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VideoGameIndustryReport
March2016
I. MarketOverviewII. IndustryTrends
— RecentDevelopments— Console,Mobile,Online
III. AnalysisofNotableM&ATransacConsIV. M&ATransacConsV. PrivatePlacementFinancingsVI. ChineseM&AAcCvityOverviewVII. WCPExperienceHighlightsVIII. WCPContactInformaCon
TABLEOFCONTENTS
MARKETOVERVIEW
MobileGamingRevenuebyRegion(1)
GlobalMarketSize
§ TheAsiaPacific(APAC)regionaccountsforover55%oftheglobalmobilegamingrevenueandisonlythirdinthehighestamountspentpercapitaonmobilegames
§ APAChasthelargestnumberofacCveonlinegamersandalmostfiveCmesthenumberofmobilegamersasNorthAmerica
4 Note:(1)Basedon2014data
U.S.MarketSizeandMarketLeaders
§ Videogameindustryexpectedtogrow4.9%(CAGR)from2011to2019E
§ Theentertainmentvalueintermsofcostperhourisincreasing§ Searchforlowcostandportablegamingisdrivingconsumers
towardsmobile/socialgamingandawayfromconsolegaming§ Newpla`ormreleaseshavealsoincreasedgamesales
§ Thetop5industryplayerscontrolover30%ofthemarketshare
§ RecentacquisiConsbythemajorplayershaveledtoincreasedmarketshare
U.S.MarketSize($millions) U.S.MarketShare
5
ProductsandGenres
Games (41%)
Accessories (9%)
Online (17%)
Consoles (33%)
Role-Playing (10%)
Other (6%) Strategy (4%) Racing (5%)
Adventure (6%)
Sports (13%)
Shooter (28%)
Action (28%)
ProductMix GameGenres
6
Social
Casual
MMO
Mobile
ConsoleDevelopers ConsolePublishers ConsoleManufacturers
DigitalGaming DigitalDistribuCon
ConsoleDistribuCon
SocialPla`orm
Cloud-Based
AppStore
Portals&Aggregators
Physical
Online/Virtual
MarketLandscape
Indicatescompaniesthathavebeenacquired 7
INDUSTRYTRENDS
Source:Digi-Capital
§ ShiPtoMobileandonlinegamesistransformingthevideogameindustry§ Mobilegameshaveexplodedbyanannualrateof37%§ TradiConal/physicalretailersarelosingmarketsharetoonlineretailersandonlinedistribuCon
§ Social/Digitalgaminggrowingrapidly§ Duetogrowthinsmartphonepurchasesandsocialmediausers,social/digitalgamingisexpectedtoproduce$13.8
billioninrevenueby2019
§ Womenover40representthefastestgrowingsegment,currentlyrepresenCng54%ofsocialgamers§ CustomerstransiConingfromconsoletoonlineandmobile,duetoportabilityandfree-to-playgameavailability
§ BusinessmodelsareevolvingtocatertopracUcesvaluedbygamers§ In-apppurchasesmodelhelpedthevideogameindustryrecoveraierthe2008recession§ MMOGmodelbecameextremelypopularinlargepartduetothesuccessofWorldofWarcrai(WoW),anopen
sourcepla`ormgame
§ FemaleandoldergeneraUonsareplayingmoregames§ Femalegamersrepresent39%ofrevenue,48%ofplayers,and50%ofgamebuyers§ Womenover18hasbecomealargermarketthanboysunder18
§ Developersareincreasinglydevelopinggamestotargetloyal,evergreen,andgamersage45+
§ VideogamedevelopersconsolidaUng§ WorldwideacquisiConsincreased72%in2015to$6.8billion
§ MajorM&AacCvityinsocialgamingsectorduetolargevideogameindustryleadersmissingthetrende.g.ElectronicArts/PopCapandWaltDisney/Playdom
IndustryTrends
9
§ GeneralMarket:§ “IntelConCnuesToBackGenderDiversityInGamingIndustryByPromoCngNewProgram”|VentureBeat(02/17/2016)
§ “LeapMoConIntroducesAmazingOrionHand-TrackingForVirtualReality”|VentureBeat(02/17/2016)
§ “PlayStaConVRWillLaunchInFall2016,SaysMouthyCEO”|Gizmodo(02/1/2016)
§ “Microsoi,NVIDIAAndIntelSponsorCuong-EdgeTechTalksAtGDC2016”|Gamasutra(01/21/2016)
§ “HowChinaIsManeuveringIntoTheGlobalGamingMarkets”|VentureBeat(11/21/2015)
§ E-Sports:§ “Report:GlobaleSportsRevenueGrewOver67%ToHit$325MillionIn2015”|Gamasutra(01/25/2016)
§ “TheEACompeCCveGamingDivision,E-SportsAndTheIndustry”|EquityArcade(12/16/2015)
§ “E-sports:WhyTheGamingIndustryIsBigBusiness”|abc.net(11/30/2015)
§ Console:§ “Gamestop’sChiefExpectsToLaunchSony’sVRProductThisFall”|Gamasutra(02/16/2016)
§ “VTechAimsToBuyFellowEducaConGameMakerLeapfrogIn$72MillionDeal”|Gamasutra(02/05/2016)
§ “StrongPlaystaConSalesBoostSony”|Re/code(01/29/2016)
§ FantasyE-Sports:§ “DraiKings,FanDuelLeaveMississippi,NowOperatein42States”|LegalSportsReport(02/18/2016)
§ “VulcunScrapsReal-MoneyFantasyE-Sports,WageringCiCesvs.RegulatoryUncertainty”|CalvinAyre(01/04/2016)
§ “TheNextBigThing:FantasyE-SportsContest”|AllInMag(11/17/2015)
§ Mobile:§ “MobileGamingConCnuesToCrushConsoles--$74BillionRevenueBy2020”|RethinkResearch(02/18/2016)
§ “YouCanSignUpForNintendo’sNewestMobileGame,Miitomo”|GSMArena(02/17/2016)
RecentDevelopments
10
Sources:ITU,PWC,PDC,VGChartz,DigiCapital,MergerMarket
§ Consolegamesarenolongerdrivingmarketgrowth,inpartduetotheirhighercostdevelopment,producCon,anddistribuCon
§ Consoleshardwaresalesaretypicallyunprofitable,butenablethesalesofprofitablegames
§ Integratedconsolepublisherswithdiversifiedgamepor`olioshavedonewellrelaCvetomoreindependentorniche-focusedpublishers
§ Increasingbroadbandqualityandspeedsdrivingdownloadablecontent(DLC)
§ Downloadofadd-oncontentgeneratesincrementalandrecurringrevenuepost-iniCalpurchaseofconsolegames
§ ConvergenceoftradiConalgamingconsoles,set-topboxes,gesture/moConcontrol,anddigitaldeliveryhaveenabledcross-pla`ormandcross-screencontent
ConsolePla`ormGameTrends
11
SocialOnline
CasualOnline
Sources:InsideNetwork,CasualGamesAssociaCon,Newzoo,TalkingData
§ DefiniCon:mulC-player,andplayedviasocialnetworks§ StrongestsocialgameshavecompellinguseracquisiCon,in-game
purchase,anduserengagementdynamics§ MajorsocialnetworksofferexcellentmarkeCnganddistribuCon§ Strongestsocialgamecompanieshaveapor`olioofgamesand
mulCpledistribuConchannels
§ DefiniCon:single-player,playedviabrowser,PC,orapp§ CasualgamesfeaturerapidadopConduetoeasyaccessibility,fast
learningcurves,arracCvecolors,andsimplegamedesign§ 39%ofnewuserschooseacasualgameastheirfirstgame;45%
chooseacasualgameastheirfirstpaidgame§ Casualgamersincreasinglyexpectmediaandcontenttotravel
acrossdifferentscreens§ CasualgameshavehigherproporConoffemalecustomers(74%)
MobilePla`ormTrends
Mobile/Tablet§ Gamesinvestmentandgrowthhas
fundamentallyshiiedfromconsoletomobile
§ 360-degreegameplayexperience(usingmulCplepla`ormsoffernewuserexperiences),leadingtoincreasedgrowth
