PowerPoint Presentationmediabridgecap.com/wp-content/uploads/2013/09/MediaBridge-IBC-2013.pdfFormer...

20

13

To Our Colleagues and Friends Attending IBC 2013

MediaBridge Capital Advisors is pleased to be attending IBC 2013. MediaBridge Co-founders and Managing Partners Ethan Jacks and John Bowen, and Industry Advisor Graham Sharp, will be in attendance throughout the Show, and look forward to meeting with our colleagues and partners in all market segments of the Industry.

As detailed later in this presentation, MediaBridge has been active this year in advising top-tier media technology companies in both M&A and capital raising transactions. Our client Teradek LLC, a leader in wireless video technology based in Irvine CA, was recently acquired by UK-based The Vitec Group plc for up to $30.4 million. In addition, our client iZotope Inc., a leader in music and audio software based in Cambridge MA, received $12 million in growth capital from investor ABS Capital Partners, a top private equity firm based in Baltimore, MD.

We are presently carrying out assignments for clients in broadcast, enterprise video communications and video control which we expect to complete before year end.

We look forward to meeting with you either at the Show or soon thereafter to discuss your strategic growth plans and options.

Ethan E. Jacks John C. BowenManaging Partner Managing Partner [email protected] [email protected] (m) 617.921.0075 (m)

mailto:[email protected]


MediaBridge Senior Team

Extensive investment banking, corporate executive and legal experience

Most recently drove Covington Associates’ expansion into the digital media and technology sectors

Avid Technology Senior Executive (EVP Corp Development/M&A,CLO, CFO) from ‘99 to ’06. Led the Company in its most significant period of growth. Managed 12 strategic acquisitions, doubling the Company’s revenue to $1B and growing market cap from $400M to $2.5B

20+ years of experience in traditional and new media tech and 10+ years in venture capital and high tech

Corporate development, finance, and legal background; BS and MBA from MIT and its Sloan School of Management; J.D., Georgetown University Law Center

Extensive investment banking, equity research and operational IT experience

Most recently led Covington Associates’ expansion into the digital media and technology sectors, representing both privately-held and publicly-traded companies

VP Equity Research at FAC Equities covering digital media technology, networking hardware and software, and enterprise software companies. Previously at Sybase, McDonnell Douglas, and Digital Equipment Corp.

Author of three significant industry research reports on media technology and CDN markets

10+ years of experience in traditional and new media technology, and 20+ years of IT Industry experience

BS Mechanical Engineering, Digital Systems concentration from University of New Hampshire;

MBA from Babson College

Our principals have advised on more than 30 mergers and acquisitions in the media sector worldwide. Led by Ethan Jacks and John Bowen, our team has 50+ years of experience in media technology with unmatched expertise in the film, video, audio, broadcast, Internet, and new media markets.

Ethan Jacks

John Bowen

Senior Advisors – Technology and Media

Josh Kline

12+ years experience building new businesses in Digital Media, with a focus on content creation, production, and distribution

Chief Strategy Officer for Final Draft, Inc., the world leader in script writing software and services Former strategic business development executive at Deluxe Digital Distribution Former executive at Secure Path Technology, an enterprise cloud-based metadata company Co-founder and former CEO of Sample Digital, Inc. where he oversaw development of Digital

Dailies

Tom Ohanian

30+ years experience in the media industry Current member of the Digital Media Strategy team as Cisco Systems Former Corporate Fellow and member of founding team at Avid Technology Former Chief Strategy Officer at Signiant Academy Award and two-time Emmy recipient for scientific and technical invention

Graham Sharp

25+ years executive management experience in the media industry Current board member of Media Asset Capital, a full-service media consultancy, and AV3, a web

distribution channel Former President and CEO of xtranormal Inc. Former EVP and GM of Avid’s Video division, a $470 million business with 1500 employees Executive management positions with Post Impressions, Discreet Logic, and Dynatech

20+ years experience in business development, strategic planning, M&A, IPO, private equity, and international operations

