Latest / What the Flux / Domain's billion dollar deal | Disney's magical earnings | NewsCorp's winners and losers

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Domain's billion dollar deal | Disney's magical earnings | NewsCorp's winners and losers · What the Flux

• 0:05
  Speaker 1: This is a lot the flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Monday, the twelfth
• 0:09
  Speaker 2: of May.
• 0:09
  Speaker 1: Bill Gates, one of the founders of Microsoft, has announced
• 0:12
  Speaker 1: that he's giving away two hundred billion US dollars juzzy boy,
• 0:15
  Speaker 1: But not quite yet, and not quite just handing it
• 0:17
  Speaker 1: away his foundation. The Gates Foundation, plans to shut down
• 0:20
  Speaker 1: in twenty forty five, meaning all the money needs to
• 0:23
  Speaker 1: be donated to public health organizations before then, and that
• 0:26
  Speaker 1: means roughly ten bill per year. Someone's definitely tracking it
• 0:29
  Speaker 1: all in the most anxiety inducing Microsoft exalespoadheet known to humankind.
• 0:34
  Speaker 2: Yeah, one hundred per As we get near the middle
• 0:37
  Speaker 2: of the month, it is the time if you haven't
• 0:39
  Speaker 2: yet to check your credit score for May? Has it
• 0:41
  Speaker 2: gone up? Has it gone down? Has there been a
• 0:43
  Speaker 2: lot of credit card spending going on? To make sure
• 0:46
  Speaker 2: to check out your credit score this May.
• 0:48
  Speaker 1: Three influential stories today, juzzy boy, Let's do it for
• 0:51
  Speaker 1: our first domain, the Aussie real estate website, will be
• 0:54
  Speaker 1: sold to US real estate giant Coastar in a deal
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  Speaker 1: worth two point eight billion dollars.
• 1:00
  Speaker 2: Aria Group not happy right now. It's got a reduce
• 1:03
  Speaker 2: competitor here be man, so tell me.
• 1:04
  Speaker 1: More well, juziboy. Domain is the real estate marketplace that
• 1:08
  Speaker 1: first listed its properties online in nineteen ninety nine, back.
• 1:11
  Speaker 2: When those real estate newspaper fold outs were the best
• 1:13
  Speaker 2: way to know which properties were selling.
• 1:15
  Speaker 1: But Domain has always played second fiddle to real estate
• 1:19
  Speaker 1: dot com dot a U in the digital real estate industry.
• 1:22
  Speaker 2: Yet real estate dot com dot you has forty six
• 1:24
  Speaker 2: percent more monthly unique visitors than Domain.
• 1:26
  Speaker 1: But juzzi boy, that didn't stop a mystery buyer from
• 1:30
  Speaker 1: acquiring a sixteen point nine percent stake in Domain back
• 1:33
  Speaker 1: in February of this year.
• 1:34
  Speaker 2: And spoiler alert, that mystery buyer was the US real
• 1:37
  Speaker 2: estate firm Coastar. Yep.
• 1:39
  Speaker 1: They slid into Domain's DMS with an offer, which was rejected.
• 1:43
  Speaker 2: Then they sweetened the deal, and.
• 1:44
  Speaker 1: Now Domain's majority shareholder Nine Entertainment has backed this deal.
• 1:49
  Speaker 2: Which was it a forty two percent premium to Domain
• 1:51
  Speaker 2: share price before the proposal.
• 1:53
  Speaker 1: And technically shareholders still need to vote on the deal.
• 1:56
  Speaker 2: Given nine has a sixty percent steak in Domain and
• 1:59
  Speaker 2: coasts now nearly seventeen percent, there's not too much up for.
• 2:02
  Speaker 1: Debate, yep. So what's the key learning here.
• 2:04
  Speaker 2: Controlling stakes don't just influence outcomes, they often decide them. Yep.
• 2:09
  Speaker 1: When a company or a shareholder owns a large stake
• 2:12
  Speaker 1: in a business, they can effectively control the outcome of
• 2:14
  Speaker 1: major decisions.
• 2:15
  Speaker 2: Everything from leadership changes to mergers and acquisitions.
