Published on 28/07/2018 by Any Business.Com.Au

Minding your business: July

Following on from a number of big business announcements in June, July has well and truly delivered.

In today's

'Minding your business'

blog, our monthly wrap up of the business news that has grabbed the headlines in the preceding 28 days, we explore:

the closure of an Australian grocery icon, the world's biggest social media platform setting an un-wanted US stock market record and 2 Australian media giants announce a $4 billion merger.


  • Dick Smith to close his grocery line

  • Facebook loses $168 billion in a day

  • Media giants Fairfax and Nine to merge

Dick Smith to close his grocery line

Australian entrepreneur Dick Smith announced he is closing his line of Australian-made groceries, Dick Smith Foods, blaming competition by the Aldi supermarket chain, which he said had made it impossible for his brands to continue selling enough to maintain its presence on supermarket shelves.

As he made the announcement publicly, Mr Smith choked back tears, saying he tried to save the jobs of workers in Australia but failed.

Dick Smith Food was established in 1999 as part of an effort by Mr Smith to support Australian farmers and employees.

The closure will affect four staff directly and hundreds or even thousands employed by various suppliers around the country over the next 12 months.

Mr Smith said he believed that Aldi's aggressive low-cost business model would eventually challenge Australian giants Coles and Woolworths.

Facebook's historic $168 billion plunge

Facebook has notched up plenty of milestones in its incredible journey, however the social-media giant added one it would have rather avoided in July: the biggest stock-market wipeout in American history.

Facebook shares tumbled as much as 20 per cent in one day this month as sales and user growth disappointed investors. This translates to a $US124 billion (AU $168 billion) decline in market capitalisation, which is the largest ever loss of value in one day for a US traded company - and nearly four times the entire market capitalisation of Twitter.

Chief Executive Officer Mark Zuckerberg's fortune took an almost $US16 billion hit in the wipeout as investors dumped the stock after the company forecast years of lower profit margins.

According to experts the loss played into concerns on Wall Street that Facebook's model could be under threat after a year that has been dominated by efforts to head off concerns over privacy and its role in global news flow.

Fairfax-Nine's deal to reshape the media landscape


In one of the biggest media deals ever seen in Australia, Nine and Fairfax announced this month, plans for a $4 billion merger that will see the name "Fairfax" disappear from the nation's media landscape.

The merger will cut costs for both the broadcaster and the publisher, setting up a single entertainment giant with exposure to network television, streaming and news delivery.

Nine shareholders will own 51.1 per cent of the combined entity and Nine CEO Hugh Marks will lead the new company.

Fairfax shareholders will own the remaining 48.9 per cent.

The directors of Fairfax will unanimously recommend shareholders vote in favour of the proposal, under which they will receive 0.3627 Nine shares and 2.5 cents for each share.

Three current Fairfax directors will be invited to join the board of the combined business, which will be chaired by Nine Chairman Peter Costello and two current Nine directors.

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AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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