Internet Industry Update Q2 2013

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Internet Industry Update

Q2 2013

http://www.victorypharma.com/index.shtml

http://www.victorypharma.com/index.shtml

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Q2 2013 Internet Industry Overview

• Internet M&A was driven by large-cap internet companies acquiring platforms with significant scale

- Target company monetization was a secondary consideration to strategic implications for acquirer

- Google’s acquisition of Waze, which operates a social traffic and navigation app, valued at more than $1.1 billion

- Yahoo’s $1.1 billion acquisition of Tumblr, an online blogging forum

- Demand Media’s $94 million acquisition of Society6, an Ecommerce marketplace for artists

• The investment environment remained robust as many hyper-growth companies received significant valuations

- Premium headline valuations were in abundance during Q2 for consumer focused internet businesses

- $150 million Tencent‐led investment in eCommerce company Fab, at a $1 billion pre‐money valuation

- $60 million IVP-led investment in Snapchat, at an $800 million pre‐money valuation

- $125 million Google and Foundation Capital investment in Lending Club, at a valuation of $1.6 billion

- $586 million Alibaba investment in Sina Weibo, at a valuation of $3.3 billion

• The IPO market has shown increasing signs of life for internet and Ecommerce verticals

- Light in the Box (NYSE:LITB) up ~16% since June IPO

- RetailMeNot registered its S-1 for a $230 million aggregate offering

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Active Acquirers and Recent Transactions

Source: Capital IQ as of 6/28/13

Notable Recent Transactions

Most Active Acquirers (Since 2008)

Acquirer

Target

Date 5/6/13 5/8/13 5/20/13 6/4/13 6/11/13

EV $370m $315m $1,100m $2,250m $1,100m

EV / LTM Rev N/A 6.6x N/A 7.1x N/A

EV / LTM EBITDA N/A N/M N/A N/M N/A

Deals <$1bn

Deals >$1bn

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253 266236

269

161 158180

301 310 302 299

381

300

347

422

531

407 398 414

495

347320

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Internet M&A Market Overview


Quarterly Internet M&A Value and Deal Count (Since 2008)

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Enterprise Target LTM Enterprise Value / Date Target Acquirer Sector Value Revenue EBITDA LTM Revenue LTM EBITDA

06/27/13 Neolane Adobe Advertising and Marketing $600.0 $60.0 N/A 10.0x N/A

06/04/13 ExactTarget salesforce.com Advertising and Marketing 2,249.6 317.1 (0.6) 7.1 N/M

06/25/13 Go Try It On Rent The Runway Ecommerce N/A N/A N/A N/A N/A

06/19/13 Spooky Cool Labs Zynga Gaming N/A N/A N/A N/A N/A

06/11/13 Waze Google Knowledge / Content 1,100.0 N/A N/A N/A N/A

06/05/13 Webgistix Rakuten Ecommerce N/A N/A N/A N/A N/A

05/29/13 JouleX Cisco Systems / Network 107.0 N/A N/A N/A N/A

05/23/13 PlayerScale Yahoo! Platform / OS N/A N/A N/A N/A N/A

05/20/13 GrubHub Seamless Ecommerce N/A N/A N/A N/A N/A

05/20/13 Websense Vista Equity Partners Security 966.2 359.4 54.4 2.7 17.8x

05/20/13 Tumblr Yahoo! Content & Services 1,100.0 N/A N/A N/A N/A

05/15/13 Cartavi DocuSign Systems / Network N/A N/A N/A N/A N/A

05/14/13 Tasty Labs @WalmartLabs Knowledge / Content N/A N/A N/A N/A N/A

05/14/13 OneOps @WalmartLabs Systems / Network N/A N/A N/A N/A N/A

05/08/13 Market Leader Trulia Advertising and Marketing 314.3 47.7 (3.9) 6.6 N/M

05/07/13 Opera Solutions Wipro Business Intell igence N/A 100.0 N/A N/A N/A

05/06/13 PPStream Baidu Content & Services 370.0 N/A N/A N/A N/A

04/11/13 Advent Software TPG Integration / Middleware 1,204.3 364.4 82.7 3.3 14.6

06/14/13 Mixr SpeedDate.com Knowledge / Content 5.6 N/A N/A N/A N/A

04/25/13 Parse Facebook Development N/A N/A N/A N/A N/A

04/23/13 Radiant Communications Frontier Networks Content Delivery & Management 9.3 32.3 2.0 0.3 4.6

04/02/13 LiveMocha Rosetta Stone Content & Services 8.5 3.6 (4.8) 2.4 N/M

03/28/13 Goodreads Amazon.com Content & Services N/A N/A N/A N/A N/A

03/19/13 Charter Communications Liberty Media Corporation Content Delivery & Management 22,581.1 7,504.0 2,644.0 3.0 8.5

03/18/13 MetroFax j2 Global Content & Services N/A N/A N/A N/A N/A

03/14/13 Cooking.com Target Content & Services N/A N/A N/A N/A N/A

02/28/13 Atlas DMT Facebook Advertising and Marketing N/A N/A N/A N/A N/A

02/27/13 Beatport SFX Entertainment Content & Services 50.0 N/A N/A N/A N/A

02/26/13 Angel.com Genesys Telecommunications Internet Software 110.0 28.9 N/A 3.8 N/A

