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Video Game Briefing - 2012 Annual review

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					Video Game Briefing

2012 – Year in Review

    January 2013
                                                                                            Avista
Video Game Briefing                                                                         Partners

Table of Contents

2011 Year in Review
        Highlights
        Breakdown of value by sub sector for public game companies
        Breakdown of All Deals by sub-sector for 2012
        Breakdown of M&A Deals by sub-sector for 2012
        Breakdown of All Venture Capital Fundraising Deals by sub-sector for 2012
        Breakdown of All Venture Capital Fundraising Deals by region for 1997 to 2012
        Summary of All Venture Capital Fundraising by Year for Online Games
        Summary of All Venture Capital Fundraising by Year for Mobile Games
        Top 10 Largest Companies by Market Cap
        Top 10 Best & Worst Performing Companies for Share Performance in 2012
        Breakdown of All Global Exits/IPOs by region for 1997 to 2012
        Game Index Performance by sub-sector for 2012
        Game Index Performance by region for 2012
        Stock Comps (by sector & ranked by enterprise value):
                 PC/ Console Game Publishers/ Developers
                 Game Distributors/ Accessory Companies
                 Game Outsourcing Companies
                 Payment Companies
                 Mobile Game Companies
                 Online Game Companies
        M&A Comps (LTM & ranked by date) listing all transactions in 2012:
                 Mobile Game M&A Comps
                 Game Distribution/ Accessory M&A Comps
                 Game Technology/ Middleware M&A Comps
                 Game Outsourcing M&A Comps
                 Payment M&A Comps
                 PC/ Console Game M&A Comps
                 Online Game M&A Comps
        Fundraising Comps (LTM & ranked by date) listing all transactions in 2012:
                 PC/ Console Game Fundraising Comps
                 Payment/ Offer/ Analytics Fundraising Comps
                 Mobile Game Fundraising Comps
                 Game Hardware Fundraising Comps
                 Game Technology/ Middleware Fundraising Comps
                 Online Game Fundraising Comps




January 2013                Source: Capital IQ, Company Filings, Brokers & Press        2
                                                                                                                                                                                                                 Avista
  Video Game Briefing                                                                                                                                                                                            Partners

About Avista Partners LLP
Avista Partners is an independent investment banking firm that brings deep sector expertise, global relationships, and world class transaction experience in the digital
media and luxury sectors. Our global network is based on strong relationships with senior management at companies and media investors in our core sectors including
venture capitalists, private equity firms, hedge funds, family offices & institutional investors. We provide our clients with the following services: Capital Markets Advisory;
Mergers & Acquisitions; Restructuring; and Financial & Strategic Advisory.

Our team has worked on a variety of transactions including cross-border M&A, IPO's, convertible bonds, private placements and strategic advisory with many game and
digital media companies including: PlayJam, Unity Technologies, Channel Four, Infogrames, Ubisoft, Canon Europe, Criterion Software, Endemol, Teliasonera
International Carrier, and Lionhead.

This note has been prepared and issued by Avista Partners LLP which is authorized and regulated by the FSA. Any information in this note is based on data obtained from sources considered to be reliable, but no representations or
guarantees are made by Avista Partners with regard to the accuracy of the data. This note is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of, any of the
securities mentioned in this note. This note is intended solely for distribution to professional and business contacts of Avista Partners. It is not intended to be distributed to private investors or private customers. Avista Partners accepts
no responsibility or liability whatsoever for any expense, loss or damages arising out of or in any way connected with the use of all or any part of this report. No part of this material may be (i) copied, photocopied or duplicated in any
form by any means or (ii) redistributed without Avista Partners LLP's prior written consent.




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                                                                                                  www.avistapartners.com




  January 2013                           Source: Capital IQ, Company Filings, Brokers & Press                                                         3
                                                                                                                                                      Avista
Video Game Briefing                                                                                                                                   Partners

2012 – Year in Review
Highlights:
    558 Deals valued over $8.7 bn in global sector
    Over $5.7 bn of value was created for VC/PE Investors and/ or Founders through Exits and IPOs
    Over $4.2 bn of M&A deals in global sector in 180 deals with online games representing 56.9% of that total
    Over $1.2 bn total venture capital raised in global sector with online games representing 36.8% of that total
    The Online Game Index was the best performing game sector index at +17.3%;The Europe Game Index was the best performing regional game index at +14.3%
    Ourpalm completed the largest IPO raising $103.7m
    Zynga completed the largest secondary equity offering raising $515.6m
    Tencent completed the largest fixed income offering raising $598.6m
    Total value of all public game companies in the sector is: $153.7 bn

