Domain, the Aussie real estate site, will be sold to US real estate giant CoStar in a deal worth $2.8 billion deal after Domain’s majority shareholder gave the thumbs up.
Disney has reported a magical quarterly earnings update as its parks and streaming divisions pull a rabbit out of the hat.
NewsCorp outperforms investor expectations as it relies more and more on its digital brands for growth.
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Episode Transcript
This is a lot the flux.
Speaker 2 (00:06):
I'm Brett and I'm Justin and it's Monday, the twelfth
of May.
Speaker 1 (00:09):
Bill Gates, one of the founders of Microsoft, has announced
that he's giving away two hundred billion US dollars juzzy boy,
But not quite yet, and not quite just handing it
away his foundation. The Gates Foundation, plans to shut down
in twenty forty five, meaning all the money needs to
be donated to public health organizations before then, and that
means roughly ten bill per year. Someone's definitely tracking it
(00:29):
all in the most anxiety inducing Microsoft exalespoadheet known to humankind.
Speaker 2 (00:34):
Yeah, one hundred per As we get near the middle
of the month, it is the time if you haven't
yet to check your credit score for May? Has it
gone up? Has it gone down? Has there been a
lot of credit card spending going on? To make sure
to check out your credit score this May.
Speaker 1 (00:48):
Three influential stories today, juzzy boy, Let's do it for
our first domain, the Aussie real estate website, will be
sold to US real estate giant Coastar in a deal
worth two point eight billion dollars.
Speaker 2 (01:00):
Aria Group not happy right now. It's got a reduce
competitor here be man, so tell me.
Speaker 1 (01:04):
More well, juziboy. Domain is the real estate marketplace that
first listed its properties online in nineteen ninety nine, back.
Speaker 2 (01:11):
When those real estate newspaper fold outs were the best
way to know which properties were selling.
Speaker 1 (01:15):
But Domain has always played second fiddle to real estate
dot com dot a U in the digital real estate industry.
Speaker 2 (01:22):
Yet real estate dot com dot you has forty six
percent more monthly unique visitors than Domain.
Speaker 1 (01:26):
But juzzi boy, that didn't stop a mystery buyer from
acquiring a sixteen point nine percent stake in Domain back
in February of this year.
Speaker 2 (01:34):
And spoiler alert, that mystery buyer was the US real
estate firm Coastar. Yep.
Speaker 1 (01:39):
They slid into Domain's DMS with an offer, which was rejected.
Speaker 2 (01:43):
Then they sweetened the deal, and.
Speaker 1 (01:44):
Now Domain's majority shareholder Nine Entertainment has backed this deal.
Speaker 2 (01:49):
Which was it a forty two percent premium to Domain
share price before the proposal.
Speaker 1 (01:53):
And technically shareholders still need to vote on the deal.
Speaker 2 (01:56):
Given nine has a sixty percent steak in Domain and
coasts now nearly seventeen percent, there's not too much up for.
Speaker 1 (02:02):
Debate, yep. So what's the key learning here.
Speaker 2 (02:04):
Controlling stakes don't just influence outcomes, they often decide them. Yep.
Speaker 1 (02:09):
When a company or a shareholder owns a large stake
in a business, they can effectively control the outcome of
major decisions.
Speaker 2 (02:15):
Everything from leadership changes to mergers and acquisitions.
Speaker 1 (02:18):
In this case, Nine owns sixty percent of Domain, which
means their vote basically seals the deal with Costar.
Speaker 2 (02:25):
As long as Nine's on board, the deal is likely
to go ahead.
Speaker 1 (02:27):
But does wait Not all controlling shareholders are willing to
facilitate a takeover like this deal.
Speaker 2 (02:33):
Remember when the private equity firm KKR try to acquire
the Australian hospital operator Ramsey Healthcare in twenty twenty two
for twenty billion dollars I do.
Speaker 1 (02:41):
The deal fell apart because the Ramsey family, which owned
nineteen percent of the company, did not back the proposal.
Speaker 2 (02:47):
So be man at. Controlling stakes don't just influence deals,
they often make or break them.
Speaker 1 (02:51):
For our second story, Disney has reported a magical quarterly
earnings update as its parks and streaming division pull a
rabbit out of the hat.
Speaker 2 (03:00):
The happiest place on Earth just made Wall Street pretty
happy as well.
Speaker 1 (03:03):
Be man so tell me, well, Disney's the global entertainment
behemoth that's been making kids an adult smile since almost
the dawn of time.
Speaker 2 (03:11):
It owns everything from Mickey Mouse to Marvel.
Speaker 1 (03:13):
From Pixar to amusement parks, and.
Speaker 2 (03:15):
Don't forget ESPN and ELKSA as well.
Speaker 1 (03:17):
Be Man but Jasey Boy. Disney's second quarter results were
good enough to make even e your smile.
