1 00:00:05,160 --> 00:00:06,560 Speaker 1: This is a lot the flux. 2 00:00:06,640 --> 00:00:09,280 Speaker 2: I'm Brett and I'm Justin and it's Monday, the twelfth 3 00:00:09,280 --> 00:00:09,600 Speaker 2: of May. 4 00:00:09,720 --> 00:00:12,600 Speaker 1: Bill Gates, one of the founders of Microsoft, has announced 5 00:00:12,600 --> 00:00:15,319 Speaker 1: that he's giving away two hundred billion US dollars juzzy boy, 6 00:00:15,400 --> 00:00:17,400 Speaker 1: But not quite yet, and not quite just handing it 7 00:00:17,440 --> 00:00:20,599 Speaker 1: away his foundation. The Gates Foundation, plans to shut down 8 00:00:20,640 --> 00:00:23,200 Speaker 1: in twenty forty five, meaning all the money needs to 9 00:00:23,200 --> 00:00:26,279 Speaker 1: be donated to public health organizations before then, and that 10 00:00:26,360 --> 00:00:29,800 Speaker 1: means roughly ten bill per year. Someone's definitely tracking it 11 00:00:29,880 --> 00:00:34,680 Speaker 1: all in the most anxiety inducing Microsoft exalespoadheet known to humankind. 12 00:00:34,760 --> 00:00:37,440 Speaker 2: Yeah, one hundred per As we get near the middle 13 00:00:37,479 --> 00:00:39,240 Speaker 2: of the month, it is the time if you haven't 14 00:00:39,320 --> 00:00:41,640 Speaker 2: yet to check your credit score for May? Has it 15 00:00:41,680 --> 00:00:43,640 Speaker 2: gone up? Has it gone down? Has there been a 16 00:00:43,680 --> 00:00:46,280 Speaker 2: lot of credit card spending going on? To make sure 17 00:00:46,440 --> 00:00:47,919 Speaker 2: to check out your credit score this May. 18 00:00:48,120 --> 00:00:51,080 Speaker 1: Three influential stories today, juzzy boy, Let's do it for 19 00:00:51,280 --> 00:00:54,480 Speaker 1: our first domain, the Aussie real estate website, will be 20 00:00:54,560 --> 00:00:57,560 Speaker 1: sold to US real estate giant Coastar in a deal 21 00:00:57,600 --> 00:00:59,720 Speaker 1: worth two point eight billion dollars. 22 00:01:00,280 --> 00:01:03,040 Speaker 2: Aria Group not happy right now. It's got a reduce 23 00:01:03,360 --> 00:01:04,840 Speaker 2: competitor here be man, so tell me. 24 00:01:04,800 --> 00:01:07,920 Speaker 1: More well, juziboy. Domain is the real estate marketplace that 25 00:01:08,040 --> 00:01:11,559 Speaker 1: first listed its properties online in nineteen ninety nine, back. 26 00:01:11,400 --> 00:01:13,759 Speaker 2: When those real estate newspaper fold outs were the best 27 00:01:13,760 --> 00:01:15,639 Speaker 2: way to know which properties were selling. 28 00:01:15,760 --> 00:01:19,199 Speaker 1: But Domain has always played second fiddle to real estate 29 00:01:19,240 --> 00:01:22,160 Speaker 1: dot com dot a U in the digital real estate industry. 30 00:01:22,280 --> 00:01:24,360 Speaker 2: Yet real estate dot com dot you has forty six 31 00:01:24,360 --> 00:01:26,839 Speaker 2: percent more monthly unique visitors than Domain. 32 00:01:26,880 --> 00:01:29,959 Speaker 1: But juzzi boy, that didn't stop a mystery buyer from 33 00:01:30,000 --> 00:01:33,319 Speaker 1: acquiring a sixteen point nine percent stake in Domain back 34 00:01:33,360 --> 00:01:34,679 Speaker 1: in February of this year. 35 00:01:34,760 --> 00:01:37,560 Speaker 2: And spoiler alert, that mystery buyer was the US real 36 00:01:37,640 --> 00:01:39,040 Speaker 2: estate firm Coastar. Yep. 37 00:01:39,040 --> 00:01:42,960 Speaker 1: They slid into Domain's DMS with an offer, which was rejected. 38 00:01:43,120 --> 00:01:44,679 Speaker 2: Then they sweetened the deal, and. 39 00:01:44,640 --> 00:01:49,280 Speaker 1: Now Domain's majority shareholder Nine Entertainment has backed this deal. 40 00:01:49,120 --> 00:01:51,640 Speaker 2: Which was it a forty two percent premium to Domain 41 00:01:51,720 --> 00:01:53,960 Speaker 2: share price before the proposal. 