Speaker 1: This is what the flux.
Speaker 2: I'm Brett and Justin's Monday, the twentieth of January. We
Speaker 2: are a.
Speaker 1: Back baby, Fox fam.
Speaker 3: We've been well rested over the summer period and we
Speaker 3: are back with the latest and the greatest business news
Speaker 3: for twenty twenty five. And here is our one hundred
Speaker 3: percent guarantee. Listening to the pod will make you smarter
Speaker 3: than your boss and you'll never feel out of the
Speaker 3: loop at dinners with friends or families.
Speaker 2: Very important or it work.
Speaker 3: Juzzy boy, this could be the juiciest news to come
Speaker 3: back to. TikTok has given its last viral wave to
Speaker 3: its one hundred and seventy million US users after it
Speaker 3: was officially banned over the weekend because it refused to
Speaker 3: sell its US operations to.
Speaker 1: An American company.
Speaker 3: Huge, But only time will tell if it will actually survive.
Speaker 2: Interesting and be man. What is hilarious is that millions
Speaker 2: of Americans and now downloading another Chinese TikTok dupe called
Speaker 2: red Oat. It's now the top app in the whole
Speaker 2: US app store. It's good to be back with the
Speaker 2: latest business news.
Speaker 1: Ironic stories today. Juzzy boy.
Speaker 3: Let's do it for our first Maya's share price dropped
Speaker 3: more than eighteen percent last week after it warned of
Speaker 3: a major decline in its earnings for the first five
Speaker 3: months of FY twenty five.
Speaker 2: Not exactly the kind of post holiday news that investors
Speaker 2: were hoping for. Me man, so tell me more.
Speaker 3: Well, Jusie boy will know Maya as one of the
Speaker 3: og Australian department stores, the.
Speaker 2: Department store who's been battling neck and neck with David
Speaker 2: Jones for over one hundred and twenty years. And be man,
Speaker 2: we know it's been a bit of a rollercoaster ride
Speaker 2: for Maya's investors over the past fifteen years.
Speaker 3: Since it listed at a two point two billion dollar
Speaker 3: valuation in two thousand and nine.
Speaker 2: But let's be honest, the rollercoaster has mainly been experiencing.
Speaker 3: Drops recently, though there were signs of a bit of
Speaker 3: a glow up with a new CEO and plans to
Speaker 3: merge with apparel brands.
Speaker 2: That's the owner of Portman's in JJ's and other brands
Speaker 2: as well.
Speaker 3: But now juzzy Boy Meyers said its earnings before interest
Speaker 3: in tax dropped by twenty five percent compared to last
Speaker 3: year for the most recent five months to December.
Speaker 2: Next minute, it's share price got smashed by eighteen percent.
Speaker 3: But the retailers that my I also planned to buy,
Speaker 3: like Dotti and JJ's Just Jean's Portman's, they.
Speaker 2: Also got whacked and then man, this puts extra pressure
Speaker 2: on the merger, which will go to a shareholder vote
Speaker 2: this Thursday.
Speaker 1: Beig core. So what is the key learning here?
Speaker 2: Big public mergers need big shareholder buy in.
Speaker 3: When a publicly listed company wants to tie them up
Speaker 3: with another business, the board can't just swipe right.
Speaker 1: It needs shareholder approval.
Speaker 2: And in this case, Maya needs more than fifty percent
Speaker 2: of shareholders to vote yes on the deal.
Speaker 3: And while the board of directors can try to strongly
Speaker 3: encourage shareholders to vote yes, they can't force them.
Speaker 2: For example, me men. Back in two thousand and six,
Speaker 2: a group called Airline Partners Australia made an offer to
Speaker 2: acquire Quantus and the Quantas board supported the deal, but
Speaker 2: they only managed to get forty six and a half
Speaker 2: percent of shareholders to approve and the deal didn't end
Speaker 2: up going through.
Speaker 1: So juzzy boy.
Speaker 3: Given the underperformance of Maya and Apparell brands in the
Speaker 3: last five months.
Speaker 1: There may be some question marks for shareholders.
Speaker 2: For our second story. Rocked, the Australian e commerce tech company,
Speaker 2: has seen its valuation jumped to five point six billion
Speaker 2: dollars after its latest capital raise, with some staff taking
Speaker 2: millions off the table.
Speaker 3: One of those companies you probably have seen but never
Speaker 3: really heard of, so tell me more.
Speaker 2: Just founded in Australia back in twenty twelve with the
Speaker 2: goal to optimize online shopping transactions.
Speaker 3: Know when you buy ozopen tickets online from let's say
Speaker 3: ticket Master yep, and once the payment has been made,
Speaker 3: you see a pop up offering you forty percent off
Speaker 3: Hello Fresh or twenty bucks off your.
Speaker 1: Next higher car yep.
