1 00:00:05,240 --> 00:00:08,000 Speaker 1: This is what the flux I'm brad, I'm justin and 2 00:00:08,080 --> 00:00:09,480 Speaker 1: it's Wednesday, the tenth of July. 3 00:00:09,800 --> 00:00:12,399 Speaker 2: The way we spoke about Nine Entertainments and major staff 4 00:00:12,440 --> 00:00:14,840 Speaker 2: cuts the other week, but now it's cut even deeper. 5 00:00:14,920 --> 00:00:18,240 Speaker 2: Nine has announced that it's restructuring its pedestrian business, meaning 6 00:00:18,320 --> 00:00:22,160 Speaker 2: brands like Vice, Refinery, twenty nine, giz Modo Live Hack App. 7 00:00:22,200 --> 00:00:24,439 Speaker 2: It will all be cut in the coming month. 8 00:00:24,200 --> 00:00:26,840 Speaker 1: Of yikes, there is serious paine out there be man 9 00:00:27,040 --> 00:00:29,080 Speaker 1: in good news though, Flex out. This is the final 10 00:00:29,160 --> 00:00:31,760 Speaker 1: day that you can get Flux Pro for fifty percent off. 11 00:00:31,920 --> 00:00:34,440 Speaker 1: That's the Flux app with all its dance features. We're 12 00:00:34,440 --> 00:00:38,120 Speaker 1: talking advanced budgeting, advance credit score, premium articles, all for 13 00:00:38,240 --> 00:00:40,519 Speaker 1: fifty percent off its normal price. To make sure to 14 00:00:40,600 --> 00:00:42,640 Speaker 1: kick off the new financial year on a high and 15 00:00:42,720 --> 00:00:44,360 Speaker 1: hit the link in the show notes to get. 16 00:00:44,200 --> 00:00:48,920 Speaker 2: Access three bargain basement price stories today. Juzzy boy, let's 17 00:00:48,960 --> 00:00:51,519 Speaker 2: do it for our first. Telstra will be jacking up 18 00:00:51,560 --> 00:00:54,279 Speaker 2: the prices of its mobile phone plans by more than 19 00:00:54,520 --> 00:00:57,400 Speaker 2: the inflation rate as part of its plans to grow faster. 20 00:00:57,760 --> 00:01:00,640 Speaker 1: Telstra making some serious moves lately. So what is going 21 00:01:00,640 --> 00:01:02,160 Speaker 1: on here? Well, juzzy Boy. 22 00:01:02,280 --> 00:01:05,640 Speaker 2: Telstra is the largest mobile network operator in Australia with 23 00:01:05,720 --> 00:01:08,720 Speaker 2: over twenty two and a half million or retail mobile services, 24 00:01:08,760 --> 00:01:09,319 Speaker 2: nearly one. 25 00:01:09,240 --> 00:01:11,960 Speaker 1: Mobile service for every single autult teen and infants in 26 00:01:12,000 --> 00:01:13,040 Speaker 1: the whole of Australia. 27 00:01:13,080 --> 00:01:15,399 Speaker 2: You might remember back in May, Telstra announced that it 28 00:01:15,440 --> 00:01:19,200 Speaker 2: would completely restructure its business, including cutting up to twenty. 29 00:01:18,920 --> 00:01:20,800 Speaker 1: Eight hundred jobs by the end of this year. 30 00:01:20,920 --> 00:01:23,320 Speaker 2: Now, over the past two years, juzzy Boy Telstra has 31 00:01:23,360 --> 00:01:26,320 Speaker 2: been increasing its mobile phone plans in line with inflation. 32 00:01:26,400 --> 00:01:28,600 Speaker 1: But be man, during that big announcement in May, they 33 00:01:28,680 --> 00:01:31,400 Speaker 1: warned that increasing prices with inflation was a thing of 34 00:01:31,440 --> 00:01:34,800 Speaker 1: the past. I really wanted flexibility, you meaning like two 35 00:01:34,800 --> 00:01:38,000 Speaker 1: months later, because now Telstra's announced its mobile phone plans 36 00:01:38,040 --> 00:01:40,360 Speaker 1: will increase by four to five percent at a minimum, 37 00:01:40,400 --> 00:01:43,160 Speaker 1: and that's across its og Telstra brand, but also its 38 00:01:43,280 --> 00:01:46,600 Speaker 1: cheaper brand Boost and b Man. Well, customers weren't quite 39 00:01:46,600 --> 00:01:49,160 Speaker 1: doing the happy dands. Investors most certainly were. 40 00:01:49,600 --> 00:01:51,560 Speaker 2: Telstra shares jump two and a half percent to their 41 00:01:51,640 --> 00:01:53,200 Speaker 2: highest level since April. 