1 00:00:05,320 --> 00:00:06,640 Speaker 1: This is what the Flux. 2 00:00:06,720 --> 00:00:09,680 Speaker 2: I'm brand and I'm justin and it's Friday, the nineteenth September, 3 00:00:09,800 --> 00:00:10,200 Speaker 2: does boy. 4 00:00:10,320 --> 00:00:13,200 Speaker 1: Kmart aka the Coat of Cheap Homewares is in hot 5 00:00:13,240 --> 00:00:16,480 Speaker 1: water for snooping on its customers. Kmart use facial recognition 6 00:00:16,560 --> 00:00:19,160 Speaker 1: software to tackle a spike in store theft, but now 7 00:00:19,160 --> 00:00:22,119 Speaker 1: it's been found to have breached Australia's privacy laws because 8 00:00:22,160 --> 00:00:24,000 Speaker 1: the technology didn't seek consent. 9 00:00:24,079 --> 00:00:26,240 Speaker 2: Plus, Sam, did you know every single month your credit 10 00:00:26,239 --> 00:00:28,200 Speaker 2: score changes. It might go up, it might go down 11 00:00:28,320 --> 00:00:30,639 Speaker 2: depending on what you've done in the previous month. And 12 00:00:30,640 --> 00:00:33,199 Speaker 2: your credit score is a bit like you're uberating but 13 00:00:33,360 --> 00:00:34,919 Speaker 2: the banks. So if you want to know what your 14 00:00:34,920 --> 00:00:36,720 Speaker 2: credit score is and how you can improve it, make 15 00:00:36,760 --> 00:00:38,640 Speaker 2: sure to download the Flux app and check it out. 16 00:00:38,720 --> 00:00:41,559 Speaker 1: Three Mammoth stories today, Juzzy Boy, let's do it for 17 00:00:41,760 --> 00:00:44,919 Speaker 1: our first. Santos, the second biggest oil and gas producer 18 00:00:45,040 --> 00:00:48,200 Speaker 1: in Australia, has seen the chairs plummet eleven percent after 19 00:00:48,240 --> 00:00:51,360 Speaker 1: a thirty six billion dollar takeover deal collapsed before their 20 00:00:51,560 --> 00:00:52,440 Speaker 1: very eyes. 21 00:00:52,200 --> 00:00:54,880 Speaker 2: Steal went up in smoke Beann, so tell me more so. 22 00:00:54,920 --> 00:00:58,480 Speaker 1: Santos is Australia's second biggest oil and gas producer and while. 23 00:00:58,320 --> 00:01:00,640 Speaker 2: You may not be familiar with them, the twenty five 24 00:01:00,800 --> 00:01:02,640 Speaker 2: billion dollar mining by hamoth. Yeah. 25 00:01:02,680 --> 00:01:06,319 Speaker 1: Santos owns liquefied natural gas export projects in Australia and 26 00:01:06,560 --> 00:01:07,640 Speaker 1: in Papua New Guinea. 27 00:01:07,360 --> 00:01:09,440 Speaker 2: As well as domestic gas assets on the West and 28 00:01:09,640 --> 00:01:10,680 Speaker 2: East coast of Australia. 29 00:01:10,720 --> 00:01:13,920 Speaker 1: Basically, if you've boiled pasta in Australia, odds are Santos 30 00:01:14,000 --> 00:01:15,040 Speaker 1: has something to do with it. 31 00:01:15,080 --> 00:01:18,640 Speaker 2: Now, Beman enter the Abu Dhabi National Oil Company also 32 00:01:18,640 --> 00:01:20,720 Speaker 2: known as Adnock and their investment are Yeah. 33 00:01:20,720 --> 00:01:23,440 Speaker 1: Back in June, Adnock and a consortium of investors made 34 00:01:23,480 --> 00:01:26,080 Speaker 1: a thirty six billion dollar offer for Santos, which was. 35 00:01:26,080 --> 00:01:28,720 Speaker 2: A twenty eight per cent premium to Santos's closing price 36 00:01:28,760 --> 00:01:29,640 Speaker 2: before the offer. 