Silverwood Partners Strategic Analysis - Media Technology (NAB 2011)

I
Investment
t t Bankers
B k
Strategic Industry Analysis
Jonathan Hodson-Walker Nick McCoy

Managing Partner Managing Director
508.651.2194 508.651.2441
jhw@silverwoodpartners.com nmccoy@silverwoodpartners.com
Joshua Stinehour Brian Zapf

Senior Vice President Associate
508.651.8134 508.545.1380 x152
jstinehour@silverwoodpartners.com bzapf@silverwoodpartners.com
32 Pleasant Street
Sherborn, MA 01770
www.silverwoodpartners.com Member FINRA and SIPC
Leading Media Technology Investment Bank
Selected Media Technology Engagements
 Firm is highly active in media technology M&A transaction flow
 Firm has worked with leading media technology companies – advising or selling
companies to some of the premier companies in the industry
Copyright Silverwood Partners 2010 Page 1

Trends to Watch
Changing Consumer
 Traditional media
1  Social media
i l di
 Multiple device usage
Source: DataXu,
 Diminished attention IAB
Evolving Media Ecosystem
Netflix:
First‐Run
First Run Rights
Rights
2 2011E Revenue(1):
Facebook: $1.3 Billion
M i Di t ib ti
Movie Distribution (1) Citi Investment Research and Analysis
(1) Citi Investment Research and Analysis
US Pay TV Subscribers – Cord‐Cutting?
Q1 10 Q2 10
Q1 10 Q2 10 Q3 10 Q4 10
Q3 10 Q1 11 Q2 11
Q4 10 Q1 11 Q2 11
3 481K ‐216K ‐119K 65K
? ? Source: SNL Kagan

Trends to Watch
Near‐Term Industry Order Momentum; Cyclicality in Medium Term
2008 2009 2010 2011E 2012E 2013E
4
Source: IABM
11.9% ‐9.5% 1.6%
? ? ?
: One Year of da Vinci sales
NAB 2010 ‐ $995 entry level Resolve announcement
5 Full year of sales activity through to NAB 2011; initial market impact
Expect continued pricing pressure in post‐production
Pause and Reassess 3D
 “I think there was confusion about 3D early” – Brian Dunn CEO, Best Buy
 Despite hype, sales of 3DTVs far below expectations (Source: CEA)
6  “Reality may finally be coming to 3D expectations.” – WSJ 1/2/11
 “3D is not a category, it is not a product, it is a feature” – Gary Shapiro, CEA

Trends to Watch
2010 Q1 2011 IPOs
7 ?
2009 2010 2011
 “KIT plans to release news regarding this larger
8 t
transaction by the end of Q1 or in early April.”
ti b th d f Q1 i l A il ”
Upcoming  “[KIT] anticipate the larger target being in the
Acquisition? vicinity of $50 million of total revenue”
Increased Private Equity Activity
9  Transaction announced on 6/27/10  Transaction announced 3/15/11
EExpect Additional
Addi i l
Near‐term
 Closed on 1/1/11 – substantial activity  Values business at 5.0x trailing Announcements
(asset sales or acquisitions) to follow? revenue

New Media vs. Old Media
“New Media” Continuing to Encroach Upon “Old Media”
 Aggregate market valuation of “new media” companies approaching aggregate
market valuation of “old media companies”
p
 A dollar of “New Media” revenue valued at 3 times the value of a dollar of “Old
Media” revenue
Comparison of Market Value Comparison of Valuation
Enterprise Value/Revenue Multiple
“New Media” “Old Media”
60
6.0x
2.1x
$300 Billion $308 Billion
Source: Business Insider Source: CapitalIQ

Complementary vs. Competitive
Number of Cord‐Cutters Worldwide
How Viewers watch Favorite Shows
How Viewers watch Favorite Shows S
Source: Informa Telecoms & Media, Feb, 3, 2011
I f T l & M di F b 3 2011
Source: Deloitte “The State of the Media Democracy”
18,000
Rest of World 16,075
Mobile Devices & 20% 16,000
Video Game Consoles 7% North America
14,000
58% Europe
Online 12,000 11,189
19%
Asia‐Pacific
Thousands
19% 10,000
DVD
19% 7,457
2010 8,000
On‐Demand TV
On‐Demand TV 20%
17% 2007 6 000
6,000 4,499
32% 4,000 2,553
Time‐shifted TV 1,193
25%
2,000
Live TV 74%
74% 0
2010 2011 2012 2013 2014 2015
0% 20% 40% 60% 80%
COMPLEMENTARY COMPETITIVE