02/14/13 Skyfire Labs Opera Software Internet Software 147.0 4.1 N/A 35.9 N/A

02/05/13 Bluefin Labs Twitter Internet Software N/A N/A N/A N/A N/A

01/31/13 mFoundry Fidelity National Financial Retail Software 153.9 N/A N/A N/A N/A

01/07/13 Tutor.com IAC Content & Services N/A N/A N/A N/A N/A

01/07/13 Zenfolio Art.com Content & Services N/A N/A N/A N/A N/A

01/04/13 Knowledge Mosaic LexisNexis Content & Services N/A N/A N/A N/A N/A

12/20/12 Eloqua Oracle Advertising and Marketing 871.0 90.1 0.1 9.7 N/M

12/20/12 ManageIQ Red Hat Systems / Network 105.0 N/A N/A N/A N/A

12/11/12 TripAdvisor Liberty USA Holdings Content & Services 8,782.6 731.4 308.0 12.0 28.5

11/26/12 HotPads Zillow Internet Software 15.9 N/A N/A N/A N/A

11/21/12 Versant Actian Corporation Systems / Network 16.4 15.5 (1.4) 1.1 N/M

11/18/12 Meraki Cisco Content Delivery & Management 1,200.0 N/A N/A N/A N/A

11/13/12 Verivue Akamai Technologies Systems / Network 32.1 N/A N/A N/A N/A

11/12/12 Ziff Davis Media j2 Global Content & Services 175.0 31.4 N/A 5.6 N/A

Select M&A Transactions

Note: $ in Millions. EV/EBITDA multiples in excess of 50x or less than 0x are considered not meaningful. Source: Capital IQ as of 6/28/13

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Enterprise Target LTM Enterprise Value / Date Target Acquirer Sector Value Revenue EBITDA LTM Revenue LTM EBITDA

11/05/12 Mortech Zillow Internet Software 17.4 N/A N/A N/A N/A

10/11/12 Pardot ExactTarget Advertising and Marketing 95.2 11.1 (1.2) 8.5 N/M

10/02/12 Viewdle Motorola Content & Services 45.0 N/A N/A N/A N/A

09/28/12 SpeedFC Navarre Ecommerce 68.0 57.5 3.8 1.2 17.9

08/27/12 Kenexa IBM Human Capital 1,307.1 318.0 26.7 4.1 49.0

08/26/12 About.com IAC Content & Services 294.5 110.8 53.9 2.7 5.5

08/21/12 SuperMedia Dex Media Internet Software 1,477.6 1,495.0 546.0 1.0 2.7

08/15/12 Getty Images The Carlyle Group Content & Services 3,300.0 N/A N/A N/A N/A

07/17/12 Socialcam Autodesk Content & Services 60.0 N/A N/A N/A N/A

07/09/12 GoInstant salesforce.com Content & Services 76.4 N/A N/A N/A N/A

06/27/12 FuseSource Red Hat Integration / Middleware 21.3 N/A N/A N/A N/A

06/25/12 Quest Software Dell Accounting / ERP 2,432.0 894.2 177.5 2.7 13.7

06/18/12 Face.com Facebook Knowledge / Content N/A N/A N/A N/A N/A

06/15/12 Yammer Microsoft Internet Software 1,200.0 N/A N/A N/A N/A

06/04/12 Buddy Media salesforce.com Advertising and Marketing 745.0 28.7 (22.7) 26.0 N/M

05/02/12 TeaLeaf Technology IBM CRM N/A N/A N/A N/A N/A

06/13/12 SinglePlatform Constant Contact Content & Services 92.9 0.6 N/A N/M N/A

05/31/12 QualitySmith Reply! Content & Services N/A N/A N/A N/A N/A

05/24/12 PowerReviews Bazaarvoice Ecommerce 127.8 11.9 (5.8) 10.7 N/M

05/22/12 Ariba SAP Retail Software 4,411.4 501.8 40.9 8.8 N/M

05/03/12 SlideShare LinkedIn Content & Services 72.2 N/A N/A N/A N/A

05/02/12 RentJuice Corporation Zillow Internet Software 37.4 0.4 (3.1) N/M N/M

04/27/12 Demandforce Intuit Advertising and Marketing 423.5 N/A N/A N/A N/A

04/18/12 Knology Sigecom Content Delivery & Management 1,495.6 522.8 176.9 2.9 8.5

04/09/12 Instagram Facebook Content & Services 1,000.0 N/A N/A N/A N/A

02/23/12 Chomp Apple Content & Services 50.0 N/A N/A N/A N/A

02/09/12 Taleo Oracle Human Capital 1,805.5 315.4 29.6 5.7 N/M

01/24/12 Allrecipes.com Meredith Corporation Content & Services 175.0 N/A N/A N/A N/A

01/17/12 OpenInstall AVG Technologies Internet Software 28.2 N/A N/A N/A N/A

01/09/12 LiveOffice Symantec Internet Software 115.0 N/A N/A N/A N/A

Internet Median 3.8x 16.2x

Internet Mean 6.7 18.3

Select M&A Transactions (cont.)