§ “Freemium”modelswithin-gametransacConssupportrapidtrialandupsellorin-gamepurchases
§ In-gameadverCsingsupplementsotherrevenuesources
§ IntegratedapplicaConsallowconvergedgameplaywithconsole/MMO/casual/socialgames
12
PaidMMO
FreeMMO
Source:MMOData,Newzoo
§ Uptohundredsofthousandsofsimultaneousplayers§ PlayedonPCs§ RevenuepredominatelyearnedonasubscripConmodel,supplementedbyretailsales
andin-gamemicro-transacCons§ Over20MpayingtotalMMOgamersglobally,withastrongpresenceinAsia
§ Millionsofsimultaneousplayers§ PlayedonPC/smartphonesandinbrowsers§ Free-to-playwithin-gamepurchases,<10%conversiontopay-to-play§ Free-to-playMMOsgrossmorerevenuegloballythanpaid-onlyMMOs
OnlineTrends
13
ANALYSISOFNOTABLEM&ATRANSACTIONS
AcUvisionBlizzardacquiresKingEntertainmentfor$5.9B–February2016King’sBusiness:
§ Leadingmobilegamedevelopmentcompanywith200Ctlesinmorethan200regions§ NotablefranchiseCtles:CandyCrush,FarmHeroes,PetRescue,andBubbleWitch§ 318millionmonthlyusersacrossweb,socialandmobilepla`orms§ CompletedIPOforavaluaConof$7.1B($22.50persharein2014)§ Previouslyraised~$43MfromApaxPartners,IndexVentures
TransacUonData:§ $5.9billionincash($18pershare,20%premiumoverKing’sclosingprice)§ 2.3xrevenuemulCple§ 6.4xadjustedEBITDAmulCple
WhatDrovetheAcquisiUonandMulUple:§ ThedealwillturnAcCvisionBlizzardintoacrosspla`ormgamingpowerhousebymerginghitconsoleandPCfranchiseswithKing’smobilepresence
§ EnablesAcCvisionBlizzardtoparCcipateinmorerapidlygrowingmobilegamingmarkets
§ IncreasemobilegamingrevenueandobtainKing’smassivemobileuserbase,resulCnginacombined500M+monthlyuserbase
LandmarkVideoGameIndustryTransacCon
15
MicrosoPacquiresMojangfor$2.5B–September2014Mojang’sBusiness:
§ GamedeveloperthatownsMinecrai,anopensourcegamethathasbecomeapla`ormforvibrantdevelopmentandusercommuniCes
§ $308millionesCmatedrevenuein2013§ Approximately20employees
TransacUonData:§ $2.5billionEV§ 7.7xrevenuemulCple
WhatDrovetheAcquisiUonandMulUple:§ Microsoi’sfuturerevolvesaroundmobileandcross-pla`ormapplicaCons;MinecraigivesMicrosoiapropertythatworkswellonthedesktop,iOS,andAndroid
§ MojangcanmakeXbox’spla`ormmorecompeCCvevs.Sony’sPS4andNintendo’sWii
§ Mojang’syoungerdemographicimprovesMicrosoi’simage/hip-factorandenablescross-saleofotherproductsinthelongerterm
§ ExtraordinarilypopulargamemayshowcaseanCcipatedHoloLenstechnologyanddriveitsadopCon
LandmarkOnline/MobileGamingTransacCon
16
AmazonacquiresTwitchfor$970M–August2014Twitch’sBusiness:
§ Videogamepla`ormandgamercommunity§ Caterstodevelopers,publishers,e-Sportsprofessionals,mediaoutlets,
andconvenCons§ Bringstogethertensofmillionsofviewerswhowatchbillionsof
minutesofgameseachmonth§ Raised~$35M(ThriveCapital,BessemerVenture)
TransacUonData:§ $970millionincash
WhatDrovetheAcquisiUonandMulUple:§ TwitchwillhelpAmazonaccelerateitspushintoWebvideothathasbroughtitintocompeCConwithNe`lixandGoogle'sYouTube
§ Opportunitytoleverageitse-commercestrengthsintoanarracCvenewindustry
§ Increaseadrevenueandobtainmassivedataaboutayoungerandrapidly-growingdemographic
LandmarkVideoGameBroadcasCngTransacCon
17
ElectronicArtsacquiresPopCapfor$1.3B–July2011
PopCap’sBusiness:§ Creatorofeasy-to-learnonlineandmobilegames(Bejeweled,Plants
vs.Zombies)§ Raised~$30millionequity§ Approximately200employees
TransacUonData:§ $650Mincash,$100Minstock,$550MearnoutbasedoncertainEBIT
milestones§ 7.4xrevenuemulCple
WhatDrovetheAcquisiUonandMulUple:§ EA’spushtofurtherpenetratethehighlylucraCvesocialandmobilemarket
§ WhileEA’stradiConalsocialandonlinegamescatertoa“hard-core”gamerdemographic,PopCapoffersEAanopportunitytoexpandintothecasualgamerdemographic
§ Asoneofthelargestpublishersofthird-partygames,EAwillalsotransiConPopCap’screaCveIPandgamesontoconsolepla`orms
LandmarkCasualGamingTransacCon
18
VIDEOGAMEM&ATRANSACTIONS
Date Buyer TargetTransactionValue($M)
TV/RevMultiple BusinessDescription
01/15/2016 BarclaysBank ActivisionBlizzard $1,100.0 3.9x ActivisionBlizzarddevelopsandpublishesonline,personalcomputer,videogameconsole,handheld,mobile,andtabletgamesworldwide
01/05/2016 LeyouTechnologies DigitalExtremes 46.8 NA DigitalExtremesdevelopsfirst-personactiongameswithonlinemultiplayercomponentsforpcconsoleandmobileusers
11/26/2015 YijiaInvestment OurgameInternational
178.1 4.8 OurgameInternationaldevelopsandoperatesonlinecardandboardgamesinthePeople’sRepublicofChina
11/09/2015 ImperusTechnologies
AkamonEntertainment
25.3 NA AkamonEntertainmentMillenium,developsandoperatesonlineandmobilesocialgames
10/14/2015 Vivendi Ubisoft 160.5 1.8 UbisoftEntertainmentproduces,publishes,anddistributesvideogamesforconsoles,PCs,smartphones,andtabletsinphysicalanddigitalformatsworldwide
09/09/2015 XiamenTaiHeXinYing
ZapakMobileGames
15.0 0.0 ZapakMobileGamesdevelopsandpublishesmobileandonlinegames
08/26/2015 BeijingjinxingRongda
FLMobile 624.0 NA FLMobile,throughitssubsidiaries,engagesinmobilegamepublishingandoperation
08/07/2015 WilliamHill NGInternational 25.0 NA NGInternationalprovidesonlinescratchcardsandinstantwingamesforgamingoperators,nationallottories,andmediacompanies
07/31/2015 StrideGaming InfiApps 39.2 2.9 InfiAppsdevelopssocialslotmachinegamesformobileusers
07/17/2015 888 bwin.party 1,426.1 1.9 bwin.partyoperatesasanonlinegamingcompanythroughsportsbetting,casino&games,poker,bingo,andothersegments
07/16/2015 OculusVR PebblesInterfaces 60.0 NA PebblesInterfacesprovideshandgesturesensors,controlsandsoftwarethatenables3Dgestureinteractionandtrackingincomputingandelectronicdevicesforbusinesses
07/14/2015 32Red EucalyptusInvestment
13.1 2.5 EucalyptusInvestmentoperatesanonlinecasinogamingsite
07/01/2015 ModernTimes TurtleEntertainment 86.5 NA TurtleEntertainmentownsandoperatesElectronicSportsLeague(ESL),anonlineportalforcomputergamersworldwide
06/29/2015 Betsson Chempionebi111 85.0 1.6 Chempionebi111operatesasabettingandonlinegamingcompany
05/18/2015 ChangjiangGrowthCapitalInvestment
ChinaMobileGamesandEnt.
