Internet Advertising Market Update 1Q 2015...Trading Multiples –U.S. Internet Advertising companies are trading at a median LTM revenue multiple of 1.8x, while International Internet

Confidential

Internet Advertising Market Update

1Q 2015

Member FINRA

2Confidential

Capital Markets – U.S. Internet Advertising companies continue to outpace their international counterparts and outperform the S&P 500 and MSCI Europe indexes, though they have recently begun underperforming against the Nasdaq

Trading Multiples – U.S. Internet Advertising companies are trading at a median LTM revenue multiple of 1.8x, while International Internet Advertising companies are trading at a median LTM revenue multiple of 5.1x

M&A Activity – M&A activity reached a 3-year high in 4Q 2014, with 54 deals, before dropping in 1Q 2015, with 42 deals. Notable recent transactions include Rubicon’s acquisition of Chango($100M), Oracle’s acquisition of Datalogix ($1.1B), Yahoo’s acquisition of BrightRoll ($640M), and Nielsen’s acquisition of eXelate ($195M)

Investment Activity – Investment volume and aggregate values rose greatly in 1Q 2015 with 66 investments and $1.7B in value, from 4Q 2014 with 53 investments and $463M in value. Notable recent investments include AppNexus ($110M), Dianping.com ($850M), and Red Ventures ($250M)

Executive Summary

3Confidential

Capital Markets PerformanceSince 2012, U.S. Internet Advertising companies (+73.6%) have underperformed the NASDAQ (+85.0%), but outperformed S&P 500 (+61.9%), and MSCI Europe (+27.7%) indexes, along with their international counterparts (+50.0%)

NASDAQ:+85.0%

MSCI Europe: +27.7%

S&P 500: +61.9%

Int'l. Internet Advertising Companies: +50.0%

_______Source: Capital IQ; refer to public comps for constituents

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

U.S. Internet Advertising Companies: +73.6%

4Confidential

8.7x

4.9x5.7x 5.4x

2.5x

1.2x

0.0x1.0x2.0x3.0x4.0x5.0x6.0x7.0x8.0x9.0x

10.0x

LTM Revenue Multiple

Internet Advertising Comparable Public Companies

International Internet Advertising Companies

U.S. Internet Advertising Companies

4.8x

8.1x

1.8x

5.2x

3.3x

6.5x

5.3x

0.9x

2.7x

1.5x0.8x

1.6x

0.7x 0.5x0.1x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0xLTM Revenue Multiple

Median:1.8x

Median:5.1x

_______Source: Capital IQ; companies arranged by descending enterprise value

5Confidential

Public Trading Comparables: Internet Advertising

_______Source: Capital IQ

Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA

Company Ticker 03/31/15 Low High Cap. Value LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E

U.S. COMPANIES

Google NasdaqGS:GOOGL $554.70 $490.91 $608.91 $380,937 $323,203 4.8x 4.4x 3.8x 14.8x 11.1x 9.5x

Yahoo! NasdaqGS:YHOO 44.44 32.15 52.62 42,362 38,304 8.1x 8.9x 8.9x NM 35.1x 33.5x

IAC/InterActive NasdaqGS:IACI 67.47 56.50 73.93 5,319 5,550 1.8x 1.7x 1.6x 12.6x 11.3x 8.5x

comScore NasdaqGS:SCOR 51.20 27.41 55.40 1,742 1,726 5.2x 4.6x 4.0x NM 19.0x 15.6x

Constant Contact NasdaqGS:CTCT 38.21 21.08 43.18 1,307 1,128 3.3x 3.0x 2.6x 27.8x 15.2x 12.1x