Note: $ in Millions. EV/EBITDA multiples in excess of 50x or less than 0x are considered not meaningful. Source: Capital IQ as of 6/28/13

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83%

89%

93%

86%

75%

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90%

95%

100%

Advertising Content Ecommerce Gaming

3.5x

11.8x

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1.3x2.3x

6.3x

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0.0x

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6.0x

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14.0x


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Internet Public Market Performance

EV / Revenue EV / EBITDA

Ecommerce: AMZN, AWAY, CTRP, EBAY, EXPN, LQDT, LYV, MELI, NILE, OPEN, OSTK, OWW, PCLN, SFLY, VPRT Content and Services: ANGI, AWAY, DMD, FB, IACI, LNKD, MWW, NFLX, P, SCOR, TRLA, VRSN, WBMD, YELP, Z Advertising and Marketing: AOL, BIDU, GOOG, GRPN, MM, QNST, RATE, VCLK, YHOO, YNDX Gaming: ATVI, EA, TAOM, UBI, ZNGA, OSE:7974, SEHK:700, TSE:3632, TSE:3635, TSE:3659, TSE:6460, TSE:7832, TSE:9684, TSE:9697, TSE:9766 Source: Capital IQ as of 6/28/13

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Public Market Performance

% of 52 Week High

Q2

‘13

2012

2013E

2012

2013E

Index Performance Since 2010Ecommerce +194%Content and Services +132%NASDAQ Composite Index +47%S&P 500 Index +42%Advertising and Marketing +34%Gaming (53%)

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Public Company Trading Comparables Price 52-Wk EV / Revenue EV / EBITDA P / E 52 Week

Company 06/28/13 High Mkt Cap EV 2012 2013E 2014E 2012 2013E 2014E 2012 2013E 2014E

Advertising and MarketingGoogle Inc. $880.37 96% $292,077 $284,078 5.7x 4.7x 4.0x 17.5x 13.0x 11.0x 27.2x 19.0x 16.5xBaidu, Inc. 94.60 71% 33,083 33,593 9.4 6.9 5.4 16.7 15.0 12.1 19.8 19.0 15.4Yahoo! Inc. 25.13 92% 27,321 26,182 5.3 5.7 5.6 19.9 15.8 15.4 7.7 18.5 16.8Yandex N.V. 27.65 94% 9,096 8,847 9.4 7.3 5.9 21.8 16.2 13.2 34.5 25.3 20.3Groupon, Inc. 8.55 80% 5,656 4,491 1.9 1.8 1.6 29.5 15.0 12.5 NM 49.2 29.8AOL Inc. 36.48 83% 2,962 2,598 1.2 1.2 1.1 5.5 5.9 5.6 3.3 19.4 16.2ValueClick, Inc. 24.71 78% 1,909 1,860 2.8 2.5 2.2 9.3 7.4 6.5 20.3 13.4 11.9Bankrate, Inc. 14.36 74% 1,437 1,541 3.4 3.4 3.0 13.5 13.6 11.1 49.5 28.6 21.3Millennial Media Inc. 8.71 53% 725 592 3.3 2.2 1.5 NM 34.2 13.1 NM 80.0 22.8Tremor Video, Inc. 9.00 100% 445 419 4.0 NM NM NM NM NM NM NM NM QuinStreet, Inc. 8.63 86% 370 392 1.2 1.3 1.3 9.2 8.4 9.2 NM NM 30.6Median 83% $2,962 $2,598 3.4x 3.0x 2.6x 16.7x 14.3x 11.6x 20.3x 19.4x 18.6xMean 82% $34,098 $33,145 4.3x 3.7x 3.2x 15.9x 14.5x 11.0x 23.2x 30.3x 20.2x

Content Delivery and ManagementAkamai Technologies, Inc. $42.55 89% $7,662 $7,497 5.5x 4.8x 4.3x 15.0x 11.3x 9.8x 38.0x 21.8x 19.3xLevel 3 Communications, Inc. 21.08 85% 4,686 12,667 2.0 2.0 1.9 9.0 8.0 7.3 NM NM 31.4Rovi Corporation 22.84 86% 2,301 3,406 5.2 5.3 4.9 14.4 11.4 10.5 NM 10.9 9.9Mentor Graphics Corp. 19.55 99% 2,263 2,286 2.1 2.0 1.9 10.7 8.3 7.5 16.7 12.8 11.6EarthLink Inc. 6.21 82% 640 1,109 0.8 0.9 0.9 4.1 4.9 5.0 88.7 NM NM Median 86% $2,301 $3,406 2.1x 2.0x 1.9x 10.7x 8.3x 7.5x 38.0x 12.8x 15.5xMean 88% $3,511 $5,393 3.1x 3.0x 2.8x 10.6x 8.8x 8.0x 47.8x 15.2x 18.1x