42 00:01:53,360 --> 00:01:54,800 Speaker 1: So what is the key learning here? 43 00:01:54,840 --> 00:01:57,040 Speaker 2: When you're looking to grow your profit, there are only 44 00:01:57,080 --> 00:01:59,480 Speaker 2: a couple of levers that can make a big difference 45 00:01:59,520 --> 00:02:00,520 Speaker 2: to a company. 46 00:02:00,560 --> 00:02:02,440 Speaker 1: On the one hand, a company can look to reduce 47 00:02:02,480 --> 00:02:03,840 Speaker 1: their costs. 48 00:02:03,360 --> 00:02:06,360 Speaker 2: Like what Telster has done with their major job cuts. 49 00:02:06,040 --> 00:02:08,840 Speaker 1: And their cuts to product offerings and cuts to offer 50 00:02:08,880 --> 00:02:10,800 Speaker 1: space that the man. If that doesn't get you to 51 00:02:10,840 --> 00:02:13,160 Speaker 1: the required profit and profit margin, then you need to 52 00:02:13,160 --> 00:02:15,320 Speaker 1: start making moves on the revenue side. 53 00:02:15,080 --> 00:02:17,640 Speaker 2: Too, which is why Telstra is increasing the prices on 54 00:02:17,680 --> 00:02:20,919 Speaker 2: its mobile phone plans by more than inflation. 55 00:02:20,600 --> 00:02:23,240 Speaker 1: And the man. Sadly for US consumers, Telstra aren't the 56 00:02:23,280 --> 00:02:24,480 Speaker 1: only ones doing this now. 57 00:02:24,639 --> 00:02:27,840 Speaker 2: Votaphone increased prices by between six and nine percent back 58 00:02:27,880 --> 00:02:30,680 Speaker 2: in January, and Optics raised prices for new customers by 59 00:02:30,680 --> 00:02:33,119 Speaker 2: five to six percent in May as well. For our 60 00:02:33,320 --> 00:02:37,679 Speaker 2: second story, Sacks fifth Avenues parent company has acquired a 61 00:02:37,760 --> 00:02:40,760 Speaker 2: luxury or retailer name and Marcus for two point six 62 00:02:40,880 --> 00:02:43,639 Speaker 2: five billion US dollars. And if you don't mind, Amazon 63 00:02:43,680 --> 00:02:45,840 Speaker 2: and Salesforce are taking a slice too. 64 00:02:45,960 --> 00:02:49,400 Speaker 1: Geez, Jeffy Bee really leaning into his fashionable slash ripped 65 00:02:49,440 --> 00:02:51,480 Speaker 1: ear at the moment. So what is going on here, 66 00:02:51,560 --> 00:02:52,040 Speaker 1: jose boy? 67 00:02:52,160 --> 00:02:54,880 Speaker 2: If you know anything about fashion, and I mean anything, 68 00:02:55,000 --> 00:02:57,400 Speaker 2: it's likely that you know Sacks Fifth Avenue. 69 00:02:57,440 --> 00:03:00,000 Speaker 1: I do, thankfully. It's the luxury department store that's feed 70 00:03:00,040 --> 00:03:01,640 Speaker 1: you're on Gossip Girl and Sex in the City, and 71 00:03:01,680 --> 00:03:03,799 Speaker 1: Will and Grace and Friends, and the list goes on. 72 00:03:04,000 --> 00:03:07,040 Speaker 2: The original store opened in eighteen sixty seven, if you 73 00:03:07,040 --> 00:03:10,080 Speaker 2: don't mind, and it's grown into forty two different locations, 74 00:03:10,120 --> 00:03:10,959 Speaker 2: including the USA. 75 00:03:11,040 --> 00:03:11,640 Speaker 1: You expect that. 76 00:03:11,840 --> 00:03:15,400 Speaker 2: Canada, you'd expect that too, And get this. Couzak'stan and b. 77 00:03:15,520 --> 00:03:18,440 Speaker 1: Man Name and Marcus is another luxury department store that 78 00:03:18,560 --> 00:03:21,800 Speaker 1: actually went bankrupt during the pandemic. It was saved by investors. 79 00:03:21,880 --> 00:03:24,520 Speaker 2: It always kind of made sense for these bitter rivals 80 00:03:24,560 --> 00:03:26,640 Speaker 2: to join forces, and now it's become reality. 81 00:03:26,720 --> 00:03:29,600 Speaker 1: Yep, SAX Fifth Avenue's parent company has a Quiet Name 82 00:03:29,639 --> 00:03:32,240 Speaker 1: and Marcus for two point sixty five billion US dollars. 