Strong Growth Performance
Majority of vendors had strong revenue growth in 2010 (versus 2009)
 2010 rebound in sales experienced throughout industry
21 32 110
1
2 100 9
1
57 45 9
9 16
5
1
1
34
25 30
116
8 24
7
53 33
18
8 1
23
Source: CapitalIQ,
CapitalIQ Company filings,
filings (1) Company Press Release Relevant Business Unit Performance

Factors Affecting Market Growth
Relative Market Impact We are here
Source: Silverwood Partners
File‐Based Infrastructure
Industrry Revenue
2008 2012 Events

Build Out Build Out
HD Transition
Digital Mandate Mobile Technology
3D Web distribution
Expansion Contraction Stabilization Macroeconomics
2004 2005 2006 2007 2008 2009 2010 2011 2012

Timing Considerations: Industry Cycle
Characteristics of Each Phase
We are here
We are here
Peak
 During quadrennial events
 Nearing completion of
Nearing completion of
Recovery technology cycle
 In advance of quadrennial  Signs of distress in Downturn
events advertising market –
g and
 No near‐term events
 Well‐before completion of broader economy
technology cycle  Disruptive technology  Technology cycle mature
 Stable to growing underlying
g g y g alternatives proliferating  Slowing general economy
economies (advertising adversely affecting
market) advertising market
 Few disruptive technology  Multiple technology
alternatives l
alternatives in use
 Confusion on business
models

Market Drivers and Constraints

Pace of Change – Case Study: da Vinci
Two Orders of Magnitude Price Reduction
September 2009 April 2010
• Profitable for 17 consecutive years; 80%
market share in traditional linear color
correction market
• Da Vinci Resolve typical average sale
price of $200,000 – $500,000
• Some configurations ran as high as • Most powerful system less than
$800,000 $150,000

3D Hype Cycle
Source: Silverwood Partners (Content) Gartner (Format)

Source: Silverwood Partners (Content), Gartner (Format)

Focus on Incremental Revenue
Most Important Technology Trends – Global Survey Results
Work flow Revenue flow
2009 2010 2011
Charts sourced from Devoncroft Partners Big Broadcast Survey 2009 – 2011

Technology Impact
Revenue Flow vs. Work Flow
 Revenue Flow – technology facilitates revenue acquisition and growth
 Work Flow – technology facilities operational efficiency; cost of doing business –
revenue potential inherently limited
MORE Important in 2011 LESS Important in 2011
Multi‐platform content delivery Transition to HDTV operations
IP networking and content delivery
IP networking and content delivery File‐based
File based / tapeless workflows
/ tapeless workflows
Improvements in compression efficiency
Video on demand
Move to automated workflows
Targeted advertising
Targeted advertising
Centralized operations
3D TV
Transition to 5.1 channel audio
Analog switch‐off Outsourced operations
Outsourced operations
Transition to 3Gps Reduction in carbon emissions
Work flow Revenue flow Source: Devoncraft Partners

Driving New Revenue Streams
Top reasons cited for importance of multi‐platform content delivery
100% 4% Other
9% Achieve competitive advantage in market place
6% Retain consumer eyeballs
75%
Make sure my content and brand is
32%
available on all distribution platforms
50%
Incremental
Revenue
25% 49% Provides potential for new revenue streams
Provides potential for new revenue streams
Source: Devoncroft Partners; Big Broadcast Survey 2010
0%

Customer Focus Changing
US Local Broadcast TV Revenue Outlook
Source: BIA/Kelsey, Borrell Associates, Inc.
Growth Expectations: Web Revenue as % of TV Advertising Revenue
2014 versus 2010
TV Advertising
Web Revenue
Revenue
100% ‐2.7%
2.7%

Changing Role of Technology Purchase
Past Future
Engineering Decision Strategic Decision
al
Norma
 Stable, predictable Social Business Strategy
business model Business Media Impinging
Model
N
on Technologygy
 Technology sourcing based
Technology sourcing based Migration N
New
on better, faster, cheaper Devices
 Engineering driven Technology Technology

Cycle Pricing
purchase Accelerating Purchasers
New
w
Collapsing
ll
 Incremental improvements File‐Based
on linear process Advertising
Technology
Diffusion
g g
Emerging Migration
Distribution Platforms