42 00:01:53,520 --> 00:01:56,520 Speaker 1: And technically shareholders still need to vote on the deal. 43 00:01:56,640 --> 00:01:59,280 Speaker 2: Given nine has a sixty percent steak in Domain and 44 00:01:59,320 --> 00:02:02,520 Speaker 2: coasts now nearly seventeen percent, there's not too much up for. 45 00:02:02,520 --> 00:02:04,880 Speaker 1: Debate, yep. So what's the key learning here. 46 00:02:04,920 --> 00:02:09,400 Speaker 2: Controlling stakes don't just influence outcomes, they often decide them. Yep. 47 00:02:09,480 --> 00:02:11,960 Speaker 1: When a company or a shareholder owns a large stake 48 00:02:12,000 --> 00:02:14,520 Speaker 1: in a business, they can effectively control the outcome of 49 00:02:14,639 --> 00:02:15,760 Speaker 1: major decisions. 50 00:02:15,400 --> 00:02:18,639 Speaker 2: Everything from leadership changes to mergers and acquisitions. 51 00:02:18,720 --> 00:02:21,520 Speaker 1: In this case, Nine owns sixty percent of Domain, which 52 00:02:21,560 --> 00:02:24,960 Speaker 1: means their vote basically seals the deal with Costar. 53 00:02:25,040 --> 00:02:27,320 Speaker 2: As long as Nine's on board, the deal is likely 54 00:02:27,360 --> 00:02:27,880 Speaker 2: to go ahead. 55 00:02:27,919 --> 00:02:30,400 Speaker 1: But does wait Not all controlling shareholders are willing to 56 00:02:30,400 --> 00:02:32,640 Speaker 1: facilitate a takeover like this deal. 57 00:02:33,200 --> 00:02:36,240 Speaker 2: Remember when the private equity firm KKR try to acquire 58 00:02:36,320 --> 00:02:39,720 Speaker 2: the Australian hospital operator Ramsey Healthcare in twenty twenty two 59 00:02:39,760 --> 00:02:41,680 Speaker 2: for twenty billion dollars I do. 60 00:02:41,720 --> 00:02:44,480 Speaker 1: The deal fell apart because the Ramsey family, which owned 61 00:02:44,520 --> 00:02:47,000 Speaker 1: nineteen percent of the company, did not back the proposal. 62 00:02:47,080 --> 00:02:49,919 Speaker 2: So be man at. Controlling stakes don't just influence deals, 63 00:02:49,960 --> 00:02:51,520 Speaker 2: they often make or break them. 64 00:02:51,560 --> 00:02:55,600 Speaker 1: For our second story, Disney has reported a magical quarterly 65 00:02:55,639 --> 00:02:58,840 Speaker 1: earnings update as its parks and streaming division pull a 66 00:02:59,000 --> 00:02:59,959 Speaker 1: rabbit out of the hat. 67 00:03:00,040 --> 00:03:02,440 Speaker 2: The happiest place on Earth just made Wall Street pretty 68 00:03:02,440 --> 00:03:03,040 Speaker 2: happy as well. 69 00:03:03,040 --> 00:03:06,079 Speaker 1: Be man so tell me, well, Disney's the global entertainment 70 00:03:06,120 --> 00:03:10,200 Speaker 1: behemoth that's been making kids an adult smile since almost 71 00:03:10,280 --> 00:03:10,959 Speaker 1: the dawn of time. 72 00:03:11,000 --> 00:03:13,440 Speaker 2: It owns everything from Mickey Mouse to Marvel. 73 00:03:13,200 --> 00:03:15,120 Speaker 1: From Pixar to amusement parks, and. 74 00:03:15,040 --> 00:03:17,119 Speaker 2: Don't forget ESPN and ELKSA as well. 75 00:03:17,120 --> 00:03:20,280 Speaker 1: Be Man but Jasey Boy. Disney's second quarter results were 76 00:03:20,320 --> 00:03:22,359 Speaker 1: good enough to make even e your smile. 77 00:03:22,880 --> 00:03:25,280 Speaker 2: Yeah. It's revenue came in at twenty three point six 78 00:03:25,400 --> 00:03:29,080 Speaker 2: billion US dollars, which beat forecasts by over six hundred mil. 79 00:03:29,000 --> 00:03:32,120 Speaker 1: Disney's streaming business, Disney Plus, is back in the black 80 00:03:32,240 --> 00:03:34,359 Speaker 1: with its third straight profitable quarter, but. 81 00:03:34,280 --> 00:03:37,200 Speaker 2: Its parks division was the real MVP because it saw 82 00:03:37,240 --> 00:03:40,120 Speaker 2: its revenue and demand continue to fly off the radar. 