Marketo NasdaqGS:MKTO 25.62 22.02 35.63 1,154 1,057 6.5x 5.1x 3.8x NM NM NM

Rubicon Project NYSE:RUBI 17.92 8.76 23.20 757 659 5.3x 3.7x 2.9x NM 31.9x 18.4x

RocketFuel NasdaqGS:FUEL 9.20 9.05 43.84 387 367 0.9x 0.7x 0.6x NM NM 25.5x

MaxPoint NYSE:MXPT 9.58 9.20 11.24 258 289 2.7x 3.2x 2.3x NM NM NM

Jive Software NasdaqGS:JIVE 5.13 4.88 8.75 382 274 1.5x 1.4x 1.2x NM NM 38.6x

QuinStreet NasdaqGS:QNST 5.95 3.78 6.83 265 218 0.8x 0.8x 0.7x NM 20.6x 14.5x

Marin Software NYSE:MRIN 6.29 5.87 12.65 223 158 1.6x 1.4x 1.2x NM NM NM

Sizmek NasdaqGS:SZMK 7.26 4.85 11.95 215 124 0.7x 0.7x 0.6x 7.4x 4.8x 4.2x

Marchex NasdaqGS:MCHX 4.08 3.15 12.42 171 91 0.5x 0.7x 0.6x 10.4x 8.0x 7.4x

ReachLocal NasdaqGS:RLOC 2.91 2.82 10.59 85 42 0.1x 0.1x 0.1x NM NM 5.5x

High 8.1x 8.9x 8.9x 27.8x 35.1x 38.6x

Mean 2.9x 2.7x 2.3x 14.6x 17.5x 16.1x

Median 1.8x 1.7x 1.6x 12.6x 15.2x 13.3x

Low 0.1x 0.1x 0.1x 7.4x 4.8x 4.2x

INTERNATIONAL COMPANIES

Baidu NasdaqGS:BIDU 208.40 140.66 251.99 73,348 68,702 8.7x 6.3x 4.7x 25.4x 21.3x 15.3x

Rakuten TSE:4755 17.66 9.42 18.58 23,377 24,356 4.9x 4.2x 3.7x 21.4x 17.6x 14.7x

Yahoo! Japan TSE:4689 4.13 3.20 4.40 23,530 19,582 5.7x 5.2x 4.8x 11.1x 10.4x 9.8x

Yandex NasdaqGS:YNDX 15.17 13.90 35.90 4,817 4,805 5.4x 4.4x 3.6x 14.7x 12.0x 9.5x

Criteo NasdaqGS:CRTO 39.50 25.16 46.50 2,575 2,240 2.5x 4.6x 3.6x 30.2x 18.0x 12.4x

Matomy LSE:MTMY 2.96 2.90 3.78 274 280 1.2x 1.0x 0.8x 15.1x 10.4x 7.0x

High 8.7x 6.3x 4.8x 30.2x 21.3x 15.3x

Mean 4.7x 4.3x 3.5x 19.6x 15.0x 11.4x

Median 5.1x 4.5x 3.7x 18.2x 14.8x 11.1x

Low 1.2x 1.0x 0.8x 11.1x 10.4x 7.0x

6Confidential

Public Operating Comparables: Internet Advertising (Cont.)

_______Source: Capital IQ

Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDA

Company Ticker As Of '14A-'15E '15E-'16E GM LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E

U.S. COMPANIES

Google NasdaqGS:GOOGL Mar 2015 12% 15% 62% $67,839 $74,218 $85,518 $21,898 $29,198 $33,955

