WEBVTT - Afterpay gets regulated | Siri lets us down...again | WarnerBros Discovery breaks up

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<v Speaker 1>This is what the Flux I'm brandan, I'm justin and

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<v Speaker 1>at Wednesday, eleventh of June.

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<v Speaker 2>Does await the cost of your strong skinny latte is

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<v Speaker 2>said to increase. We're talking about the perfect storm in

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<v Speaker 2>a coffee cup. Falling supply, surging demand and stubborn the inflation.

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<v Speaker 2>In fact, I'm expecting at Australia's medium coffee prices need

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<v Speaker 2>to increase to between eight and twelve bucks per cup

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<v Speaker 2>to make it fible for cafes.

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<v Speaker 1>All right, I'm never leaving the house again, no box. Sam.

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<v Speaker 1>Speaking of saving money so you can afford to have

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<v Speaker 1>a coffee, have you checked out the Flux budgeting tool.

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<v Speaker 1>It is the greatest way to track all of your

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<v Speaker 1>spending and saving in the one place. It shows you

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<v Speaker 1>categories of where you spend. It shows you what you

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<v Speaker 1>spent last month. So if you're looking to save some money,

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<v Speaker 1>you can spend eight to twelve dollars on a cup

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<v Speaker 1>of coffee. Make sure to check the budgeting tool in

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<v Speaker 1>the Flux out at flex Am. Also, we're gonna be

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<v Speaker 1>taking off a few weeks from the pod as of

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<v Speaker 1>next week, so Friday will be the last episode of

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<v Speaker 1>June and we'll be returning on the ninth of July.

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<v Speaker 2>Three full stories today. Juzzy Boy, let's do it for

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<v Speaker 2>our first. After Pay and all other buy now, pay

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<v Speaker 2>later lenders just got slapped with the same laws as

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<v Speaker 2>credit card lenders and that means tighter lending criteria.

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<v Speaker 1>Did buy now pay latter just graduate from rebellious team

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<v Speaker 1>to rule following out alp man? What is happening here?

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<v Speaker 1>All right?

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<v Speaker 2>So after Pay is the buy now, pay later that

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<v Speaker 2>hit the scenes in twenty fourteen.

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<v Speaker 1>And they man, you'd be familiar with its pay in

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<v Speaker 1>forour model where revolutionized how millions of Australians paid for

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<v Speaker 1>clothes and beauty treatments and even flights.

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<v Speaker 2>In fact, after they listed on the ASX in twenty

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<v Speaker 2>sixteen at a one hundred and fifty million dollar market cap, and.

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<v Speaker 1>It grew so rapidly that it was officially acquired in

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<v Speaker 1>twenty twenty two the thirty nine billion dollars by Block

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<v Speaker 1>and Juzzy Boy.

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<v Speaker 2>Well after Pay may have capped out on its hyper

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<v Speaker 2>growth in Australia, it keeps growing overseas.

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<v Speaker 1>Yet after Pay processed over fifty billion dollars worth of

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<v Speaker 1>sales last year, which is more than double what they

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<v Speaker 1>did just three years ago.

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<v Speaker 2>But Juzzy Boy from yesterday, all buy now, pay later

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<v Speaker 2>providers in Australia will need to start collecting income and

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<v Speaker 2>expense information so.

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<v Speaker 1>That they can assess whether the loan is suitable for

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<v Speaker 1>the applicant.

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<v Speaker 2>Just like traditional credit providers. And while this gives some

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<v Speaker 2>more legitimacy to bind our pay later, it also limits

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<v Speaker 2>after Pay's ability to bypass lending laws.

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<v Speaker 1>Yep, So what is the key learning here?

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<v Speaker 2>When regulation lags behind innovation, the new innovative players really thrive,

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<v Speaker 2>but once.

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<v Speaker 1>The regulation catches up, only the strongest will survive.

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<v Speaker 2>We know that after Pay was able to supercharge its

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<v Speaker 2>growth because it didn't have to play by the same

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<v Speaker 2>strict rules as banks and credit card providers.

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<v Speaker 1>No credit checks, no responsible lending obligations, and it meant that.

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<v Speaker 2>They could scale quickly without the red tape that others face.

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<v Speaker 1>But now be Man, the new rules bring bind our

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<v Speaker 1>pay lated players like after Pay under the same regulatory

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<v Speaker 1>umbrella as other credit providers.

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<v Speaker 2>But Joe Boy, thankfully for after Pay Australia has become

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<v Speaker 2>a much smaller fraction of its entire business.

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<v Speaker 1>In fact, a man after pay has around three and

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<v Speaker 1>a half million customers in Australia.

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<v Speaker 2>And twenty four million customers globally, so be man.

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<v Speaker 1>The real test now is whether after pay can keep

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<v Speaker 1>its edge when the playing field is finally.

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<v Speaker 2>Level, and whether Australia even matters to after pay and

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<v Speaker 2>Block anymore, or our second story.

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<v Speaker 1>Apple has announced slick new updates at its developer conference,

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<v Speaker 1>but it has kicked the SII AI overhaul further down

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<v Speaker 1>the road.

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<v Speaker 2>I got sucked into buying the latest iPhone for its AI,

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<v Speaker 2>but I'm stuck with Siri.

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<v Speaker 1>Tell me more. As Apple's founded in nineteen seventy six,

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<v Speaker 1>it's now the world's largest company by market count.

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<v Speaker 2>Thanks to it's very shalick products like the iPhone, mac

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<v Speaker 2>Apple Watch, and the Man.