Content and ServicesFacebook, Inc. $24.88 77% $60,157 $60,093 11.8x 8.9x 7.1x 50.6x 16.8x 13.1x NM 43.4x 32.0xLinkedIn Corporation 178.30 88% 19,678 19,413 20.0 12.9 9.2 NM 54.0 35.2 NM 121.2 84.0Netflix, Inc. 211.09 87% 12,917 13,199 3.7 3.0 2.6 NM 41.8 26.8 NM 139.5 65.6VeriSign, Inc. 44.66 90% 6,739 7,366 8.4 7.7 7.2 14.4 12.1 11.3 23.4 19.8 17.7IAC/InterActiveCorp 47.58 87% 4,129 4,035 1.4 1.3 1.1 9.6 6.4 5.4 26.3 12.0 10.1Pandora Media, Inc. 18.40 100% 3,594 3,539 8.3 5.6 4.0 NM NM 51.4 NM NM 62.0HomeAway, Inc. 32.34 96% 2,903 2,715 9.7 8.0 6.6 53.6 27.3 21.8 NM 123.1 78.2Yelp, Inc. 34.77 100% 2,241 2,146 15.6 9.8 6.9 NM 94.4 44.1 NM NM 74.1Zillow, Inc. 56.30 89% 1,944 1,812 15.5 9.9 7.1 NM 81.3 37.6 NM NM 94.1Angie's List, Inc. 26.56 98% 1,592 1,565 10.0 6.3 4.6 NM NM 49.7 NM NM 81.6WebMD Health Corp. 29.37 96% 1,484 1,285 2.7 2.7 2.5 55.3 14.6 12.5 NM 45.3 35.6Trulia, Inc. 31.09 88% 1,077 873 12.8 7.8 5.7 NM 76.0 27.0 NM NM 44.0comScore, Inc. 24.39 100% 873 818 3.2 2.9 2.6 43.1 15.8 13.6 NM 24.1 21.4Monster Worldwide, Inc. 4.91 56% 572 610 0.7 0.7 0.7 4.3 3.9 3.7 9.6 14.4 11.6Demand Media, Inc. 6.00 51% 520 410 1.1 1.0 0.9 6.0 3.7 3.2 85.7 15.0 12.7Median 89% $2,241 $2,146 8.4x 6.3x 4.6x 28.7x 16.8x 21.8x 24.8x 33.8x 44.0xMean 87% $8,028 $7,992 8.3x 5.9x 4.6x 29.6x 34.5x 23.8x 36.3x 55.8x 48.3x


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Public Company Trading Comparables (cont.) Price 52-Wk EV / Revenue EV / EBITDA P / E 52 Week


Diversified MediaThe Walt Disney Company $63.15 93% $115,410 $128,395 3.0x 2.8x 2.6x 11.8x 9.9x 9.2x 20.4x 17.6x 15.5xComcast Corporation 41.75 95% 109,945 155,332 2.5 2.4 2.3 7.8 7.3 6.9 18.3 17.3 15.1Time Warner Inc. 57.82 94% 54,811 71,759 2.5 2.4 2.3 9.9 9.6 8.9 18.7 15.7 13.5Viacom, Inc. 68.03 98% 32,989 40,662 3.1 2.9 2.8 10.4 9.2 8.7 16.1 13.7 11.7CBS Corporation 48.87 95% 29,986 36,044 2.6 2.4 2.4 10.3 9.5 9.1 19.7 16.0 14.3Liberty Media Corporation 126.76 98% 15,274 15,793 7.9 3.9 3.5 41.1 12.7 10.8 11.1 NM NM Scripps Networks Interactive, Inc. 66.76 95% 9,839 10,802 4.7 4.3 4.0 10.4 9.7 8.9 15.0 18.2 16.0Gannett Co., Inc. 24.46 92% 5,599 6,905 1.3 1.3 1.2 6.2 6.2 5.3 13.7 11.1 9.0Meredith Corporation 47.70 99% 2,178 2,509 1.7 1.7 1.7 9.5 10.2 9.2 19.3 18.4 16.2The New York Times Company 11.06 100% 1,647 2,037 1.0 1.0 1.1 7.2 7.8 8.0 10.6 26.9 28.6Smiths News Plc 2.30 78% 427 597 0.2 0.2 0.2 7.4 5.8 5.5 9.8 7.2 6.7Median 95% $15,274 $15,793 2.5x 2.4x 2.3x 9.9x 9.5x 8.9x 16.1x 16.7x 14.7xMean 94% $34,373 $42,803 2.8x 2.3x 2.2x 12.0x 8.9x 8.2x 15.7x 16.2x 14.7x

