Latest / What the Flux / Santos $36 billion takeover collapses | Meta x Ray-Ban demo flops | Stubhub's IPO mis-timing

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Santos $36 billion takeover collapses | Meta x Ray-Ban demo flops | Stubhub's IPO mis-timing · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm brand and I'm justin and it's Friday, the nineteenth September,
• 0:09
  Speaker 2: does boy.
• 0:10
  Speaker 1: Kmart aka the Coat of Cheap Homewares is in hot
• 0:13
  Speaker 1: water for snooping on its customers. Kmart use facial recognition
• 0:16
  Speaker 1: software to tackle a spike in store theft, but now
• 0:19
  Speaker 1: it's been found to have breached Australia's privacy laws because
• 0:22
  Speaker 1: the technology didn't seek consent.
• 0:24
  Speaker 2: Plus, Sam, did you know every single month your credit
• 0:26
  Speaker 2: score changes. It might go up, it might go down
• 0:28
  Speaker 2: depending on what you've done in the previous month. And
• 0:30
  Speaker 2: your credit score is a bit like you're uberating but
• 0:33
  Speaker 2: the banks. So if you want to know what your
• 0:34
  Speaker 2: credit score is and how you can improve it, make
• 0:36
  Speaker 2: sure to download the Flux app and check it out.
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  Speaker 1: Three Mammoth stories today, Juzzy Boy, let's do it for
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  Speaker 1: our first. Santos, the second biggest oil and gas producer
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  Speaker 1: in Australia, has seen the chairs plummet eleven percent after
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  Speaker 1: a thirty six billion dollar takeover deal collapsed before their
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  Speaker 1: very eyes.
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  Speaker 2: Steal went up in smoke Beann, so tell me more so.
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  Speaker 1: Santos is Australia's second biggest oil and gas producer and while.
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  Speaker 2: You may not be familiar with them, the twenty five
• 1:00
  Speaker 2: billion dollar mining by hamoth. Yeah.
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  Speaker 1: Santos owns liquefied natural gas export projects in Australia and
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  Speaker 1: in Papua New Guinea.
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  Speaker 2: As well as domestic gas assets on the West and
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  Speaker 2: East coast of Australia.
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  Speaker 1: Basically, if you've boiled pasta in Australia, odds are Santos
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  Speaker 1: has something to do with it.
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  Speaker 2: Now, Beman enter the Abu Dhabi National Oil Company also
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  Speaker 2: known as Adnock and their investment are Yeah.
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  Speaker 1: Back in June, Adnock and a consortium of investors made
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  Speaker 1: a thirty six billion dollar offer for Santos, which was.
• 1:26
  Speaker 2: A twenty eight per cent premium to Santos's closing price
• 1:28
  Speaker 2: before the offer.
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  Speaker 1: And just reminded this was an indicative bid to get
• 1:32
  Speaker 1: them in the door and their heads in the books.
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  Speaker 2: Be Man. After eleven weeks of due diligence and just
• 1:36
  Speaker 2: two days before the deadline, Adknox consortium said thank you.
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  Speaker 2: Next and why oh why did they walk? Well, they
• 1:43
  Speaker 2: say it. During the due diligence process they found things
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  Speaker 2: that reduced Santos's value a possible monster tax bill working underground,
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  Speaker 2: there was a methanely cover up in one of its
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  Speaker 2: facilities in Darwin, and concerns about major delays in getting
• 1:55
  Speaker 2: the deal done. All in all, it was just a
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  Speaker 2: little too much for Adnock and its investment partners.
• 1:59
  Speaker 1: So what is the learning here?
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  Speaker 2: Due diligence is the process where a potential buyer takes
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  Speaker 2: a deep dive into the target company's operations, their finances,
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  Speaker 2: and risks before finalizing a deal. It's like getting a
• 2:09
  Speaker 2: building inspection before buying a house. You want to know
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  Speaker 2: if there are cracks in the walls or termites in
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  Speaker 2: the foundation.
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  Speaker 1: Now, in mergers and acquisitions, this means reviewing everything from
• 2:16
  Speaker 1: financial statements and contracts to environmental risks or tax liabilities,
• 2:21
  Speaker 1: and if.
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  Speaker 2: Red flags pop up, a buyer might try to negotiate.