718.7 2.7 ChinaMobileGamesandEntertainmentdevelops,operates,andpublishesmobilegamesprimarilyinthePeople’sRepublicofChina
M&ATransacCons
20
Date Buyer TargetTransactionValue($M)
TV/RevMultiple BusinessDescription
05/14/2015 AllwinTelecommunication
ShanghaiSnowfishTechnology
$248.3 NA ShanghaiSnowfishTechdevelopswirelessandmobilegames,andoperatesmobilegamingplatform
04/30/2015 GeeyaTechnology BeijingMingheMingheCulture
11.3 4.5x BeijingMingheMingheCultureownsandoperatesonlinegamingplatform
04/13/2015 TheClothingHolding
OurgameInternational
153.9 4.6 OurgameInternationaldevelopsandoperatesonlinecardandboardgamesinthePeople’sRepublicofChina
02/15/2015 Ourpalm BlingstormEntertainment
342.5 NA BlingstormisaprivatelyheldcompanythatdevelopsgamingapplicationsforvariousiOSandAndroidsmartphone
02/12/2015 KingDigitalEntertainment
Z2 150.0 NA Z2createsfreetoplaysocialandmultiplayergamesformobiledevices.ItssocialgamesallowplayerstocompeteandcollaborateinrealtimethroughtheiriPhonesoriPads
12/30/2014 Kongzhong Forgame 52.0 0.5 Forgamedevelops,publishes,l icenses,andoperatesWebgamesandmobilegamesinthePeople’sRepublicofChina
12/26/2014 Xiamen35.ComTechnology
ShenzhenDaoxiTechnology
115.0 NM ShenzhenDaoxiTechnologydevelopsWebandmobilegames
11/26/2014 ZhongrongShengdaInvestment
ShandaGames 500.0 4.3 ShandaGamesdevelops,operates,andpublishesonlinegamesinthePeople’sRepublicofChinaandinternationally
09/12/2014 TheGreatWallOfCultureGroup
GuangzhouDeepseaSoftware
120.6 NM GuangzhouDeepseaSoftwaredevelopsmobilegames
09/02/2014 OrientFinance,NingxiaZhongyinCashmere,Haiton
ShandaGames 908.8 2.8 ShandaGamesdevelops,operates,andpublishesonlinegamesinthePeople’sRepublicofChinaandinternationally
08/25/2014 Amazon.com TwitchInteractive 970.0 NA TwitchInteractiveoperatesavideoplatformandcommunityforgamers
08/19/2014 ShanghaiZhongjiInvestment
DIANDIANInteracitve
960.0 NA DIANDIANInteractivedevelopssocialgamesacrossmultipleonlineandmobileplatforms
08/14/2014 SongLiaoAutomotive
ShanghaiDouwanNetworkTechnology
232.0 17.3 ShanghaiDouwanNetworkTechnologydevelopsandoperateswebgamesandmobilegames
06/30/2014 LeyouTechnologies DigitalExtremes 73.2 4.7 DigitalExtremesdevelopsfirst-personactiongameswithonlinemultiplayercomponentsforPC,consoleandmobileusers
06/17/2014 BeijingEnlightMedia
BeijingRefengHudongNetwork
28.7 NA BeijingRefengHudongNetworkdevelopsandoperatesonlinemobilegames
M&ATransacCons(cont.)
21
Date Buyer TargetTransactionValue($M)
TV/RevMultiple BusinessDescription
06/05/2014 BallyTechnologies Dragonplay $100.0 NA Dragonplaydevelopsandpublishessocialgamesforsmartphones
05/26/2014 ShenzhenZongYiTechnology
BeijingAsGardGameScience
8.3 NM BeijingAsGardGameSciencedevelopsmobilegameapplications
05/23/2014 ZhejiangDragonPipeManufacturing
EGLSTechnology 637.0 NA EGLSTechnologydevelopsandpublishesmobilegames.Itoffers3DMMOroleplaying,adventure,fantasy,andothergames
04/30/2014 GluMobile PlayFirst 13.5 NA PlayFirstoffersmobilegames.TheCompanyoffersgamesinthecategoriesofaction/adventure,casual,family,strategy,archived,FPS/TPS,MMO/RPG,multiplayer,racing,andzombies
04/21/2014 PerfectWorld ShandaGames 100.0 2.5x ShandaGamesdevelops,operates,andpublishesonlinegamesinthePeople’sRepublicofChinaandinternationally
04/18/2014 Joymax LinkTomorrow 46.3 NA LinkTomorrowdevelopsmobilegames
03/29/2014 GreenPineCapital,ShanghaiYiqi
YouzuInteractive 19.2 NA YOUZUInteractiveoperatesasagamingcompanyworldwide.Itdevelopsanddistributesmobileandbrowsergames,aswellaspublishesgamesandmovies
03/26/2014 NetmarbleGames Netmarble 345.7 NA Netmarblepublishes,develops,anddistributesonlineandmobilegames
03/25/2014 Facebook OculusVR 2,000.0 NA OculusVRdesignsanddevelopsvirtualrealityfocusedheadmounteddisplaysusedaspartofanimmersivegamingenvironment
01/30/2014 ZyngaGame NaturalMotion 527.1 NA NaturalMotiondevelopsmobilegamesandanimationtechnologysolutions.ThecompanydevelopsandpublishessocialmobilegamesoniOSandAndroid
10/10/2013 WuhuShunrongSanqiInteractiveEntertainment
SanqiInteractiveEntertainment
861.0 NA SanqiInteractiveEntertainment(Shanghai)Technology,developsandpublishesWebandmobilegames
10/07/2013 BeijingFeil iuJiutianTechnology
BeijingCenturyHetuSoftwareTech
25.0 NA BeijingCenturyHetuSoftwareTechnologydevelopsmobilegames
10/04/2013 GAMEVIL Com2uS 65.3 3.2 Com2uSdevelopsandpublishesmobilegamesinSouthKorea,China,Japan,andtheUnitedStates
09/18/2013 SEGAGames Index 337.8 2.0 Indexprovidesentertainmentcontentsandsolutionsworldwide
08/26/2013 TangelPublishing BeijingMagicUniverseNetwork
382.0 NA BeijingMagicUniverseNetworkdevelopsmobilegames
M&ATransacCons(cont.)