Breakdown of value by sub sector for public game companies (USD$ millions)
                   Distribution/Accessories,        Outsourcing, $408
                                                                             Payment, $717
                              $538




                                                                                     PC/Console w/o
                                                                                    Nintendo, $41,752




                                    Online, $90,226                                                      Nintendo, $4,297
                                                                                      Mobile, $12,980




                                                                                             Retail, $2,817




January 2013                Source: Capital IQ, Company Filings, Brokers & Press                                       4
                                                                                                Avista
Video Game Briefing                                                                             Partners

Breakdown of All Deals by sub-sector for 2012
                                         Retail Outsourcing        PC/Console
                                         0.0%      0.0%               0.1%


                                         Payment/
                                       Offer/Analytics
                                           10.4%
                                                                                   Mobile
                                                                                   26.8%
      Distribution
          0.0%         Game Technology
                           10.0%
   Game Hardware
       0.4%




                                               Online
                                               52.3%




January 2013                Source: Capital IQ, Company Filings, Brokers & Press            5
                                                                                              Avista
Video Game Briefing                                                                           Partners

Breakdown of M&A Deals by sub-sector for 2011
                            Distribution PC/Console
                                0.0%        0.1%
                     Hardware
                       0.0%
                                     Payment
                                       5.4%


                                                                             Mobile
                                                                             27.2%




                                                                        Game Technology
                                                                            10.5%
                  Online
                  56.9%




January 2013               Source: Capital IQ, Company Filings, Brokers & Press           6
                                                                                                             Avista
Video Game Briefing                                                                                          Partners

Breakdown of All Venture Capital Fundraising Deals by sub-sector for 2011
                                 Retail     Outsourcing        PC/Console           Game
                                 0.0%          0.0%               0.1%             Hardware
                                                                                     1.7%




                                                                                              Mobile
                                                                                              25.3%
                        Online
                        36.8%




                                                                                       Game Technology
                                                                                            8.4%




                                                         Payment/Offer/
                                                            Analytics
                                                             27.7%




January 2013                Source: Capital IQ, Company Filings, Brokers & Press                         7
                                                                                                                                                               Avista
Video Game Briefing                                                                                                                                            Partners

Breakdown of All Venture Capital Fundraising Deals by region for 1997 to 2011
 2,500.0




 2,000.0




 1,500.0




 1,000.0




   500.0




     0.0
               1997    1998         1999         2000         2001          2002      2003       2004       2005      2006         2007   2008   2009   2010   2011   2012

                                                                                 North America     Europe      Asia/ Pacific


January 2013                  Source: Capital IQ, Company Filings, Brokers & Press                                             8
                                                                                                                                                           Avista
Video Game Briefing                                                                                                                                        Partners

Summary of All Venture Capital Fundraising by Year for Online Games

      1600.0                                                                                                                                                          160
                                                                                                                                                    148        149

      1400.0                                                                                                                                                          140
                                                                                                                                                    1342.7

                                                                                                                          1226.2
                                                                                                                                           117
      1200.0                                                                                                                                                          120
                                                                                                                    116            109


      1000.0                                                                                                                                998.7                     100



       800.0                                                                                                                       769.4                              80


                                                                                                                    66
       600.0                                                                                                                                                          60
                                                                                   529.0
                                                                                                                                                              456.6

       400.0                                                                                               40   375.7                                                 40
                           312.9
                                                                                                        300.5
                                                                                            258.1
                                                                   209.8
       200.0     161.3                                                                             22                                                                 20
                                                                                       17
                                                                              11
                                          49.8
                      6           4                  26.2
                                                   4     3
          0.0                                                                                                                                                         0
                 1999       2000         2001           2002          2003         2004     2005        2006    2007      2008     2009    2010     2011      2012

                                                                                               Year



January 2013               Source: Capital IQ, Company Filings, Brokers & Press                                     9
                                                                                                                                                                    Avista
Video Game Briefing                                                                                                                                                 Partners

Summary of All Venture Capital Fundraising by Year for Mobile Games


       350.0                                                                                                                                                                   120
                                                                                                                                                                   314.1
                                                                                                                                                                114

       300.0
                                                                                                                                                                               100
                                                                                                                                                            266.5

       250.0
                                                                                                                                                                               80

                                                                                  198.4                                                                68
       200.0
                                                                                                                                               174.0
                                                                                                                                                                               60
                                                                                                                 151.5
       150.0
                                                                                                        124.2                          120.3
                                                                                              121.8
                                                                                                                                                                               40
       100.0                                                                                                                 79.6 31              34