Former Partner at North Bridge Ventures, covering communications, wireless and software Former Senior Executive at Shiva Corporation, contributing to a successful IPO, several acquisitions,

and a rapid growth phase Adjunct Lecturer at Babson College and former Senior Lecturer at MIT Sloan Graduate of Fordham University with an MBA from Harvard Business School

Angelo Santinelli

Senior Audio Advisors – CRX Partners

30+ years of executive experience in professional, broadcast and commercial audio Senior VP Business & Professional Group Americas (Allen & Heath, Calrec, D&M Pro), D&M

Holdings Full time consultant, D&M Holdings (M&A and post acquisition integration focus) VP/GM, Professional Audio, Sony Broadcast & Professional

30+ years of executive experience in consumer, pro, and commercial AV Past and present consulting clients include: Gold Peak, Phoenix Gold, D&M Holdings, Mitek,

Pioneer Electronics, Terk, Audiosource, KLH, DASH Navigation, XM Satellite Radio, Cerwin-Vega, Carver, Gibson

President - Phoenix Gold International Senior Vice President of KLH Audio and Vice Chairman KLH Europe Executive Director of Sales and Marketing - Cerwin-Vega

Courtney Spencer

Roland MacBeth

Courtney Spencer and Roland MacBeth serve the media technologies industries as strategic and business development consultants. Both have played key roles in the M&A efforts of media technology companies, held key executive positions with consumer electronics and pro audio/broadcast firms, and consulted for some of the best-known companies in the electronics business.

CRX and MediaBridge work to provide the best combination of strategic and transaction expertise to the professional and consumer audio/video markets

Senior Advisors – Technology and Media

20+ years in the entertainment industry including award-winning work as an editor, producer, and director

Director of Digital Media and Technology at the University of Southern California’s School of Cinematic Arts

Worked on numerous feature films including the Academy Award winning Harlan County, U.S.A. (1976), Arthur (1981), and Visions of Light (1992)

Meri Weingarten

Consultant in Private Equity and Hedge Fund industries In-house lawyer at Plymouth Rock Assurance in Boston, MA focusing on corporate acquisitions

and commercial real estate Lawyer at Sidley & Austin, focusing on debt-derivatives and secured lending transactions. Served on the Boards of a variety of nonprofits, providing strategic advice and guidance on

fundraising and development, financial, and governance matters A.B. from Princeton University and a J.D./M.S.F.S. magna cum laude from Georgetown UniversityJenny Young du Pont

Mary Modahl

25+ years experience in Technology, Media, Education, and Healthcare Chief Marketing Officer at Health Dialog and QuantiaMD 10 years advising Universities and diverse healthcare industry players 15 years at Forrester Research in both Research and Marketing executive roles. Graduated from Harvard University with a degree in Economics

Ashley Stephenson

Strategic advisor specializing in the evolution of the global IT market. Co-founded or lead several technology companies as Chairman or CEO including Reva Systems

(acquired by ODIN) and Xedia Corporation (acquired by Lucent). Awarded “CEO of the Year” by Massachusetts Telecommunications Council Served on the Board of Directors for many venture-backed startups and industry consorita Graduate of Imperial College, London and an Associate of the Royal College of Science

Representative Transactions

Transaction Closed During Employment with: * Covington Associates; ** Silverwood Partners; *** Avid Technology

Vitec Group Acquires Teradek for $30 Million

MediaBridge Capital Advisors served as exclusive investment banking advisor to Teradek, LLC in connection with its acquisition in August 2013 by The Vitec Group, plc.

Based in Irvine, CA, Teradek is a world leading provider of wireless video devices and platforms used by broadcasters, filmmakers, businesses and web channels to wirelessly transmit high-quality images. Teradek's products are used in live electronic news gathering, real-time monitoring and recording, aerial visual capture and webcasting.

The Vitec Group plc is a leading international provider of products and services for the broadcast, photographic, and military-aerospace- government markets. The acquisition will not only strengthen Vitec's product offerings particularly to the growing number of independent videographers and business users, but will complement Vitec's existing video activities including its range of broadcast microwave systems, and allow Teradek's products to be sold through Vitec's global sales and distributor network.