22
Date Buyer TargetTransactionValue($M)
TV/RevMultiple BusinessDescription
07/26/2013 LeonardGreen&Partners
ActivisionBlizzard $2,338.8 2.1x ActivisionBlizzarddevelopsandpublishesonline,personalcomputer(PC),videogameconsole,handheld,mobile,andtabletgamesworldwide
07/22/2013 HuayiBrothersMedia
GuangzhouYinHanTechnology
108.2 NA GuangzhouYinHanTechnologydevelopsanddistributesmobilegames
07/22/2013 Ourpalm BeijingPlaycrabTechnology
284.9 NA BeijingPlaycrabTechnologydevelopsmobilegames.ItsproductincludesBigHead,aKungFusmartphonegame
06/19/2013 Zynga SpookyCoolLabs 30.6 NA SpookyCoolLabscreatessocialgamesforsocialnetworkingservicesandmobiledevices
02/07/2013 Elisa SulakeCorporation 8.3 0.4 SulakeCorporation,asocialentertainmentcompany,developsandprovidesonlinesocialgamesandonlinecommunities
01/28/2013 SoulandVibeInteractive
SoulandVibeEntertainment
11.1 NA SoulandVibeEntertainment,developsandpublishesvideoandcomputergames
01/23/2013 SEGAGames RelicEntertainment 26.6 NA RelicEntertainmentspecializesinPCreal-timestrategygamesandisknownforseriessuchasHomeworld,Warhammer40,000:DawnofWar,andCompanyofHeroes
09/28/2012 ActozSoft EyedentityGames 102.0 5.7 EyedentityGamesdevelopedonlineandmobilegames,suchasDragonNest
07/01/2012 SonyComputerEntertainment
Gaikai 380.0 NA Gaikaiprovidesnetworkinfrastructureandsoftwaredesignservicesforcloudstreamingvideogameservices
05/01/2012 GREEInternational Funzio 210.0 NA Funziodevelopsandmarketsmobilegames,suchasCrimeCity
12/07/2011 KoeiTecmo Gust 28.3 1.8 Gustdevelopsandmarketsgameswithtraditionaloldschoolgraphicalandstorytell ingstyle
08/02/2011 GluMobile Griptonite 57.8 2.7 Griptoniteengagesinthedevelopmentofgamesforconsoleandhandheldgamesystems
07/12/2011 ElectronicArts PopCapGames 1,301.3 NA PopCapGames,develops,publishes,andoperatescasualvideogamesacrosspersonalcomputer,mobile,social,andotherplatforms
06/07/2011 MoliMobile OberonMediaAsiaPacific
9.3 NA OberonMediaAsiaPacificdesigns,developsandmarketscasualvideogamesacrossmultipleplatforms
03/24/2011 Joymax IOEntertainment 17.7 12.8 IOEntertainment,developsgamingsoftwarespecializedtowardactiongenreofonlinegames
M&ATransacCons(cont.)
23
Date Buyer TargetTransactionValue($M)
TV/RevMultiple BusinessDescription
01/14/2011 FieldsCorporation MicrocabinCorporation
$9.1 1.4x MicrocabinCorporationisavideogamedeveloperandpublisher
12/01/2010 ChinaCommunicationInvestment
ChinaCyberPortCompany
18.0 NA ChinaCyberPortCompanydevelops,operates,anddistributescomputergamesandonlinegamesinChina
02/15/2010 Playtech VirtueFusion 63.0 3.3 VirtueFusiondevelopsandlicensesInternetbingoandnetworkedgamingsolutionsfortheonlinegamingindustryintheUnitedKingdom
75thPercentile $362.9 4.4xMean 316.6 3.6Median 100.0 2.7
25thPercentile 27.5 1.9
24
M&ATransacCons(cont.)
25
M&ATransacCons(TransacConValuenotdisclosed)
Date Buyer Target BusinessDescription02/10/2016 Zynga ZindagiGames ZindagiGamesdevelopsvideoandmobilegames
01/26/2016 Upsight FusePowered FusePoweredprovidesend-to-endmobileapplication/gamepublishingsolutionsforapplicationdevelopers
01/26/2016 Applix Melazeta Melazetaisadigitalagencythatdesignsandcreatesludicenvironmentsandgamebasedcontents
01/07/2016 KujuEntertainment CurveDigitalPublishing
CurveDigitalPublishingdevelopsandpublishesvideogamesinconsoleandPCformats
01/07/2016 ShanghaiPerfectWorld
HefeiPerfectWorldNetworkTechnology
HefeiPerfectWorldNetworkTechnologydistributesandpublishesonlinegamesandmobilegames
12/25/2015 WuhuShunrongSanqiInteractiveEntertainment
SanqiInteractiveEntertainment
SanqiInteractiveEntertainment(Shanghai)TechnologydevelopsandpublishesWebandmobilegames
12/19/2015 SuzhouMeishengyuan
BeijingKeepMeNetworkTechnique
BeijingKeepMeNetworkTechniquedevelopsmobilegamesandgameadvertisingplatform
12/15/2015 BulkheadInteractive
BevelStudios BevelStudiosspecialisesinthedevelopmentofhighqualityvideogamesandinteractiveentertainment
12/10/2015 AppYea 60iOSApps 60iOSAppscomprises60mobilegamingapplications
12/09/2015 SGNGames Kiwi Kiwiisamobileentertainmentcompanythatdevelopsmobilegames
12/09/2015 SGNGames FatRascalGames FatRascalGamesdevelopsgamesformobilephones
11/30/2015 TritechMedia Skil lPodMedia Skil lPodMedia,anonlinegamingconsultancy,developsonlinegamesandapplicationsforonlineandmobileplatformsinSouthAfricaandinternationally
11/21/2015 GeeyaTechnology ChengduCrimoonTechnology
ChengduCrimoonTechnologydevelopsmobilevideogames
11/19/2015 LiveSportMedia EnetpulseAps EnetpulseApsprovidesl ivesportscontentanddataservicesforbettingmediaandsportsinformationsectorsworldwide
11/11/2015 UnityTechnologies EngineRoomGames EngineRoomGamesdevelopstechnologyandvideogamesforconsolePCandmobileplatforms
26
M&ATransacCons(TransacConValuenotdisclosed—cont.)
Date Buyer Target BusinessDescription11/03/2015 Spaceh StarloopStudio StarloopStudioagamedevelopmentoutsourcingstudioprovidesmobilegamesandapplicationsdevelopmentservicesfor
variousmajorplatformssuchasiOSAndroid,WindowsPhone,PS4,PS3,PSVita,Nintendo3DS,andWiiU
11/02/2015 NationalBasketballAssociation
YinzCam YinzCamdevelopsmobileandtabletsportsapplicationsforsportsfansintheUnitedStates
10/27/2015 GAMEFREAK KOAGames KoaGamesisaJapanesecompanythatproducesmobilegamingtitles
10/22/2015 RuckusWireless CloudpathNetworks CloudpathNetworksprovideswirelesssecurityandWi-Fisolutions
10/13/2015 UbisoftHoldings Longtail StudiosHalifax
Longtail StudiosHalifaxdevelopsvideogamesforthehomeconsolemarket
10/02/2015 Microsoft TelekinesysResearch
TelekinesysResearch,doingbusinessasHavok,developsandprovidesgamedevelopmenttechnologies
09/24/2015 FanDuel FandomGaming FandomGamingagamingplatformprovidesdaily/weeklyfantasyeSportscontestsforcashandprizes
09/22/2015 Unikrn FunhouseTechnologies
FunhouseTechnologiesoperatesasane-sportscompanythatdevelopsSaaSservicestothecompetitive/professionalsceneofvideogames
09/16/2015 WemadeCreative IOEntertainment IOEntertainmentdevelopsgamingsoftwarespecializedtowardactiongenreofonlinegames
09/14/2015 Zynga RisingTideGames RisingTideGamesdevelopssocialinteractivecasiongamesinthecasinogamingspace.
09/07/2015 Playtika BigBlueParrot BigBlueParrotdevelopsmobilegamesforaplatforminwhichpeoplecouldinteractwithouthavingtobeonlineatthesametime
09/03/2015 gamigo POGED POGEDoperatesanaleadinginternationaltrafficnetworkonlineandmobilegames
08/20/2015 N3TWORK NioGames NioGamesdevelopsandpublishesmobilegames
08/18/2015 Yuuzoo CamigoMedia CamigoMediadevelopssocialinteractivemobilegames
08/12/2015 OperaMediaworks Yvolver YolverprovidesLoyalty-as-a-Serviceapplicationsfortrackingandcreatingvirtualrewardstomobilegames
27
M&ATransacCons(TransacConValuenotdisclosed—cont.)