GamingTencent Holdings Ltd. $39.22 98% $72,655 $71,908 10.2x 7.4x 5.9x 25.6x 19.8x 16.4x 35.8x 26.5x 21.8xActivision Blizzard, Inc. 14.26 91% 16,082 11,783 2.4 2.7 2.5 7.5 8.4 7.0 14.1 16.7 14.0Nintendo Co. Ltd. 117.89 84% 15,075 9,993 1.4 1.2 1.1 NM 19.0 9.7 66.2 41.1 20.4Electronic Arts Inc. 22.99 97% 7,037 6,304 1.6 1.5 1.5 15.6 7.4 9.2 42.1 15.4 18.9Sega Sammy Holdings Inc. 25.02 89% 6,045 5,160 1.5 1.2 1.1 18.1 6.2 5.2 NM 13.7 12.4Nexon Co. Ltd. 11.02 53% 4,827 4,184 3.3 2.8 2.6 5.9 5.9 5.4 16.7 12.9 11.7Namco Bandai Holdings Inc. 16.22 87% 3,564 2,438 0.4 0.5 0.5 3.2 3.6 3.6 10.0 12.2 12.0Konami Corp. 21.21 76% 2,940 2,630 1.0 1.1 1.1 6.4 6.7 5.7 17.2 17.7 13.8Zynga, Inc. 2.78 50% 2,207 1,881 1.5 2.0 2.0 33.0 32.9 16.3 NM NM NM Gree, Inc. 8.87 41% 2,070 1,910 1.0 1.3 1.3 2.1 3.8 4.2 4.2 8.0 8.3Square Enix Holdings Co., Ltd. 12.03 69% 1,384 751 0.5 0.5 0.5 NM 6.1 3.9 NM NM 19.3Ubisoft Entertainment SA 13.08 93% 1,252 1,118 0.7 0.6 0.6 2.1 1.9 1.6 17.9 12.8 11.0Capcom Co. Ltd. 16.17 77% 931 789 0.7 0.8 0.8 3.6 5.1 4.5 8.0 14.9 11.7Tecmo Koei Holdings Co., Ltd. 8.95 86% 776 629 1.5 1.7 1.7 6.3 8.0 7.6 10.2 14.0 13.3Taomee Holdings Ltd. 4.64 88% 381 268 6.7 6.9 6.1 53.3 82.7 NM 23.2 30.3 34.4Median 86% $2,940 $2,438 1.5x 1.3x 1.3x 6.4x 6.7x 5.5x 16.9x 14.9x 13.6xMean 79% $9,148 $8,116 2.3x 2.2x 2.0x 14.1x 14.5x 7.2x 22.1x 18.2x 15.9x


10

Public Company Trading Comparables (cont.) Price 52-Wk EV / Revenue EV / EBITDA P / E 52 Week


EcommerceAmazon.com Inc. $277.69 98% $126,416 $124,975 2.0x 1.7x 1.4x 49.8x 25.2x 18.9x NM NM 84.8xeBay Inc. 51.72 90% 67,613 65,599 4.7 4.0 3.4 15.9 12.0 10.2 26.0 18.8 16.0priceline.com Incorporated 826.67 98% 42,655 42,507 8.1 6.5 5.4 22.2 17.2 14.0 29.9 21.2 17.6Experian plc 17.37 90% 17,157 20,231 4.3 4.1 3.8 13.0 11.7 11.0 60.3 18.9 17.0Mercadolibre, Inc. 107.76 86% 4,758 4,636 12.4 9.9 7.9 33.4 27.3 21.6 47.2 39.2 30.4Ctrip.com International Ltd. 32.63 93% 4,234 3,853 5.8 4.6 3.8 32.0 21.9 17.7 40.8 26.5 15.0Live Nation Entertainment, Inc. 15.50 96% 3,071 3,558 0.6 0.6 0.6 8.7 7.2 6.7 NM NM 110.7HomeAway, Inc. 32.34 96% 2,903 2,715 9.7 8.0 6.7 53.6 27.3 21.9 NM 123.1 78.2Shutterfly, Inc. 55.91 100% 2,161 1,996 3.1 2.6 2.2 24.2 13.7 11.2 91.7 32.0 25.6Vistaprint N.V. 49.37 100% 1,677 1,864 1.7 1.5 1.4 17.6 12.9 10.2 70.9 22.2 16.6OpenTable, Inc. 63.95 92% 1,540 1,446 8.9 7.7 6.7 31.4 17.8 14.8 62.1 33.3 28.1Liquidity Services, Inc. 34.67 62% 1,129 1,072 2.2 2.0 1.7 11.0 9.0 7.4 25.0 17.4 14.2Orbitz Worldwide, Inc. 8.03 92% 855 1,085 1.4 1.3 1.3 10.2 7.8 7.1 NM 4.8 21.1LightInTheBox Holding Co., Ltd. 13.46 78% 681 663 3.3 2.0 1.3 NM 34.7 17.1 NM 40.4 20.3Overstock.com Inc. 28.20 100% 671 589 0.5 0.5 0.4 20.9 14.1 12.2 45.5 26.7 21.4Blue Nile Inc. 37.78 89% 468 428 1.1 0.9 0.8 31.4 18.4 14.3 60.0 46.5 35.8Median 93% $2,532 $2,356 3.2x 2.3x 2.0x 22.2x 15.7x 13.1x 47.2x 26.6x 21.2xMean 91% $17,374 $17,326 4.4x 3.6x 3.0x 25.0x 17.4x 13.5x 50.8x 33.6x 34.5x