Nicol Verheem, CEO and co-founder of Teradek, said: “This represents a major step forward for Teradek which I believe will expand our reach, fuel our continued growth and enhance our focus on product innovation. We will undoubtedly benefit from the resources and reach of Vitec Videocom and will embrace the opportunity to work alongside some of its other market-leading brands.”

iZotope Receives $12 Million Investment from ABS Capital

MediaBridge Capital Advisors served as exclusive investment banking advisor to iZotope, Inc. in connection with a $12 million investment from ABS Capital Partners which closed in August 2013.

iZotope, Inc., a leading audio technology company founded in 2001 and based in Cambridge, MA, will use the funds to develop new products, expand their markets and increase sales and marketing efforts. With over $2 billion raised since inception, ABS Capital Partners has invested in over 100 growth companies over the past two decades.

iZotope creates professional audio products for the music, entertainment and education industries. The Company’s current product portfolio is comprised of solutions for audio creation, repair, mixing and mastering. iZotope’s clients include musical giants such as Depeche Mode, Garbage, Skrillex, and Wu-Tang Clan; radio stations and TV programming such as CBS's Survivor, the Discovery Channel’s Deadliest Catch, the World Cup broadcast and the GRAMMY awards. iZotope technology is also directly integrated into products made by industry leaders such as Adobe, Avid and Sony; video games from companies like Microsoft, Harmonix and Ubisoft; and a growing number of mobile phone applications.

“iZotope is a company driven by a wealth of creative brainpower. Coupled with our position as a market leader, this funding will enable us to realize more of our creative vision, accelerating innovation and new products for our loyal customer base,” explained Mark Ethier, CEO and co-founder of iZotope.

MediaBridge Capital Advisors represented London-based Sohonet, the global leader in network and data management for the media and entertainment industry, in connection with significant investment by FF&P Private Equity. The transaction closed in December of 2012.

Sohonet offers an extensive range of services backed up by unrivalled support and expertise to enable pan-global collaboration within the media community. It has offices in the UK, Los Angeles and Sydney. The Sohonet Media Network provides a high-speed, end-to-end secure data delivery solution that reliably transports media content between multiple industry participants across the globe, helping to facilitate global collaboration in the media industry.

Ethan Jacks, Co-Founder and Managing Partner of MediaBridge Capital Advisors, said “Sohonet has established itself over the past decade as the premier supplier of essential high-speed network connectivity and data management for the media and entertainment industry on a world-wide basis. From the creation of blockbuster 3D movies to the delivery of everyday television advertisements, the Sohonet Media Network provides seamless support to the thousands of content creators, producers, and vendors of media throughout the world. Now with the support of top-tier investors FF&P, we look forward to Sohonet’s exponential growth in this expanding marketplace.”

Sohonet Raises $7M Growth Equity

Wohler Acquires RadiantGrid

RadiantGrid was represented in the sale process by Ethan Jacks and John Bowen, principals at MediaBridge Capital Advisors, a digital media-focused investment bank. “We see this acquisition as a benchmark for the transformational change occurring in the broadcast and new media marketplace,” said Jacks. “Wohler and RadiantGrid together will help redefine the best practices for the industry.” The transaction closed in April 2012.

Wohler President and CEO Carl Dempsey called the move “the most significant [for Wohler] in years. This has put the buzz back in it for us.” Calling RadiantGrid “the world’s best media transformation and integration platform,” Dempsey described the process that led to the acquisition and promised that while the combined organizations would function seamlessly, the RadiantGrid team would remain intact under the Wohler banner.

Kirk Marple, RadiantGrid president and chief software architect, characterized the union as an ideal match. “We’ve been looking for the right partner to accelerate our growth, both internationally and domestically, and it really seemed like the right fit.” “A key component of the RadiantGrid media platform is its faster-than-real-time processing, recently expanded to include standards conversion — an industry first.”

