1 00:00:05,120 --> 00:00:06,600 Speaker 1: This is what the flux. 2 00:00:06,680 --> 00:00:10,240 Speaker 2: I'm Brett and Justin's Monday, the twentieth of January. We 3 00:00:10,520 --> 00:00:11,120 Speaker 2: are a. 4 00:00:11,080 --> 00:00:12,520 Speaker 1: Back baby, Fox fam. 5 00:00:12,760 --> 00:00:15,280 Speaker 3: We've been well rested over the summer period and we 6 00:00:15,320 --> 00:00:17,720 Speaker 3: are back with the latest and the greatest business news 7 00:00:17,720 --> 00:00:20,160 Speaker 3: for twenty twenty five. And here is our one hundred 8 00:00:20,160 --> 00:00:23,360 Speaker 3: percent guarantee. Listening to the pod will make you smarter 9 00:00:23,520 --> 00:00:26,040 Speaker 3: than your boss and you'll never feel out of the 10 00:00:26,079 --> 00:00:28,040 Speaker 3: loop at dinners with friends or families. 11 00:00:28,200 --> 00:00:29,240 Speaker 2: Very important or it work. 12 00:00:29,280 --> 00:00:31,680 Speaker 3: Juzzy boy, this could be the juiciest news to come 13 00:00:31,720 --> 00:00:34,559 Speaker 3: back to. TikTok has given its last viral wave to 14 00:00:34,600 --> 00:00:37,360 Speaker 3: its one hundred and seventy million US users after it 15 00:00:37,520 --> 00:00:40,519 Speaker 3: was officially banned over the weekend because it refused to 16 00:00:40,600 --> 00:00:42,279 Speaker 3: sell its US operations to. 17 00:00:42,240 --> 00:00:43,280 Speaker 1: An American company. 18 00:00:43,400 --> 00:00:46,600 Speaker 3: Huge, But only time will tell if it will actually survive. 19 00:00:46,800 --> 00:00:49,240 Speaker 2: Interesting and be man. What is hilarious is that millions 20 00:00:49,240 --> 00:00:53,280 Speaker 2: of Americans and now downloading another Chinese TikTok dupe called 21 00:00:53,360 --> 00:00:56,040 Speaker 2: red Oat. It's now the top app in the whole 22 00:00:56,240 --> 00:00:58,680 Speaker 2: US app store. It's good to be back with the 23 00:00:58,720 --> 00:00:59,920 Speaker 2: latest business news. 24 00:01:00,320 --> 00:01:02,000 Speaker 1: Ironic stories today. Juzzy boy. 25 00:01:02,080 --> 00:01:05,320 Speaker 3: Let's do it for our first Maya's share price dropped 26 00:01:05,319 --> 00:01:08,080 Speaker 3: more than eighteen percent last week after it warned of 27 00:01:08,120 --> 00:01:10,839 Speaker 3: a major decline in its earnings for the first five 28 00:01:10,880 --> 00:01:12,559 Speaker 3: months of FY twenty five. 29 00:01:12,680 --> 00:01:15,520 Speaker 2: Not exactly the kind of post holiday news that investors 30 00:01:15,520 --> 00:01:17,400 Speaker 2: were hoping for. Me man, so tell me more. 31 00:01:17,200 --> 00:01:19,160 Speaker 3: Well, Jusie boy will know Maya as one of the 32 00:01:19,200 --> 00:01:21,119 Speaker 3: og Australian department stores, the. 33 00:01:21,080 --> 00:01:23,600 Speaker 2: Department store who's been battling neck and neck with David 34 00:01:23,640 --> 00:01:26,240 Speaker 2: Jones for over one hundred and twenty years. And be man, 35 00:01:26,360 --> 00:01:28,360 Speaker 2: we know it's been a bit of a rollercoaster ride 36 00:01:28,360 --> 00:01:30,920 Speaker 2: for Maya's investors over the past fifteen years. 37 00:01:30,600 --> 00:01:32,840 Speaker 3: Since it listed at a two point two billion dollar 38 00:01:32,920 --> 00:01:34,479 Speaker 3: valuation in two thousand and nine. 39 00:01:34,560 --> 00:01:38,160 Speaker 2: But let's be honest, the rollercoaster has mainly been experiencing. 40 00:01:37,640 --> 00:01:40,280 Speaker 3: Drops recently, though there were signs of a bit of 41 00:01:40,319 --> 00:01:42,480 Speaker 3: a glow up with a new CEO and plans to 42 00:01:42,560 --> 00:01:44,280 Speaker 3: merge with apparel brands. 