Speaker 2: Highly annoying.
Speaker 1: That is Rocked.
Speaker 3: They present customers with products or services from other brands
Speaker 3: after that moment when you purchase something and jesiboit. Rock
Speaker 3: saw its revenue jump by more than forty percent last
Speaker 3: year to six hundred million US dollars, and it's.
Speaker 2: Also grown to more than fifteen countries.
Speaker 3: So now it's raised three hundred and thirty five million
Speaker 3: US dollars in its latest private capital raise before at
Speaker 3: IPO's in twenty twenty six.
Speaker 2: At least that's the plan.
Speaker 3: Uh huh, rock CEO claims they didn't need to raise money,
Speaker 3: but they did it to give investors employees some liquidity.
Speaker 2: So what is the key learning here?
Speaker 3: A secondary capital raise isn't about new funding. It's about
Speaker 3: giving employees and a chance to cash in on their
Speaker 3: juicy juicy shares you see Beman.
Speaker 2: Typically when companies raise money, they issue brand new shares
Speaker 2: to bring in fresh funds for company growth or expansion.
Speaker 3: But a secondary capital raise doesn't create new shares.
Speaker 2: Nope, it gives existing shareholders an opportunity to sell their
Speaker 2: shares to other investors.
Speaker 3: In this case with Rocked, the company doesn't directly receive
Speaker 3: any cash now.
Speaker 2: But it's a way for early employees and investors to
Speaker 2: turn their shares into cash.
Speaker 3: So a secondary raise solves this by giving them another
Speaker 3: way to make their shares liquid and the man.
Speaker 2: We've also seen other private tech companies like Camva help
Speaker 2: facilitate their own one point six billion US dollar secondary
Speaker 2: share sale.
Speaker 3: And Stripe did a one billion US dollar secondary share
Speaker 3: sale as well.
Speaker 2: Or before they hit the big IPO tables.
Speaker 3: For our third and final story, Wendy's, the US burger
Speaker 3: behemoth is flipping its way back to Australia with plans
Speaker 3: to open hundreds of new stores over the next decade.
Speaker 2: Sounds delicious, so go on.
Speaker 1: Well, jesiboit.
Speaker 3: Wendy's is the burger chain founded in the US all
Speaker 3: the way back in nineteen sixty nine.
Speaker 2: It's the burger chain with the logo of a redheaded
Speaker 2: girl with pigtails and freckles.
Speaker 3: But don't be fooled by Wendy's innocent look, jusie boy,
Speaker 3: don't get fooled. It's actually the third biggest fast food
Speaker 3: chain on the planet.
Speaker 2: Behind its bit arrivals Makid's and Burger Kings.
Speaker 3: Now important to note this Wendy's is different to the
Speaker 3: hot dog and doughnut Wendy's that's been operating in Australia
Speaker 3: for at least a couple of decades.
Speaker 2: But now be Man Flinn Group, which is the company
Speaker 2: that owns Wendy's license in Australia. They've anounced plans to
Speaker 2: relaunch Wendy's here in Australia.
Speaker 3: They bring it back after a short stint in the
Speaker 3: nineteen eighties when they had eleven stores.
Speaker 2: In fact, Beman Flinn plans to open hundreds of Wendy's
Speaker 2: burger joints around Australia over the next decade.
Speaker 3: But what works in the US doesn't necessarily work in Australia.
Speaker 2: So true, So what is the key learning here?
Speaker 3: A winning recipe in one market doesn't guarantee success in
Speaker 3: other markets around the.
Speaker 2: World, especially when you're not taking into account the unique
Speaker 2: characteristics of that local market.
Speaker 3: You see, JUSI boy, Plenty of American fast food giants
Speaker 3: have strutted into Australia, swanned on in with big dreams
Speaker 3: of dominating that burger Grayle.
Speaker 2: And these brands have copypasted they're winning US formula into Australia.
Speaker 2: We had Carl's Junior, which was the US burger chain.
Speaker 1: They said they would have three hundred stores by twenty
Speaker 1: twenty six.
Speaker 2: But at the last count, nine days later, twenty eight stores.
Speaker 3: Or what about My Guys five Guys Burgers and Fries,
Speaker 3: which launched in Australia in twenty twenty one, At last.
Speaker 2: Count there were only five stores, more.
Speaker 1: Like five stores Burgers and Fries.
Speaker 2: In fact, the most successful burger stores recently have been
Speaker 2: the locally grown ones like Grill.
Speaker 1: And don't forget Noose's very own Betty's burgers.
Speaker 2: So Wendy's we need to add a little Australian touch
Speaker 2: if they really want it to work. Yep, man, it
Speaker 2: is very good to be back on the pod, chatting
Speaker 2: with you business news and making the Fluxam a whole
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Speaker 1: Thanks for listening and we'll see you on Wednesday.