37 00:01:29,480 --> 00:01:32,120 Speaker 1: And just reminded this was an indicative bid to get 38 00:01:32,200 --> 00:01:34,399 Speaker 1: them in the door and their heads in the books. 39 00:01:34,400 --> 00:01:36,840 Speaker 2: Be Man. After eleven weeks of due diligence and just 40 00:01:36,920 --> 00:01:40,240 Speaker 2: two days before the deadline, Adknox consortium said thank you. 41 00:01:40,560 --> 00:01:43,080 Speaker 2: Next and why oh why did they walk? Well, they 42 00:01:43,120 --> 00:01:45,440 Speaker 2: say it. During the due diligence process they found things 43 00:01:45,440 --> 00:01:49,760 Speaker 2: that reduced Santos's value a possible monster tax bill working underground, 44 00:01:49,760 --> 00:01:51,760 Speaker 2: there was a methanely cover up in one of its 45 00:01:51,800 --> 00:01:55,040 Speaker 2: facilities in Darwin, and concerns about major delays in getting 46 00:01:55,040 --> 00:01:56,840 Speaker 2: the deal done. All in all, it was just a 47 00:01:56,880 --> 00:01:59,440 Speaker 2: little too much for Adnock and its investment partners. 48 00:01:59,480 --> 00:02:00,600 Speaker 1: So what is the learning here? 49 00:02:00,720 --> 00:02:03,440 Speaker 2: Due diligence is the process where a potential buyer takes 50 00:02:03,480 --> 00:02:07,040 Speaker 2: a deep dive into the target company's operations, their finances, 51 00:02:07,080 --> 00:02:09,359 Speaker 2: and risks before finalizing a deal. It's like getting a 52 00:02:09,400 --> 00:02:11,480 Speaker 2: building inspection before buying a house. You want to know 53 00:02:11,480 --> 00:02:13,280 Speaker 2: if there are cracks in the walls or termites in 54 00:02:13,320 --> 00:02:13,840 Speaker 2: the foundation. 55 00:02:14,040 --> 00:02:16,959 Speaker 1: Now, in mergers and acquisitions, this means reviewing everything from 56 00:02:16,960 --> 00:02:21,440 Speaker 1: financial statements and contracts to environmental risks or tax liabilities, 57 00:02:21,480 --> 00:02:21,800 Speaker 1: and if. 58 00:02:21,720 --> 00:02:24,760 Speaker 2: Red flags pop up, a buyer might try to negotiate. 59 00:02:24,360 --> 00:02:27,280 Speaker 1: A lower price, or add protective clauses, or walk away 60 00:02:27,400 --> 00:02:30,040 Speaker 1: entirely like ad nocked it. Yeap and Jazi boy. Might 61 00:02:30,080 --> 00:02:33,040 Speaker 1: I remind you this isn't Santos's first time choking on 62 00:02:33,120 --> 00:02:34,200 Speaker 1: the deal, fumes Hope. 63 00:02:34,320 --> 00:02:37,360 Speaker 2: Back in twenty eighteen, US player Harbor Energy tried and 64 00:02:37,440 --> 00:02:40,440 Speaker 2: failed to acquire Santos in an eleven billion dollar deal. 65 00:02:40,320 --> 00:02:42,520 Speaker 1: And then there was the eighty billion dollar merger talks 66 00:02:42,520 --> 00:02:44,840 Speaker 1: with the Woodside, which collapsed in twenty twenty three. 67 00:02:44,680 --> 00:02:46,840 Speaker 2: So b Man. After three failed bids in less than 68 00:02:46,880 --> 00:02:50,919 Speaker 2: a decade, investors in our starting to question Santos's true valuation, and. 69 00:02:50,880 --> 00:02:53,560 Speaker 1: The first move was an eleven percent dive in share price. 