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  Speaker 1: A lower price, or add protective clauses, or walk away
• 2:27
  Speaker 1: entirely like ad nocked it. Yeap and Jazi boy. Might
• 2:30
  Speaker 1: I remind you this isn't Santos's first time choking on
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  Speaker 1: the deal, fumes Hope.
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  Speaker 2: Back in twenty eighteen, US player Harbor Energy tried and
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  Speaker 2: failed to acquire Santos in an eleven billion dollar deal.
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  Speaker 1: And then there was the eighty billion dollar merger talks
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  Speaker 1: with the Woodside, which collapsed in twenty twenty three.
• 2:44
  Speaker 2: So b Man. After three failed bids in less than
• 2:46
  Speaker 2: a decade, investors in our starting to question Santos's true valuation, and.
• 2:50
  Speaker 1: The first move was an eleven percent dive in share price.
• 2:53
  Speaker 2: For our second story. Meta has unvowed its new AI
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  Speaker 2: powered ray bands that could become your second eyes. But
• 3:00
  Speaker 2: it wasn't without a hitch.
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  Speaker 1: So we're living in a real, live black mirror simulation
• 3:04
  Speaker 1: right now. Go on, okay?
• 3:05
  Speaker 2: So, Meta, formally known as Facebook, is the parent company
• 3:08
  Speaker 2: of Facebook and Instagram and What'sapp.
• 3:09
  Speaker 1: Back in September twenty twenty one, Meta renounced its first
• 3:12
  Speaker 1: partnership with the iconic sunglass company ray Band.
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  Speaker 2: Yep, and at the same time they launched the first
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  Speaker 2: version of ray Bands stories smart glasses.
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  Speaker 1: They seemed like a normal pair of ray Band Wayfarers,
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  Speaker 1: but had a camera, microphone, and speakers built in.
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  Speaker 2: Yeah, the same guy who gave us Facebook pokes and
• 3:26
  Speaker 2: the metaverse is trying to strap a screen to your
• 3:28
  Speaker 2: face yep.
• 3:28
  Speaker 1: Juzzy boy. While this first version was largely about content capture,
• 3:32
  Speaker 1: the new version is aiming to be a lot more.
• 3:34
  Speaker 2: At the annual Metaconnect conference, Zuck shut off the new
• 3:37
  Speaker 2: ray band display glasses on stage.
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  Speaker 1: These come with a neural band worn on your wrists
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  Speaker 1: that can read your nerve signals yep, so.
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  Speaker 2: You can control the glasses with tiny finger movements anything else.
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  Speaker 2: At the conference, Juzsey boy well he managed to type
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  Speaker 2: thirty words per minute using the neural band and no keyboard.
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  Speaker 1: He also did live translations and even took photos through
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  Speaker 1: the glasses.
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  Speaker 2: But the man answering a WhatsApp video call on stage
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  Speaker 2: failed not once twice, but four times, and Zach then
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  Speaker 2: just casually blame the Wi.
• 4:04
  Speaker 1: Fi, not the product.
• 4:05
  Speaker 2: Can't be the product, of course, so what is the
• 4:07
  Speaker 2: key learning here?
• 4:07
  Speaker 1: Live demos are now part of the theater of big
• 4:10
  Speaker 1: tech product launchers, and.
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  Speaker 2: These new features can sometimes live and die by the
• 4:14
  Speaker 2: success of these demos.
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  Speaker 1: YEP. Smooth demos can create buzz, while a glitch can
• 4:18
  Speaker 1: cast out on whether the product is really ready.
• 4:21
  Speaker 2: Remember what happened when Google announces AI launch of Barred
• 4:24
  Speaker 2: back in February twenty twenty three.
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  Speaker 1: Yes, it said that the James web Space telescope took
• 4:29
  Speaker 1: the very first pictures of a planet outside of our
• 4:31
  Speaker 1: solar system.
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  Speaker 2: Except that was incorrect.
• 4:34
  Speaker 1: Next minute, one hundred and forty billion dollars was wiped
• 4:36
  Speaker 1: from Alphabet's market cap.
• 4:38
  Speaker 2: And just fifteen months later, Google rebranded Bard into Gemini.
• 4:41
  Speaker 1: Thankfully, for Meta, the stakes are a little different.