                            62.6                                                         23
                                                                           18                     22                                                                           20
        50.0                              49.1                                                              20          23
                              8            6                          28.6
                                                       20.7
                 2
                 0.7                               6             4
          0.0                                                                                                                                                                  0
                 1999      2000          2001          2002          2003         2004        2005      2006     2007        2008      2009    2010         2011      2012

                                                                                                 Year



January 2013               Source: Capital IQ, Company Filings, Brokers & Press                                         10
                                                                                                                                      Avista
Video Game Briefing                                                                                                                   Partners

Top 10 Largest Companies by Market Cap (USD$ millions)
 70,000.0

                                                               $120.3bn mkt cap value for Top 10 companies
                                                               represents 78.3% of all mkt cap value
 60,000.0




 50,000.0




 40,000.0




 30,000.0




 20,000.0




 10,000.0




       0.0
               Tencent      Nintendo          Activision           NetEase       DeNA   Nexon   EA        Sega Sammy   Gree   Namco Bandai     Konami
                                               Blizzard                                                                        Holdings Inc.



January 2013              Source: Capital IQ, Company Filings, Brokers & Press                       11
                                                                                                                    Avista
Video Game Briefing                                                                                                 Partners

Top 10 Best & Worst Performing Companies for Share Performance in 2012

Top 10 Best Performing                    2012 % change               Top 10 Worst Performing      2012 % change
GungHo Online Entertainment, Inc.                 396.3              THQ Inc.                          -96.2
YD Online Corp.                                   186.4              Funcom N.V.                       -87.5
Actoz Soft Co., Ltd.                              186.2              TransGaming Inc.                  -82.7
X-Legend Entertainment Company Ltd.               156.5              Zynga, Inc.                       -74.9
NetDragon WebSoft, Inc.                           152.9              Entertainment Games, Inc.         -72.7
G5 Entertainment AB (publ)                        128.4              Star Vault AB                     -69.3
Com2uS Corporation                                120.5              JCEntertainment Corporation       -58.6
Kingsoft Corporation Limited                      94.5               The9 Limited                      -58.6
Marvelous AQL Inc.                                93.6               Majesco Entertainment Co.         -56.6
Joymax Company Ltd.                               83.0               Gala Incorporated                 -55.9




January 2013               Source: Capital IQ, Company Filings, Brokers & Press                                12
                                                                                                                                                                   Avista
Video Game Briefing                                                                                                                                                Partners

Breakdown of All Global Exits/IPOs by region for 1997 to 2012
 20,000.0

                                                                     $44bn value created for VC/PE investors
 18,000.0
                                                                     and/or founders since 1997;
 16,000.0


 14,000.0


 12,000.0


 10,000.0


   8,000.0


   6,000.0


   4,000.0


   2,000.0


        0.0
                  1997          1998         1999         2000         2001         2002        2003       2004      2005      2006    2007   2008   2009   2010     2011     2012

                                                                                           North America    Europe     Asia/ Pacific

Note: Only deals where PE/VC investors or founders were selling or benefiting


January 2013                        Source: Capital IQ, Company Filings, Brokers & Press                                          13
                                                                                                                                                                                              Avista
Video Game Briefing                                                                                                                                                                           Partners