Yahoo! NasdaqGS:YHOO Mar 2015 (7%) 0% 70% 4,711 4,287 4,298 599 1,090 1,144

IAC/InterActive NasdaqGS:IACI Mar 2015 5% 8% 72% 3,142 3,254 3,527 442 490 655

comScore NasdaqGS:SCOR Dec 2014 14% 16% 70% 329 375 434 23 91 111

Constant Contact NasdaqGS:CTCT Mar 2015 13% 16% 73% 343 374 434 41 74 93

Marketo NasdaqGS:MKTO Mar 2015 39% 33% 66% 164 209 278 (52) NA NA

Rubicon Project NYSE:RUBI Dec 2014 41% 29% 83% 125 177 228 (11) 21 36

RocketFuel NasdaqGS:FUEL Dec 2014 31% 21% 46% 409 537 648 (38) NA 14

MaxPoint NYSE:MXPT Dec 2014 (16%) 38% 50% 106 90 124 (9) NA NA

Jive Software NasdaqGS:JIVE Dec 2014 10% 12% 63% 179 197 221 (40) 1 7

QuinStreet NasdaqGS:QNST Dec 2014 4% 6% 11% 275 287 303 (2) 11 15

Marin Software NYSE:MRIN Dec 2014 16% 17% 64% 99 115 134 (27) NA NA

Sizmek NasdaqGS:SZMK Dec 2014 6% 8% 65% 171 181 195 17 26 29

Marchex NasdaqGS:MCHX Dec 2014 (25%) 7% 37% 183 138 147 9 11 12

ReachLocal NasdaqGS:RLOC Dec 2014 (8%) 4% 47% 475 439 456 (33) NA 8

INTERNATIONAL COMPANIES

Baidu NasdaqGS:BIDU Dec 2014 39% 32% 69% 7,909 10,949 14,482 2,705 3,226 4,496

Rakuten TSE:4755 Dec 2014 16% 13% 18% 4,996 5,786 6,512 1,141 1,380 1,662

Yahoo! Japan TSE:4689 Dec 2014 (9%) 9% 82% 3,441 3,739 4,094 1,761 1,876 2,005

Yandex NasdaqGS:YNDX Mar 2015 33% 22% 72% 898 1,098 1,337 327 399 505

Criteo NasdaqGS:CRTO Dec 2014 32% 28% 36% 902 487 621 74 125 181

Matomy LSE:MTMY Dec 2014 8% 22% 25% 237 280 341 19 27 40

7Confidential

Internet Advertising M&A Activity Remains Strong

_______Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction valuesTop 3 acquisitions with disclosed transaction values

Average LTM Revenue Multiple 2012 2013 20146.7x 6.1x 4.9x

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

Buddy Media / Salesforce

($689)

Wildfire / Google($350)

Eloqua / Oracle($956)

Channel Intel / Google($125)

ExactTarget / Salesforce($2,500)

DG (assets) / Extreme Reach

($485)

Valassis / Harland Clarke

($1,947)

BlueKai / Oracle($420)

Vocus / GTCR($413)

Conversant / ADS

($2,216)

Datalogix / Oracle

($1,100)

eXelate / Nielsen($195)

Demandforce / Intuit

($424)

SPEED FC / Navarre

($50)

Pardot / ExactTarget

($96)

AfterDownload / ironSource

($28)

Hybris / SAP

($1,341)

Adap.tv / AOL

($465)

Responsys / Oracle

($1,608)

FreeWheel / Comcast($320)

Silverpop / IBM

($235)

LiveRail / Facebook

($382)

BrightRoll / Yahoo!($640)

Chango / Rubicon($100)

Vitrue / Oracle($325)

TigerLead / Move($22)

ClickMotive / DealerTrak

($62)

Akamai(asset) / MediaMath

($25)

Neolane / Adobe($600)

Locu / GoDaddy

($70)

Dealer.com / DealerTrack

($987)

Klout / Lithium Tech.

($200)

Adconion / Amobee($235)

[x+1] / Rocket Fuel

($230)

Videoplaza / Ooyala($80)

Yashi / Nexstar

($33)

30 30 27

18

31 34 34

51 53

41

54

42

$2,226

$477

$1,180

$191

$4,810

$1,167

$2,865$3,049

$845

$3,305

$1,138

$389

0

10

20

30

40

50

60

0

1,000

2,000

3,000

4,000

5,000

6,000

2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015

# Deals$ in millionsDeal Volume Deal Value ($M)

8Confidential

Top Acquirers in Internet Advertising Market

Buyer # Acquisitions Total Value ($M) Targets

Google 8 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Wildfire, Red Hot Labs, Zave Networks

Yahoo! 8 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic

Oracle 6 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue

Adobe 5 1,178.0 Auditude, Demdex, Efficient Frontier, Neolane, Search Discovery

Facebook 5 382.0 LiveRail, Microsoft Corporation (Atlas Advertiser Suite Assets), Onavo, Pryte, Threadsy

Top Acquirers by Volume – Five or More Acquisitions, 2011 – Present

Buyer Total Value ($M) Targets

Oracle 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue

Salesforce 3,515.0 Buddy Media, ExactTarget, Radian6

Alliance Data Systems 2,300.0 Conversant

Harland Clarke 1,947.0 Valassis

SAP AG 1,381.0 Hybris, KXEN, SeeWhy

Adobe 1,178.0 Auditude, Demdex, Efficient Frontier, Neolane, Search Discovery

DealerTrack Holdings 1,048.5 ClickMotive, Dealer Dot Com

Google 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Wildfire, Red Hot Labs, Zave Networks

DG 597.6 EyeWonder, MediaMind Technologies, Peer39, Republic Project

AOL 539.1 Adap.tv, goviral

IBM 500.1 Now Factory, The Silverpop Systems, Tealeaf Technology, Inc.

