1 00:00:05,160 --> 00:00:06,520 Speaker 1: This is what the Flux. 2 00:00:06,600 --> 00:00:08,920 Speaker 2: I'm Brett and I'm Justin and a Funday the thirty 3 00:00:08,960 --> 00:00:10,200 Speaker 2: first of Marchy Boy. 4 00:00:10,280 --> 00:00:12,719 Speaker 1: We know that Donald J. Trump pushed a big crypto 5 00:00:12,760 --> 00:00:15,840 Speaker 1: agenda on his path back to the presidency in the US, 6 00:00:16,200 --> 00:00:19,119 Speaker 1: and now the labor government here in Australia seems to 7 00:00:19,120 --> 00:00:21,400 Speaker 1: have taken a leaf out of his book. They claim 8 00:00:21,440 --> 00:00:24,000 Speaker 1: there are big opportunities in the digital currency space and 9 00:00:24,040 --> 00:00:26,079 Speaker 1: they're looking to build a plan around it. Kind of 10 00:00:26,160 --> 00:00:31,000 Speaker 1: sounds like they're saying something and nothing at the same Timexam. 11 00:00:31,120 --> 00:00:33,280 Speaker 2: We all have people in our family or our friendship 12 00:00:33,280 --> 00:00:35,839 Speaker 2: group that we feel obligated to help out in tricky 13 00:00:35,880 --> 00:00:38,440 Speaker 2: situations around money. Setting down daries is one of the 14 00:00:38,520 --> 00:00:41,320 Speaker 2: key ways to maintain strong relationships in your life. In 15 00:00:41,360 --> 00:00:43,440 Speaker 2: the Flex app, we have a deep dive into how 16 00:00:43,440 --> 00:00:46,120 Speaker 2: to master money in your relationships. Make sure to download 17 00:00:46,120 --> 00:00:47,480 Speaker 2: the Flux app and check it all out. 18 00:00:47,640 --> 00:00:50,760 Speaker 1: Three delightful stories today, Juzzy Boy, let's do it for 19 00:00:50,920 --> 00:00:54,720 Speaker 1: our first domain has received a best and final acquisition 20 00:00:54,760 --> 00:00:57,920 Speaker 1: offer from digital property giant Costar, and now the decision 21 00:00:57,960 --> 00:01:00,440 Speaker 1: is in the hands of its major shareholder. 22 00:01:00,000 --> 00:01:02,120 Speaker 2: The main becoming hot property be Man. So what is 23 00:01:02,160 --> 00:01:02,760 Speaker 2: going on here. 24 00:01:02,840 --> 00:01:05,520 Speaker 1: Well, Juzzi Boy, we know that Domain is the online 25 00:01:05,600 --> 00:01:09,120 Speaker 1: property platform listing houses for sale and for end and 26 00:01:09,160 --> 00:01:11,160 Speaker 1: even doing some research in the space as well, and. 27 00:01:11,080 --> 00:01:13,200 Speaker 2: We've spoken a lot about the fact that Domain has 28 00:01:13,200 --> 00:01:15,479 Speaker 2: been playing second fiddle to the big dog, real estate 29 00:01:15,560 --> 00:01:16,720 Speaker 2: dot Com DOREU yep. 30 00:01:16,800 --> 00:01:18,920 Speaker 1: Last year, real estate dot Com data you had more 31 00:01:18,959 --> 00:01:22,040 Speaker 1: than ten point eight million monthly unique viewers compared. 32 00:01:21,720 --> 00:01:24,039 Speaker 2: To Domain's seven point four million. And be man, this 33 00:01:24,120 --> 00:01:27,320 Speaker 2: performance gap isn't just in eyeballs, but also stock price too, 34 00:01:27,360 --> 00:01:29,480 Speaker 2: where Domain share price has been lagging behind. 35 00:01:29,560 --> 00:01:31,959 Speaker 1: But Juzzi Boy, in February this year, Domain received an 36 00:01:31,959 --> 00:01:35,800 Speaker 1: acquisition offer from Costar, which is a US based property platform, but. 37 00:01:35,760 --> 00:01:38,200 Speaker 2: B Man, Domain played hard to get and asked Costar 38 00:01:38,360 --> 00:01:39,479 Speaker 2: to sweeten their deal. 39 00:01:39,640 --> 00:01:43,119 Speaker 1: So now Costar has made a best and final offer 40 00:01:43,319 --> 00:01:46,680 Speaker 1: which is forty two percent higher than Domain's previous closing 41 00:01:46,920 --> 00:01:47,559 Speaker 1: share price. 