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Bonds is up for sale | Wikipedia partners with Google, Meta and Amazon | Rio eyes $300 billion Glencore mega-merger · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brettan, I'm justin and it's Monday, the nineteenth of January.
• 0:10
  Speaker 1: Ah, juzzy boy. It is good to have had a break,
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  Speaker 1: but even better to be back on this fine Monday
• 0:15
  Speaker 1: in January. Now, over the Christmas break, household spending jumped
• 0:18
  Speaker 1: to more than a two year high, would you believe?
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  Speaker 1: And judge boy, given the IBA will be making its
• 0:23
  Speaker 1: first rate call in febru this year, and it sets
• 0:26
  Speaker 1: them up with some very confusing numbers. Is economy booming
• 0:29
  Speaker 1: because it's just booming? Or is this time of the
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  Speaker 1: year with Black Friday and Christmas and holidays just not
• 0:34
  Speaker 1: a good time to get a pulse check on the
• 0:36
  Speaker 1: overall economy. Only time shall tell.
• 0:38
  Speaker 2: Only time shall tell. And then man Ossie Open kicked
• 0:42
  Speaker 2: off last night officially and there are some big serves
• 0:44
  Speaker 2: and even bigger payouts in this year's Ossie Open. In
• 0:47
  Speaker 2: the Flux app today we break down how much the
• 0:49
  Speaker 2: Ossi Open tennis players are actually getting paid in the
• 0:52
  Speaker 2: twenty twenty six twenty and let me tell you one thing.
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  Speaker 2: It has jumped by sixteen percent this year, a very
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  Speaker 2: big number.
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  Speaker 1: Three generous stories today, Juzzy boy, let's do it for
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  Speaker 1: our first. The company behind Bonds, Bras and Things and
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  Speaker 1: Sheridan is up for sale after its new global owner
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  Speaker 1: wants to clear the decks.
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  Speaker 2: Talk about a full wardrobe clean out. Be man, including
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  Speaker 2: the undies draw what is going on here? So Josey boy,
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  Speaker 2: we know.
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  Speaker 1: Bonds is one of Australia's most recognizable underwear brands.
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  Speaker 2: Yep founder back in nineteen fifteen and has been promoted
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  Speaker 2: by everyone from Michael Clark, Nick Kurios, te Mirandaker and
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  Speaker 2: power Rafter and.
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  Speaker 1: Who could forget Robert Irwin in his undies holding that
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  Speaker 1: snake ye.
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  Speaker 2: In the eighties, Bonds became part of Pacific Brands group
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  Speaker 2: alongside Sheridan and Burley as well.
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  Speaker 1: And Haines Brands. Well, it's the US based clothing giant
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  Speaker 1: that grew a pretty significant portfolio of companies in Australia.
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  Speaker 2: Yeah. It acquired the Pacific Brands portfolio of Bond, Sheridan
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  Speaker 2: Burley back in twenty sixteen for one point one bill
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  Speaker 2: Then it.
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  Speaker 1: Acquired the Bras and Things retail stores in twenty eighteen
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  Speaker 1: for five hundred mili and.
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  Speaker 2: Together these brands were generating over one point one billion
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  Speaker 2: dollars in annual revenue for Haines.
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  Speaker 1: Brands but Juseboy. In August last year, Guilden Active were
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  Speaker 1: acquired Haines Brands globally for two into billion US dollars, and.
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  Speaker 2: As part of this, Guilden CEO said at the time
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  Speaker 2: that the Australian portfolio could end in a quote sale
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  Speaker 2: or other transaction.
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  Speaker 1: And does We're given the Australian businesses slide in profit
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  Speaker 1: from operations. The new owner has decided to put it
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  Speaker 1: on the chopping block.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Acquirers rarely buy a business just to keep everything the same.
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  Speaker 2: Yeah.
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  Speaker 1: They often come with a clear vision of what they
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  Speaker 1: want to own, a clear vision of what they want
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  Speaker 1: to scale.
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  Speaker 2: And a clear vision of what no longer fits.
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  Speaker 1: Anything that doesn't align gets stopped down like Rob Irwin
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  Speaker 1: or sold Fast and be Man.
• 2:33
  Speaker 2: With Haynes Brand's profit dropping by fifty percent over the
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  Speaker 2: past twelve months, it would look like a pretty easy
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  Speaker 2: cut for the global giant.
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  Speaker 1: Yeap profit from ops fell from nearly ninety nine million
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  Speaker 1: bucks to just forty two million bucks.
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  Speaker 2: And be Man, We've seen this play out plenty of
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  Speaker 2: times before.
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  Speaker 1: Well, I remember When Disney acquired twenty first century Fox
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  Speaker 1: in twenty nineteen for seventy one billion US dollars, do
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  Speaker 1: you remember.
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  Speaker 2: I do? Almost immediately after the deal closed, Disney carved
• 2:57
  Speaker 2: up the business based on what fit into its long
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  Speaker 2: term vision, and that is likely what's happening here with
• 3:01
  Speaker 2: Guilden as well.
• 3:02
  Speaker 1: For our second story, Wikipedia has announced a new enterprise
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  Speaker 1: partnership with not one, not two, but three big tech
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  Speaker 1: companies to help train AI models.
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  Speaker 2: Wikipedia didn't change be Man, but the world did, so
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  Speaker 2: tell me what's going on here? So?
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  Speaker 1: The Wikimedia Foundation is a not for profit organization that's
• 3:19
  Speaker 1: been around since two thousand and one.
• 3:20
  Speaker 2: And yes, you might have guessed it, these people are
• 3:23
  Speaker 2: the ones behind it. Wikipedia the world's largest publicly sourced encyclopedia.