83 00:03:40,240 --> 00:03:43,840 Speaker 1: That's what happens when you own such strong ip yep, 84 00:03:43,920 --> 00:03:46,080 Speaker 1: So what is the key learning here? The most valuable 85 00:03:46,120 --> 00:03:48,800 Speaker 1: assets aren't just sold once. They're the ones that are 86 00:03:48,840 --> 00:03:51,840 Speaker 1: turned into worlds you can watch and ride, and wear 87 00:03:52,000 --> 00:03:52,960 Speaker 1: and live in. 88 00:03:53,200 --> 00:03:56,600 Speaker 2: Yeah. When a company owns iconic characters or universes, the 89 00:03:56,640 --> 00:03:59,920 Speaker 2: real genius is in squeezing every last dollar out of it. 90 00:04:00,000 --> 00:04:01,520 Speaker 1: It's not just about a movie or a show. 91 00:04:01,640 --> 00:04:04,040 Speaker 2: It's about adding the ride, the cruise, the plush toy, 92 00:04:04,120 --> 00:04:06,200 Speaker 2: and who can forget the streaming spinoff as well. 93 00:04:06,280 --> 00:04:09,040 Speaker 1: Now, by stretching IP across its broad range of offerings, 94 00:04:09,080 --> 00:04:12,320 Speaker 1: Disney creates multiple revenue streams from a single movie. 95 00:04:12,320 --> 00:04:14,880 Speaker 2: Here take Frozen as an example. Disney turned the movie 96 00:04:14,880 --> 00:04:17,960 Speaker 2: into a huge revenue spin out across multiple channels. 97 00:04:18,000 --> 00:04:21,000 Speaker 1: In just twelve months after its release, Frozen merchandise sales 98 00:04:21,000 --> 00:04:23,360 Speaker 1: generated approx. Five billion dollars, or. 99 00:04:23,320 --> 00:04:26,279 Speaker 2: A twelve percent uplift in Disney's total merch sales. 100 00:04:26,480 --> 00:04:29,799 Speaker 1: Then they integrated Frozen themed attractions into its theme parks. 101 00:04:29,839 --> 00:04:31,680 Speaker 2: Then it was available on streaming. 102 00:04:31,279 --> 00:04:33,200 Speaker 1: And of course, don't forget the merchandise, and. 103 00:04:33,200 --> 00:04:36,440 Speaker 2: Disney's become the master of squeezing every penny out of 104 00:04:36,560 --> 00:04:37,760 Speaker 2: every single character. 105 00:04:37,880 --> 00:04:41,240 Speaker 1: Else's basically working overtime across five continents. Right now. 106 00:04:42,000 --> 00:04:45,800 Speaker 2: For our third and final story, news Corp outperformed investor 107 00:04:45,839 --> 00:04:49,240 Speaker 2: expectations even though it relies more and more on its 108 00:04:49,360 --> 00:04:51,040 Speaker 2: digital brands for growth. 109 00:04:50,680 --> 00:04:53,720 Speaker 1: From tabloids to tech stacks. What is going on here? 110 00:04:53,760 --> 00:04:57,360 Speaker 2: Okay? So, News Corp is the global media and publishing powerhouse. 111 00:04:57,440 --> 00:05:00,000 Speaker 1: It owns newspapers all over the world from the world 112 00:05:00,000 --> 00:05:02,159 Speaker 1: a street Journal, to the New York Post, to The 113 00:05:02,200 --> 00:05:03,520 Speaker 1: Times in the UK and. 114 00:05:03,440 --> 00:05:05,560 Speaker 2: In Australia we'd be talking The Australia and the Held 115 00:05:05,600 --> 00:05:07,960 Speaker 2: Sun Daily Telegraph and a whole lot more. 116 00:05:08,080 --> 00:05:10,880 Speaker 1: Not to forget, it also owns heefty chunk of Ozssie 117 00:05:10,880 --> 00:05:12,600 Speaker 1: real Estate Giant Aria Group. 