Date Buyer Target BusinessDescription08/06/2015 EnvoyGroup PicanteGaming PicanteGamingdevelopscasinosoftwareforgamingoperators
07/31/2015 ChengduB-rayMedia
BeijingManyougu BeijingManyougudevelopsandoperatesWebgamesinChinawiththethemesoffantasyandmagic
07/27/2015 Razer OUYA OUYAdevelopsopenvideogameconsoles.Itprovidesapplicationstothebigscreenthatenablestostreamshows,movies,andmusic
06/23/2015 ironSource UpopaGames UpopaGamesisengagedindevelopingmobilegames
06/09/2015 JDBServices CakeGaming CakeGamingoperatesanonlinepokersiteinCuracaoItalsoenablesuserstoplaypokerontheirmobiledevices
06/09/2015 ShenzhenZhongqingJubao
XianControl-StrengthDigital
XianControl-StrengthDigitalprovidesiPhone/iPadmobilegameapplicationanddevelopmentservices
06/02/2015 GameRevolution PlayStationLifeStyle PlayStationLifeStyleoperatesPlayStation-specificnewsandreviewsites
05/22/2015 TelekinesysResearch
Trinigy Trinigydevelopsandsells3DgameenginetechnologysolutionstosupportvideogameandgamedevelopmentstudiosinGermanyandinternationally
05/20/2015 Numecent Approxy Approxydevelopscloudmanagedgaminginfrastructureplatformforgamedeveloperspublishersandaggregators
05/20/2015 PaddyPower CTNetworks CTNetworksalsoknownasCayetanodevelopsonlinebettingcasinoandgamingsoftwareforgamingoperatorsworldwide
05/15/2015 Playtika BuffaloStudios BuffaloStudiosdevelopssocialgamesforcasualaudiencesworldwideItoffersBingogamesforsocialandmobileplatforms
05/13/2015 TeliaSoneraAktiebolag
Springworks SpringworksspecializesindigitalsolutionsformobileandWebgamingplatforms
05/06/2015 RoadhouseInteractive
RoadhouseGameStudios
RoadhouseGameStudiosdevelopssocialandmobilegames.ItoffersTangramPuzzleforiPhoneandUFCUndisputedFightNation,afightingchampionshipgame,onFacebook
04/30/2015 Oomba Play140 Play140developstext-basedsocialgameswhichcanbeplayedviaTwitterSMStextingandinstantmessaging
04/29/2015 FlashmanStudios BeefyMedia BeefyMediaprovidesvideogameproductionservicesfordigitalandretail market.Thecompanyalsoprovidesbusinessdevelopmentproductionoversightandstrategicsupportforvideogamedevelopersandpublishers
28
M&ATransacCons(TransacConValuenotdisclosed—cont.)
Date Buyer Target BusinessDescription04/28/2015 gamigo GameSpree GameSpreepublishesbrowser-basedandmobilegamesforplayersworldwide
04/28/2015 GAMEVIL NineWheels NineWheelsdevelopsmobilegamesTheCompanyoffersGrapeValleyasimulationbasedsocialgamethatinvolvesplayerstakingovertheirownvineyardandwineboutique
04/02/2015 NEXON inBlue inBlueoffersdevelopmentandoperationofmobilesocialgames
04/01/2015 SonyComputerEntertainment
OL2 OL2developsandprovidescloudgamingsolutionsandcomputingservices
03/25/2015 InspiredGamingGroup
WeRInteractive WeRInteractivedevelopsvirtualsportsandonlinesocialgames
03/24/2015 HandmadeMobileEntertainment
Doppelgames Doppelgamesdevelopsmobilesocialgamesandinteractivestorytell ingapplications
03/10/2015 Yahoo! LokiStudios LokiStudiosdevelopsmobilegames.ItprovidesGeomon,agamingapplicationwithlocationtechnologies,togeneratenewcontentforthegame
03/09/2015 DRGamingTechnology
DRGTSystems DRGTSystemsdesignsanddevelopssoftwareforelectronicgamingmachines
03/02/2015 gamigo OUTSPARK OUTSPARKownsandoperatesonlinemultiplayergamesnetwork.Itfocusesontheconceptofformingsocialeventsin-gameandaround-gamenetworkinguser-generatedcontentandapersonalizeduserexperience
02/24/2015 Google Agawi Agawioperatesacloud-basedgamingplatform
02/18/2015 Sega ThreeRingsDesign ThreeRingsDesigndevelopsandoffersonlinegames.ItsdesktopgamingportfolioincludesSpiralKnightsBang!HowdyPuzzlePiratesandWhirled.ItalsodevelopsgamesformobilephonesandtabletswhichincludeTheEverythingGameandSpellwood
02/17/2015 NetcrackerOnlineServices
X2PNE-Learning X2PNE-LearningdevelopsandpublishessocialgamesforWebandmobiledevices
02/16/2015 AllAbout FiveStarsGame FiveStarGamesisanewturnkeysolutioninAustraliaandNewZealandthatensuresyougetthebestpossibleattention,awarenessandresultsforyourvideogamesproperties
02/14/2015 ChengduSkymoonsTechnology
ChengduCrimoonTechnology
ChengduCrimoonTechnologydevelopsmobilegames
01/19/2015 Vitrue GamesThatGive GamesThatGivedesignsanddevelopsasocialgamingplatformwhichprovidesgameswithcharitablegivingonline
Date Buyer Target BusinessDescription01/16/2015 Innovecs TatemGames
OutsourcingDivision
OutsourcingDivisionofTatemGamescomprisestheoutsourcingdivisionwhichdevelopsandoffersmobilegames
01/13/2015 KBAssetManagement
Dragonfly DragonflyengagesintheonlinegamedevelopmentactivitiesprimarilyinSouthKorea,includingonlinePCandmobilegames
01/13/2015 LittleOrbit ViciousCycleSoftware
ViciousCycleSoftwareadevelopmentstudiothatdevelopsinteractiveentertainmentsoftwareforPlayStationcomputerentertainmentsystems,PlayStationportablesystems,XboxandXbox360videogameandentertainmentsystemsconsolesandPCs
01/01/2015 SabanBrands ThePlayforge ThePlayforgeisanindustry-leadingmobilegamesdevelopmenthousespecializinginfun-fi l led,originalapplicationsforkidsages5to100.ItsflagshiptitleisZombieFarm
11/14/2014 NYXGamingGroup Game360 Game360developssoftwareforgamesonlineandonmobileplatform
11/13/2014 GungHoOnlineEntertainment
PlayPhone PlayPhonedevelopsanddistributesmobileentertainmentcontentforgamersworldwide
11/10/2014 CybertechInternational
ConnectiveGames ConnectiveGamesdevelopsandprovidesonlinepokerandcasinosoftwareproducts.TheCompanyoffersuniversalonlinegamingplatformonlinepoker,casinosoftwareandsubscriptionpokerplatform
11/10/2014 FrimaStudio VOLTA VOLTAoffersvisualdevelopmentservices.TheCompanyprovidescharacterandenvironmentdesignstoryboardingandil lustrationforvideogamesandmotionpictures
11/06/2014 KBAssetManagement
WeMadeEntertainment
WeMadeEntertainmentdevelopsandservicesonlineandmobilegames.ItisinvolvedinpublishingactivitiesandtheprovisionofvariousservicestoothergamingchannelsthroughitsgameportalGAMEcom
11/05/2014 AnkamaCom Wizcorp WizcorpengagesintheconceptiondevelopmentandimplementationofmobilesocialgamesTheCompanyspecializesinHTML5gamedevelopmentforsmartphones
11/04/2014 FertittaInteractive CyberArtsLicensing CyberArtsLicensingdevelopsInternetgamingsoftware.TheCompanyoffersFoundation,agamingsoftwareplatformforonlineandserver-basedgames
11/03/2014 UbisoftEntertainment
DigitalChocolate DigitalChocolatedevelopsandpublishescross-platformsocialgames.ItoffersgamesforplatformssuchasFacebookiPhonemobilePCandconsole
10/18/2014 CatalystQatar kunst-stoff kunst-stoffoperatesasagamedeveloperandproducerofart-materialinteractiveexhibits
10/09/2014 GauselmannAG Betcom Betcom,acontentprovider,specializesingamingsoftwarefortheUnitedKingdompubmarket
07/29/2014 E-LineMedia UpperOneGames UpperOneGamesdesignsanddevelopspuzzle-adventuregamesforgamingaudience/gamersworldwide
29
M&ATransacCons(TransacConValuenotdisclosed—cont.)