Online Video Advertising Growth
Online Video Advertising Still Small, But Growing
 Online video advertising to approach $2 billion in 2011 – fastest growing
category
catego yoof o
online
e ad
advertising
e ts g
 Growth in online video viewing substantially higher than growth in ad spending
Growth of Online Video vs. Ad Spending (US)
Source: comScore

Advertising Dollars to Follow Consumers
US Adult Time Spend versus US Advertising Spend – 2010

Source: eMarketer, Silverwood Estimates
eMarketer Silverwood Estimates
Existing US
Opportunity

Online Advertising Surpasses Newspapers
US Online Advertising vs.
g Newspaper Advertising
p p g
Newspaper* Online
$50.0
$40.0
$40 0
USS Billions ($)
$30.0
$20.0
$10.0 Online Surpasses
Newspapers
$0.0
* Includes Online and Print
Source: comScore, IAB, PWC, Newspaper Association of America

Opportunity: Video & Advertising
Historically Isolated Industries
Video Technology
Video Technology Advertising Technology
Advertising Technology
 Reducing production costs  Adjusting business model to new
 Automating operations advertising environment
 Increasing quality of user  Building efficiency on how advertising
experience is bought and sold
 Expanding content distribution
p g  Maximizing revenue through
to new media outlets increased monetization, optimization
 Measuring advertising effectiveness

Intersection of Advertising and Video
Sample of Conference Sessions
How to generate
g
revenue in new
mediums?
Mobile TV: A Path to the Future Video Everywhere –
Video Everywhere Brand Lift
Brand Lift
Which Screen Is It Anyway?
Whi hS I I A ?
Navigating a Multi‐Screen Reality Awareness with Online Video
Television Digital Money Makers:
Mobile, Social Network, Search Video Everywhere – Deep Brand
Ad Innovation – Emerging Platforms,
g g
Emerging Devices Integration in Online Video
Delivering to Video Web & Mobile
Delivering to Video, Web & Mobile
Premium Content & Tablets – Measurable TV: Hypertracking
Connecting Consumers to Content Content Platforms of the Future America’s Favorite Medium
Through Video Metadata
Monetizing the New TV Ecosystem:
Monetizing the New TV Ecosystem: The Revolution will not be
The Revolution will not be
Protecting Media Assets in the Smartphones, Game Consoles, Tablets televised…It will be Tweeted and
Digital Age and Flat Screens Facebooked
Increasing the Value of the Asset Reinventing Advertising: The Who are you really reaching? Raising

Evolution of Advertising for
Evolution of Advertising for th b
the bar on Online Audience
O li A di
360 Degree Advertising Television and the Web Measurement
Around the World
Too much information = no Online Video Marketing – It’s not
Innovations in Advertising information at all. Video discovery about Viral Video

Investor Sentiment: Greed vs. Fear
Investor Sentiment Indicator
Apr. 2011
Sept. 2010
Apr. 2010 Source: Based relevant tradeshow investor conversations by Silverwood team

Valuation Expansion Since IBC
Aggregate Market Capitalization

Aggregate Market Capitalization
Source: Silverwood Partners, CapitalIQ
$60B
$55B
Revenue 1.3x 1.4x Median

Enterprise Value
EBITDA 9.9x 10.5x Multiples
Sept. 2010 Apr. 2011
p

Value Escalation – Transformative M&A
DivX Shareholder Return 1/1/09 to 2/18/11
Source: CapitalIQ, SEC Filings

Substantial Institutional Capital Available
Institutional Capital Searching for Video Focused Investments
 Few investment opportunities in video technology for large institutional investors
 Strong demand and attractive valuations for businesses focused on growth
areas of video technology industry
Initial Public Offerings Secondary Offerings
4/9/2010 2/25/2011
 Raised: 230.0M; Enterprise Value: $1.14M  Secondary offering raising $71 million
 Enterprise Value/Revenue Multiple: 5.3x  Enterprise Value/Revenue Multiple 3.5x
12/7/2010
12/7/2010
 Secondary offering raising $110.4 million
 Raised: $202.9M; Enterprise Value: $1,293.0M  Enterprise Value/Revenue Multiple: 3.4x
 Trades at 82x Revenue
10/5/2010
1/25/2011
 Secondary offering raising $31.2 million
 Raised $151M; Valued at $1.5B  Trades at 10x trailing 12 month revenue
 Trades at 8x Revenue and 40x EBITDA
4/13/2010
1/26/2011
 Raised $1.6B  Secondary offering raising $100 million
 Trades at 3x Revenue and 13x EBITDA  Trades at 3x trailing 12 month revenue