Recent M&A Deals
                                                                                 Total                                                 Implied             Implied        Implied       Implied
                                                                       Transaction                                                  Enterprise Enterprise Value/        Enterprise   Enterprise
Date           Target/Issuer                                           Value ($mm) Buyers/Investors                                Value ($mm)        Revenues       Value/EBITDA    Value/EBIT     Location
Online Games
12/27/2012     Buffalo Studios                                              -            Caesars Interactive Entertainment             -              -                   -             -                USA
12/21/2012     entersphere Inc.                                           1.01           Marvelous AQL Inc. (TSE:7844)               1.92           0.458                 -           32.12             Japan
12/17/2012     Gamepot Inc.                                                 -            Aeria Games & Entertainment, Inc.             -              -                   -             -               Japan
12/17/2012     Hammerpoint Interactive                                      -            Arktos Entertainment Group Inc.               -              -                   -             -                USA
12/13/2012     Rhaon Entertainment Co., Ltd.                              6.52           Nowcom Co., Ltd. (KOSE:A067160)            32.61              -                  -             -         South Korea
12/12/2012     NC Interactive, Inc.                                      72.99           -                                          72.99              -                  -             -                USA
12/05/2012     Berryman Capital Group Ltd.                                1.2            -                                            6                -                  -             -                BVI
12/04/2012     4Players GmbH                                                -            Computec Media AG (DB:CMD)                   -                -                  -             -            Germany
12/04/2012     So-net Entertainment Corporation (TSE:3789)               71.19           Sony Corporation (TSE:6758)               1564.63           1.34               8.53          10.97            Japan
11/29/2012     Great Outdoors, LLC                                         -             iEntertainment Network Inc. (OTCPK:IENT      -                -                  -             -                USA
11/26/2012     Product Madness, Inc.                                       -             Aristocrat Leisure Ltd. (ASX:ALL)            -                -                  -             -                USA
11/23/2012     Drimmi LLC                                                  -             Webgames                                     -                -                  -             -              Russia
11/14/2012     Telaxo                                                      -             Groupe Concoursmania                         -                -                  -             -             France
11/12/2012     UnitedGames B.V.                                            -             Many Players SAS                             -                -                  -             -         Netherlands
10/31/2012     Baobab Planet S.L.                                        0.518           -                                            -                -                  -             -              Spain
10/26/2012     gamigo AG                                                   -             Samarion S.E                                 -                -                  -             -            Germany
10/25/2012     Beijing Gamegoo Information Technology Co.,               165.9           Chengdu B-ray Media Co. Ltd.                237               -                  -             -              China
10/16/2012     Blue Mammoth Games (50%)                                    -             Xaviant                                      -                -                  -             -                USA
10/04/2012     KOG Games Inc.                                              -             KOG Corporation                              -                -                  -             -                USA
10/01/2012     Popover Games, Inc. and Foghorn Games, LLC                  -             Titan Gaming Inc.                            -                -                  -             -                USA




January 2013                         Source: Capital IQ, Company Filings, Brokers & Press                                                    14
                                                                                                                                                                                             Avista
Video Game Briefing                                                                                                                                                                          Partners

Recent M&A Deals (cont’d)
                                                                                Total                                                 Implied             Implied        Implied       Implied
                                                                       Transaction                                                 Enterprise Enterprise Value/        Enterprise   Enterprise
Date           Target/Issuer                                           Value ($mm) Buyers/Investors                               Value ($mm)        Revenues       Value/EBITDA    Value/EBIT   Location
Mobile Games
12/14/2012     Star Filled Studios Inc.                                    -            Valve Corporation                            -                -                  -             -              USA
12/04/2012     TapMe, Inc.                                                 -            MediaMath Inc.                               -                -                  -             -              USA
12/03/2012     Balanced World Studios                                      -            Kabam                                        -                -                  -             -            China
11/26/2012     Daily App Dream Ltd.                                        -            Entertainment Arts Research Inc.             -                -                  -             -               UK
11/20/2012     Plunge Interactive S.L.                                     -            LleidaNetworks Serveis Telemàtics, S.L.      -                -                  -             -            Spain
11/14/2012     Apptivations LLC                                            -            Whitewater West Industries Ltd.              -                -                  -             -             USA
11/09/2012     November Software, LLC                                      -            Zynga, Inc. (NasdaqGS:ZNGA)                  -                -                  -             -              USA
11/07/2012     Cygames, Inc.                                             92.63          DeNA Co., Ltd. (TSE:2432)                  385.47             -                  -             -            Japan
11/05/2012     Istpika Co., Ltd.                                           -            Infocom Corporation (JASDAQ:4348)            -                -                  -             -            Japan
11/01/2012     Digital Goldfish Limited                                    -            Kaiparasoft Ltd                              -                -                  -             -               UK
10/24/2012     Pokelabo, Inc.                                            173.76         Gree, Inc. (TSE:3632)                      173.76             -                  -             -            Japan
10/01/2012     gloops, Inc.                                             467.59          Nexon Co. Ltd. (TSE:3659)                  467.59           1.54                 -            6.23          Japan
Game Technology
12/13/2012     Game Minion                                                 -            Corona Labs Inc.                             -                -                  -             -              UAE
11/28/2012     Rocketbox Studios GmbH                                      -            Telekinesys Research Limited                 -                -                  -             -          Germany
Payment/ Offers/ Analytics
12/27/2012     Infocomm Asia Holdings Pte. Ltd., Proprietary              2.0           Corous360 Private Limited                   2.0               -                  -             -         Singapore
Game Distribution
10/17/2012     Fillpoint, LLC, Video Game Publishing and                  2.0           Longtail Enterprises Inc.                   2.0               -                  -             -              USA




January 2013                         Source: Capital IQ, Company Filings, Brokers & Press                                                   15
                                                                                                                                                                                 Avista
Video Game Briefing                                                                                                                                                              Partners