30
M&ATransacCons(TransacConValuenotdisclosed—cont.)
Date Buyer Target BusinessDescription05/12/2014 KBAsset
ManagementDragonflyGF DragonflyGFengagesintheonlinegamedevelopmentactivitiesprimarilyinSouthKorea
03/02/2014 SDNInvest ApogeeSoftware ApogeeSoftware,doingbusinessas3DRealms,developsfun3Dactiongamesforthepersonalcomputergamingindustry
11/11/2013 NovoLotterySolutionsGmbH
Betware Betwaredevelopsinteractivegamingsolutions,andplatformsforsmallorlargescalelotteryoperations
06/17/2013 PTT Electrotank Electrotankdesignsanddevelopsmultiplayerbrowser-basedsocialmobileconsoleturn-basedmultiplayerandsingleplayergames
05/22/2013 AdrenalineAmusements
Sarbakan Sarbakandesignsanddevelopscomputervideogames
03/05/2013 DigitalDevelopmentManagement
GreenHill Studios GreenHill offersproductionmanagementandconsultationtovideogamedevelopers
11/20/2012 LleidaNetworksServeisTelemàticsSA(BME:LLN)
StarloopStudio StarloopStudio,agamedevelopmentoutsourcingstudio,providesmobilegamesandapplicationsdevelopmentservicesforvariousmajorplatformssuchasiOSAndroid,WindowsPhone,PS4,PS3,PSVita,Nintendo3DS,andWiiU
08/15/2012 NaturalMotion BossAlien BossAlienengagesinthedevelopmentof3dmobilegames
08/10/2012 IntralotHoldings KelicomHoldings KelicomHoldingsoperatesasadeveloperofgaminginformationsystemssoftwareandgaminghardware
05/08/2012 Bitzio KnuckleFace KnuckleFacedevelopsmobilegamescenteredonpopcultureicons
03/28/2012 Kabam GravityBear GravityBeardevelopssocialgameswhereplayerscanconnecttooneanotherthroughgame
03/27/2012 RovioEntertainment
FuturemarkGamesStudio
FuturemarkistheleadingproviderofperformanceanalysissoftwareandservicesforPCs,smartphonesandinthefuture,games
02/28/2012 PrismDefence HolopointInteractive
HolopointInteractivedevelopsinteractivemarketingandcommunicationproductsusingvideogametechnology
VIDEOGAMEPRIVATEPLACEMENTFINANCINGS
PrivatePlacementFinancings
Date Company Amount($M) Investors BusinessDescription12/09/15 AZUBUEurope $59.8 SallfortPrivatbank;SapindaHolding AZUBUEuropepublishesonlinegames.TheCompanyalsodevelopsvideogamesacrossall console
andPCplatforms
08/26/15 ResolutionGames 6.0 PartechInternational;Creandum;InitialCapital;BonnierGrowthMedia
ResolutionGamesdevelopsvirtualrealitygames,withaproventrackrecordofwidelyacclaimedsuccessspanningacrossmassmarketandAAAgames,free-to-playgames,hardwareandmore
07/29/15 SuperEvil Megacorp
26.0 IndexVentures;GeneralCatalystPartners;KoreaInvestmentPartners
SuperEvil Megacorpdevelopsgamesfortablets.Itsgamesdeliverconsole-qualitygraphics,precisioncontrols,andsocialgameplayexperiences
07/23/15 OutpostGames 6.2 BenchmarkCapital OutpostGamesdevelopsvideogamesandcreatesplatformsforgamerstobroadcasttheirgames
07/13/15 FLEROGAMES 8.8 AtinumInvestment FeverStudiodevelopsmobilegames,content,andsoftware.Theflagshiptitleis"EveryTown,"thenumber1SNGgameinKorea
06/25/15 RadiantEntertainment
4.5 GeneralCatalystPartners;AndreessenHorowitz;LondonVenturePartners
RadiantEntertainmentdevelopsandoffersvideogamesthatemphasizethecreationofstrongplayercommunities
04/08/15 FrimaStudio 6.0 Media-ParticipationsParis;FondsdesolidaritéFTQ
FrimaStudiodevelopsandproducesvideogamesanddigitalentertainmentproducts
02/03/15 BeijingMingheMinghe
9.3 GeeyaTechnology BeijingMingheMingheCultureandMediaownsandoperatesonlinegamingplatform
01/28/15 Youxiduo 16.0 FortuneVentureCapital Youxiduoprovidesanonlineplatformfordownloadingmobileandwebgames
12/31/14 OUYA 10.0 AlibabaCapitalPartners OUYAdevelopsopenvideogameconsoles
08/12/14 JoyTunes 5.0 GenesisPartners;Formation8Partners;AlephVentureCapital
JoyTunesdevelopsinteractivevideogamesforlearningmusicalinstrumentsforadultsandchildren
05/30/14 SuperEvil Megacorp
11.6 GeneralCatalystPartners;CrosscutVenturesManagement;RaineVentures
SuperEvil Megacorpdevelopsgamesfortablets
05/30/14 DazzleInteractiveNetwork
55.6 MinistryofFinancePeople'sRepublicofChina;BOCInternationalHoldings
DazzleInteractiveNetworkTechnologiesownsandoperatesonlinegamingplatformssuchasChinagamesande-Game
05/27/14 thatgamecompany 7.0 BenchmarkCapital;KleinerPerkinsCaufield&Byers;CapitalToday
thatgamecompanydesignsanddevelopsvideogamesforplayersintheUnitedStatesandinternationally
03/26/14 AZUBUEurope 34.5 SapindaDeutschland AZUBUEuropepublishesonlinegames
02/26/14 IfYouCanCompany 6.5 Maveron;TheFoundersFund;AlmazCapitalPartners;AndreessenHorowitz
IfYouCanCompanydevelopseducationalgamesforchildren
32
PrivatePlacementFinancings(cont.)
Date Company Amount($M) Investors BusinessDescription12/12/13 CJGameLab $9.2 NetmarbleGames CJGamelabisadeveloperofMMOG(massivelymultiplayeronlinegames)andsubsidiaryofCJE&M,
amajorgamesportalinKorea
07/29/13 GrandCru 11.0 IDInvestPartners;QUALCOMMVentures;NokiaGrowthPartners
GrandCrudevelopsmobileandsocialgamessupportingplayerinteraction
05/09/13 OUYA 15.0 KleinerPerkinsCaufield&Byers;MayfieldFund;NVIDIACorporation
OUYAdevelopsopenvideogameconsoles.Itprovidesapplicationstothebigscreenthatenablestostreamshows,movies,andmusic
06/14/12 thatgamecompany 5.5 BenchmarkCapital thatgamecompanydesignsanddevelopsvideogamesforplayersintheUnitedStatesandinternationally
05/30/12 GOLFZONJapan 11.0 Golfzonyouwonholdings GOLFZONJapanproducesandmarketsgolfsimulators,operatesdirectlymanagedfacil itiesandprovidesrelatedonlineservices
05/25/12 CJGameLab 6.5 NetmarbleGames CJGamelabisadeveloperofMMOG(massivelymultiplayeronlinegames)andsubsidiaryofCJE&M,amajorgamesportalinKorea
03/21/12 RedRobotLabs 5.0 NextDigital RedRobotLabsisamobilegamingcompanythatprovidesmobile-socialgames
01/09/12 TrionWorlds 85.1 OntarioTeachers'PensionPlan;BertelsmannDigitalMediaInvestment
TrionWorldspublishesanddevelopspremiumconnectedgames
09/14/11 RedRobotLabs 8.5 BenchmarkCapital;ShastaVentures RedRobotLabsisamobilegamingcompanythatprovidesmobile-socialgames
07/19/11 Gaikai 30.0 BenchmarkCapital;NewEnterpriseAssociates;RusticCanyonPartners
Gaikaiprovidesnetworkinfrastructureandsoftwaredesignservicesforcloudstreamingvideogameservices
06/07/11 Telltale 7.0 GraniteVentures;IDGVenturesSF Telltale,Incorporateddevelopsandpublishesvideogames.Itoffersgamesforpersonalcomputers,Macdevices,XboxandPlayStationplatforms,homeconsoles,andiOSandAndroid-powereddevices
04/29/11 Funzio 20.1 IDGVentures;IDGCapitalPartners Funziodevelopsandmarketsmobilegameswhichincludes,CrimeCity
02/08/11 OL2 40.0 HTC OL2,alsoknownasOnLive,developsandprovidescloudgamingsolutionsandcomputingservices
11/29/10 GHHopeIsland 12.9 CJInternet GHHopeIslandoperatesasagamedeveloper
11/02/10 OMGPOP 10.1 BessemerVenturePartners;RhoCapitalPartners;SoftBankCapital
OMGPOPprovidesanonlineplatformthatallowsmemberstoplaygames,hangoutinchat,sharephotosonpictureclub,andmeetnewfriendsonline
09/30/10 ZeniMaxMedia 150.0 ProvidenceEquityPartners ZeniMaxMediathroughitssubsidiaries,publishesvideogames
33
PrivatePlacementFinancings(cont.)