118 00:05:12,400 --> 00:05:14,760 Speaker 2: And because of its global presence, News Corp is listed 119 00:05:14,800 --> 00:05:17,560 Speaker 2: on the ASX as well as the Nasdaq in the US. 120 00:05:17,720 --> 00:05:20,520 Speaker 1: Now, jazz Boy News Corp has announced its quarterly revenue 121 00:05:20,600 --> 00:05:22,680 Speaker 1: came in at just over two billion. 122 00:05:22,360 --> 00:05:24,839 Speaker 2: Dollars, which was ever so slightly up on the same 123 00:05:24,880 --> 00:05:25,640 Speaker 2: time last year. 124 00:05:25,680 --> 00:05:27,360 Speaker 1: And what were the winners and losers in the news 125 00:05:27,360 --> 00:05:28,360 Speaker 1: corps stable. 126 00:05:28,080 --> 00:05:31,680 Speaker 2: Winners Aria Group aka the Oussie real Estate Golden Child 127 00:05:31,760 --> 00:05:34,520 Speaker 2: and the other winners Dal Jones. It's business and data 128 00:05:34,560 --> 00:05:37,800 Speaker 2: platform that suit and tie data nerds love for jaz Boy. 129 00:05:37,880 --> 00:05:40,799 Speaker 1: The results from the news media was ugly. 130 00:05:40,920 --> 00:05:43,040 Speaker 2: Yeah, The Sun and New York Posts both saw their 131 00:05:43,040 --> 00:05:46,680 Speaker 2: traffic down forty one percent and thirty two percent respectively. 132 00:05:46,800 --> 00:05:49,800 Speaker 1: So it's in for digital and out for media. 133 00:05:49,880 --> 00:05:52,280 Speaker 2: And despite the poor showing for newsbe Man News Corps 134 00:05:52,320 --> 00:05:53,960 Speaker 2: share price still jumped four percent. 135 00:05:54,120 --> 00:05:55,760 Speaker 1: That's interesting, So what's the key learning here. 136 00:05:55,880 --> 00:05:58,880 Speaker 2: Legacy media isn't exactly dead, but it needs to be 137 00:05:59,160 --> 00:06:01,120 Speaker 2: digitally reincar I needed to survive. 138 00:06:01,240 --> 00:06:03,760 Speaker 1: In fact, Jazzy Boy news Corps assets that focus on 139 00:06:03,800 --> 00:06:07,159 Speaker 1: digital subscriptions and real estate classifieds are the only ones 140 00:06:07,240 --> 00:06:08,080 Speaker 1: winning at the moment. 141 00:06:08,120 --> 00:06:11,240 Speaker 2: These are the higher margin and recurring revenue stream businesses. 142 00:06:11,400 --> 00:06:14,320 Speaker 1: In fact, Aria Group and Dow Jones accounted for nearly 143 00:06:14,480 --> 00:06:17,920 Speaker 1: forty three percent of news Corp's total quarterly revenue. 144 00:06:17,560 --> 00:06:19,920 Speaker 2: Despite the fact there are more than twenty five major 145 00:06:19,960 --> 00:06:21,520 Speaker 2: brands and companies in the group. 146 00:06:21,680 --> 00:06:24,600 Speaker 1: So NewsCorp needs to prune the low growth or no 147 00:06:24,760 --> 00:06:26,480 Speaker 1: growth areas of its business. 148 00:06:26,160 --> 00:06:27,960 Speaker 2: And double down on the big winners. 149 00:06:28,080 --> 00:06:30,640 Speaker 1: But the biggest challenge Juzzy Boy is to make sure 150 00:06:30,640 --> 00:06:35,120 Speaker 1: it's digital growth outpaces the declines in print and advertising. 151 00:06:35,600 --> 00:06:38,400 Speaker 2: But sam every single month your credit score is updated. 152 00:06:38,440 --> 00:06:40,240 Speaker 2: It might go up. If you've been making your payments 153 00:06:40,240 --> 00:06:42,279 Speaker 2: on time, it might go down if you've been applying 154 00:06:42,320 --> 00:06:44,279 Speaker 2: for a lot of credit. The best place to find 155 00:06:44,279 --> 00:06:46,320 Speaker 2: out what's happened to your credit score this month is 156 00:06:46,360 --> 00:06:48,240 Speaker 2: in the Flux app. Make sure it's download the Flux 157 00:06:48,240 --> 00:06:49,599 Speaker 2: app and check out your credit score. 158 00:06:49,600 --> 00:06:52,200 Speaker 1: Thanks for listening and we'll see you on Wednesday.