Recent Private Equity Sponsored Deals
 Provider of visual effects plugin software products used in
Jul. 2008 professional video applications.
Jan. 2009  Designs and sells monitor & analysis, test & measurement,
and video transport systems.
Jun. 2009  Provider of video compositing solution “Nuke” used in the
post‐production of professional feature films.
Mar 2010
Mar. 2010  Manufacturer of KVM,DVI and camera extenders, digital
Manufacturer of KVM,DVI and camera extenders, digital
cross‐point video switches, and secure console servers.
Apr 2010
Apr, 2010  Optical transport solution provider delivering a platform
for next‐generation cable services.
 Well‐known supplier of a variety of broadcast equipment
Dec. 2010 throughout the video production workflow
 Provider of video compositing solution “Nuke” used in the
Mar. 2011 post‐production of professional feature films.

Context of Media Technology Industry
Large Technology Vendors have Selective Interest in Industry
 Focused on broader use case for technology
 Little interest in dedicated sales effort to broadcast and post-production
post production
customers – too small in context of organizations
2010 Revenue Comparison

2010 Revenue Comparison
Source: Public filings, IABM data

Trade Sale: High‐Level Buyer Review
Ability to Pay Premium Price
Interest in Media Technology Industry
Broadcast /Cable Broader Technology Advertising Technology
 Trading at varied multiples
Trading at varied multiples  Trading at strong multiples
Trading at strong multiples  Trading at strong multiples
Trading at strong multiples
 Need to buy revenue – very  Ability to pay highly strategic  Aggressively pursuing
little organic growth in industry price acquisitions of technologies
 Acquisitions more  Slow‐moving given size of solving key customer problems
cost‐effective than R&D organization and lack of  Ability to pay prices separate
 Few companies with capital to dedicated focus on industry from economics of business
offer substantially cash  Often acquisitions of industry  Expansive perspective given
consideration participants grow out of
p p g fundamental shift in
partnerships advertising technology
EV/Revenue 1.1x 2.1x 2.7x

2010 – Strong Year for M&A; 2011 Stronger
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Tinderbox

M&A Trends by Type
Substantial interest from large acquirers – few alternatives for
Strategic excess cash balances
Trade Sale Video
Video increasingly viewed as growth area
increasingly viewed as growth area
Occurred frequently during 2009 given industry disruption
Strength of industry recovery has increased alternatives for
g y y
Product Line smaller businesses
Purchases Valuations have improved making transactions a challenge
from buyer perspective
Challenging transactions to complete given inherent
Equity complexities
Merger Increasingly attractive option to improve commercial
positioning of business
iti i fb i
Aggressively pursuing acquisitions
Interest in media technology stems from disruptions in media
Private Equity ecosystem and fragmentation of vendors
Sponsored Lack of easily identifiable organic growth opportunities
requires an acquisition driven strategy

Transactional Comparables – Disclosed
($ in millions)
Date Acquirer Target Enterprise Value EV/Revenue
3/23/2011 Polycom Accordent $50.0 5.0x
3/16/2011 KIT Digital Polymedia $38.6 1.7x
3/15/2011 Carlyle Group The Foundry $120.0
$120 0 5 0x
5.0x
2/4/2011* Cisco Inlet $95.0 6.3x
1/31/2011 KIT Digital KickApps $44.7 3.7x
1/31/2011 KIT Digital Kewego $26.7 2.6x
1/31/2011 KIT Digital Kyte $5.7 1.5x
1/5/2011 Evertz Pharos $5 0
$5.0 0 6x
0.6x
12/30/2010 Digital Vision Image Systems $7.2 1.2x
12/22/2010 Rovi Sonic Solutions $643.6 6.2x
11/24/2010 Deluxe Ascent $70.0 0.4x
11/14/2010 EMC Isilon $2,401.4 9.7x
9/30/2010 DG Fastchannel Match Point Media $26 0
$26.0 1 4x
1.4x
9/15/2010 KIT Digital Brickbox $10.3 0.9x
9/9/2010 Miranda Omnibus $47.0 2.0x
8/26/2010* Cisco Extend Media $80.0 4.5x
6/1/2010 Sonic Solutions DivX $192.6 2.6x
5/6/2010 H
Harmonic
i O
Omneon $274 0
$274.0 26
2.6x
3/16/2010 Vitec Multimedia Optibase $8.0 0.6x
3/15/2010 KIT Digital Multicast Media $18.0 1.5x
1/7/2010 Seachange VividLogic $23.5 3.4x
1/5/2010 Avid Tech. Blue Order $16.0 1.5x
Source: Capital IQ Mean 3.0x