Date Company Amount($M) Investors BusinessDescription09/10/10 OL2 $30.0 Proximus OL2,alsoknownasOnLive,developsandprovidescloudgamingsolutionsandcomputingservices
05/18/10 InnoGames 14.5 EightRoadsVentures InnoGamesdevelopsandpublishesbrowserbasedonlinegames
05/18/10 RunicGames 8.4 PerfectWorldEntertainment RunicGamesdevelopscomputergames.ItoffersTorchlight,anactionrole-playing-gameforthePCs
05/18/10 Gaikai 10.0 BenchmarkCapital;RusticCanyonPartners;LimelightNetworks
Gaikaiprovidesnetworkinfrastructureandsoftwaredesignservicesforcloudstreamingvideogameservices
05/13/10 OL2 30.0 BTGroup OL2,alsoknownasOnLive,developsandprovidescloudgamingsolutionsandcomputingservices
05/10/10 Sifteo 9.0 TrueVentures;FoundryGroup Sifteodevelopsinteractivegamesystemsforadultsandchildren
03/02/10 TechlinkEntertainment
5.0 NSBIVentureCapital TechlinkEntertainmentdesigns,develops,andmanufacturesgamingtechnologiesforthegamingindustry
02/22/10 DarkWorks 5.4 DéveloppementetPartenariat DarkWorksoperatesasavideogamedevelopmentstudio
02/04/10 PacificGamingInvestments
5.0 Straitwey DFNNoffersonlineandlandbasedgamingsolutions
01/20/10 ShanghaiStormInformation
20.0 ShenzhenFortuneVentureCapitalManagement
ShanghaiStormInformationTechnologydevelopsandoperatesonlinegamesinChina
34
CHINESEM&AACTIVITYOVERVIEW
ChineseCompanies’M&AAcCvityIncreasingDramaCcally
VolumeandNumberofChineseTechM&ATransacCons
36
SelectedM&ATransacCons–ChineseandInternaConalPartner
RepresentsChinese-basedbuyersengaginginGamingtransacConsoutsideofChina
Date Buyer TargetTransactionValue($M)
TV/RevMultiple BusinessDescription
02/05/2016 VtechHoldings LeapFrogEnterprises
$93.3 0.2x LeapFrogEnterprisesdesigns,develops,andmarketstechnology-basedlearningproductsandrelatedproprietarycontentforchildrenworldwide
02/01/2016 BeijingJetsenTechnology
AuroTechnologies 28.0 NA AuroTechnologiesmanufacturesaudioequipmentthatincludeintegrated3Dsoundprocessors
01/05/2016 LeyouTechnologies DigitalExtremes 46.8 NA DigitalExtremesdevelopsfirst-personactiongameswithonlinemultiplayercomponentsforpc,consoleandmobileusers
09/09/2015 XiamenTaiHeXinYing
ZapakMobileGames
15.0 NA ZapakMobileGamesdevelopsandpublishesmobileandonlinegames
08/26/2015 BeijingJinxingRongdaInvestmentManagement
FLMobile 624.0 NA FLMobilethroughitssubsidiariesengagesinmobilegamepublishingandoperation
06/25/2015 KeeEverBrightDecorative
MMOGA 343.1 NA MMOGAoperatesamediationplatformthatsellskeys,gamecards,onlinegames,virtualcurrencies,gold,powerlevelingorguidesforguildwars,andotherproductsforonlinegames
06/30/2014 LeyouTechnologies;PerfectOnline
DigitalExtremes 73.2 4.7 DigitalExtremesdevelopsvideogames
07/26/2013 LeonardGreen&Partnersandothers
ActivisionBlizzard 2,338.8 2.1 ActivisionBlizzarddevelopsandpublishesonline,personalcomputer(PC),videogameconsole,handheld,mobile,andtabletgamesworldwide
11/20/2012 IDGCapitalPartners
MEMSIC 108.8 1.3 MEMSICprovidessemiconductorsensorandsystemsolutionsbasedonintegratedmicroelectro-mechanicalsystems(MEMS)technologyandmixedsignalcircuitdesign
09/20/2010 SBChinaVentureCapitalandothers
CyWeeGroup 7.0 NA CyWeeGroupprovideswireless,motionprocessing,andtechnologysolutionsformobiledevices,personalcomputers,andhomeentertainmentsectors
09/08/2010 ShandaGames EyedentityGames 95.0 NA EyedentityGamesdevelopsonlineandmobilegames
75thPercentile $225.9 2.8xMean 343.0 2.1Median 93.3 1.7
25thPercentile 37.4 1.0
37
Date Buyer Target BusinessDescription
07/30/2015 TalkwebInformationSystem
GAE GAEdevelopsmobilegames
05/13/2015 TencentHoldings PocketGems PocketGemsdevelopsfree-to-playsocialgamesformobiledevices
02/04/2013 AspectGaming LongshotInteractive LongshotInteractivedevelopscasinogames
09/30/2012 CattertonPartners;ClearVuePartners
SteelSeries SteelSeriesprovidesgaminggearandperipheralsforprofessionalgamersworldwide
02/07/2012 TencentHoldings ZAMNetwork ZAMNetworkprovidesmassivelymulti-playeronline(MMO)gaminginformationontheWeb
11/22/2010 TheZJFGroup FireComms FireCommsmanufacturesfiberopticproductsandopticaltransceivers
09/10/2010 SantaroHoldings SantaroInteractiveEntertainment
SantaroInteractiveEntertainmentCompany,adevelopmentstagecompany,focusesondevelopingandoperatinginteractiveonlinegamesbasedonitsproprietarycharacteradaptedgamingplatform
RepresentsChinese-basedbuyersengaginginGamingtransacConsoutsideofChina 38
SelectedM&ATransacCons–ChineseandInternaConalPartner
WCPEXPERIENCEHIGHLIGHTS
WCPVideoGameCaseStudies
§ MMOGAisaGermany-basedonlineretailerofdigitallicensecodesandvirtualgoods,withproductsrangingfromgamecardstodebitcardsandvirtualcurrency
§ KeeEverBrightDecoraCveTechnology(“KEBDT”),basedinChina,manufacturescoaCngandsurfacedecoraCngmaterial
§ AngermannM&AInternaConalactedasthesoleadvisortoMMOGAandledaglobalaucConprocess,includingmulCpleMAIfirms,whichresultedintheacquisiConbyKEBDT
§ OneofMAI’sChina-basedfirms,HFGPartners,knewKEBDTandmadetheiniCaloutreachonbehalfofMMOGA
§ ThiscollaboraConisahallmarkexampleofthestrengthandeffecCvenessoftheMAInetwork
§ AcquisiConRaConale:UponacquiringMMOGA,KEBDTintendstoshiithescopeofitscorebusinessfrommanufacturingtoe-commerceanddigitalmedia
§ PhoenixAgeisaSanFrancisco-based,gamingcompanyspecializinginsocial(Facebook)andmobile(iOS)pla`orms.FlagshipCtlesincludeCastleAge,atext-basedfantasyrole-playinggame,andUnderworldEmpire
§ WoodsideCapitalPartnersactedasthefinancialadvisortoPhoenixAgethroughouttheprocess,resulCngulCmatelyintheacquisiConbyKabam
§ AcquisiConRaConale:KabamgivesPhoenixAgeaccesstoKabam’sexperCse,resources,andinfrastructuretosupportgreatersuccessofitsgamesglobally.