Recent Fundraising Deals
                                                                                        Total
                                                                                 Transaction
Date           Target/Issuer                              Transaction Type       Value ($mm)                                                                                Investors    Location
Online Games
12/29/2012     Mangatar                                   Private Placement               -                                                                                   dPixel          Italy
12/18/2012     Infernum Productions                       Private Placement               -                                                                              Koch Media       Germany
12/11/2012     Kabam, Inc.                                Private Placement               -                         Metro-Goldwyn-Mayer Studios Inc.; Warner Bros. Enterprises LLC            USA
12/03/2012     Fix Fit                                    Private Placement               -                                                                           BVM Capital             USA
11/30/2012     Olympus Entertainment LLC                  Private Placement             0.75                                                                                     -            USA
11/29/2012     plyfe, inc.                                Private Placement             0.75                                                   Crosscut Ventures Management, LLC         USA
11/26/2012     Merrywind, Inc.                            Private Placement             0.03                                                                            SparkLabs South Korea
11/23/2012     Galaxy Gate Co., Ltd.                      Private Placement             0.46                                             M-Venture Investment Inc. (KOSE:A019590) South Korea
11/20/2012     TransGaming Inc. (TSXV:TNG)                Private Placement             1.81                                                                                         -      Canada
11/19/2012     Entellect Limited (ASX:ESN)                Private Placement             0.52                                                                                         -    Australia
11/14/2012     Interactive Project Srl                    Private Placement              0.51                                                                          LVenture Srl            Italy
11/12/2012     Appsindep                                  Private Placement              1.86                                                        TMT Investments PLC (AIM:TMT)           Russia
11/09/2012     Duckie Deck Development Sp. z o.o.         Private Placement             0.153                                                              SATUS Venture Sp. z o.o.         Poland
11/07/2012     Mavenhut                                   Private Placement             0.654                                                                         SOS Ventures          Ireland
11/05/2012     Infiniteworld Co.,Ltd.                     Private Placement               -               GSR Ventures Management Co. Ltd.; Beijing Genesis Venture Capital Co.,Ltd.         China
11/05/2012     Pro 3 Games                                Private Placement               -                                                                   iVentureCapital GmbH          Austria
11/01/2012     Hive Mind, Inc.                            Private Placement              10                                                        Electronic Arts Inc. (NasdaqGS:EA)         USA
10/30/2012     Pug Pharm Productions Inc.                 Private Placement               1                                                                       Goal Holdings Group       Canada
10/29/2012     Meteor Entertainment, Inc.                 Private Placement              18     Benchmark Capital; FirstMark Capital, L.L.C.; Rustic Canyon Partners; Kongzhong Corp.         USA
10/24/2012     SuperBetter Labs, Inc.                     Private Placement              0.1                                                                              Rock Health         USA
10/22/2012     graFighters, Inc.                          Private Placement             0.03                                                                                        -         USA
10/17/2012     Tista Games                                Private Placement               -                                                                          Militello Capital        USA
10/15/2012     YY Inc.                                    Public Offering               81.9                                                                                         -       China
10/04/2012     JumpStart, Inc.                            Private Placement              -                                                   Telesoft Partners; Azure Capital Partners        USA
10/02/2012     Transmension Technology Corporation Private Placement                      -                                                                              Intel Capital       China




January 2013                     Source: Capital IQ, Company Filings, Brokers & Press                                      16
                                                                                                                                                                                                     Avista
Video Game Briefing                                                                                                                                                                                  Partners