11

Public Company Operating Metrics Price 52-Wk Revenue Growth EBITDA Margin Net Margin 52 Week


Advertising and MarketingGoogle Inc. $880.37 96% $292,077 $284,078 32% 19% 16% 32% 36% 37% 66% 71% 70%Baidu, Inc. 94.60 71% 33,083 33,593 56% 36% 29% 56% 46% 44% 83% 78% 79%Yahoo! Inc. 25.13 92% 27,321 26,182 0% (9%) 2% 26% 36% 36% NM 91% 97%Yandex N.V. 27.65 94% 9,096 8,847 51% 28% 24% 43% 45% 45% 66% 67% 68%Groupon, Inc. 8.55 80% 5,656 4,491 45% 9% 11% 7% 12% 13% (36%) 40% 56%AOL Inc. 36.48 83% 2,962 2,598 (0%) 2% 2% 22% 20% 20% NM 35% 39%ValueClick, Inc. 24.71 78% 1,909 1,860 25% 12% 12% 30% 34% 34% 51% 57% 56%Bankrate, Inc. 14.36 74% 1,437 1,541 8% (1%) 11% 25% 25% 27% 26% 45% 51%Millennial Media Inc. 8.71 53% 725 592 71% 54% 46% (1%) 6% 11% NM 50% 62%Tremor Video, Inc. 9.00 100% 445 419 16% NM NM (10%) NM NM NM NM NM QuinStreet, Inc. 8.63 86% 370 392 (16%) (7%) (3%) 13% 15% 14% NM 53% 60%Median 83% $2,962 $2,598 25% 11% 12% 25% 29% 31% 58% 55% 61%Mean 82% $34,098 $33,145 26% 15% 15% 22% 28% 28% 43% 59% 64%

Content Delivery and ManagementAkamai Technologies, Inc. $42.55 89% $7,662 $7,497 19% 13% 13% 36% 43% 44% 41% 54% 52%Level 3 Communications, Inc. 21.08 85% 4,686 12,667 47% 0% 3% 22% 25% 26% (30%) (4%) 8%Rovi Corporation 22.84 86% 2,301 3,406 (4%) (1%) 7% 36% 46% 47% (15%) 69% 69%Mentor Graphics Corp. 19.55 99% 2,263 2,286 7% 6% 6% 20% 24% 25% 65% 63% 64%EarthLink Inc. 6.21 82% 640 1,109 3% (7%) (4%) 20% 18% 18% 3% (7%) (14%)Median 86% $2,301 $3,406 7% 0% 6% 22% 25% 26% 3% 54% 52%Mean 88% $3,511 $5,393 14% 2% 5% 27% 31% 32% 13% 35% 36%

Content and ServicesFacebook, Inc. $24.88 77% $60,157 $60,093 37% 32% 26% 23% 53% 54% 4% 41% 45%LinkedIn Corporation 178.30 88% 19,678 19,413 86% 55% 41% 13% 24% 26% 17% 47% 46%Netflix, Inc. 211.09 87% 12,917 13,199 13% 20% 17% 3% 7% 10% 18% 31% 39%VeriSign, Inc. 44.66 90% 6,739 7,366 13% 9% 6% 59% 64% 64% 63% 59% 59%IAC/InterActiveCorp 47.58 87% 4,129 4,035 36% 15% 12% 15% 20% 21% 38% 56% 56%Pandora Media, Inc. 18.40 100% 3,594 3,539 56% 48% 38% (7%) 2% 8% NM 70% 93%HomeAway, Inc. 32.34 96% 2,903 2,715 22% 21% 20% 18% 29% 30% 30% 54% 57%Yelp, Inc. 34.77 100% 2,241 2,146 65% 59% 42% (8%) 10% 16% NM 51% 72%Zillow, Inc. 56.30 89% 1,944 1,812 77% 57% 39% 11% 12% 19% 48% (13%) 58%Angie's List, Inc. 26.56 98% 1,592 1,565 73% 59% 38% (31%) (5%) 9% NM NM 63%WebMD Health Corp. 29.37 96% 1,484 1,285 (16%) 1% 6% 5% 19% 20% (88%) 24% 30%Trulia, Inc. 31.09 88% 1,077 873 77% 64% 37% (10%) 10% 21% NM 47% 77%comScore, Inc. 24.39 100% 873 818 10% 10% 13% 7% 18% 19% (62%) 69% 68%Monster Worldwide, Inc. 4.91 56% 572 610 (10%) (7%) 1% 16% 19% 20% NM 24% 28%Demand Media, Inc. 6.00 51% 520 410 17% 12% 13% 18% 26% 26% 9% 32% 35%Median 89% $2,241 $2,146 36% 21% 20% 11% 19% 20% 18% 47% 57%Mean 87% $8,028 $7,992 37% 30% 23% 9% 21% 24% 8% 42% 55%

EBITDA and Net Margins Greater than 100% or less than -100% are deemed non-material (“NM”) Source: Capital IQ as of 6/28/13