42 00:01:47,760 --> 00:01:50,720 Speaker 2: And given Nine Entertainment owns more than sixty percent of Domain, 43 00:01:50,760 --> 00:01:53,200 Speaker 2: group nine will be the ultimate decider of whether this 44 00:01:53,400 --> 00:01:54,480 Speaker 2: deal goes ahead or not. 45 00:01:54,560 --> 00:01:57,920 Speaker 1: But Juzi Boy, with Nine's own business in quite a decline, 46 00:01:58,080 --> 00:02:01,200 Speaker 1: letting go of Domain is like selling your beautifully renovated 47 00:02:01,280 --> 00:02:02,760 Speaker 1: high growth investment property. 48 00:02:03,160 --> 00:02:04,480 Speaker 2: So what is the key learning here? 49 00:02:04,600 --> 00:02:07,760 Speaker 1: Selling off one of your highest growth assets might pad 50 00:02:07,880 --> 00:02:10,760 Speaker 1: your balance sheet today, but it can shrink your future. 51 00:02:10,800 --> 00:02:13,000 Speaker 2: You see, be man. Selling Domain will give Nine a 52 00:02:13,240 --> 00:02:14,480 Speaker 2: very juicy payday. 53 00:02:14,639 --> 00:02:17,480 Speaker 1: Yes we are talking close to one point seven billion dollars, but. 54 00:02:17,440 --> 00:02:20,440 Speaker 2: It also leaves them with their least sexy business units remaining. 55 00:02:20,560 --> 00:02:23,919 Speaker 1: Yep, we'd be talking legacy media businesses like print newspapers 56 00:02:23,919 --> 00:02:25,320 Speaker 1: and free to AIRTV, and. 57 00:02:25,400 --> 00:02:28,200 Speaker 2: Really their only fast growing business would be Stand. 58 00:02:28,320 --> 00:02:30,720 Speaker 1: You see juz boyd. Domain makes up over half of 59 00:02:30,880 --> 00:02:32,440 Speaker 1: nine's market value today. 60 00:02:32,200 --> 00:02:34,760 Speaker 2: Meaning if the sale goes through, Nine instantly becomes a 61 00:02:34,919 --> 00:02:37,160 Speaker 2: much smaller company with more cash. 62 00:02:37,200 --> 00:02:39,000 Speaker 1: And what do you think this cash might be useful? 63 00:02:39,120 --> 00:02:41,079 Speaker 1: It could be used to pay down debts, they might 64 00:02:41,200 --> 00:02:43,760 Speaker 1: use it to issue dividends to shareholders, or they. 65 00:02:43,680 --> 00:02:46,519 Speaker 2: May choose to reinvest the money in higher growth divisions 66 00:02:46,720 --> 00:02:47,239 Speaker 2: like Stand. 67 00:02:47,440 --> 00:02:50,560 Speaker 1: But without a clear reinvestment strategy, the short term cash 68 00:02:50,600 --> 00:02:53,520 Speaker 1: gain might not be worth the long term risks. 69 00:02:53,160 --> 00:02:55,880 Speaker 2: And rather than shrinking to greatness, it may lead Nine 70 00:02:55,960 --> 00:02:58,080 Speaker 2: on a path to shrinking to nothingness. 71 00:02:58,120 --> 00:03:02,560 Speaker 1: For our second story, elonsks Ai firm Xai has acquired 72 00:03:02,680 --> 00:03:05,520 Speaker 1: his own social media platform X in a thirty three 73 00:03:05,760 --> 00:03:07,400 Speaker 1: billion US dollar deal. 74 00:03:07,440 --> 00:03:09,520 Speaker 2: Would love to see how the conflict of interest worked here, 75 00:03:09,560 --> 00:03:10,880 Speaker 2: be man, so tell me more. 76 00:03:10,919 --> 00:03:14,000 Speaker 1: Okay so, X formerly Twitter, was acquired by Elon Musk 77 00:03:14,040 --> 00:03:17,160 Speaker 1: in twenty twenty two for forty four billion US dollars. 78 00:03:16,840 --> 00:03:19,079 Speaker 2: And be man. Since then, X has faced a pretty 79 00:03:19,200 --> 00:03:21,640 Speaker 2: rocky journey. He changed the name of Twitter to X. 80 00:03:21,720 --> 00:03:24,200 Speaker 1: He removed a bulk of the moderation team as well 81 00:03:24,240 --> 00:03:26,320 Speaker 1: as more than eighty percent of other staff. He lost 82 00:03:26,400 --> 00:03:28,760 Speaker 1: hundreds of major advertisers because of the fear that their 83 00:03:28,800 --> 00:03:31,320 Speaker 1: ads would appear next to unmoderated content. 84 00:03:31,400 --> 00:03:33,840 Speaker 2: In fact, there have been claims the value of X 85 00:03:33,919 --> 00:03:36,000 Speaker 2: is now under ten billion US dollars. 