Extreme Reach 485.0 DG

GTCR 446.5 Vocus

Top Acquirers by Total Transaction Value – $450M or More, 2011 – Present

_______Source: 451 Group

9Confidential

On March 31, 2015

ACQUIRED

Transaction Overview:• $100 million acquisition of Chango by Rubicon

• $9 million cash, $91 million stock• $22 million potential earn-out

• Chango had $48 million LTM revenue at the time of transaction, putting the LTM revenue multiple at 2.1x

• Chango had raised $18M in funding prior to the acquisition

Target Description:• Provides demand-side programmatic advertising SaaS, enabling the real-

time bidding of targeted online advertising space for marketing firms and companies

Transaction Commentary:• This acquisition enables Rubicon Project to bring intent marketing

budgets to an independent, open marketplace that serves premium buyers and sellers at scale for the first time,” commented Frank Addante, CEO of Rubicon

• "Joining the Rubicon Project team will enable us to collectively provide buyers and sellers with a more complete way of buying and selling premium advertising,” said Chris Sukornyk, CEO of Chango

Internet Advertising Market: M&A Case Study

_______Source: 451 Group, PitchBook, Press Release

10Confidential

Internet Advertising Investment Rebounding

_______Source: PitchBook; includes transactions with disclosed, estimated, undisclosed transaction valuesTop 3 investments with disclosed investment values

Top 3 Investments by Quarter ($M)

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

BazaarVoice($104)

Dianping.com($60)

ignitAd($65)

AppNexus($75)

Brand Ntwk($68)

Droga5($225)

Komli Media ($30)

Appforma($80)

CampaignMonitor($250)

AppNexus($85)

AppNexus($110)

Dianping.com($850)

AVITO.ru($75)

Criteo($39)

HubSpot($35)

Infusionsoft($60)

BrightEdge($43)

Videology($68)

BrightTag($27)

Turn($80)

MediaMath($176)

Hootsuite($60)

Matomy Media($82)

Red Ventures($250)

XL Marketing($70)

Say Media($27)

Emailvision($30)

AVITO.ru($50)

MarketShare($38)

SugarCRM($40)

Vungle($19)

Integral Ad($30)

AdRoll($70)

xAd($50)

Infusionsoft($55)

Harbor City($100)

# Investments

72

56

69 71

85

63

45

59

71

61

53

66

$700

$360 $432

$519 $488 $554

$268

$459

$1,071

$478 $462

$1,677

0

10

20

30

40

50

60

70

80

90

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015

$ in millions

Investment Volume Investment Value ($M)

11Confidential

Top Investors in Internet Advertising Market

_______Source: PitchBook; number of investments may include follow-on investments in same target

Investor Investments Targets

500 Startups 29AdStage, BackType, Boostable, BrandCont, Capseo, Central Mayoreo, Conekta, Crowdrally, Ginzamarkets, Iterable, LocBox, MarketVibe,OwnLocal, PostRocket, Privy, Regresa Pronto, ShareRoot, Skimbit, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle

First Round Capital 2233Across, Altruik, AppNexus, DoubleVerify, Elicit, Flurry, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media,VigLink

Greycroft Partners 2133Across, Elicit, Media Armor, Molio, Netsertive, Nomi, Performance Horizon Group, Radiate Media, Resonate Networks, Skimbit,SteelHouse, TagMan

SV Angel 21Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, SteelHouse, TellApart, TT Labs, Tubular Labs,Vungle, WibiData, Wish, Yext

Draper Fisher Jurvetson 194INFO, AdXpose, Flurry, ignitAd, InsightSquared, iSocket, Komli Media, PubMatic, Servio, StrikeAd, SugarCRM, Tremor Video,Virool, Yodle

Sequoia Capital 17 AgilOne, Dianping.com, Flite, HubSpot, Innovid, Kahuna, Kenshoo, Kontera Technologies, Lattice Engines, Taykey

Accel Partners 16AdRoll, AVITO.ru, BEBB India, Collective, Dealer.com, HootSuite,Genius.com, LocBox, MoPub, myThings, Nomi, OpenX Software,YuMe