83 00:03:32,280 --> 00:03:35,400 Speaker 2: But here's the kicker, you know, just Sax's parent investing 84 00:03:35,440 --> 00:03:36,080 Speaker 2: in Name and Marks. 85 00:03:36,120 --> 00:03:38,000 Speaker 1: No, no, no no, You've always got Amazon throwing some 86 00:03:38,080 --> 00:03:40,760 Speaker 1: cash in Salesforce also tipping some cash into this deal 87 00:03:40,800 --> 00:03:41,080 Speaker 1: as well. 88 00:03:41,120 --> 00:03:43,600 Speaker 2: Fascinating stuff. Josey Boyce, I'm wondering what is the key 89 00:03:43,640 --> 00:03:44,080 Speaker 2: learning here. 90 00:03:44,120 --> 00:03:47,000 Speaker 1: There's a difference between being a luxury goods department store 91 00:03:47,040 --> 00:03:48,520 Speaker 1: and a luxury goods. 92 00:03:48,200 --> 00:03:51,800 Speaker 2: Retailer objectively luxury goods. It's a great industry because of 93 00:03:51,840 --> 00:03:53,200 Speaker 2: its ridiculously high margin. 94 00:03:53,280 --> 00:03:56,440 Speaker 1: For example, LVMH, the company behind Louis Bitton and Dior 95 00:03:56,520 --> 00:03:58,880 Speaker 1: and Fendi and many more. They have gross margins of 96 00:03:58,960 --> 00:04:00,160 Speaker 1: nearly seventy percent. 97 00:04:00,200 --> 00:04:02,600 Speaker 2: It does avoid. The challenge is that when consumer spending 98 00:04:02,680 --> 00:04:04,680 Speaker 2: is down, the whole industry takes. 99 00:04:04,480 --> 00:04:06,400 Speaker 1: A major hit, including department stores. 100 00:04:06,440 --> 00:04:09,160 Speaker 2: You've got online luxury retailer far Fetch that was sold 101 00:04:09,200 --> 00:04:11,840 Speaker 2: for a fraction of what it was previously worth because 102 00:04:11,880 --> 00:04:13,680 Speaker 2: it required emergency funding. 103 00:04:13,720 --> 00:04:15,880 Speaker 1: You've got Matches that were sold and then put into 104 00:04:15,920 --> 00:04:17,720 Speaker 1: administration just three months later. 105 00:04:17,760 --> 00:04:20,520 Speaker 2: And you've got many physical department stores also shutting down 106 00:04:20,560 --> 00:04:21,360 Speaker 2: locations at. 107 00:04:21,240 --> 00:04:23,719 Speaker 1: The same time dmat. It just so happens that Amazon's 108 00:04:23,760 --> 00:04:26,600 Speaker 1: been working hard to expand into luxury fashion over the 109 00:04:26,640 --> 00:04:27,680 Speaker 1: past few years. 110 00:04:27,440 --> 00:04:29,920 Speaker 2: But hasn't yet really cracked this market. 111 00:04:30,000 --> 00:04:32,960 Speaker 1: So this investment gives us on access to luxury products, 112 00:04:33,000 --> 00:04:36,280 Speaker 1: physical department stores, and juicy data that desperately need. 113 00:04:36,440 --> 00:04:40,279 Speaker 2: For our third and final story, Paramount Global, one of 114 00:04:40,279 --> 00:04:44,400 Speaker 2: Hollywood's oldest studios, and Skydwan's Media have agreed to merge, 115 00:04:44,400 --> 00:04:46,880 Speaker 2: forming a twenty eight billion US dollar company. 116 00:04:46,960 --> 00:04:49,440 Speaker 1: Match made in Hollywood Heaven, rsay. So what is the 117 00:04:49,480 --> 00:04:49,960 Speaker 1: story here? 118 00:04:50,000 --> 00:04:53,000 Speaker 2: Well, Paramount is the global film studio and TV production 119 00:04:53,120 --> 00:04:56,120 Speaker 2: company that's been around for almost as long as Hollywood has, 120 00:04:56,200 --> 00:04:58,040 Speaker 2: dating back to nineteen twelve, and it's. 121 00:04:57,880 --> 00:05:01,520 Speaker 1: Given us some classics like Titanic, Godfather, like Breakfast at 122 00:05:01,520 --> 00:05:02,359 Speaker 1: Tiffany's Seeing. 