12

Public Company Operating Metrics (cont.) Price 52-Wk Revenue Growth EBITDA Margin Net Margin 52 Week


Diversified MediaThe Walt Disney Company $63.15 93% $115,410 $128,395 5% 7% 7% 25% 28% 28% 51% 50% 51%Comcast Corporation 41.75 95% 109,945 155,332 12% 2% 6% 32% 33% 33% 31% 30% 32%Time Warner Inc. 57.82 94% 54,811 71,759 (1%) 3% 4% 25% 25% 26% 41% 47% 48%Viacom, Inc. 68.03 98% 32,989 40,662 (12%) 5% 4% 30% 31% 32% 57% 55% 56%CBS Corporation 48.87 95% 29,986 36,044 3% 6% 2% 25% 26% 26% 45% 50% 51%Liberty Media Corporation 126.76 98% 15,274 15,793 (34%) 101% 13% 19% 31% 32% NM NM 19%Scripps Networks Interactive, Inc. 66.76 95% 9,839 10,802 11% 9% 7% 45% 44% 45% 65% 48% 49%Gannett Co., Inc. 24.46 92% 5,599 6,905 2% (2%) 8% 21% 21% 23% 38% 47% 49%Meredith Corporation 47.70 99% 2,178 2,509 6% 1% 4% 18% 17% 18% 42% 48% 49%The New York Times Company 11.06 100% 1,647 2,037 2% (1%) (1%) 14% 13% 13% 47% 25% 24%Smiths News Plc 2.30 78% 427 597 6% (7%) (2%) 3% 4% 4% 55% 55% 60%Median 95% $15,274 $15,793 3% 3% 4% 25% 26% 26% 46% 48% 49%Mean 94% $34,373 $42,803 0% 11% 5% 23% 25% 26% 47% 45% 44%

GamingTencent Holdings Ltd. $39.22 98% $72,655 $71,908 56% 39% 26% 40% 37% 36% 73% 75% 75%Activision Blizzard, Inc. 14.26 91% 16,082 11,783 2% (12%) 8% 32% 33% 37% 73% 70% 69%Nintendo Co. Ltd. 117.89 84% 15,075 9,993 (26%) 8% 17% (2%) 7% 11% NM NM NM Electronic Arts Inc. 22.99 97% 7,037 6,304 2% 6% (3%) 10% 20% 17% 43% 55% 53%Sega Sammy Holdings Inc. 25.02 89% 6,045 5,160 (35%) 24% 9% 8% 20% 21% (39%) NM NM Nexon Co. Ltd. 11.02 53% 4,827 4,184 10% 16% 9% 56% 48% 48% 42% NM NM Namco Bandai Holdings Inc. 16.22 87% 3,564 2,438 (0%) (9%) (5%) 14% 13% 14% 48% NM NM Konami Corp. 21.21 76% 2,940 2,630 (22%) (11%) 3% 15% 16% 18% 42% NM NM Zynga, Inc. 2.78 50% 2,207 1,881 12% (27%) (3%) 4% 6% 12% NM (61%) (2%)Gree, Inc. 8.87 41% 2,070 1,910 33% (22%) (1%) 47% 33% 29% 57% NM NM Square Enix Holdings Co., Ltd. 12.03 69% 1,384 751 (2%) (8%) 2% (2%) 8% 13% NM NM NM Ubisoft Entertainment SA 13.08 93% 1,252 1,118 14% 15% 7% 34% 33% 35% 13% 17% 17%Capcom Co. Ltd. 16.17 77% 931 789 20% (20%) 3% 18% 16% 17% 54% NM NM Tecmo Koei Holdings Co., Ltd. 8.95 86% 776 629 (2%) (16%) 3% 23% 22% 22% 77% NM NM Taomee Holdings Ltd. 4.64 88% 381 268 (11%) (4%) 12% 12% 8% NM NM NM NM Median 86% $931 $751 (2%) (8%) 3% 18% 16% 20% 54% 17% 17%Mean 83% $945 $711 4% (6%) 5% 17% 17% 22% 48% 17% 17%


13

Public Company Operating Metrics (cont.) Price 52-Wk Revenue Growth EBITDA Margin Net Margin 52 Week