Public Market Overview

$15,489

$11,927

$15,459

$23,571

$9,073

$3,780

$6,679

$8,450

$6,823

$6,036

$7,121

$8,278

$120,163

$84,758

$101,754

$127,035

$33,082

$33,129

$29,084

$40,709

$15,972

$18,531

$22,119

$33,540

$26,493

$23,632

$15,777

$21,323

$29,521

$20,357

$11,394

$20,915

Adobe Akamai Autodesk Cisco Ericsson Naspers Panasonic Sony

Source Capital IQ. 1) Cash includes short-term investments

Publicly Traded Media Technology CompaniesMarket Capitalization – Large Cap (in $MM)

September2010

September2013

September2012

September2011

Adobe Akamai Autodesk Cisco Ericsson Naspers Panasonic Sony

Cash (1): $3,866 $531 $1,998 $50,610 $9,621 $1,712 $4,799 $15,354

Debt: $1,526 $0 $746 $16,211 $3,932 $3,265 $10,643 $14,387

Enterprise Value: $21,231 $7,919 $7,026 $92,636 $35,134 $35,151 $27,569 $24,851

EV / Rev: 5.0 x 5.4 x 3.1 x 1.9 x 1.0 x 6.5 x 0.4 x 0.4 x

EV / EBITDA: 18.7 x 14.6 x 15.1 x 6.7 x 8.8 x 43.9 x 5.2 x 7.7 x

Share Price %

52 Wk High:94% 97% 89% 89% 95% 98% 92% 85%

$1,148

$1,353

$1,590

$2,553

$697

$894

$551

$6,447

$3,547

$3,502

$3,210

$1,124

$860

$957

$1,058

$769

$878

$658

$900

$2,441

$2,398

$3,054

$4,423

$833

$735

$558

$380

$4,468

$5,111

$1,631

$1,775

$1,010

$1,294

$1,188

$1,456

$2,064

$2,143

$1,912

$2,539

Belden DemandMedia

Dolby Evertz EVS Harman RealD Rovi TiVo Yamaha

Publicly Traded Media Technology CompaniesMarket Capitalization – Mid Cap (in $MM)

September2010

September2013

September2012

September2011


Belden Demand Media Dolby Evertz EVS Harman RealD Rovi TiVo Yamaha

Cash (1): $476 $70 $518 $219 $14 $464 $18 $713 $1,034 $525

Debt: $1,331 $20 $0 $2 $1 $290 $53 $1,382 $173 $138

Enterprise Value: $3,408 $501 $2,710 $852 $888 $4,249 $414 $2,443 $595 $2,180

EV / Rev: 1.7 x 1.2 x 3.0 x 2.7 x 5.4 x 1.0 x 2.0 x 3.9 x 1.7 x 0.6 x

EV / EBITDA: 12.6 x 7.0 x 8.5 x 9.3 x 12.8 x 11.1 x 12.5 x 11.6 x 132.5 x 9.4 x

Share Price %

52 Wk High:96% 54% 85% 85% 88% 90% 50% 67% 84% 92%

$448

$358

$364

$216

$354

$287

$643

$494

$372

$367

$140

$77

$623

$531

$537

$746

$247

$629

$518

$272

$38

$32

$56

$77

$280

$396

$464

$440

$227

$232

$210

$205

Avid Brightcove DTS Envivio Harmonic JVC Vislink Vitec Group VIZRT

Publicly Traded Media Technology CompaniesMarket Capitalization – Small Cap (in $MM)

September2010

September2013

September2012

September2011


Avid Brightcove DTS Envivio Harmonic JVC Vislink Vitec Group VIZRT

Cash (1): $71 $30 $72 $50 $162 $591 $11 $15 $74

Debt: $0 $0 $30 $0 $0 $876 $0 $118 $0

Enterprise Value: $144 $256 $326 $27 $585 $615 $66 $545 $131

EV / Rev: 0.2 x 2.6 x 2.9 x 0.8 x 1.1 x 0.2 x 0.8 x 1.1 x 1.1 x

EV / EBITDA: 19.4 x NM 26.2 x NM 19.9 x 3.5 x 10.0 x 6.8 x 5.5 x

Share Price %

52 Wk High:54% 67% 80% 95% 90% 59% 94% 86% 87%

$3,900

$5,378

$7,768

$12,922

$50,321

$57,591

$89,296

$111,504

$1,678

$2,000

$2,480

$3,782

$7,251

$11,196

$3,106

$17,231

$1,946

$2,072

$3,213

$3,928

$6,793

$9,736

$22,912

$35,660

$31,970

$39,238

$57,031

$85,368

$100,670

$124,496

$133,884

Charter Comcast EchoStar Netflix Pandora Sirius Time Warner Verizon

Publicly Traded Media Distribution CompaniesMarket Capitalization (in $MM)