• 4:43
  Speaker 2: Yeah, the smart classes are an exciting experiment, but they're
• 4:46
  Speaker 2: not yet core to Meta's business model. For our third
• 4:48
  Speaker 2: and final story, shares in StubHub, the online ticket marketplace,
• 4:52
  Speaker 2: plummeted six percent below its listing price on its ipoday.
• 4:55
  Speaker 1: More of a nosebleed seat than front row vibes with
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  Speaker 1: that debut and my right, tell me more, okay.
• 5:00
  Speaker 2: Stubbub is the online ticket marketplace that was founded back
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  Speaker 2: in the year two thousand.
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  Speaker 1: You know, the platform that encourages people to buy tickets
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  Speaker 1: and then sell them at five times the price.
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  Speaker 2: Yeah, fun fact be Man. By two thousand and four,
• 5:10
  Speaker 2: the co founders actually fell out and one of them
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  Speaker 2: left and co founded via Go.
• 5:14
  Speaker 1: Go, which of course is Stubhub's arch nemesis.
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  Speaker 2: But b Man's StubHub is a large now. It's platform
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  Speaker 2: facilitated the purchase of over forty million tickets for more
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  Speaker 2: than two hundred countries, including Australia in just twenty twenty
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  Speaker 2: four alone.
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  Speaker 1: Wow and Jazi Boy StubHub listed on the New York
• 5:28
  Speaker 1: Stock Exchange earlier this week, but really struggled to get
• 5:31
  Speaker 1: some momentum going.
• 5:32
  Speaker 2: It's share price fell six percent on debut.
• 5:35
  Speaker 1: That's pretty interesting given that Klana and Figma's US IPOs
• 5:37
  Speaker 1: have headed directly to boomtown. So what's the reason I
• 5:41
  Speaker 1: didn't go to plan?
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  Speaker 2: Well, firstly, it came on the same day the Fed
• 5:44
  Speaker 2: Reserve cut interest rates by point two five percent, which
• 5:46
  Speaker 2: was less than expected and.
• 5:48
  Speaker 1: That actually hurt a lot of tech stocks.
• 5:49
  Speaker 2: And the CEO also flagged that new pricing transparency laws
• 5:52
  Speaker 2: would likely hurt ten percent of their revenues in the
• 5:55
  Speaker 2: short term.
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  Speaker 1: Not exactly the momentum that year to want.
• 5:57
  Speaker 2: So while companies eyeing in IPO were excited by the performance,
• 6:00
  Speaker 2: it's a Figma and Klana, this may just remind them
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  Speaker 2: they're not all IPOs are meant to shine.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: In every boom cycle, not every IPO can live up
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  Speaker 2: to investor expectation.
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  Speaker 1: Does We We know that IPO markets moving cycles. There
• 6:12
  Speaker 1: are hot periods like the twenty twenty one boom. There
• 6:14
  Speaker 1: are also some frosty periods when IPOs dry up because
• 6:16
  Speaker 1: market conditions are shaky.
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  Speaker 2: But be man for investors. It means they need to
• 6:20
  Speaker 2: be extra cautious about separating genuine quality businesses and they're
• 6:24
  Speaker 2: not so good during boom times.
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  Speaker 1: And that means the next batch of IPO hopefuls quietly
• 6:28
  Speaker 1: taking notes on what did not work for stub hub.
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  Speaker 2: No True Self one, don't launch on a day when
• 6:32
  Speaker 2: a FED rate decision will overshadow you.
• 6:34
  Speaker 1: Note to self two. Don't price two aggressively. Note to
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  Speaker 1: self number three. Make sure you've addressed any uncertainties or
• 6:40
  Speaker 1: regulatory risks before ipo e floxam, Did you know a
• 6:43
  Speaker 1: credit score over eight hundred and fifty three is considered
• 6:46
  Speaker 1: excellent and if you're below four fifty nine it's below average.
• 6:48
  Speaker 1: Where does your credit score sit?
• 6:50
  Speaker 2: If you don't know yet, make sure you download the
• 6:51
  Speaker 2: Flux app and check out your credit score to see
• 6:53
  Speaker 2: how you stack up.
• 6:54
  Speaker 1: Thanks for listening, and we'll see you on Monday.