Battery Ventures 16 BrightEdge Technologies, ExactTarget, Kontagent, Lotame Solutions, Marketo, Smarter Remarketer, Sprinklr, Tapad, Tealium

Intel Capital 14[x+1], BrightEdge Technologies, Delivery Agent, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury, YuMe, ZamplusTechnology

New Enterprise Associates 13BloomReach, Compass Labs, Lattice Engines, Millennial Media, RezNext Global, Say Media, SugarCRM, TrackMaven, Videology,WibiData

Atlas Venture 12 Bluetrain Mobile, DataXu, InsightSquared, Integral Ad Science, Overdog, Privy, Unbounce Marketing

Bertelsmann Digital Media Investments

12 Adomic, Content Fleet, CrowdTwist, Deal United, Regiohelden, Semasio, SensorTower, Skimbit

Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool

SoftTech VC 10 iSocket, Kahuna, Rapleaf, StrikeAd, TurnHere, VigLink, Vungle

Top Investors by Volume, 2011 – Present

12Confidential

Top Seed and Series A Investors in Internet Advertising Market


500 Startups 25AdStage, BackType Boostable, Capseo, Central Mayoreo, Conekta, Crowdrally ,Iterable, LocBox, MarketVibe, PostRocket, Privy,Regresa Pronto, ShareRoot, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle

SV Angel 14 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, TT Labs, Tubular Labs, Vungle

Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool

First Round Capital 10 Altruik, Elicit, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media

RRE Ventures 9 Bloglovin, BlueTrain Mobile, ividence, Pontiflex, Say Media, SinglePlatform, SocialFlow, Yieldbot

TechStars 9 AdYapper, Bizible, inRentive, MarketVibe, Mavrck, Mobintent, Simple Energy, SimpleRelevance, Splashscore

Lerer Hippeau Ventures 7 Bloglovin, Bottlenose, Fuisz Media, GraphEffect, Moat, Tubular Labs

Betaworks 6 Bloglovin, Namo Media, SocialFlow, Teleportd

Greycroft Partners 6 Elicit, Media Armor, Molio, Nomi, TagMan

Atlas Venture 5 Bluetrain Mobile, InsightSquared, Privy, Unbounce Marketing

CommonAngels 5 InsightSquared, Linkable Networks, Yieldbot

Draper Associates 5 Autopilot, MomentFeed, Vungle

ff Venture Capital 5 Bottlenose, Elicit, Movable Inc, Parse.ly

Founder Collective 5 BackType, Custora, GraphEffect, Moat, ThriveHive



13Confidential

Top Series B and C Investors in Internet Advertising Market


Greycroft Partners 10 Netsertive, Performance Horizon Group, Resonate Networks, Skimbit, SteelHouse, TagMan

Sequoia Capital 9 AgilOne, Dianping.com, Flite, Innovid, Lattice Engines, Taykey

Battery Ventures 7 BrightEdge Technologies, Kontagent, Sprinklr, Tapad, Tealium

First Round Capital 7 33Across, DoubleVerify, Moat, Solve Media, VigLink

Intel Capital 7 BrightEdge Technologies, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury

Lightspeed Venture Partners 7 BloomReach, Dianping.com, Evariant, Eyeviewdigital, MediaV, MyBuys

New Enterprise Associates 6 BloomReach, Compass Labs, Lattice Engines, TrackMaven, Videology, WibiData

Redpoint Ventures 6 55social, Adap.tv, nadco, Intent Media, The Miaozhen Systems

Baird Capital 5 BrightTag, ClickFuel, eDo Interactive, WordStream

Draper Fisher Jurvetson 5 ignitAd, InsightSquared, iSocket, Servio

Ignition Partners 5 Dianping.com, Moz, Visible Technologies



14Confidential

Top Series D+ Investors in Internet Advertising Market


Norwest Venture Partners 8 Act-On Software, Komli Media, True[x] Media, Turn

Draper Fisher Jurvetson 7 4INFO, AdXpose, Flurry, Komli Media, PubMatic, SugarCRM, Tremor Video, Yodle