September2010

September2013

September2012

September2011


Charter Comcast EchoStar Netflix Pandora Sirius Time Warner Verizon

Cash (1): $44 $5,154 $1,603 $1,080 $69 $652 $2,063 $2,406

Debt: $12,841 $46,649 $2,446 $500 $10 $3,250 $19,446 $49,752

Enterprise Value: $25,719 $154,247 $4,632 $16,651 $3,154 $25,510 $74,415 $234,325

EV / Rev: 3.3 x 2.4 x 1.5 x 4.2 x 6.0 x 7.1 x 2.5 x 2.0 x

EV / EBITDA: 9.7 x 7.4 x 7.7 x 96.9 x NM 20.8 x 9.6 x 7.2 x

Share Price %

52 Wk High:90% 92% 93% 99% 86% 95% 93% 85%

$10,368

$15,648

$23,003

$33,993

$16,553

$16,016

$20,416

$27,126

$36,623

$42,555

$55,688

$73,480

$985

$962

$2,198

$4,963

$7,181

$6,584

$8,990

$10,868

$20,250

$26,555

$25,431

$38,118

$66,310

$60,246

$89,104

$109,169

CBS Discovery 21st Cent. Fox Lions Gate Scripps Viacom Walt Disney

Publicly Traded Media Technology CompaniesMarket Capitalization (in $MM)

September2010

September2013

September2012

September2011


CBS Discovery 21st Cent. Fox Lions Gate Scripps Viacom Walt Disney

Cash (1): $282 $490 $6,659 $51 $347 $1,144 $3,932

Debt: $6,423 $6,478 $16,458 $1,348 $1,384 $8,913 $15,003

Enterprise Value: $40,134 $33,149 $86,925 $6,260 $12,315 $46,058 $122,611

EV / Rev: 2.7 x 6.8 x 3.1 x 2.2 x 5.1 x 3.4 x 2.8 x

EV / EBITDA: 11.0 x 15.8 x 14.2 x 19.4 x 11.4 x 11.5 x 10.7 x

Share Price %

52 Wk High:96% 86% 93% 98% 97% 98% 90%

Video Markets Overview

Four Trends to WatchVideo 2013-2014

1. Content Owners have adapted to delivery of content “anytime, anywhere”. As CBS CEO Les Moonves recently commented in connection with CBS’s new contract with Time Warner: “It was important we take a stand. This is a stand about content and how content is sold and how it goes to our consumers and how it will be sold in the future when digital viewing could eclipse more traditional forms of television. One of the things we were fighting for is the ability to slice and dice our content all over the place. To put it on Netflix, to put it on Amazon, to let people binge view. It’s our inherent right to do that. The point is coming very soon where the advertising [rates] online will be the same as they are on the network, and we don’t care where you watch the show.“

2. Second Screen Consumption is Accelerating: Growth in mobile and web-based consumption cannot be underestimated. The iPad and other various OTT options are driving mass adoption of both traditional and non-mainstream media consumption and certain forward thinking operators have embraced new consumption models. Generational behavioral shifts are accelerating change, with two screens becoming the norm. Addressing scale, device format and synchronization, demand variability and bandwidth availability are key.

3. Cloud-Based Solutions: As digital technologies enhance performance, flexibility and cost efficiencies, cloud-based initiatives will go one step further, ranging from utility applications through full network-based solutions. Private-on premises clouds will consist of highly-tuned and integrated compute, networking, storage and infrastructure orchestration software. Unless a manufacturer has significant added value hardware, the manufacturer will need to transition its software offerings to virtualized instances. Live, linear broadcasting infrastructure will migrate to cloud-based transmissions.