86 00:03:36,040 --> 00:03:38,960 Speaker 1: At the same time, Juzzy Boy, he was developing xai, 87 00:03:39,080 --> 00:03:42,320 Speaker 1: which has an AI chatbot named Gorok. 88 00:03:41,880 --> 00:03:44,840 Speaker 2: Which is supposed to be smarter, wittier, and sassia than 89 00:03:44,960 --> 00:03:47,920 Speaker 2: chat gpt. But now b Man Musk has tweeted that 90 00:03:48,120 --> 00:03:51,440 Speaker 2: Xai has acquired X, the messaging platform the thirty three 91 00:03:51,640 --> 00:03:53,080 Speaker 2: billion US dollars. 92 00:03:52,800 --> 00:03:56,320 Speaker 1: Forty five bill in value, less twelve billion in debt 93 00:03:56,360 --> 00:03:58,440 Speaker 1: and juzzy boy, this is an all script deal that 94 00:03:58,520 --> 00:04:01,680 Speaker 1: supposedly values to two companies together at one hundred and 95 00:04:01,680 --> 00:04:03,240 Speaker 1: thirteen billion US dollars. 96 00:04:03,400 --> 00:04:04,920 Speaker 2: Very inception vibes. 97 00:04:05,040 --> 00:04:06,760 Speaker 1: All right, So what is the key learning here? 98 00:04:06,800 --> 00:04:09,040 Speaker 2: In private companies you can get away with moves that 99 00:04:09,080 --> 00:04:11,040 Speaker 2: would never fly in the public markets. 100 00:04:11,080 --> 00:04:13,400 Speaker 1: You see juzzy Boy. In the public markets, this type 101 00:04:13,440 --> 00:04:16,880 Speaker 1: of all script acquisition would raise some serious governance red flags. 102 00:04:17,000 --> 00:04:19,440 Speaker 2: Yeah, there would be potential conflicts of interest. 103 00:04:19,279 --> 00:04:20,960 Speaker 1: Maybe some transparency issues and. 104 00:04:20,960 --> 00:04:22,920 Speaker 2: Of course questions for regulators. 105 00:04:23,000 --> 00:04:25,120 Speaker 1: But in the private world, muskets to play by his 106 00:04:25,200 --> 00:04:25,599 Speaker 1: own rules. 107 00:04:25,640 --> 00:04:27,679 Speaker 2: Yeah, and it's a bit reminiscent of when Adam Newman, 108 00:04:27,800 --> 00:04:30,839 Speaker 2: the ex We Work CEO, casually loaned himself We Works 109 00:04:30,839 --> 00:04:33,000 Speaker 2: company funds with no interest. 110 00:04:32,680 --> 00:04:34,960 Speaker 1: And then bought buildings with those funds and leads them 111 00:04:35,000 --> 00:04:37,359 Speaker 1: right back to We Work, of course, making millions in 112 00:04:37,360 --> 00:04:38,280 Speaker 1: the process. 113 00:04:37,920 --> 00:04:40,520 Speaker 2: And be man. Remember investors freaked out about this when 114 00:04:40,560 --> 00:04:41,839 Speaker 2: We Work tried to go public. 115 00:04:42,080 --> 00:04:45,000 Speaker 1: So this acquisition isn't really a deal between two businesses. 116 00:04:45,000 --> 00:04:48,080 Speaker 1: It's more of a rearranging of Elon Musk's empire. 117 00:04:48,520 --> 00:04:51,800 Speaker 2: For our third and final story, Virgin Australia is kicking 118 00:04:51,800 --> 00:04:54,080 Speaker 2: off its IPO road show this week as it looks 119 00:04:54,080 --> 00:04:56,320 Speaker 2: to list on the ASX in twenty twenty five. 120 00:04:56,520 --> 00:04:59,599 Speaker 1: Huge news here, juzzy boy, big bold plans from Virgin 121 00:04:59,640 --> 00:05:00,520 Speaker 1: Tell me ok so. 122 00:05:00,600 --> 00:05:02,960 Speaker 2: Virgin Australia first hit the Australian market back in two 123 00:05:03,000 --> 00:05:05,120 Speaker 2: thousand under the name Virgin Blue. 124 00:05:04,880 --> 00:05:07,480 Speaker 1: And just one year later an Set Australia collapsed and 125 00:05:07,560 --> 00:05:10,320 Speaker 1: Virgin Blue had pulled a Stephen Bradbury. 126 00:05:10,560 --> 00:05:12,760 Speaker 2: All of a sudden, it became the second largest airline 127 00:05:12,760 --> 00:05:13,400 Speaker 2: in Australia. 128 00:05:13,480 --> 00:05:16,120 Speaker 1: In twenty eleven, it changed its name to Virgin Australia 129 00:05:16,160 --> 00:05:18,560 Speaker 1: and it withstood the challenges from the likes of Figer 130 00:05:18,600 --> 00:05:21,599 Speaker 1: Airlines remember them and Jetstar and Quantas. 