Speaker 2 (03:22):
Yeah. It's revenue came in at twenty three point six
billion US dollars, which beat forecasts by over six hundred mil.
Speaker 1 (03:29):
Disney's streaming business, Disney Plus, is back in the black
with its third straight profitable quarter, but.
Speaker 2 (03:34):
Its parks division was the real MVP because it saw
its revenue and demand continue to fly off the radar.
Speaker 1 (03:40):
That's what happens when you own such strong ip yep,
So what is the key learning here? The most valuable
assets aren't just sold once. They're the ones that are
turned into worlds you can watch and ride, and wear
and live in.
Speaker 2 (03:53):
Yeah. When a company owns iconic characters or universes, the
real genius is in squeezing every last dollar out of it.
Speaker 1 (04:00):
It's not just about a movie or a show.
Speaker 2 (04:01):
It's about adding the ride, the cruise, the plush toy,
and who can forget the streaming spinoff as well.
Speaker 1 (04:06):
Now, by stretching IP across its broad range of offerings,
Disney creates multiple revenue streams from a single movie.
Speaker 2 (04:12):
Here take Frozen as an example. Disney turned the movie
into a huge revenue spin out across multiple channels.
Speaker 1 (04:18):
In just twelve months after its release, Frozen merchandise sales
generated approx. Five billion dollars, or.
Speaker 2 (04:23):
A twelve percent uplift in Disney's total merch sales.
Speaker 1 (04:26):
Then they integrated Frozen themed attractions into its theme parks.
Speaker 2 (04:29):
Then it was available on streaming.
Speaker 1 (04:31):
And of course, don't forget the merchandise, and.
Speaker 2 (04:33):
Disney's become the master of squeezing every penny out of
every single character.
Speaker 1 (04:37):
Else's basically working overtime across five continents. Right now.
Speaker 2 (04:42):
For our third and final story, news Corp outperformed investor
expectations even though it relies more and more on its
digital brands for growth.
Speaker 1 (04:50):
From tabloids to tech stacks. What is going on here?
Speaker 2 (04:53):
Okay? So, News Corp is the global media and publishing powerhouse.
Speaker 1 (04:57):
It owns newspapers all over the world from the world
a street Journal, to the New York Post, to The
Times in the UK and.
Speaker 2 (05:03):
In Australia we'd be talking The Australia and the Held
Sun Daily Telegraph and a whole lot more.
Speaker 1 (05:08):
Not to forget, it also owns heefty chunk of Ozssie
real Estate Giant Aria Group.
Speaker 2 (05:12):
And because of its global presence, News Corp is listed
on the ASX as well as the Nasdaq in the US.
Speaker 1 (05:17):
Now, jazz Boy News Corp has announced its quarterly revenue
came in at just over two billion.
Speaker 2 (05:22):
Dollars, which was ever so slightly up on the same
time last year.
Speaker 1 (05:25):
And what were the winners and losers in the news
corps stable.
Speaker 2 (05:28):
Winners Aria Group aka the Oussie real Estate Golden Child
and the other winners Dal Jones. It's business and data
platform that suit and tie data nerds love for jaz Boy.
Speaker 1 (05:37):
The results from the news media was ugly.
Speaker 2 (05:40):
Yeah, The Sun and New York Posts both saw their
traffic down forty one percent and thirty two percent respectively.
Speaker 1 (05:46):
So it's in for digital and out for media.
Speaker 2 (05:49):
And despite the poor showing for newsbe Man News Corps
share price still jumped four percent.
Speaker 1 (05:54):
That's interesting, So what's the key learning here.
Speaker 2 (05:55):
Legacy media isn't exactly dead, but it needs to be
digitally reincar I needed to survive.
Speaker 1 (06:01):
In fact, Jazzy Boy news Corps assets that focus on
digital subscriptions and real estate classifieds are the only ones
winning at the moment.
Speaker 2 (06:08):
These are the higher margin and recurring revenue stream businesses.
Speaker 1 (06:11):
In fact, Aria Group and Dow Jones accounted for nearly
forty three percent of news Corp's total quarterly revenue.
Speaker 2 (06:17):
Despite the fact there are more than twenty five major
brands and companies in the group.
Speaker 1 (06:21):
So NewsCorp needs to prune the low growth or no
growth areas of its business.
Speaker 2 (06:26):
And double down on the big winners.
Speaker 1 (06:28):
But the biggest challenge Juzzy Boy is to make sure
it's digital growth outpaces the declines in print and advertising.
Speaker 2 (06:35):
But sam every single month your credit score is updated.
It might go up. If you've been making your payments
on time, it might go down if you've been applying
for a lot of credit. The best place to find
out what's happened to your credit score this month is
in the Flux app. Make sure it's download the Flux
app and check out your credit score.
Speaker 1 (06:49):
Thanks for listening and we'll see you on Wednesday.
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