Recent Fundraising Deals (cont’d.)
                                                                                   Total
                                                                                Transaction
Date           Target/Issuer                              Transaction Type     Value ($mm)                                                                                          Investors     Location
Mobile Games
12/31/2012     Shanghai Soco software                     Private Placement          -                                                           Shanghai International Group Venture Capital         China
12/14/2012     Gramble                                    Private Placement         2.7                                                                                            Novamedia Netherlands
12/12/2012     We Want To Know                            Private Placement         0.55                                                                                  Jon S. von Tetzchner      Norway
12/10/2012     Mo'Minis, Ltd.                             Private Placement          -                                                                        Gemini Israel Funds; BRM Group          Israel
12/10/2012     MadRat Games                               Private Placement         0.5                                           Blume Ventures, Unitus Seed Fund and First Light Ventures            India
11/28/2012     Boomlagoon                                 Private Placement          -                                                           Jari Ovaskainen and London Venture Partners         Finland
11/21/2012     Playdek, Inc.                              Private Placement         3.41                                                                                                     -          USA
11/16/2012     Hidden Variable Studios, LLC               Private Placement         0.75                                                                                                     -          USA
11/16/2012     Outplay Entertainment Limited              Private Placement          4                                                         The Scottish Investment Bank; Pentech Ventures            UK
11/14/2012     TribePlay Co. Ltd.                         Private Placement         0.7                                                                                                      -        China
11/14/2012     TinyTap                                    Private Placement         0.5                                                                                Inimiti Capital Partners        Israel
11/13/2012     Adictiz SAS                                Private Placement         2.54                                                                                       Omnes Capital         France
11/12/2012     Ogmento, Inc.                              Private Placement         3.02                                                                                                     -          USA
11/12/2012     Playnery                                   Private Placement          3.7                     QUALCOMM Ventures ; SOFTBANK Ventures Korea Inc. ; Stonebridge Capital Inc. South Korea
11/09/2012     Colopl, Inc. (TSE:3668)                    Public Offering          47.61                                                                                               -       Japan
11/08/2012     Quelle Histoire                            Private Placement        0.255                                                                            Paris Business Angels SCR        France
11/07/2012     Enish, Inc. (TSE:3667)                     Public Offering          10.58                                                                                                    -         Japan
11/07/2012     Stray Boots Inc                            Private Placement        2.22                      Milestone Venture Partners; Correlation Ventures; Great Oaks Venture Capital LLC          USA
11/07/2012     MunkyFun Inc.                              Private Placement        3.34                                                                                                     -          USA
11/06/2012     Associate Mobile Ltd                       Private Placement        0.512                                                                                                    -        Ireland
11/05/2012     Spooky Cool Labs LLC                       Private Placement          -                                                                                 The Hearst Corporation           USA
10/25/2012     Connected Sports Ventures, Inc.            Private Placement         4.31                                                                                                  -            USA
10/24/2012     Infantium S.L.                             Private Placement        0.129                                                  Empresa Nacional de Innovación, S.A.; Grupo ItNet           Spain
10/24/2012     SuperBetter Labs, Inc.                     Private Placement         0.1                                                                                           Rock Health           USA
10/23/2012     SOFTGAMES - Mobile Entertainment           Private Placement          -                                   IBB Beteiligungsgesellschaft mbH; Software & Support Media GmbH           Germany
               Services GmbH
10/22/2012     Groupe Interaction Sarl                    Private Placement        0.763                                                                                   NCI Gestion, S.A.S.       France
10/16/2012     Ateam Inc. (TSE:3662)                      Public Offering           53.1                                                                                                     -        Japan
10/15/2012     Breaktime Studios, Inc.                    Private Placement         1.57                                                                                                     -          USA
10/12/2012     Kidaptive                                  Private Placement           -       CrunchFund; Innovation Camp; Menlo Ventures; Prana Holding; S Cubed Capital; Veddis Ventures;             USA
                                                                                                                                                                                    VKRM
10/10/2012     Row Sham Bow, Inc.                         Private Placement         3.54                                                                                                  -             USA
10/09/2012     Ember Entertainment, Inc.                  Private Placement         0.98                                                                                                     -          USA
10/05/2012     Work Play Sleep, Inc.                      Private Placement          1                                                                                                       -          USA
10/04/2012     Curious Hat Inc                            Private Placement         0.25                                                                                         500 Startups           USA
10/02/2012     LIFO Interactive Inc.                      Private Placement          -                                                                                            Intel Capital South Korea

January 2013                        Source: Capital IQ, Company Filings, Brokers & Press                                                  17
                                                                                                                                                                                              Avista
Video Game Briefing                                                                                                                                                                           Partners