*Transaction values based on industry sources Median 2.3x
High 9.7x
Low 0.4x

Recent Transactions by Valuation
>5.0x
2.0x – 5.0x
1.0x ‐ 2.0x
<1.0x
* Multiples refer to Enterprise Value / Revenue
p p

Why Valuations Differ
Dynamic Reasons for Lower Valuations Reasons for Higher Valuations
Company
Company Passing $10, $20, $50MM in sales; selling on
Passing $10 $20 $50MM in sales; selling on
Less than $10M in sales
Size combination of growth and EBITDA level
Growth Slow/No/Negative High
Strong profitability if operating in mature space;
Consistently cash flow negative – no expectation of
Profitability profitable or approaching profitability if in
near‐term profitability
rapidly growing segment
Addressable Products have narrowly focused use case for Technology applicable to larger video use cases
Market broadcasters and post‐production facilities (military, medical, enterprise)
Product
Work flow – product is a cost of doing business; Revenue flow – driving incremental revenues,
Value
focus on efficiency is inherently limited unlimited ability to add value
Proposition
Product Hardware focused products requiring expensive Software differentiated products with lower‐
Positioning direct sales model touch sales model
Concentrated in either the high‐end customer
No consistent focus of customers resulting in a
Customers
Custo es or low‐end customer –
o o e d custo e sa sales resources
es esou ces
scattered sales and support model
d l d d l
efficiently allocated
Sale process poorly timed with industry and market Sale process well‐timed with industry and
Timing
trends market trends

Public Company Analysis
Valuation Distribution: Enterprise Value/Revenue
5.0x+
3.0 ‐ 5.0x
1.0 ‐ 3.0x
<1.0X
Source: Capital IQ

Private Placements: Active Investor Interest
Fundraising since January 1, 2010
Date Amt ($) Company Date Amt ($) Company Date Amt ($) Company
1/5/10 $3.6M Mo-DV 3/18/10 $2M
$ Panvidea 6/21/10 $8.5M ATEME
1/14/10 $2M Transpera 3/22/10 $10M Avaak 6/22/10 $14M Brand.net
1/18/10 20M Guvera 3/24/10 $1M Wistia 6/22/10 $3.1M ViaCLIX
1/24/10 $2.5M Beezag 4/1/10 $25M Vidyo 6/23/10 $9M Extreme Reach
2/2/10 $75M U t
Ustream 4/6/10 $12M B i ht
Brightcove 7/27/10 $7 5M
$7.5M El
Elemental
t lTTech
h
2/3/10 $10M BrightRoll 4/12/10 $10M Edgecast 7/29/10 $15M Envivio
2/8/10 $3.5M Voddler 4/13/10 $6.6M 3Crowd 8/9/10 $4.4M MyDamnChannel
2/9/10 $5.5M IVT 4/19/10 $20M BlackArrow 8/10/10 $2M Netpulse
2/10/10 $1.3M Encoding.com 4/21/10 $30M Zenverge 8/19/10 $2M OggiFinogi
2/16/10 $16M TidalTV 4/21/10 $10M Imagine Comm. 8/30/10 $3M ShowUHow
2/17/10 $25M YuMe 4/26/10 $16.8M Freewheel 9/9/10 $22M Ooyala
2/18/10 $11M Clicker 4/28/10 $40M Tremor Media 9/9/10 $2.5M VMIX
2/19/10 $2.5M Vook 5/5/10 $2M Newsy 9/15/10 $15M Conviva
2/24/10 $15M Quantenna 5/5/10 $23M Invidi 9/24/10 $4M Innovid
2/24/10 $10M ZillionTV 5/10/10 $10.1M Blip.tv 9/27/10 $21M Quantenna
3/8/10 $
$1.8M Ubicom 6/2/10 $9M Transpera 9/28/10 $
$1M Redux
3/9/10 $36.5M siBeam 6/3/10 $1.5M Dilithium 10/8/10 $10M TubeMogul
3/18/10 $5M Videoplaza 6/5/10 $5M Metcafe 10/12/10 $16M BNI Video
Source: VideoNuze, Silverwood Analysis
VideoNuze, Silverwood Analysis