70 00:02:53,960 --> 00:02:56,960 Speaker 2: For our second story. Meta has unvowed its new AI 71 00:02:57,080 --> 00:02:59,799 Speaker 2: powered ray bands that could become your second eyes. But 72 00:03:00,000 --> 00:03:01,160 Speaker 2: it wasn't without a hitch. 73 00:03:01,200 --> 00:03:04,239 Speaker 1: So we're living in a real, live black mirror simulation 74 00:03:04,360 --> 00:03:05,560 Speaker 1: right now. Go on, okay? 75 00:03:05,600 --> 00:03:08,040 Speaker 2: So, Meta, formally known as Facebook, is the parent company 76 00:03:08,040 --> 00:03:09,760 Speaker 2: of Facebook and Instagram and What'sapp. 77 00:03:09,800 --> 00:03:12,320 Speaker 1: Back in September twenty twenty one, Meta renounced its first 78 00:03:12,360 --> 00:03:14,959 Speaker 1: partnership with the iconic sunglass company ray Band. 79 00:03:14,840 --> 00:03:16,560 Speaker 2: Yep, and at the same time they launched the first 80 00:03:16,639 --> 00:03:18,920 Speaker 2: version of ray Bands stories smart glasses. 81 00:03:18,919 --> 00:03:21,440 Speaker 1: They seemed like a normal pair of ray Band Wayfarers, 82 00:03:21,440 --> 00:03:23,840 Speaker 1: but had a camera, microphone, and speakers built in. 83 00:03:23,919 --> 00:03:25,920 Speaker 2: Yeah, the same guy who gave us Facebook pokes and 84 00:03:26,000 --> 00:03:28,200 Speaker 2: the metaverse is trying to strap a screen to your 85 00:03:28,200 --> 00:03:28,799 Speaker 2: face yep. 86 00:03:28,720 --> 00:03:32,000 Speaker 1: Juzzy boy. While this first version was largely about content capture, 87 00:03:32,400 --> 00:03:34,639 Speaker 1: the new version is aiming to be a lot more. 88 00:03:34,880 --> 00:03:37,760 Speaker 2: At the annual Metaconnect conference, Zuck shut off the new 89 00:03:37,840 --> 00:03:39,760 Speaker 2: ray band display glasses on stage. 90 00:03:39,800 --> 00:03:42,640 Speaker 1: These come with a neural band worn on your wrists 91 00:03:42,720 --> 00:03:44,640 Speaker 1: that can read your nerve signals yep, so. 92 00:03:44,600 --> 00:03:47,680 Speaker 2: You can control the glasses with tiny finger movements anything else. 93 00:03:47,720 --> 00:03:49,680 Speaker 2: At the conference, Juzsey boy well he managed to type 94 00:03:49,680 --> 00:03:52,840 Speaker 2: thirty words per minute using the neural band and no keyboard. 95 00:03:52,840 --> 00:03:55,840 Speaker 1: He also did live translations and even took photos through 96 00:03:55,880 --> 00:03:56,440 Speaker 1: the glasses. 97 00:03:56,440 --> 00:03:58,800 Speaker 2: But the man answering a WhatsApp video call on stage 98 00:03:58,840 --> 00:04:02,680 Speaker 2: failed not once twice, but four times, and Zach then 99 00:04:02,800 --> 00:04:04,320 Speaker 2: just casually blame the Wi. 100 00:04:04,080 --> 00:04:05,000 Speaker 1: Fi, not the product. 101 00:04:05,000 --> 00:04:07,000 Speaker 2: Can't be the product, of course, so what is the 102 00:04:07,040 --> 00:04:07,680 Speaker 2: key learning here? 103 00:04:07,800 --> 00:04:10,480 Speaker 1: Live demos are now part of the theater of big 104 00:04:10,560 --> 00:04:11,880 Speaker 1: tech product launchers, and. 105 00:04:11,840 --> 00:04:14,360 Speaker 2: These new features can sometimes live and die by the 106 00:04:14,400 --> 00:04:15,640 Speaker 2: success of these demos. 