4. Network Connected, File-Based Workflows are Critical: There is a growing need for efficient file-based creation and distribution of media that augment and integrate with existing systems (e.g., linear automation, trafficking, rights management, business process management). File-based systems will become more intelligent, orchestrate processes in parallel, and improve multiplatform workflow efficiency, while dramatically reducing costs.

Source Capital IQ, Press Releases

Video M&A 2013Select Transactions from 2013

Value EV / LTM

($MM) Revenue

13-Aug Teradek $30 - Vitec Group

13-Aug Ampl i fier Technology Ltd. $6 0.8x Vis l ink plc

13-Aug CPC Computer Prompting & Captioning - - Telestream, Inc.

13-Aug Montalto - - Ross Video Limited

13-Aug Stringwire - - NBC News Digi ta l

13-Jul Boxee, Inc. $30 - Samsung Electronics Co.

13-May Hego AB $29 1.9x Chyron Corporation

13-Mar Skyfi re Labs , Inc. $155 35.9x Opera Software ASA

13-MarHarmonic Inc., Optica l Transmiss ion Equipment

Bus iness$46 0.9x Aurora Networks , Inc.

13-Mar Acme Packet, Inc. $2,004 6.0x Oracle Corporation

13-Feb Harris Broadcast Communications Inc. $225 - Gores Broadcast Solutions , Inc.

13-Feb MIPS Technologies , Inc. $100 5.4x Imagination Technologies Group Plc

13-Feb Olympus Corporation (11.5% stake) $535 - Sony Corporation

13-Feb MIPS Technologies , Inc. (Patents) $350 5.4x Al l ied Securi ty Trust

Date Target Name Acquirer Name

Source Capital IQ, Press Releases * Estimated Value

Video M&A 2012Select Transactions from Q3 & Q4 2012

Certain Assets

Value EV / LTM

($MM) Revenue

12-Dec Argo Systems Inc. - - SintecMedia Ltd.

12-Dec KickApps Corporation - - Perfect Sense Digi ta l , LLC

12-Dec Verivue, Inc. $32 - Akamai Technologies , Inc.

12-Sep FastSoft, Inc. $14 - Akamai Technologies , Inc.

12-Aug Zencoder $30 21.4x Brightcove

12-Jul NDS Group $5,022 5.1x Cisco

12-Jul Miranda Technologies $356 1.9x Belden CDT

12-Jul Avid, Consumer Video Editing Assets $3 - Corel Corporation

12-Jul QuickPlay Media - - Madison Dearborn Partners

12-Jul Technicolor SA, Broadcast Services Divis ion $37 - Ericsson


Source Capital IQ, Press Releases. * Indicates estimate

Video M&A 2012Select Transactions from Q1 & Q2 2012

Certain Assets

Value EV / LTM

($MM) Revenue

12-Jun Thrane & Thrane $479 2.4x Cobham plc

12-Jun Hyro, Hyro Digi ta l Divis ion $18 - Ki t Digi ta l

12-May SeaChange, Broadcast Server and Storage Bus iness $5 - Vantage Point Capita l

12-May SeaChange, On Demand Group Divis ion $27 - Avai l -TVN

12-Apr RadiantGrid Technologies - - Wohler

12-Mar Gennum Corporation $501 3.6x Semtech Corp.

12-Mar Cotendo, Inc. $268 9.0x * Akamai Technologies , Inc.

12-Feb Roxio - - Corel Corporation

12-Feb IP Video Systems, Inc. $20 - Barco NV

12-Jan Trident Microsystems, Set Top Box Bus iness $65 - Entropic Communication

12-Jan Telestream, Inc. - - Thoma Bravo

12-Jan Sezmi Corporation $52 - Ki t Digi ta l


Growth Capital 2013Select Video Transactions

Source Capital IQ, Press Releases, Public Filings

$5-10m

$10-20m

$20-65m

$0-5m

Growth Capital 2012Select Video Transactions


$5-10m

$10-20m

$20-50m

$0-5m

Audio Markets Overview

Trends to WatchMusic and Audio 2012-2013

1. Emerging Mobile Tools: Mobile devices, including the iPad, are being increasingly utilized as extensions of, or replacements for, traditional user interfaces. As mobile platforms and software develop, many companies will place increasing emphasis on the very large hobbyist customer population.