43 00:01:44,080 --> 00:01:46,520 Speaker 2: That's the owner of Portman's in JJ's and other brands 44 00:01:46,520 --> 00:01:46,840 Speaker 2: as well. 45 00:01:46,880 --> 00:01:49,760 Speaker 3: But now juzzy Boy Meyers said its earnings before interest 46 00:01:49,760 --> 00:01:52,880 Speaker 3: in tax dropped by twenty five percent compared to last 47 00:01:52,960 --> 00:01:55,360 Speaker 3: year for the most recent five months to December. 48 00:01:55,440 --> 00:01:58,400 Speaker 2: Next minute, it's share price got smashed by eighteen percent. 49 00:01:58,680 --> 00:02:01,240 Speaker 3: But the retailers that my I also planned to buy, 50 00:02:01,360 --> 00:02:04,720 Speaker 3: like Dotti and JJ's Just Jean's Portman's, they. 51 00:02:04,720 --> 00:02:07,360 Speaker 2: Also got whacked and then man, this puts extra pressure 52 00:02:07,360 --> 00:02:09,640 Speaker 2: on the merger, which will go to a shareholder vote 53 00:02:09,720 --> 00:02:10,399 Speaker 2: this Thursday. 54 00:02:10,480 --> 00:02:12,280 Speaker 1: Beig core. So what is the key learning here? 55 00:02:12,360 --> 00:02:15,280 Speaker 2: Big public mergers need big shareholder buy in. 56 00:02:15,320 --> 00:02:17,800 Speaker 3: When a publicly listed company wants to tie them up 57 00:02:17,840 --> 00:02:20,280 Speaker 3: with another business, the board can't just swipe right. 58 00:02:20,400 --> 00:02:22,320 Speaker 1: It needs shareholder approval. 59 00:02:21,880 --> 00:02:24,040 Speaker 2: And in this case, Maya needs more than fifty percent 60 00:02:24,080 --> 00:02:26,160 Speaker 2: of shareholders to vote yes on the deal. 61 00:02:26,200 --> 00:02:28,640 Speaker 3: And while the board of directors can try to strongly 62 00:02:28,720 --> 00:02:31,680 Speaker 3: encourage shareholders to vote yes, they can't force them. 63 00:02:31,720 --> 00:02:33,880 Speaker 2: For example, me men. Back in two thousand and six, 64 00:02:33,919 --> 00:02:36,640 Speaker 2: a group called Airline Partners Australia made an offer to 65 00:02:36,680 --> 00:02:39,880 Speaker 2: acquire Quantus and the Quantas board supported the deal, but 66 00:02:40,160 --> 00:02:42,160 Speaker 2: they only managed to get forty six and a half 67 00:02:42,160 --> 00:02:44,880 Speaker 2: percent of shareholders to approve and the deal didn't end 68 00:02:44,919 --> 00:02:45,519 Speaker 2: up going through. 69 00:02:45,639 --> 00:02:46,320 Speaker 1: So juzzy boy. 70 00:02:46,400 --> 00:02:49,239 Speaker 3: Given the underperformance of Maya and Apparell brands in the 71 00:02:49,320 --> 00:02:50,320 Speaker 3: last five months. 72 00:02:50,080 --> 00:02:52,639 Speaker 1: There may be some question marks for shareholders. 73 00:02:52,160 --> 00:02:56,200 Speaker 2: For our second story. Rocked, the Australian e commerce tech company, 74 00:02:56,240 --> 00:02:59,240 Speaker 2: has seen its valuation jumped to five point six billion 75 00:02:59,280 --> 00:03:02,200 Speaker 2: dollars after its latest capital raise, with some staff taking 76 00:03:02,440 --> 00:03:03,400 Speaker 2: millions off the table. 77 00:03:03,560 --> 00:03:06,000 Speaker 3: One of those companies you probably have seen but never 78 00:03:06,240 --> 00:03:07,760 Speaker 3: really heard of, so tell me more. 79 00:03:07,960 --> 00:03:10,320 Speaker 2: Just founded in Australia back in twenty twelve with the 80 00:03:10,320 --> 00:03:13,280 Speaker 2: goal to optimize online shopping transactions. 81 00:03:13,360 --> 00:03:16,440 Speaker 3: Know when you buy ozopen tickets online from let's say 82 00:03:16,600 --> 00:03:19,320 Speaker 3: ticket Master yep, and once the payment has been made, 83 00:03:19,360 --> 00:03:21,400 Speaker 3: you see a pop up offering you forty percent off 84 00:03:21,440 --> 00:03:23,440 Speaker 3: Hello Fresh or twenty bucks off your. 85 00:03:23,360 --> 00:03:24,560 Speaker 1: Next higher car yep. 86 00:03:24,639 --> 00:03:25,320 Speaker 2: Highly annoying. 87 00:03:25,560 --> 00:03:26,959 Speaker 1: That is Rocked. 