107 00:04:15,760 --> 00:04:18,680 Speaker 1: YEP. Smooth demos can create buzz, while a glitch can 108 00:04:18,720 --> 00:04:21,279 Speaker 1: cast out on whether the product is really ready. 109 00:04:21,560 --> 00:04:24,320 Speaker 2: Remember what happened when Google announces AI launch of Barred 110 00:04:24,400 --> 00:04:25,839 Speaker 2: back in February twenty twenty three. 111 00:04:26,160 --> 00:04:28,920 Speaker 1: Yes, it said that the James web Space telescope took 112 00:04:29,080 --> 00:04:31,600 Speaker 1: the very first pictures of a planet outside of our 113 00:04:31,640 --> 00:04:32,279 Speaker 1: solar system. 114 00:04:32,360 --> 00:04:33,760 Speaker 2: Except that was incorrect. 115 00:04:34,040 --> 00:04:36,520 Speaker 1: Next minute, one hundred and forty billion dollars was wiped 116 00:04:36,520 --> 00:04:38,240 Speaker 1: from Alphabet's market cap. 117 00:04:38,040 --> 00:04:41,760 Speaker 2: And just fifteen months later, Google rebranded Bard into Gemini. 118 00:04:41,839 --> 00:04:43,839 Speaker 1: Thankfully, for Meta, the stakes are a little different. 119 00:04:43,880 --> 00:04:46,320 Speaker 2: Yeah, the smart classes are an exciting experiment, but they're 120 00:04:46,320 --> 00:04:48,919 Speaker 2: not yet core to Meta's business model. For our third 121 00:04:48,960 --> 00:04:52,400 Speaker 2: and final story, shares in StubHub, the online ticket marketplace, 122 00:04:52,440 --> 00:04:55,440 Speaker 2: plummeted six percent below its listing price on its ipoday. 123 00:04:55,520 --> 00:04:57,760 Speaker 1: More of a nosebleed seat than front row vibes with 124 00:04:57,800 --> 00:04:59,760 Speaker 1: that debut and my right, tell me more, okay. 125 00:05:00,000 --> 00:05:02,840 Speaker 2: Stubbub is the online ticket marketplace that was founded back 126 00:05:02,880 --> 00:05:03,920 Speaker 2: in the year two thousand. 127 00:05:04,040 --> 00:05:06,200 Speaker 1: You know, the platform that encourages people to buy tickets 128 00:05:06,240 --> 00:05:08,240 Speaker 1: and then sell them at five times the price. 129 00:05:08,400 --> 00:05:10,360 Speaker 2: Yeah, fun fact be Man. By two thousand and four, 130 00:05:10,440 --> 00:05:12,440 Speaker 2: the co founders actually fell out and one of them 131 00:05:12,520 --> 00:05:14,400 Speaker 2: left and co founded via Go. 132 00:05:14,200 --> 00:05:17,320 Speaker 1: Go, which of course is Stubhub's arch nemesis. 133 00:05:17,360 --> 00:05:19,880 Speaker 2: But b Man's StubHub is a large now. It's platform 134 00:05:19,920 --> 00:05:23,040 Speaker 2: facilitated the purchase of over forty million tickets for more 135 00:05:23,080 --> 00:05:26,200 Speaker 2: than two hundred countries, including Australia in just twenty twenty 136 00:05:26,200 --> 00:05:26,760 Speaker 2: four alone. 137 00:05:26,760 --> 00:05:28,800 Speaker 1: Wow and Jazi Boy StubHub listed on the New York 138 00:05:28,800 --> 00:05:31,880 Speaker 1: Stock Exchange earlier this week, but really struggled to get 139 00:05:31,880 --> 00:05:32,600 Speaker 1: some momentum going. 140 00:05:32,720 --> 00:05:34,919 Speaker 2: It's share price fell six percent on debut. 