This is what the flux.
I'm justin and I'm harsh deep and it's Friday, the thirty first of May.
A g the latest inflation figures for April have been released. Yeah, and sadly, inflation has jumped from three point five percent in March to three point six percent in April. Oh and well, it doesn't seem like a big jump. It is a bad signal because inflation is going in the wrong direction. And the biggest beer is that inter strikes may actually need to be lifted once again.
Oh cray, no Fluxpam. We're giving away fifty dollars today in our weekly game quick Sticks, just for listening to the pod. We're gonna give you a clue. The quiz will drop somewhere between one to two pm today, Oh Wright, So make sure you've got the Flux up and notifications turn on for your chance to win.
Three Kluey stories today.
Let's get into it.
For our first Catapult Sport, the ASX listed sports tech company has just hit one hundred million US dollars in revenue for the very first time. Wow. After doubling down on its subscription services.
Scary to think about the amount of data captured on elide players. There is no hiding tell me more so.
Catapult Sport actually started back in the early two thousands as a collab between the Australian Institute of Sport and Cooperative Research Australia.
But it became commercialized in two thousand and six and has become the leading wearable device product for elite athletes.
Players wear tracking devices when they're training or playing a match, and Catapult Sport uses software to record and analyze performance.
They've got over two three hundred teams across forty sports using their devices, and.
They've just released their annual results and for the very first time, Catapult Sport has crossed one hundred million US dollars in annual revenue.
Now, you might have assumed that their revenue is generated by selling these wearable devices, but you'd be wrong because the bulk of catapults revenue actually comes from software as a service, not from the hardware.
So tell me, actually, what is the key learning here?
The future of hardware may actually come via software subscriptions.
We've already seen a number of companies that charge you for the hardware and then charge a monthly subscription for the software as well.
Like Tesla or Pelton.
But now we're starting to seeing more companies who are just offering their hardware as a delivery mechanism for their subscription service.
You see Jazz. The majority of Catapult's tech is sold through a SaaS or software as a service model to elite sporting clubs.
In other words, athletes wear these tracking devices and the sporting clubs play a monthly fee to access the athlete startup and jazz.
Catapult has managed to grow their annual contract value by twenty percent because of this model.
Rather than adding more and more hardware, they expand their software offering. And actually Cata Holt aren't the only wearable company to adopt this model. Have you heard of the wearable fitness device Whoop? I have? Whoop does something similar. It wraps the upfront cost of its wearable device into its monthly subscription.
For our second story, Sony Music is in talks to buy Queen's music catalog for over one billion USD and this would be the largest music catalog purchase of all times.
Just imagine earning the rights to Baby Redsidy Absolutely timeless. So tell me everything here.
So Jazz, Sony Music is a second largest of the big three record companies behind Universal Music, and.
They are the record label behind mega artists like Seling, Dion, ACDC, Dojakat, Lil Nasex, and many many more.
Earlier this year, Sony acquired a fifty percent interest in Michael Jackson's music catalog for six hundred million USD.
But now Sony is in talks with Queen Band members and the estate of Freddie Mercury.
It's believed that Sony Music, along with another investor, is willing to pay one billion USD for ownership over everything from Bohemian Rhapsody to Don't Stop Me Now and It's She.
In recent years, there has been a frenzy to acquire music catalogs.
Yep, Neil Young, Bob Dylan, Justin, Timberlake and Beyonce have all generated hundreds of millions by selling all or a portion of their music, and a.
Whole new industry of specialist investment funds are being created too.
So tell me jas, what is the key learning here?
Move over shares and bonds. There is a new asset class in town. The music catalog.
Investors like Hypnosis, KKR and Blackstoner in a race to acquire a whole host of music rights.
That's because they're now considered stable assets because they generate consistent revenues.
People tend to stream music or by records, whatever the weather or economic climate.
Back in the day, songwriting catalogs generally sold between eight to twelve times the revenue generated from those songs annually.
But now we're talking fifteen to twenty five times because of the growth of streaming platforms.
Meaning more people accessing music legally.
Queen Productions reported revenues of fifty two million dollars in the year ended September twenty twenty two.
So a billion dollar purchase price is about nineteen times the revenue.
And these songs not only create a stable revenue stream, but they actually have the potential to grow.
Yep, we're talking royalties from being featured on TV shows, in films, video games, and even possibly TikTok.
For our third and final story, BHP has abandoned its seventy four billion dollar takeover bid for British mining company Anglo American after six weeks of hectic negotiating.
Must say it's a bit of an anticlinectic end to this journey. So what is the story here?
BHP the world's biggest mining company, worth a casual two hundred and twenty four billion dollars, and.
It operates mines in all corners of the globe, mining things like iron ore and coal, copper nickel.
Now BHB has been in one of the biggest will they won't they asked since Russ and Rachel from friends.
Except this is with British mining company Anglo American YEP.
For the last six weeks, BHB has been in negotiations with Anglo American for a takeover of the company.
And bhb's takeover offers were rejected three times before it finally gave up and called it quits.
The reason for Anglo Americans rejection they didn't like the way BHB had structured the deal.
BHP's offer required Anglo American to unbundle it's South African platinum and iron ore businesses to reduce their regulatory risks.
So since Anglo wasn't vibing with the direction BHP wanted to take the business in, the two companies decided to just stay friends.
All frenemies. So tell me what is the key learning here?
A takeover bid isn't just about the price, but also about how the company will look in the hands of its new owner.
You see, when a target company is assessing the takeover bid, they're looking into if it's a good deal for the company today, but also into the future.
Yeah. Anglo American's biggest shareholder is actually the South African government with over thirty percent ownership in the business.
And given BHP wanted to unbundle Anglo South African business, which could put jobs at risk, well, the South African government was not happy Jam.
And this isn't the first time we've seen a takeover bid fail over disagreements on strategic direction.
Yeah. Back in twenty nineteen, it was a proposed merger between Chrystler and Renolds and that collapsed at the very last minute.
Reno's biggest shareholder was the French government who wanted guarantees over Renaud's jobs.
And the two companies just couldn't reach an agreement, so the deal fell through. Flux Sam, if you want to start your weekend off on a high with fifty dollars from Flux, we are giving it away today between one and two pm. To make sure you've got the Flux app and notifications turned on for your chance to Win, thanks for
Listening, and we'll see you on Monday.