131 00:05:21,120 --> 00:05:22,919 Speaker 2: But be Man as COVID locked us all down. In 132 00:05:22,920 --> 00:05:26,400 Speaker 2: early twenty twenty, Virgin Australia went into administration. 133 00:05:25,960 --> 00:05:28,240 Speaker 1: So it was acquired by a private equity giant named 134 00:05:28,320 --> 00:05:31,479 Speaker 1: Bain Capital for seven hundred million bucks alongside more than 135 00:05:31,560 --> 00:05:32,800 Speaker 1: five billion dollars in. 136 00:05:32,680 --> 00:05:35,200 Speaker 2: Debt and be Man. Since then, Virgin Australia has had 137 00:05:35,279 --> 00:05:38,240 Speaker 2: a major turnarount. It recorded earnings of more than five 138 00:05:38,320 --> 00:05:41,000 Speaker 2: hundred million dollars in the last financial year. 139 00:05:40,880 --> 00:05:44,400 Speaker 1: So now Virgin Australia is starting to prepare to go public. 140 00:05:44,440 --> 00:05:46,520 Speaker 2: But be man before you get too excited about a 141 00:05:46,520 --> 00:05:49,360 Speaker 2: new listing to the declining ASEX. This is just a 142 00:05:49,480 --> 00:05:51,800 Speaker 2: non deal IPO road show, got it? 143 00:05:51,839 --> 00:05:53,000 Speaker 1: So what is the key learning here? 144 00:05:53,080 --> 00:05:55,600 Speaker 2: A non deal road show is basically a warm up 145 00:05:55,680 --> 00:05:58,000 Speaker 2: lop before the real IPO race begins. 146 00:05:58,160 --> 00:06:01,160 Speaker 1: Yeah, it's not necessarily about sell shares just yet. It's 147 00:06:01,200 --> 00:06:03,680 Speaker 1: about getting investors familiar with the business as well as 148 00:06:03,720 --> 00:06:07,240 Speaker 1: it's new CEO. It's about building bars and excitement for 149 00:06:07,279 --> 00:06:08,119 Speaker 1: that public listing. 150 00:06:08,320 --> 00:06:10,440 Speaker 2: Companies use non deal road shows as a way to 151 00:06:10,480 --> 00:06:12,120 Speaker 2: test the waters with investors. 152 00:06:12,160 --> 00:06:14,320 Speaker 1: They can learn what investors are thinking and use it 153 00:06:14,360 --> 00:06:15,239 Speaker 1: to polish their pitch. 154 00:06:15,320 --> 00:06:17,599 Speaker 2: And they can do all of this without committing to 155 00:06:17,640 --> 00:06:20,680 Speaker 2: evaluation of the company or a timeline for the listing. 156 00:06:20,800 --> 00:06:23,680 Speaker 1: So how much all we think in for Virgin Australia's IPO, 157 00:06:23,800 --> 00:06:24,279 Speaker 1: We'll be man. 158 00:06:24,360 --> 00:06:26,880 Speaker 2: It's rumored to be expected. It's rumored to be between 159 00:06:26,920 --> 00:06:29,200 Speaker 2: two billion dollars and three billion dollars. 160 00:06:29,240 --> 00:06:31,719 Speaker 1: And as we know, Qatar Airways acquired a twenty five 161 00:06:31,760 --> 00:06:34,919 Speaker 1: percent stake in Virgin Australia or a rumored seven hundred 162 00:06:34,920 --> 00:06:35,520 Speaker 1: and fifty mil Like. 163 00:06:35,480 --> 00:06:38,279 Speaker 2: If you run the mass, that's a three billion dollar valuation. 164 00:06:37,960 --> 00:06:39,480 Speaker 1: And you can bet that will be one of the 165 00:06:39,560 --> 00:06:41,960 Speaker 1: key questions from investors as part of this non deal 166 00:06:42,000 --> 00:06:42,320 Speaker 1: road shop. 167 00:06:42,360 --> 00:06:45,200 Speaker 2: Flux Fam Well, money's all around us. Money conversations happen 168 00:06:45,279 --> 00:06:47,359 Speaker 2: a lot less, so if you're struggling with ways to 169 00:06:47,400 --> 00:06:50,359 Speaker 2: discuss money with your partner, your friends, your family, we 170 00:06:50,440 --> 00:06:52,360 Speaker 2: have it all covered in the Flux apps. Make sure 171 00:06:52,360 --> 00:06:54,120 Speaker 2: to download the Flux app and check it all out. 172 00:06:54,160 --> 00:06:56,440 Speaker 1: Thanks for listening and we'll see you on Wednesday.