Recent Fundraising Deals (cont’d.)
                                                                                       Total
                                                                                Transaction
Date           Target/Issuer                             Transaction Type       Value ($mm)                                                                                              Investors    Location
Payment/ Offers/ Analytics
12/21/2012     Sogamo                                    Private Placement              0.5                                                                                               IncuVest    Singapore
12/19/2012     Smart Balloon, Inc. (Heyzap)              Private Placement             4.31                                                        QUALCOMM Ventures; Union Square Ventures                 USA
12/19/2012     Kamcord, Inc.                             Private Placement              1.5    Digital Garage, Inc. (JASDAQ:4819); netprice.com, Ltd. (TSE:3328); Y Combinator; Merus Capital; XG           USA
                                                                                               Ventures; Google Ventures; Andreessen Horowitz; Plug and Play Tech Center; Tencent Holdings Ltd.,
                                                                                                                                              Investment Arm; iVentureCapital GmbH; GVA Capital
12/12/2012     Applifier Ltd.                            Private Placement              4              MHS Capital Partners; PROfounders Capital; Lifeline Ventures Oy; Webb Investment Network          Finland
11/30/2012     P4RC, INC                                 Private Placement             1.25                                                                                                       -         USA
11/15/2012     Lookout Gaming                            Private Placement              1.3                   Atlas Venture, NextView Ventures, Mark Jung, Jeff Natland and other angel investors           USA
11/13/2012     Medium Entertainment, Inc.                Private Placement              8                              e.ventures; GGV Capital; Tandem Entrepreneurs Management Services, LLC.              USA
11/06/2012     Trademob                                  Private Placement              15                                   Kennet Partners, Tengelmann Ventures and High-Tech Gründerfonds           Germany
11/01/2012     Flurry, Inc.                              Private Placement              25       Draper Fisher Jurvetson; Draper Richards, L.P.; InterWest Partners LLC; Menlo Ventures; CrossLink          USA
                                                                                                                                          Capital, Inc.; Union Square Ventures; First Round Capital
10/26/2012     Kamcord, Inc.                             Private Placement               -                                                                                  iVentureCapital GmbH            USA
10/21/2012     Rixty, Inc.                               Private Placement               -                                                                             MOL AccessPortal Co., Ltd.           USA
10/10/2012     Grantoo, LLC.                             Private Placement              1.7                                                                                                       -         USA
Game Hardware
12/04/2012     Green Throttle Games, Inc.                Private Placement              6.0                                                                                 Trinity Ventures; DCM           USA




January 2013                    Source: Capital IQ, Company Filings, Brokers & Press                                                   18
                                                                                                                                                         Avista
Video Game Briefing                                                                                                                                      Partners

Recent Fundraising Deals (cont’d.)
                                                                                        Total
                                                                                 Transaction
Date            Target/Issuer                             Transaction Type       Value ($mm)                                                        Investors    Location
PC/ Console
12/18/2012      Ubisoft Entertainment SA                  Public Offering               26.51                                                                -      France
                (ENXTPA:UBI)
10/22/2012      City Interactive Spólka Akcyjna           Public Offering               1.74                                                                 -      Poland
                (WSE:CIA)
10/17/2012      Little Orbit Inc.                         Private Placement               -                     METRIX Capital Group, LLC, Investment Arm             USA
Game Retailer
05/24/2012      Game Nation, Inc.                         Private Placement              0.5                                                                 -        USA
Outsourcing
10/16/2012      Poletowin Pitcrew Holdings, Inc.          Public Offering               26.63                                                                -       Japan
10/03/2012      LionWorks S.A.                            Private Placement               -                                                      PeopleFund      Guatemala
Game Technology
12/13/2012      ePawn                                     Private Placement             1.31                                                    Elaia Partners      France
12/05/2012      Namaste Inc.                              Private Placement             0.82                              Kima Ventures; Playfair Capital Inc.      France
11/13/2012      Corona Labs Inc.                          Private Placement              2                    Western Technology Investment; Merus Capital            USA
11/13/2012      Golaem S.A.                               Private Placement             0.674   BNP Paribas Private Equity SAS; IT Translation Investissement       France
11/12/2012      Swrve New Media Inc.                      Private Placement             6.25                                    Intel Capital; Atlantic Bridge        USA
10/03/2012      Lanica, Inc.                              Private Placement               -                                                Appcelerator, Inc.         USA
10/01/2012      Goo Technologies AB                       Private Placement               -                                                           PunktB       Sweden




January 2013                     Source: Capital IQ, Company Filings, Brokers & Press             19
                                                                                                                                                                            Avista
Video Game Briefing                                                                                                                                                         Partners