Private Placements: Active Investor Interest
Selected Fundraising since January 1, 2010
Date Amt ($) Company Date Amt ($) Company
10/12/10 $12M SundaySky
y y 12/15/10 $12M SpotXchange
p g
10/12/10 $6M VeeBeam 12/29/10 $1M Next New Networks
10/18/10 $4.9M Oversi 1/6/11 $6.3M Qik
10/18/10 $5M Sharethrough 1/9/11 $2.4M MUBI
10/18/10 $3M Wh
Wham 1/16/11 $10M S
SnagFilms
Fil
10/20/10 $10.7M Kontiki 1/18/11 $5.3M Vook
10/25/10 $20M RGB Networks 1/24/11 $11M Auditude
10/25/10 $4.5M Adap.tv 1/25/11 $5M Celtra
11/1/10 $14M ConteXstream 1/25/11 $80M Dailymotion
11/2/10 $11M LiveU 2/1/11 $8M Voddler
11/9/10 $3M Movieclips.com 2/15/11 $8.7M Tango
11/10/10 $3.2M RealGravity 3/1/11 $16.5M Boxee
11/10/10 $10M Rhythm NewMedia 3/9/11 - ZeeVee
11/11/10 $4.5M Clearleap
11/14/10 $12M Tokbox
11/16/10 $
$17M Verismo
11/16/10 - BlackArrow
11/23/10 - Vzaar
Source: VideoNuze, Silverwood Analysis
VideoNuze, Silverwood Analysis

Silverwood Media Technology Team
• 20+ years of consulting, investment banking experience in the US and Europe
Jonathan Hodson-Walker • Managing Director and Group Head at Gleacher & Co. (First Albany)
• Co-founded, co-managed IBD at H.C. Wainwright
Managing Partner
• Corporate Finance VP at CSFB in New York and London (UK country desk)
Silverwood Partners • Corporate Finance Associate at Drexel Burnham Lambert in New York
• Fulbright Scholar with MBA from the Kelley School of Business at Indiana University
• Investment Banking Group at Gleacher & Co. (First Albany)

Nicolas A. McCoy, CFA • Director of Mergers & Acquisitions at Allmerica Financial Corporation, responsible for
executingg corporate strategic
g transactions and investments
Managing Director
• Senior Associate, corporate development, at Wheelabrator Technologies
Silverwood Partners
• Chartered Financial Analyst, FINRA Financial and Operations Principal
• MBA in Finance from Wake Forest University, BS Business Admin. UNH
• Media technology executive involved with the broadcast industry for over 25 years
Graham Sharp • President of xtranormal,
xtranormal provider of intuitive movie
movie-making
making tools
• Director of Media Asset Capital, a full service media consultancy
Senior Industry Advisor
• Director with AV3 software, a creative software developer and vendor
Silverwood Partners
• Served as EVP & GM of Avid's Video division; US liaison to IABM
• Held executive positions with Post Impressions, Discreet Logic and Dynatech
• Responsible for media technology sector coverage

Joshua Stinehour • Lead software analyst at EMC – integration of VMWare, Documentum, Legato
Senior Vice President • MBA from Babson College
Silverwood Partners • Masters degree in Computer Science, Rochester Institute of Technology
• BS degree in Computer Science, Union College
• Dedicated to media technology sector coverage

Brian Zapf • Founder of independent video production company
Associate • MBA from the Kelley School of Business, Indiana University
Silverwood Partners • BA in Political Science and Economics, University of Michigan
• AD in Radio and Television Production, International College of Broadcasting

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Silverwood Partners Strategic Analysis - Media Technology (NAB 2011)

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Silverwood Partners Strategic Analysis - Media Technology (NAB 2011)

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I

Jonathan Hodson-Walker Nick McCoy

Joshua Stinehour Brian Zapf

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2008 2012 Events

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Source: Silverwood Partners (Content) Gartner (Format)

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2009 2010 2011

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 Engineering driven Technology Technology

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US Adult Time Spend versus US Advertising Spend – 2010

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Increasing the Value of the Asset Reinventing Advertising: The Who are you really reaching? Raising

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Aggregate Market Capitalization

Revenue 1.3x 1.4x Median

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Initial Public Offerings Secondary Offerings

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2010 Revenue Comparison

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EV/Revenue 1.1x 2.1x 2.7x

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Source: Capital IQ Mean 3.0x

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Growth Slow/No/Negative High

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• Investment Banking Group at Gleacher & Co. (First Albany)

• Responsible for media technology sector coverage

• Dedicated to media technology sector coverage

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