EcommerceAmazon.com Inc. $277.69 98% $126,416 $124,975 27% 22% 22% 4% 7% 7% (2%) 13% 25%eBay Inc. 51.72 90% 67,613 65,599 21% 16% 17% 29% 34% 34% 63% 66% 67%priceline.com Incorporated 826.67 98% 42,655 42,507 21% 25% 20% 36% 38% 38% 74% 82% 82%Experian plc 17.37 90% 17,157 20,231 10% 6% 7% 33% 35% 34% 22% 53% 55%Mercadolibre, Inc. 107.76 86% 4,758 4,636 25% 26% 25% 37% 36% 36% 73% 72% 73%Ctrip.com International Ltd. 32.63 93% 4,234 3,853 20% 25% 20% 18% 21% 22% 95% 97% NM Live Nation Entertainment, Inc. 15.50 96% 3,071 3,558 8% 3% 5% 7% 8% 8% (40%) (7%) 8%HomeAway, Inc. 32.34 96% 2,903 2,715 22% 21% 20% 18% 29% 30% 30% 54% 57%Shutterfly, Inc. 55.91 100% 2,161 1,996 35% 20% 16% 13% 19% 20% 28% 50% 51%Vistaprint N.V. 49.37 100% 1,677 1,864 20% 11% 9% 10% 12% 14% 24% 54% 58%OpenTable, Inc. 63.95 92% 1,540 1,446 16% 16% 15% 28% 43% 45% 52% 57% 57%Liquidity Services, Inc. 34.67 62% 1,129 1,072 37% 8% 19% 20% 22% 23% 47% 55% 56%Orbitz Worldwide, Inc. 8.03 92% 855 1,085 2% 6% 4% 14% 17% 18% NM 34% 31%LightInTheBox Holding Co., Ltd. 13.46 78% 681 663 72% 62% 55% (1%) 6% 8% NM 76% 91%Overstock.com Inc. 28.20 100% 671 589 4% 13% 7% 3% 3% 4% 52% 61% 66%Blue Nile Inc. 37.78 89% 468 428 15% 14% 12% 3% 5% 6% 61% 44% 43%Median 93% $2,532 $2,356 21% 16% 16% 16% 20% 21% 49% 55% 57%Mean 91% $17,374 $17,326 22% 19% 17% 17% 21% 22% 41% 54% 55%


14

Internet IPOs

Note: $ in Millions. Data as of 6/30/13. Revenue and EBITDA multiples greater than 25x and 100x, respectively, are deemed non-material (“NM”). Source: Capital IQ as of 6/28/13

LTM Multiples Metrics and Financings Share Information

IPO DateDays on

FileCompany EV

IPO Amt

Raised

Market

CapEV / Rev

EV /

EBITDA

Rev Grwth

at IPO

NTM Rev

Growth

Net Cash

at IPO

IPO Offer

Price

File to

Price Chg

Primary

Shares

Current

Price

Chg Since

IPOBusiness Description

Internet and Digital Media

06/05/13 59 LightInTheBox $386 $79 $465 1.6x 79.0x 89% 51% $18 $10 -- 100% $13 41% Ecommerce06/26/13 34 Tremor Video 467 75 542 4.1 NM 25% NM 26 10 (9%) 100% 7 (29%) Video advertising06/20/13 546 Gogo 1,273 187 1,460 5.1 NM 39% NM (53) 17 -- 100% 13 (22%) In-flight WiFi03/04/13 286 Professional Diversity Network 30 21 51 4.8 11.6 10% NM 2 8 (20%) 100% 4 (49%) Professional networking site02/14/13 34 Xoom 481 101 582 6.0 NM 60% 30% 45 16 7% 83% 25 53% C2C money transfer11/20/12 36 YY Inc. 12,060 94 12,154 NM NM 444% 78% 51 11 -- 100% 29 175% Chinese social network09/19/12 33 Trulia 494 117 611 9.6 NM 159% 53% 90 17 6% 87% 32 90% Real estate and rental site05/17/12 106 Facebook 73,865 16,007 89,872 18.3 34.7 105% 30% 3,910 38 -- 43% 24 (36%) Social network03/28/12 83 Millennial Media 933 152 1,086 9.0 NM 117% 89% 17 13 -- 90% 9 (33%) Mobile advertising and monetization03/01/12 105 Yelp 879 107 987 10.6 NM 74% 49% 22 15 7% 99% 35 133% Restaurant guide02/23/12 181 Bazaarvoice 664 131 795 7.1 NM 143% 32% 12 12 20% 96% 9 (23%) Ecommerce network02/17/12 177 Brightcove 264 63 328 4.2 NM 45% 22% 10 11 -- 100% 8 (24%) Video hostingMedian 105 $664 $107 $795 6.5x 23.1x 74% 41% $22 6% 99% $13 (23%)Mean 147 $8,310 $1,551 $9,861 7.9x 23.1x 111% 48% $376 2% 91% $18 21%

15

Vista Point Advisors Overview

Mike Lyon

415.659.9187

[email protected]

Jeff Bean

415.659.9190

[email protected]

Morgan Livermore

415.501.9029

[email protected]

Vivek Goyal

415.692.6163

[email protected]

David Cho

415.547.8440

[email protected]

Miles Lacey

415.659.9278

[email protected]

Eddie Le

415.659.9191

[email protected]

Scott Austin

415.547.8437

[email protected]

Jeffrey Koons

415.659.9189

[email protected] 90 New Montgomery, Suite 700

San Francisco, CA 94105

• SaaS

• On-premise

• Application Software

• Healthcare IT

• Financial Tech

• Advertising and Marketing

• Digital Media

• Gaming

• Content

• Ecommerce

• Consumer Applications

• Enterprise Applications

• Gaming

• Payments

Software Internet Mobile

Vista Point Advisors is a boutique investment bank focused on capital raise and M&A advisory for growing technology companies

Internet Industry Update Q2 2013

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