Accel Partners 5 AdRoll, Genius.com, OpenX Software, YuMe

Battery Ventures 5 BrightEdge Technologies, Lotame, Marketo, Sprinklr, Tealium

Focus Ventures 5 Delivery Agent, Marin Software, Turn

Institutional Venture Partners

5 AdRoll, Buddy Media, Marketo, xAd, Yext

Menlo Ventures 5 DataXu, Flurry, YuMe

SAP Ventures 5 Criteo, Marin Software, OpenX Software, Tremor Video

Crosslink Capital 4 Flurry, Marin Software

First Round Capital 4 33Across, AppNexus, Flurry

Intel Capital 4 BrightEdge Technologies, Delivery Agent, Sprinklr, YuMe

Panorama Capital 4 33Across, JiWire, Zoove

Scale Venture Partners 4 BrightRoll, Demandbase, HubSpot

Trident Capital 4 BrightRoll, JiWire, Turn



15Confidential

On January 7, 2015

INVESTED IN

Transaction Overview:• $250M PE Growth / Expansion investment in Red Ventures by Silver Lake

Partners• Red Ventures generates over $200M in revenue

Target Description• Provider of online marketing services. The company develops and manages

customer acquisition programs for brands in the United States, Canada and Puerto Rico. It provides lead generation, sales conversion, performance tracking and marketing channel optimization services

Transaction Commentary:• “We’re in a phenomenal position for continued growth,” said Ric Elias, Co-

Founder and CEO of Red Ventures. “Silver Lake’s global presence and relationships, technology industry expertise and value creation capabilities will be an invaluable addition as we expand our business with new partners and in new sectors. This strategic alliance, along with our continued partnership with General Atlantic, is an acceleration point for our company and our employees.”

• “Red Ventures is a remarkable company that has become a leading player in performance marketing by leveraging data analytics technologies to dramatically amplify marketing and sales,” said Silver Lake’s Greg Mondre. “Its business model, results-driven culture and outstanding management team have generated tremendous growth and, as a result, Red Ventures is poised for a phase of significant expansion in the United States and internationally.”

Internet Advertising Investment Case Study

_______Source: PitchBook, Company website

16Confidential

15+ Years of Internet Advertising Success

IPO

Lead Manager

IPO

Lead Manager

IPO

Lead Manager

HAS ACQUIRED

Fairness Opinion to the Buyer

IPO

Co-Manager

HAS BEEN ACQUIRED BY

Financial Advisor tothe Seller

_______Certain transactions executed by Headwaters TMT bankers at prior firms














A DIVISION OF






17Confidential

Recent Awards and Nominations






A DIVISION OF



A PORTFOLIO COMPANY OF



A PORTFOLIO COMPANY OF


Headwaters Technology, Media & Telecom (TMT) team has won awards for

2014 Online and Mobile Tech Deal of the Year and 2014 Consumer Services Deal of the Year

and back-to-back M&A Advisor TMT Deal of the Year awards

2012 TMT DEAL OF THE YEAR <$100M

CONSUMER SERVICES

DEAL OF THE YEAR



CORPORATE / STRATEGIC ACQUISITION

OF THE YEAR

2014 ONLINE AND MOBILE TECH DEAL

OF THE YEAR





18Confidential

Contact Us

www.headwatersmb.com

John BatdorfManaging Director

Head of Software & Internet

Investment Banking

Office: (415) 926-7454

Cell: (415) 847-8805

[email protected]

135 Main St

Suite 800

San Francisco, CA 94105

19Confidential

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This newsletter is based upon information that we consider reliable, but we do not represent that it is accurateor complete, and it should not be relied upon as such. Prediction of future events is inherently subject to bothknown and unknown risks, and other factors that may cause actual results to vary materially. We are under noobligation to update the information contained in this newsletter. Opinions expressed are our present opinionsonly and are subject to change without notice. Additional information is available upon request. The companiesmentioned in this newsletter may be clients of Headwaters MB, LLC. The decisions to include any company in thisnewsletter is unrelated in all respects to any service that Headwaters MB, LLC may provide to such company.This newsletter may not be copied or reproduced in any form, or redistributed without the prior written consentof Headwaters MB, LLC. The information contained herein should not be construed as legal advice.

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Documents

Internet Advertising Market Update 1Q 2015...Trading Multiples –U.S. Internet Advertising companies are trading at a median LTM revenue multiple of 1.8x, while International Internet