141 00:05:35,080 --> 00:05:37,960 Speaker 1: That's pretty interesting given that Klana and Figma's US IPOs 142 00:05:37,960 --> 00:05:40,960 Speaker 1: have headed directly to boomtown. So what's the reason I 143 00:05:41,000 --> 00:05:41,640 Speaker 1: didn't go to plan? 144 00:05:41,760 --> 00:05:44,040 Speaker 2: Well, firstly, it came on the same day the Fed 145 00:05:44,080 --> 00:05:46,680 Speaker 2: Reserve cut interest rates by point two five percent, which 146 00:05:46,720 --> 00:05:47,920 Speaker 2: was less than expected and. 147 00:05:48,120 --> 00:05:49,880 Speaker 1: That actually hurt a lot of tech stocks. 148 00:05:49,880 --> 00:05:52,919 Speaker 2: And the CEO also flagged that new pricing transparency laws 149 00:05:52,920 --> 00:05:55,240 Speaker 2: would likely hurt ten percent of their revenues in the 150 00:05:55,240 --> 00:05:55,719 Speaker 2: short term. 151 00:05:55,760 --> 00:05:57,560 Speaker 1: Not exactly the momentum that year to want. 152 00:05:57,600 --> 00:06:00,000 Speaker 2: So while companies eyeing in IPO were excited by the performance, 153 00:06:00,000 --> 00:06:02,400 Speaker 2: it's a Figma and Klana, this may just remind them 154 00:06:02,400 --> 00:06:04,200 Speaker 2: they're not all IPOs are meant to shine. 155 00:06:04,240 --> 00:06:05,800 Speaker 1: So what is the key learning here? 156 00:06:05,839 --> 00:06:08,599 Speaker 2: In every boom cycle, not every IPO can live up 157 00:06:08,640 --> 00:06:09,600 Speaker 2: to investor expectation. 158 00:06:09,720 --> 00:06:12,240 Speaker 1: Does We We know that IPO markets moving cycles. There 159 00:06:12,240 --> 00:06:14,440 Speaker 1: are hot periods like the twenty twenty one boom. There 160 00:06:14,440 --> 00:06:16,880 Speaker 1: are also some frosty periods when IPOs dry up because 161 00:06:16,920 --> 00:06:18,560 Speaker 1: market conditions are shaky. 162 00:06:18,640 --> 00:06:20,600 Speaker 2: But be man for investors. It means they need to 163 00:06:20,640 --> 00:06:24,279 Speaker 2: be extra cautious about separating genuine quality businesses and they're 164 00:06:24,320 --> 00:06:25,800 Speaker 2: not so good during boom times. 165 00:06:25,800 --> 00:06:28,440 Speaker 1: And that means the next batch of IPO hopefuls quietly 166 00:06:28,480 --> 00:06:30,640 Speaker 1: taking notes on what did not work for stub hub. 167 00:06:30,760 --> 00:06:32,640 Speaker 2: No True Self one, don't launch on a day when 168 00:06:32,680 --> 00:06:34,400 Speaker 2: a FED rate decision will overshadow you. 169 00:06:34,720 --> 00:06:37,520 Speaker 1: Note to self two. Don't price two aggressively. Note to 170 00:06:37,560 --> 00:06:40,440 Speaker 1: self number three. Make sure you've addressed any uncertainties or 171 00:06:40,480 --> 00:06:43,479 Speaker 1: regulatory risks before ipo e floxam, Did you know a 172 00:06:43,480 --> 00:06:46,000 Speaker 1: credit score over eight hundred and fifty three is considered 173 00:06:46,080 --> 00:06:48,680 Speaker 1: excellent and if you're below four fifty nine it's below average. 174 00:06:48,720 --> 00:06:49,960 Speaker 1: Where does your credit score sit? 175 00:06:50,040 --> 00:06:51,480 Speaker 2: If you don't know yet, make sure you download the 176 00:06:51,480 --> 00:06:53,320 Speaker 2: Flux app and check out your credit score to see 177 00:06:53,320 --> 00:06:54,160 Speaker 2: how you stack up. 178 00:06:54,200 --> 00:06:56,760 Speaker 1: Thanks for listening, and we'll see you on Monday.