2. Software-based Production Systems: Increased computational power, software innovations and AI will drive unprecedented processing power and ease-of-use in the rapidly expanding universe of plug-ins and software-driven hardware products. Meanwhile, leadership positions in the DAW market are evolving, with increasing differentiation between larger/established facilities (mostly Avid-based, especially in the US) and a rapidly growing self-contained producer/engineer/composer market, which is choosing from an expanding range of DAW products.

3. Music and Sound Creation Tools: Advances in sampling continue to narrow the gap between real and sampled instruments, while breakthroughs in synthesis and hybrid sampling technologies are facilitating the creation of an entirely new palette of instrumental sounds, and providing remarkable new tools for sound designers.

4. Consumer Audio: Following a period of declining interest in sound quality in an age dominated by mobile music consumption, there is an emerging initiative driven by the CEA and major CE brands including Sony to promote very high-quality sound to consumers. The continuing vitality of the high-quality premium-priced headphones market segment has pushed sound quality back to greater prominence, especially with young music listeners. Led by artist-endorsed brands like Beats, US headphone sales are roughly $1B/year.

5. Music industry: While music revenues are far below where they were in the heyday of the CD, industry observers note that total music consumption is still strong when all channels including free ones like YouTube are considered. Labels are struggling to strengthen their revenue models, as subscription services grow in importance. Google All Access and Apple’s iTunes Radio bring big players into this arena. Many independent recording artists have moved to a self-distribution model, using social media to build awareness. Live performance income remains the mainstay for artists from top to bottom.

Audio M&A – Select Transactions 2013 Select Transactions from 2013


Value EV / LTM

($MM) Revenue

13-Aug Music Intel l igence Solutions - - R&R World (Tunehog)

13-Jul Blue Microphones, Inc. - - The Rivers ide Company

13-Jun Al len & Heath Ltd. $66 - Electra Private Equity

13-May Taraki Inc. $16 - Sunrise (China) Technology Group Limited

13-May Red Box Recorders Ltd. - - ISIS Equity Partners LLP

13-Apr Bob Carver, LLC - - Emotiva Audio Corporation

13-Feb Martin Profess ional A/S $146 - Harman International Industries , Incorporated



Audio M&A – Select Transactions 2012

Value EV / LTM

($MM) Revenue

12-Oct Beats Electronics (25.1% stake) $151 - HTC Europe Co, Ltd.

12-Jul MOG $14 - Beats Electronics

12-Jul IMM Sound $27 - Dolby Labori tories

12-Jul Phorus , Inc. $13 - DTS Inc.

12-Jul M-Audio LLC and AIR Software Group $14 - Numark Industries , LP

12-Jun Trident Microsystems, MAP-Xtm Audio Line $1 - CSR Plc

12-Jun Turbosound - - MUSIC Group Macao

12-Jun Industria l Acoustics - - AEA Investors

12-May Redmatica - - Apple

12-May Instrinctiv - - Soundcloud

12-Apr SRS Labori tories $148 3.4x DTS, Inc.

12-Mar A-Line Acoustics - - Atlas Sound LP

12-Mar Imagine Research - - iZotope

12-Feb SoniVox - - Numark Industries , LP


Audio Growth CapitalSelect VC/PE Transactions from 2013


$12m$60m

$0-10m

$40m$10m $25m

Audio Growth CapitalSelect VC/PE Transactions from 2011-2012


$5-10m

$10-20m

$20-200m

$0-5m

Media Markets Overview


Media M&A 2013Select Transactions from Q3 2013

Value EV / LTM

($MM) Revenue

Annc. Media General , Inc. - - Young Broadcasting LLC

Annc. Communications Corporation of America, Inc. $270 - Nexstar Broadcasting, Inc.

Annc.Maverick Media of Rockford LLC and Maverick

Media of Eau Cla i re LLC$16 - Mid-West Fami ly Broadcasting

Annc. Ti tan Broadcast Management LLC $115 - Sincla i r Broadcast Group Inc.