• 2:18
  Speaker 1: In this case, Nine owns sixty percent of Domain, which
• 2:21
  Speaker 1: means their vote basically seals the deal with Costar.
• 2:25
  Speaker 2: As long as Nine's on board, the deal is likely
• 2:27
  Speaker 2: to go ahead.
• 2:27
  Speaker 1: But does wait Not all controlling shareholders are willing to
• 2:30
  Speaker 1: facilitate a takeover like this deal.
• 2:33
  Speaker 2: Remember when the private equity firm KKR try to acquire
• 2:36
  Speaker 2: the Australian hospital operator Ramsey Healthcare in twenty twenty two
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  Speaker 2: for twenty billion dollars I do.
• 2:41
  Speaker 1: The deal fell apart because the Ramsey family, which owned
• 2:44
  Speaker 1: nineteen percent of the company, did not back the proposal.
• 2:47
  Speaker 2: So be man at. Controlling stakes don't just influence deals,
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  Speaker 2: they often make or break them.
• 2:51
  Speaker 1: For our second story, Disney has reported a magical quarterly
• 2:55
  Speaker 1: earnings update as its parks and streaming division pull a
• 2:59
  Speaker 1: rabbit out of the hat.
• 3:00
  Speaker 2: The happiest place on Earth just made Wall Street pretty
• 3:02
  Speaker 2: happy as well.
• 3:03
  Speaker 1: Be man so tell me, well, Disney's the global entertainment
• 3:06
  Speaker 1: behemoth that's been making kids an adult smile since almost
• 3:10
  Speaker 1: the dawn of time.
• 3:11
  Speaker 2: It owns everything from Mickey Mouse to Marvel.
• 3:13
  Speaker 1: From Pixar to amusement parks, and.
• 3:15
  Speaker 2: Don't forget ESPN and ELKSA as well.
• 3:17
  Speaker 1: Be Man but Jasey Boy. Disney's second quarter results were
• 3:20
  Speaker 1: good enough to make even e your smile.
• 3:22
  Speaker 2: Yeah. It's revenue came in at twenty three point six
• 3:25
  Speaker 2: billion US dollars, which beat forecasts by over six hundred mil.
• 3:29
  Speaker 1: Disney's streaming business, Disney Plus, is back in the black
• 3:32
  Speaker 1: with its third straight profitable quarter, but.
• 3:34
  Speaker 2: Its parks division was the real MVP because it saw
• 3:37
  Speaker 2: its revenue and demand continue to fly off the radar.
• 3:40
  Speaker 1: That's what happens when you own such strong ip yep,
• 3:43
  Speaker 1: So what is the key learning here? The most valuable
• 3:46
  Speaker 1: assets aren't just sold once. They're the ones that are
• 3:48
  Speaker 1: turned into worlds you can watch and ride, and wear
• 3:52
  Speaker 1: and live in.
• 3:53
  Speaker 2: Yeah. When a company owns iconic characters or universes, the
• 3:56
  Speaker 2: real genius is in squeezing every last dollar out of it.
• 4:00
  Speaker 1: It's not just about a movie or a show.
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  Speaker 2: It's about adding the ride, the cruise, the plush toy,
• 4:04
  Speaker 2: and who can forget the streaming spinoff as well.
• 4:06
  Speaker 1: Now, by stretching IP across its broad range of offerings,
• 4:09
  Speaker 1: Disney creates multiple revenue streams from a single movie.
• 4:12
  Speaker 2: Here take Frozen as an example. Disney turned the movie
• 4:14
  Speaker 2: into a huge revenue spin out across multiple channels.
• 4:18
  Speaker 1: In just twelve months after its release, Frozen merchandise sales
• 4:21
  Speaker 1: generated approx. Five billion dollars, or.
• 4:23
  Speaker 2: A twelve percent uplift in Disney's total merch sales.
• 4:26
  Speaker 1: Then they integrated Frozen themed attractions into its theme parks.
• 4:29
  Speaker 2: Then it was available on streaming.
• 4:31
  Speaker 1: And of course, don't forget the merchandise, and.
• 4:33
  Speaker 2: Disney's become the master of squeezing every penny out of
• 4:36
  Speaker 2: every single character.