123 00:05:02,160 --> 00:05:04,440 Speaker 2: That One, anything more recent Juzzy Boy, don't forget the 124 00:05:04,440 --> 00:05:07,919 Speaker 2: most classic of all, the Shrek series. Now, Paramount was 125 00:05:07,920 --> 00:05:10,360 Speaker 2: put on the selling block earlier this year, with many 126 00:05:10,400 --> 00:05:14,719 Speaker 2: companies circling from Warner Brothers to Comcast and even Warren Buffett, 127 00:05:14,760 --> 00:05:15,480 Speaker 2: but now be man. 128 00:05:15,640 --> 00:05:18,840 Speaker 1: Paramounts announced it will merge with an independent film studio 129 00:05:18,880 --> 00:05:20,800 Speaker 1: called sky Dance in a deal that will create a 130 00:05:20,880 --> 00:05:22,920 Speaker 1: twenty eight billion US dollar company. 131 00:05:23,000 --> 00:05:25,200 Speaker 2: The deal is twofold, as they say, d the Boy 132 00:05:25,240 --> 00:05:28,479 Speaker 2: First Guidance will acquire the controlling stake in Paramount for 133 00:05:28,480 --> 00:05:30,360 Speaker 2: two point four billion US dollar's care. 134 00:05:30,600 --> 00:05:33,000 Speaker 1: Then Skydans will merge with Paramount. Now. 135 00:05:33,120 --> 00:05:34,960 Speaker 2: Skydance has been trying to get this deal over the 136 00:05:35,000 --> 00:05:36,880 Speaker 2: line for a while now, and it seems like they 137 00:05:37,000 --> 00:05:38,560 Speaker 2: finally managed. 138 00:05:38,200 --> 00:05:42,600 Speaker 1: To do it yep, allegedly by sweetening Paramount's controlling owner's payout, 139 00:05:42,800 --> 00:05:46,600 Speaker 1: and this challenge has been all thanks to multi class shares. 140 00:05:46,760 --> 00:05:48,200 Speaker 1: So what is the key learning here? 141 00:05:48,279 --> 00:05:50,640 Speaker 2: When it comes to company shares, not all shares are 142 00:05:50,680 --> 00:05:52,520 Speaker 2: created equal seeb Man. 143 00:05:52,560 --> 00:05:55,560 Speaker 1: When company's issue shares, they often divide them into multiple 144 00:05:55,600 --> 00:05:57,400 Speaker 1: classes with different rights. 145 00:05:57,480 --> 00:05:59,880 Speaker 2: They can do this to give people like founders or 146 00:06:00,000 --> 00:06:03,280 Speaker 2: executives more voting power than ordinary shareholders. 147 00:06:02,760 --> 00:06:04,960 Speaker 1: And therefore more control over the company's direction. 148 00:06:05,080 --> 00:06:08,880 Speaker 2: Now, in Paramount's case, the Redstone family was the controlling owner, 149 00:06:08,920 --> 00:06:09,400 Speaker 2: and while they. 150 00:06:09,480 --> 00:06:12,719 Speaker 1: Owned only five percent of Paramount stock, they controlled seventy 151 00:06:12,800 --> 00:06:14,119 Speaker 1: seven percent if it's votes. 152 00:06:14,200 --> 00:06:16,360 Speaker 2: So when it comes to accepting a deal, despite being 153 00:06:16,400 --> 00:06:19,800 Speaker 2: a public company, Paramount's controlling owner holds a lot of 154 00:06:19,800 --> 00:06:21,960 Speaker 2: the decision making power and they man It's not too 155 00:06:22,000 --> 00:06:25,279 Speaker 2: dissimilar to News Corp YEP. The Murdoch family owns around 156 00:06:25,360 --> 00:06:28,040 Speaker 2: fourteen percent of the shares but nearly forty percent of 157 00:06:28,080 --> 00:06:29,039 Speaker 2: the voting right. 158 00:06:28,920 --> 00:06:31,440 Speaker 1: Which means even once the company's gone public, a lot 159 00:06:31,480 --> 00:06:34,000 Speaker 1: of the power can still sit with the controlling owners. 160 00:06:34,200 --> 00:06:36,719 Speaker 1: Fluxam it is the very last day to get fifty 161 00:06:36,720 --> 00:06:38,400 Speaker 1: percent off flux Pro and you don't want to be 162 00:06:38,440 --> 00:06:40,520 Speaker 1: regretting it tomorrow when it's back to its full price, 163 00:06:40,560 --> 00:06:42,400 Speaker 1: and you missed out, so make sure to hit the 164 00:06:42,400 --> 00:06:44,680 Speaker 1: link in the show notes to unlock that fifty percent 165 00:06:44,720 --> 00:06:45,440 Speaker 1: discount code. 166 00:06:45,440 --> 00:06:48,200 Speaker 2: Thanks for listening, and we'll see you on Friday.