88 00:03:27,120 --> 00:03:30,160 Speaker 3: They present customers with products or services from other brands 89 00:03:30,240 --> 00:03:33,280 Speaker 3: after that moment when you purchase something and jesiboit. Rock 90 00:03:33,320 --> 00:03:35,520 Speaker 3: saw its revenue jump by more than forty percent last 91 00:03:35,600 --> 00:03:37,960 Speaker 3: year to six hundred million US dollars, and it's. 92 00:03:37,800 --> 00:03:39,800 Speaker 2: Also grown to more than fifteen countries. 93 00:03:40,000 --> 00:03:42,280 Speaker 3: So now it's raised three hundred and thirty five million 94 00:03:42,360 --> 00:03:45,640 Speaker 3: US dollars in its latest private capital raise before at 95 00:03:45,640 --> 00:03:47,040 Speaker 3: IPO's in twenty twenty six. 96 00:03:47,160 --> 00:03:48,360 Speaker 2: At least that's the plan. 97 00:03:48,520 --> 00:03:51,560 Speaker 3: Uh huh, rock CEO claims they didn't need to raise money, 98 00:03:51,600 --> 00:03:54,480 Speaker 3: but they did it to give investors employees some liquidity. 99 00:03:54,560 --> 00:03:55,920 Speaker 2: So what is the key learning here? 100 00:03:56,000 --> 00:03:58,760 Speaker 3: A secondary capital raise isn't about new funding. It's about 101 00:03:58,760 --> 00:04:01,680 Speaker 3: giving employees and a chance to cash in on their 102 00:04:01,760 --> 00:04:03,320 Speaker 3: juicy juicy shares you see Beman. 103 00:04:03,440 --> 00:04:06,600 Speaker 2: Typically when companies raise money, they issue brand new shares 104 00:04:06,680 --> 00:04:09,560 Speaker 2: to bring in fresh funds for company growth or expansion. 105 00:04:09,640 --> 00:04:12,560 Speaker 3: But a secondary capital raise doesn't create new shares. 106 00:04:12,640 --> 00:04:15,720 Speaker 2: Nope, it gives existing shareholders an opportunity to sell their 107 00:04:15,720 --> 00:04:17,599 Speaker 2: shares to other investors. 108 00:04:17,640 --> 00:04:20,640 Speaker 3: In this case with Rocked, the company doesn't directly receive 109 00:04:20,680 --> 00:04:21,480 Speaker 3: any cash now. 110 00:04:21,440 --> 00:04:24,560 Speaker 2: But it's a way for early employees and investors to 111 00:04:24,600 --> 00:04:26,440 Speaker 2: turn their shares into cash. 112 00:04:26,600 --> 00:04:29,279 Speaker 3: So a secondary raise solves this by giving them another 113 00:04:29,279 --> 00:04:31,280 Speaker 3: way to make their shares liquid and the man. 114 00:04:31,320 --> 00:04:33,760 Speaker 2: We've also seen other private tech companies like Camva help 115 00:04:33,800 --> 00:04:37,279 Speaker 2: facilitate their own one point six billion US dollar secondary 116 00:04:37,279 --> 00:04:38,000 Speaker 2: share sale. 117 00:04:37,839 --> 00:04:40,520 Speaker 3: And Stripe did a one billion US dollar secondary share 118 00:04:40,520 --> 00:04:41,359 Speaker 3: sale as well. 119 00:04:41,320 --> 00:04:43,760 Speaker 2: Or before they hit the big IPO tables. 120 00:04:44,320 --> 00:04:48,240 Speaker 3: For our third and final story, Wendy's, the US burger 121 00:04:48,279 --> 00:04:51,640 Speaker 3: behemoth is flipping its way back to Australia with plans 122 00:04:51,680 --> 00:04:54,200 Speaker 3: to open hundreds of new stores over the next decade. 123 00:04:54,400 --> 00:04:56,120 Speaker 2: Sounds delicious, so go on. 124 00:04:56,200 --> 00:04:56,920 Speaker 1: Well, jesiboit. 125 00:04:57,000 --> 00:04:59,480 Speaker 3: Wendy's is the burger chain founded in the US all 126 00:04:59,520 --> 00:05:01,200 Speaker 3: the way back in nineteen sixty nine. 127 00:05:01,200 --> 00:05:03,360 Speaker 2: It's the burger chain with the logo of a redheaded 128 00:05:03,400 --> 00:05:05,240 Speaker 2: girl with pigtails and freckles. 129 00:05:05,320 --> 00:05:07,840 Speaker 3: But don't be fooled by Wendy's innocent look, jusie boy, 130 00:05:07,960 --> 00:05:11,440 Speaker 3: don't get fooled. It's actually the third biggest fast food 131 00:05:11,520 --> 00:05:13,280 Speaker 3: chain on the planet. 