• 4:37
  Speaker 1: Else's basically working overtime across five continents. Right now.
• 4:42
  Speaker 2: For our third and final story, news Corp outperformed investor
• 4:45
  Speaker 2: expectations even though it relies more and more on its
• 4:49
  Speaker 2: digital brands for growth.
• 4:50
  Speaker 1: From tabloids to tech stacks. What is going on here?
• 4:53
  Speaker 2: Okay? So, News Corp is the global media and publishing powerhouse.
• 4:57
  Speaker 1: It owns newspapers all over the world from the world
• 5:00
  Speaker 1: a street Journal, to the New York Post, to The
• 5:02
  Speaker 1: Times in the UK and.
• 5:03
  Speaker 2: In Australia we'd be talking The Australia and the Held
• 5:05
  Speaker 2: Sun Daily Telegraph and a whole lot more.
• 5:08
  Speaker 1: Not to forget, it also owns heefty chunk of Ozssie
• 5:10
  Speaker 1: real Estate Giant Aria Group.
• 5:12
  Speaker 2: And because of its global presence, News Corp is listed
• 5:14
  Speaker 2: on the ASX as well as the Nasdaq in the US.
• 5:17
  Speaker 1: Now, jazz Boy News Corp has announced its quarterly revenue
• 5:20
  Speaker 1: came in at just over two billion.
• 5:22
  Speaker 2: Dollars, which was ever so slightly up on the same
• 5:24
  Speaker 2: time last year.
• 5:25
  Speaker 1: And what were the winners and losers in the news
• 5:27
  Speaker 1: corps stable.
• 5:28
  Speaker 2: Winners Aria Group aka the Oussie real Estate Golden Child
• 5:31
  Speaker 2: and the other winners Dal Jones. It's business and data
• 5:34
  Speaker 2: platform that suit and tie data nerds love for jaz Boy.
• 5:37
  Speaker 1: The results from the news media was ugly.
• 5:40
  Speaker 2: Yeah, The Sun and New York Posts both saw their
• 5:43
  Speaker 2: traffic down forty one percent and thirty two percent respectively.
• 5:46
  Speaker 1: So it's in for digital and out for media.
• 5:49
  Speaker 2: And despite the poor showing for newsbe Man News Corps
• 5:52
  Speaker 2: share price still jumped four percent.
• 5:54
  Speaker 1: That's interesting, So what's the key learning here.
• 5:55
  Speaker 2: Legacy media isn't exactly dead, but it needs to be
• 5:59
  Speaker 2: digitally reincar I needed to survive.
• 6:01
  Speaker 1: In fact, Jazzy Boy news Corps assets that focus on
• 6:03
  Speaker 1: digital subscriptions and real estate classifieds are the only ones
• 6:07
  Speaker 1: winning at the moment.
• 6:08
  Speaker 2: These are the higher margin and recurring revenue stream businesses.
• 6:11
  Speaker 1: In fact, Aria Group and Dow Jones accounted for nearly
• 6:14
  Speaker 1: forty three percent of news Corp's total quarterly revenue.
• 6:17
  Speaker 2: Despite the fact there are more than twenty five major
• 6:19
  Speaker 2: brands and companies in the group.
• 6:21
  Speaker 1: So NewsCorp needs to prune the low growth or no
• 6:24
  Speaker 1: growth areas of its business.
• 6:26
  Speaker 2: And double down on the big winners.
• 6:28
  Speaker 1: But the biggest challenge Juzzy Boy is to make sure
• 6:30
  Speaker 1: it's digital growth outpaces the declines in print and advertising.
• 6:35
  Speaker 2: But sam every single month your credit score is updated.
• 6:38
  Speaker 2: It might go up. If you've been making your payments
• 6:40
  Speaker 2: on time, it might go down if you've been applying
• 6:42
  Speaker 2: for a lot of credit. The best place to find
• 6:44
  Speaker 2: out what's happened to your credit score this month is
• 6:46
  Speaker 2: in the Flux app. Make sure it's download the Flux
• 6:48
  Speaker 2: app and check out your credit score.
• 6:49
  Speaker 1: Thanks for listening and we'll see you on Wednesday.