§ PhoenixAge’sabilitytocreateroleplayinggameswillhelpKabamexpanditscatalogueandachieveglobalsuccessinanewgamegenre
HASBEENACQUIREDBY
HASBEENACQUIREDBY
20112011
JUNE2015
MARCH2014
40
WCPExperiencewithAsianCompaniesandInvestors
§ BionXMedicalTechnologiesisaMassachusers-based,manufacturerofprostheCcdevicesthatfocusesprimarilyonbionicsoluConsthatrestorenormalizedfuncConandqualityoflifeforpeoplewithamputaCons
§ WCPuClizeditspartnershipwithinM&AInternaConaltoconnectwithChinese-basedinvestors,whomaynothavepreviouslymadeinvestmentsinU.S.ortechnology-basedcompanies
§ TheprocessresultedinWCPraising$10MofSeriesEcapitalfromzParkShiner,itsfirstUSinvestment
§ InvestmentRaConale:zParkShineriskeentoinvestinSiliconValley’sgrowingmedicaltechnologyindustry
§ CaliopaisaBelgium-baseddeveloperandmarketerofsiliconphotonicsbasedopCcaltransceiversforthedataandtelecomsmarkets
§ WCPiniCallyranaprocesstoseekastrategicinvestortosupportoperaConsandtechnologydevelopment
§ TheprocessulCmatelyresultedinasaleofthecompanytoHiSilicon,asubsidiaryofHuawei
§ AcquisiConRaConale:DevelopHuawei’sexisCngSiliconPhotonicspla`ormfortelecomswhilstgainingaccesstoCaliopa’sstrongrelaConshipswithImecandUniversityofGhent
§ CIPisaworld-classR&DcentreandincubatorinfiberopCctransmission
§ WCPwasappointedbyEEDA(EastofEnglandDevelopmentAgency)torunanacceleratedcompeCCvesaleprocess
§ TheprocessresultedinaniniCalstrategicinvestmentandsaleofthecompanytoHuawei.TheexisCngCIPR&DteamwasretainedbyHuaweitoformthecoreofHuawei’sUKR&Dcentre
§ AcquisiConRaConale:SignificantlydeepenopCcalHuawei’sR&DcapabiliCesanddemonstrateitsongoingcommitmenttoR&DintheUK
HASBEENACQUIREDBY
20112011
SEPTEMBER2013
JANUARY2016
JANUARY2012
41
HASBEENACQUIREDBY
20112011
CAPITALRAISE
20112011
§ WoodsideCapitalPartnersispresentlyadvisingProjectExchange,anad-techcompanywithoperaConsinNorthAmericaandEuropethatisbeingacquiredbyaChinesecompany
§ TheCompanymanagesareal-CmeadexchangeformobileadverCsing,andalsooffersasupply-sidepla`ormtoenablemobilewebandmobileapppublisherstomoneCzetheiradinventory
§ WCPobtainedlerersofintentfrommulCpleEuropean,U.S.andAsianpartners,leadingtothedecisiontoproceedwithaChinesepartner.ThetransacConiscurrentlyinduediligencewithclosingexpectedinQ22016
WCPSELL-SIDEMANDATE
PENDING-SPRING2016
PROJECTEXCHANGE
Date Buyer Target BusinessDescription11/24/2015 Perk.com PlayerizeNetwork Operatesvirtualcurrencymonetizationplatformforonlinegameandapplicationspublishers
10/18/2015 KEEEverBrightDecorativeTechnology
MMOGA Operatesamediationplatformthatsellskeys,gamecards,onlinegames,virtualcurrencies,gold,powerlevelingorguidesforguildwars,andotherproductsforonlinegames
02/25/2015 PrivateInvestors AxionGames China-baseddeveloperofhighqualityonlinegameswithadvanced3D,graphicsformobile,PC,andconsoleplatforms
03/04/2014 Kabam PhoenixAge Gamingstartupspecializinginmobileandsocialplatforms.TheCompanyhasservedover15Mill ionusers.ItsgamesincludeCastleAgeandUnderworldEmpire
01/09/2012 AmericanGamingSystems
BluberiGaming&Technologies
Develops,creates,andcommercializescasinogamesandgamethemes.Itsgamesinclude;LuckyPot,Lucky5Jackpot,Lihwa'sFortune
10/30/2010 TriactaInvestmentGroup
ForeignMediaGames DevelopsanddistributesconsolegamesfortheNintendoplatformandPCgames
11/04/2009 RationalEntertainment(dbaPokerStars)
CecureGaming Developscasinoandpokersoftwareformobilephones
WCP&MAI–VideoGameIndustryTransacCons(1)
Note:(1)AlltransacConswerebetweenprivatecompaniesandtheirTransacConValuesandRevenueMulCpleswerenotpubliclydisclosed.
SALEOFCOMPANYSALEOFCOMPANY
SALEOFCOMPANY SECONDARYSALE SALEOFCOMPANY SALEOFCOMPANY SALEOFCOMPANY SALEOFCOMPANY
PRIVATEINVESTORS
42
WCPCONTACTINFORMATION
RonHellerManagingDirector+16505132762
RudyBurgerManagingPartner,ManagingDirector
WCPContactInformaCon
44
SiliconValleyOffices1950UniversityAve,Suite150PaloAlto,CA94303Tel:+16505132775UKOfficesRiverbankHouse2SwanLane,7thFloorLondon,EC4R3TT
Tel:+442079290248
SiliconValleyandUKPresence
45
DISCLAIMER
46
Disclaimer: The Information and opinions in this report have been prepared by Woodside Capital Securities, LLC. This report is for our clients only. This report is intended only for the personal and confidential use of the designated recipient(s). If you are not the intended recipient of this report you are hereby notified that any review, dissemination, distribution or copying of this report is strictly prohibited. Further information on any of the above securities may be obtained from our offices. This report is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any state where such an offer or solicitation would be illegal. Other than disclosures relating to Woodside Capital Securities, LLC the information herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a complete statement or summary of the available data. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. Periodic updates may be provided on companies/industries based on company specific developments or announcements, market conditions or any other publicly available information. Important Disclosures: Woodside Capital Securities, LLC is not a market maker in any securities mentioned in this report. Woodside Capital Securities, LLC its officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned in this report. Woodside Capital Securities, LLC compensates individuals for activities and services intended to benefit the firm's investor clients. Compensation determinations for individuals, including the author(s) of this report, are based on a variety of factors, and may include the overall profitability of the firm and the revenues derived from all sources, including revenues from investment banking. Woodside Capital Securities, LLC is a registered broker-dealer and member of FINRA (www.finra.org) and SIPC (www.sipc.org). Woodside Capital Securities, LLC is an affiliate of Woodside Capital Partners International, LLC and Woodside Capital Partners UK, LLP. One or more of the companies mentioned in this report may be clients of Woodside Capital Securities, LLC, Woodside Capital Partners International, LLC or Woodside Capital Partners UK, LLP
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