy world of SpongeBob SquarePants. Yes, SpongeBob SquarePants the movie, opens tonight.
Tom O'Neil from "In-Touch Weekly" is here to explain the absorbent star's appeal to those over the age of 25.
I cannot believe how many adults love this cartoon.
TOM O'NEIL, EDITOR, "IN-TOUCH WEEKLY": I know.
COSTELLO: Why?
O'NEIL: And it's not sophisticated. This is a show that distinguishes itself by not making the pop culture references to Britney and Justin that the others might. It's not cynical in the way that "South Park" is or "The Simpsons." But what this show has in spate that no other show has in the cynical age is heart.
There was an episode on the other night where the two best friends, Bob and his buddy, Patrick. Patrick kept going, well, Bob, you're my best friend. Not just my best friend, you're my bestest (ph) friend. And they're not afraid to have this. Don't you agree? Even your favorite character -- because we were talking about Plankton -- sometimes you root for them. COSTELLO: Oh, definitely so. It's such an optimistic show. And the relationship between SpongeBob SquarePants and Patrick, it seems familiar somehow. Let's get a little example of that.
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UNIDENTIFIED FEMALE: Good. Now keep your eyes shut. With my mermaid's magic and my one-tail fin, I command the two of you to turn into men. Open your eyes.
UNIDENTIFIED MALE: Huh, I don't feel any -- oh, my gosh, Patrick, you have a mustache!
UNIDENTIFIED MALE: So do you!
UNIDENTIFIED MALE: Oh!
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COSTELLO: It's just so child-like. But the relationship between the two, you know, there has always been rumors that these characters are gay. We've heard those floating around.
O'NEIL: Right.
COSTELLO: But where does that come from?
O'NEIL: From the excessive heart. These characters care so much about each other in a genuine way that it feeds those kinds of rumors. But where this pairing of buddies comes from is the tradition of -- you can go back to Fred and Barney, you know, from "The Flintstones," who were a recreation of Ralph Kramden and Ed Norton from "The Honeymooners." And the formula is the main character is stupid, but the best friend is stupider.
COSTELLO: And it seems to work and make us all happy. Go figure. The other interesting thing about this as far as its appeal to children is there's a lot of, like, underwear jokes in it, you know, SpongeBob SquarePants...
O'NEIL: Right.
COSTELLO: ... Bikini Bottom. I mean, they're always, like, SpongeBob is always losing his pants and his underwear shows up and everybody laughs. But it really appeals to kids as they really are and says to children, you know, it's OK just to be a kid. You don't have to be a smart-aleck. You don't have to outsmart your mom and dad. It's just OK to like silly things.
O'NEIL: Yes, right. And how often do you see that in pop culture? It's so rare. This show is so extraordinarily hot. It debuted in 1999. It has never been out of the top 10 most-watched cable shows. Not only does it beat DAYBREAK, Carol, it beats wrestling. Wow!
COSTELLO: That's just incredible. And movie reviews have been good on this, right?
O'NEIL: Oh, it's even winning over the hearts of cynical crusty critics. It's a terrific film. It's not going to be "The Incredibles" this weekend, but it's going to come in at No. 2.
COSTELLO: Tom O'Neil, thanks for joining us on DAYBREAK. Interesting stuff.
Who is the hottest act on MTV in Europe? We'll tell you.
But first, you are watching DAYBREAK for a Friday morning.
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COSTELLO: Oh, see, we're both dancing.
MYERS: Ready to go.
COSTELLO: Europe's hottest acts were there, Chad, but Americans won 11 of the top 12 MTV Europe Music Awards.
And there they are. Outkast was in; so was Usher. They shared top honors for the night. Britney Spears won best female artist, and the Black Eyed Peas won for best pop group. Oh, I love them, too.
Music fans across Europe picked the winners by voting online and with their cell phones.
MYERS: Carol, the word is now that because there was not a paper ballot trail, they all want recounts.
COSTELLO: Get out of here! Hey, Chad, (UNINTELLIGIBLE)?
MYERS: That's easy for you to say.
COSTELLO: Yes. No, it really wasn't. But for those of you like me who don't speak German, it means the king is in Germany.
MYERS: Yes.
COSTELLO: A new exhibit there features 300 pieces of Elvis memorabilia, including the king's military uniform and his handwritten notes on how to pronounce the words to a traditional German song.
MYERS: What we didn't see were any, like, you know, little Elvis impersonators. They weren't there. Now, this was in Germany...
COSTELLO: Because those Germans are a lot smarter than us.
MYERS: If this was in Vegas there would be 100 of them there. Carol, have a great weekend. Enjoy the Northeast.
COSTELLO: You, too. And, you know, to our viewers, thanks for staying with us through kind of a difficult transition period to New York. But it all went kind of smoothly, don't you think?
MYERS: It went great.
COSTELLO: Yes. Thank you, Chad. Have a great weekend. I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.
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