132 00:05:12,960 --> 00:05:15,880 Speaker 2: Behind its bit arrivals Makid's and Burger Kings. 133 00:05:16,040 --> 00:05:18,400 Speaker 3: Now important to note this Wendy's is different to the 134 00:05:18,440 --> 00:05:21,159 Speaker 3: hot dog and doughnut Wendy's that's been operating in Australia 135 00:05:21,240 --> 00:05:23,040 Speaker 3: for at least a couple of decades. 136 00:05:22,680 --> 00:05:24,839 Speaker 2: But now be Man Flinn Group, which is the company 137 00:05:24,839 --> 00:05:27,800 Speaker 2: that owns Wendy's license in Australia. They've anounced plans to 138 00:05:27,960 --> 00:05:30,080 Speaker 2: relaunch Wendy's here in Australia. 139 00:05:30,160 --> 00:05:32,560 Speaker 3: They bring it back after a short stint in the 140 00:05:32,600 --> 00:05:34,760 Speaker 3: nineteen eighties when they had eleven stores. 141 00:05:34,800 --> 00:05:37,400 Speaker 2: In fact, Beman Flinn plans to open hundreds of Wendy's 142 00:05:37,400 --> 00:05:39,839 Speaker 2: burger joints around Australia over the next decade. 143 00:05:39,920 --> 00:05:43,359 Speaker 3: But what works in the US doesn't necessarily work in Australia. 144 00:05:43,480 --> 00:05:45,360 Speaker 2: So true, So what is the key learning here? 145 00:05:45,440 --> 00:05:49,039 Speaker 3: A winning recipe in one market doesn't guarantee success in 146 00:05:49,120 --> 00:05:50,039 Speaker 3: other markets around the. 147 00:05:50,000 --> 00:05:52,919 Speaker 2: World, especially when you're not taking into account the unique 148 00:05:52,960 --> 00:05:54,760 Speaker 2: characteristics of that local market. 149 00:05:54,760 --> 00:05:57,239 Speaker 3: You see, JUSI boy, Plenty of American fast food giants 150 00:05:57,240 --> 00:06:01,159 Speaker 3: have strutted into Australia, swanned on in with big dreams 151 00:06:01,160 --> 00:06:03,279 Speaker 3: of dominating that burger Grayle. 152 00:06:03,080 --> 00:06:07,040 Speaker 2: And these brands have copypasted they're winning US formula into Australia. 153 00:06:07,160 --> 00:06:09,440 Speaker 2: We had Carl's Junior, which was the US burger chain. 154 00:06:09,560 --> 00:06:11,679 Speaker 1: They said they would have three hundred stores by twenty 155 00:06:11,680 --> 00:06:12,359 Speaker 1: twenty six. 156 00:06:12,200 --> 00:06:15,200 Speaker 2: But at the last count, nine days later, twenty eight stores. 157 00:06:15,440 --> 00:06:17,919 Speaker 3: Or what about My Guys five Guys Burgers and Fries, 158 00:06:17,960 --> 00:06:20,520 Speaker 3: which launched in Australia in twenty twenty one, At last. 159 00:06:20,279 --> 00:06:22,200 Speaker 2: Count there were only five stores, more. 160 00:06:22,120 --> 00:06:23,800 Speaker 1: Like five stores Burgers and Fries. 161 00:06:24,200 --> 00:06:27,200 Speaker 2: In fact, the most successful burger stores recently have been 162 00:06:27,240 --> 00:06:29,160 Speaker 2: the locally grown ones like Grill. 163 00:06:28,960 --> 00:06:31,719 Speaker 1: And don't forget Noose's very own Betty's burgers. 164 00:06:31,360 --> 00:06:33,960 Speaker 2: So Wendy's we need to add a little Australian touch 165 00:06:34,040 --> 00:06:36,240 Speaker 2: if they really want it to work. Yep, man, it 166 00:06:36,360 --> 00:06:38,520 Speaker 2: is very good to be back on the pod, chatting 167 00:06:38,520 --> 00:06:41,080 Speaker 2: with you business news and making the Fluxam a whole 168 00:06:41,080 --> 00:06:43,160 Speaker 2: lot smarter each and every day at Foxam. If you 169 00:06:43,200 --> 00:06:44,560 Speaker 2: want to make sure you are on top of the 170 00:06:44,640 --> 00:06:47,000 Speaker 2: latest business news, becoming smarter than your boss, make sure 171 00:06:47,040 --> 00:06:49,920 Speaker 2: to hip that subscribe that end on Spotify, on Apple 172 00:06:50,040 --> 00:06:51,799 Speaker 2: or where. If you're listening to the podcast 173 00:06:51,880 --> 00:06:54,440 Speaker 1: Thanks for listening and we'll see you on Wednesday.