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  Speaker 1: Now, if you've ever fallen down a rabbit hole researching
• 3:29
  Speaker 1: your favorite athletes or origin story, chances are you've probably
• 3:33
  Speaker 1: ended up on a Wikipedia.
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  Speaker 2: And today Wikipedia is a massive online library with over
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  Speaker 2: sixty five million articles.
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  Speaker 1: And Jesse, what here's the kicker. This free public data
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  Speaker 1: has played a huge role in training AI models into
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  Speaker 1: what we know today.
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  Speaker 2: Except be Man. It's not actually free, is it?
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  Speaker 1: Well? The rise of AI webscraping has put serious pressure
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  Speaker 1: on Wikipedia service, and.
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  Speaker 2: It's driven up costs for an organization that's been mainly
• 3:55
  Speaker 2: funded by donations.
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  Speaker 1: So that's why Wikimedia has struck deals with major tech companies.
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  Speaker 2: We're talking big shots like Microsoft and Meta and Amazon.
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  Speaker 1: And what will these partnerships actually mean, Juzzy boy.
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  Speaker 2: Well, it means they'll pay for use of Wikipedia's content
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  Speaker 2: in their AI training models.
• 4:11
  Speaker 1: So if the AI giants are using it anyway, they
• 4:14
  Speaker 1: might as well help cover the bill. Am I right?
• 4:16
  Speaker 2: So what is the key learning here?
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  Speaker 1: The AI era has dramatically increased the value of all
• 4:20
  Speaker 1: data and all.
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  Speaker 2: Content, especially data that's seen as neutral and trustworthy A
• 4:25
  Speaker 2: man For years, data is something that companies collected almost accidentally.
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  Speaker 1: But now with new AI models being launched left, right
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  Speaker 1: and center, AI companies need large sources of data to
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  Speaker 1: train their models to become smarter and faster than their competitors.
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  Speaker 2: Seev Man, this has turned data into an asset class
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  Speaker 2: that's actually monetizable, and I reckon.
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  Speaker 1: We've seen this happen before, haven't we.
• 4:44
  Speaker 2: Just two years ago, Reddits struck a content licensing deal
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  Speaker 2: with Google to allow its forums to be used to
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  Speaker 2: help train Google's AI models, So the future of AI
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  Speaker 2: won't be defined by who builds the fastest model, but
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  Speaker 2: by who has access to the most meaningful data.
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  Speaker 1: For our third and final story, Rio Tinto is in
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  Speaker 1: talks to buy glen Core, a deal that could create
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  Speaker 1: the world's biggest mining company, and has invested feeling very divided.
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  Speaker 2: Big miners, big metals, and some big egos as well.
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  Speaker 2: Be man, so tell me more so.
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  Speaker 1: Rio Tinto is the heavyweight champ of iron ore mining,
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  Speaker 1: the largest in the world.
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  Speaker 2: We'd be talking the production of iron ore and copper, aluminium,
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  Speaker 2: critical minerals, and a heap of other materials too.
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  Speaker 1: It's worth more than two hundred billion dollars.
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  Speaker 2: And glen Cole they're the Anglo Swiss company that does
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  Speaker 2: both commodity training and mining.
• 5:27
  Speaker 1: We're talking coal, copper, your Zinx, your Nickels.
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  Speaker 2: And last week b Man, the two companies confirmed they're
• 5:34
  Speaker 2: in early stage talks about a potential merger.
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  Speaker 1: Now, if it happens, you're looking at one monster miner
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  Speaker 1: worth more than three hundred billion dollars.
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  Speaker 2: And yes, b Man, I see your mind spinning, because
• 5:44
  Speaker 2: this is the third time Rio and Glenkell have flirted
• 5:47
  Speaker 2: with a merger.
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  Speaker 1: But this time this seems to look a little different.
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  Speaker 1: Maybe it's because of new Rio Tinto management, or maybe
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  Speaker 1: it's because of a renewed obsession with a very old mineral.
• 5:58
  Speaker 1: Fascinating insight, Jesse Boyce, So what's the keyl.
• 6:00
  Speaker 2: Copper is having its moment in the sun.
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  Speaker 1: And let me tell you one thing. It's not because
• 6:04
  Speaker 1: it looks nice in wiring.
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  Speaker 2: No, no, no. Copper has become essential for many future
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  Speaker 2: facing industries and technology.
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  Speaker 1: Think electric vehicles, renewable energy grids, data centers, have you heard.
• 6:15
  Speaker 2: Of those I have? And anything I related that obviously
• 6:18
  Speaker 2: guzzles power as well.
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  Speaker 1: In fact, dosyboy. According to industry forecasts, global copper demand
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  Speaker 1: could rise around fifty percent by twenty forty and.
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  Speaker 2: Supply is expected to fall well short. For companies like
• 6:29
  Speaker 2: Rio Tinto, copper offers growth potential that iron ore and coal,
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  Speaker 2: which they specialize in, just doesn't offer anymore.
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  Speaker 1: And hello, Glencore has a whole lot of copper.
• 6:38
  Speaker 2: Minds, Foxdamm. Did you know the winners of the male
• 6:41
  Speaker 2: and female tournaments in the Aussie Open will both earn
• 6:43
  Speaker 2: over four million buccernies each in the flux app. Today
• 6:47
  Speaker 2: we take a deep dive into the prize money for
• 6:49
  Speaker 2: all Australian Open players, as well as investment the Victoria
• 6:52
  Speaker 2: is making in this huge tournament.
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  Speaker 1: Thanks for listening and we'll see you on Wednesday.