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<v Speaker 1>Each year, Apple has its big nerd conference called Worldwide

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<v Speaker 1>Developers Conference or WWDC, and at.

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<v Speaker 2>This nerd conference, Apple announces many of its new features

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<v Speaker 2>and products for the year ahead.

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<v Speaker 1>One of the big changes is that Apple won't be

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<v Speaker 1>calling its mac os updates things like Yosemite or Mountain

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<v Speaker 1>Lion or Big sur anymore.

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<v Speaker 2>Norp It'll be named in line with the year it

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<v Speaker 2>was released, except it's one year ahead, so this year's

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<v Speaker 2>update will be called iOS twenty six mac OS twenty six.

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<v Speaker 1>How futuristic. But then, man, I do remember last year

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<v Speaker 1>Apple promised some big, big improvements to the AI in iPhones.

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<v Speaker 2>It did, but despite the big build up last year,

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<v Speaker 2>Apple hyped AI powered Siri still is not ready.

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<v Speaker 1>Apparently, quality issues have held about yep.

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<v Speaker 2>Apple's internal tests basically showed that Siri only worked properly

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<v Speaker 2>two thirds of the time. But even worse, Apple hasn't

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<v Speaker 2>even committed to a release date anymore because it wants

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<v Speaker 2>to perfect the product before release.

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<v Speaker 1>So what is the key learning here? In tech?

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<v Speaker 2>Being too early can be costly, but being too late

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<v Speaker 2>can be fatal.

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<v Speaker 1>Man, we know that Apple has long been known for

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<v Speaker 1>its patients in product development.

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<v Speaker 2>It didn't launch the first smartphones or the smart watch,

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<v Speaker 2>but when it does enter a market, it tends to

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<v Speaker 2>reshape it.

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<v Speaker 1>In fact, the man when Apple released the iPhone, it

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<v Speaker 1>totally Squashednokia and BlackBerry.

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<v Speaker 2>In two thousand and five, Apple didn't even exist in

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<v Speaker 2>the mobile phone market.

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<v Speaker 1>Now it has nearly twenty percent of market share, with

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<v Speaker 1>many many more competitive plays in the market too.

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<v Speaker 2>And that's the benefit of a strategic delay.

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<v Speaker 1>You get time to refine, observe competitors, and deliver something

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<v Speaker 1>more polished.

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<v Speaker 2>But the way, if Apple waits too long on Siri

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<v Speaker 2>and AI integrations, it may risk losing out for the

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<v Speaker 2>long term. For our third and final story, Warner Brothers

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<v Speaker 2>Discovery is splitting into two companies, one for streaming, one

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<v Speaker 2>for old school TV so that they can better compete Warner.

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<v Speaker 1>Brother's Discovery, taking a page out of the corporate breakup

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<v Speaker 1>playbook B Man, So tell me more? All right? So,

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<v Speaker 1>Warner Bros.

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<v Speaker 2>Discovery formed in twenty twenty two after a forty three

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<v Speaker 2>billion dollar mega merger between Warner Media and Discovery.

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<v Speaker 1>Fun fact of your b Man. That merger came with

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<v Speaker 1>a whopping fifty billion US dollars in depth and josep.

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<v Speaker 2>Wait, while Warner Brothers Discovery has already chipped away twenty bill,

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<v Speaker 2>there's still a long way to go.

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<v Speaker 1>And now Warner Brothers Discovery has announced it's splitting into

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<v Speaker 1>two separately listed public companies.

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<v Speaker 2>So merged two companies in twenty twenty two, and now

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<v Speaker 2>is splitting up the merged company into a different slute.

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<v Speaker 1>One will house its streaming and film studios.

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<v Speaker 2>Think HBO, Warner Brothers Pictures, DC Studios.

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<v Speaker 1>And the other will keep its TV networks like CNN,

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<v Speaker 1>TNT Sports, and Discovery Bust. It will also keep some

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<v Speaker 1>digital assets, though, like Bleacher Report and Discovery's streaming service

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<v Speaker 1>Discovery Plus and.

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<v Speaker 2>Does It Wait, and most of the debt will sit

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<v Speaker 2>with the t V networks business.

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<v Speaker 1>It's all part of the corporate split up to help

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<v Speaker 1>investors know what they're getting with each part of the business.

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<v Speaker 1>So what is the key learning here? A corporate spin

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<v Speaker 1>off is when a company separates part of its operations

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<v Speaker 1>into a new, independent business.

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<v Speaker 2>Shareholders of the parent company typically received shares in both

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<v Speaker 2>new entities. In Warner Brothers Discoveries case, the split separates

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<v Speaker 2>the fast growing content art from the slower moving TV business.

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<v Speaker 1>You can back the streaming upside without worrying about the

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<v Speaker 1>TV decline.

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<v Speaker 2>And Warner Brothers Discovery isn't the first media giant to

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<v Speaker 2>pull the old split to survive maneuver.

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<v Speaker 1>Nope, remember when Fox Corp. And twenty first Century Fox

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<v Speaker 1>did it in twenty nineteen.

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<v Speaker 2>Viacom split into Viacom and CBS back in two thousand

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<v Speaker 2>and five and then re merged in twenty nineteen when

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<v Speaker 2>it became paramount global savy man.

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<v Speaker 1>This is just a natural case of emerging the merging

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<v Speaker 1>buck dam. Just a little remind aut we'll be taking

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<v Speaker 1>a break from early next week and we'll be back

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<v Speaker 1>on the pod on July nine.

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<v Speaker 2>Thanks for listening and we'll see you on Friday.