13-Aug Baja Broadband $268 3.2x TDS Telecommunications Corp

13-Aug Matcha, Inc. - - Apple

13-Jul Bresnan Broadband Holdings $2,619 5.1 x Charter Communications Operating

13-Jul Servicios Audiovisuales Overon (51% Stake) $53 1.2x Imagina Media Audiovisual

13-Jul Al loCine $67 - Fimalac

13-Jul Parlophone Records Ltd. $764 1.6x Warner Music Group

13-Jul Post Modern Group $24 - Global Eagle Enterta inment



Media M&A 2013Select Transactions from Q1 & Q2 2013

Value EV / LTM

($MM) Revenue

13-May Orb Networks , Inc. - - Qualcomm

13-May Headland Media Limited $24 2.0x KVH Industries Inc.

13-May NBCUniversal Media, LLC (remaining 49% stake) $16,700 1.7x Comcast Corporation

13-Mar Rhythm & Hues Studio, Inc. $18 - Prana Studios , Inc.

13-Mar Ziggo N.V. (12.6% stake) $811 5.2x Liberty Global Inc.

13-Mar TV Guide Enterta inment Group, LLC (50% stake) $100 - CBS Corporation

13-Mar Charter Communications , Inc. (26.6% stake) $2,617 3.0x Liberty Media Corporation

13-Feb D.EXPRES, A.S. $21 2.1x Bauer Aus land 1

13-Feb Bluefin Labs , Inc. - - Twitter, Inc.

13-Jan Nowbox - - YesVideo, Inc.

13-Jan Switchover Media srl - - Discovery Communications , Inc.



Media M&A 2012Select Transactions from Q3 & Q4 2012

Value EV / LTM

($MM) Revenue

12-Dec Lucasfi lm Ltd. $4,097 - The Walt Disney Company

12-Dec Behance, Inc. - - Adobe Systems Inc.

12-Dec Telescope, Inc. - - H.I.G. Growth Partners , LLC; Moorgate Partners

12-Dec Merl in Media, LLC $75 - CBS Radio Inc.

12-Dec Impact Europe Group AB $12 0.3x AVM Impact

12-Nov KMP Holdings Co., Ltd. $18 - KT Music Corporation

12-Nov Consol idated Media Holdings Limited $2,244 178.2x News Limited

12-Nov Zi ff Davis Media Inc. $175 5.6x j2 Global , Inc.

12-Oct Cookie Jar Enterta inment, Inc. $113 2.0x DHX Media Ltd.

12-Oct Score Media Inc. $151 3.1x Rogers Media Inc.

12-Oct Getty Images , Inc. $3,300 - The Carlyle Group LP

12-Oct Hulu, LLC (10% stake) $200 4.8xNews Corp., The Walt Disney Company,

NBCUniversal Media, LLC

12-Oct Lisbon Theaters , Inc. $11 2.5x Digi ta l Cinema Destinations Corporation

12-Sep Digi ta l Enterta inment International Ltd. $53 0.8x FAB Universal Corporation

12-Sep About.com, Inc. $300 2.7x IAC Search & Media, Inc.

12-Aug Class ic Media Inc. $155 2.0x DreamWorks Animation SKG Inc.

12-Jul Spin Media - - Buzz Media


Media Growth CapitalSelect VC/PE Transactions from 2012 & 2013


$5-10m

$10-20m

$20-Xm

$0-5m

Why MediaBridge?

• Our exclusive focus on Media Technology

• Relevant and Recent Deal Execution Experience

• Deep Knowledge of Broadcast and Media Business and Prospects

• Relationships and Knowledge of Leading Industry Acquirers

• Our broad financial, legal and operational skills to best handle transaction complexities.

• Our Reputation and Integrity

Global Reach, Vertical Depth

Ethan E. Jacks John C. BowenManaging Partner Managing Partner [email protected] [email protected] (m) 617.921.0075 (m)



PowerPoint Presentationmediabridgecap.com/wp-content/uploads/2013/09/MediaBridge-IBC-2013.pdfFormer...

Documents

Transcript of PowerPoint Presentationmediabridgecap.com/wp-content/uploads/2013/09/MediaBridge-IBC-2013.pdfFormer...