Key developments in Game Sector (global to 31 December 2012):
Date           Com pany Nam e(s)                                             Key Developm ent Headline
Dec-31-2012    NetDragon WebSoft, Inc. (SEHK:777)                            NetDragon Mulls Listing Of Wireless Business
Dec-21-2012    Funcom N.V. (OB:FUNCOM)                                       Claus Højbjerg Andersen Resigns from the Board of Funcom N.V
Dec-20-2012    Mad Catz Interactive Inc. (AMEX:MCZ)                          Ships Tekken Tag Tournament 2 Arcade FightStick Tournament Edition
Dec-20-2012    Nintendo Co. Ltd. (OSE:7974)                                  Nintendo Co. Ltd. to Offer Video Controller for its Wii U
Dec-20-2012    THQ Inc.                                                      Motion for Joint Administration Approved for THQ Inc.
Dec-19-2012    Clearlake Capital Group, LLC; THQ Inc.                        Clearlake Capital Eyes THQ
Dec-18-2012    Midasplayer.com Ltd.; PepsiAmericas Inc.                      Midasplayer.com Ltd. Announces Launch of Marketing Partnership in Turkey w ith Pepsi
Dec-18-2012    Mad Catz Interactive Inc. (AMEX:MCZ)                          Mad Catz Interactive Inc. Announces Launch of Saitek(R) Combat Pilot(TM)
Dec-14-2012    THQ Inc. (OTCPK:THQI.Q)                                       THQ Inc.'s Last Light Limited Edition Now Available to Pre-Order, Shipping March 2013
Dec-13-2012    Dimensional Branding Group; Freeverse Corporation             Release Sequel to the Skee-Ball Game on iOS w ith Skee-Ball 2
Dec-13-2012    Electronic Arts Inc. (NasdaqGS:EA)                            Electronic Arts Inc. Announces the Launch of Dead Space(TM) 3
Dec-11-2012    Mad Catz Interactive Inc. (AMEX:MCZ)                          Announces New Range of Street Fighter(R) X Sanrio(R) Products and Accessories
Dec-10-2012    Live Gamer, Inc.                                              to Pow er the Virtual Economy and Global Payments in the Highly Anticipated Open Beta Event for HAWKEN
Dec-08-2012    Sony Corporation (TSE:6758)                                   Sony Corporation Launches New MDR-1 Headphones
Dec-07-2012    DeNA Co., Ltd. (TSE:2432); Unity Technologies SF              Unity Technologies SF and DeNA Co., Ltd. Announces Collaboration on The Drow ning
Dec-06-2012    Mad Catz, Inc.                                                Mad Catz, Inc. Announces Amendments to its Loan Agreement w ith Wells Fargo
Dec-06-2012    DeNA Co., Ltd. (TSE:2432)                                     Announces Development of the Drow ning, First-Person-Shooter Game Custom Built for Mobile Devices
Dec-06-2012    Large Animal, LLC                                             Large Animal, LLC Announces the Release of Nomsters Mobile Game
Dec-06-2012    Games Workshop Group; Sega of America, Inc.                   SEGA and Creative Assembly Announce Partnership w ith Games Workshop to Create Warhammer Games
Dec-06-2012    Zynga, Inc. (NasdaqGS:ZNGA)                                   Zynga, Inc. Announces the Global Launch of Coasterville
Dec-05-2012    Sega Europe Limited; Sega of America, Inc.                    Sega of America, Inc. and Sega Europe Limited Launch Spellw ood on the App Store and Google Play
Dec-05-2012    TransGaming Inc. (TSXV:TNG)                                   TransGaming Inc. Launches Upgraded GameTree(TM) TV Platform
Dec-04-2012    Kihon, Inc.                                                   Kihon, Inc. Launches SketchPhrase for iPhone, iPad, iPod
Dec-04-2012    Synacor, Inc.; Zynga, Inc.                                    Partner to Make Zynga Game Currency Available to Pay-TV and High-Speed Internet Providers
Dec-04-2012    Rockstar Games, Inc.                                          Rockstar Games, Inc. Announces Max Payne 3 Painful Memories Pack Available
Dec-04-2012    Warner Bros. Interactive Entertainment Inc.                   Warner Bros. Interactive Entertainment Inc. Launches Guardians of Middle-Earth
Dec-04-2012    Replay Games, Inc.                                            Replay Games, Inc. Appoints Veteran Josh Mandel as Chief Creative Officer
Dec-04-2012    Advanced Micro Devices, Inc.; Ubisoft Entertainment           Announces Collaboration w ith Ubisoft Entertainment SA to Support the 'Far Cry' Franchise
Dec-03-2012    Big Fish Games, Inc.                                          Big Fish Games, Inc. Promotes Dave Stephenson to President
Dec-03-2012    Gaia Interactive, Inc.                                        Virtual Piggy, Inc. Signs Agreement w ith Gaia Online
Dec-03-2012    Zynga, Inc. (NasdaqGS:ZNGA)                                   Announces Resignation of Roy Sehgal as Vice President and Steve Schreck as General Manager




January 2013                   Source: Capital IQ, Company Filings, Brokers & Press                                          20
                                                                                                                                                                                                   Avista
Video Game Briefing                                                                                                                                                                                Partners

Game Index Performance by sub-sector (January 1, 2012 – December 31, 2012)
The Online Game Index is the best performing game sector index at +17.3%




      140.00%




      120.00%




      100.00%




        80.00%




        60.00%




        40.00%
             Jan-12              Feb-12           Mar-12           Apr-12           May-12           Jun-12           Jul-12           Aug-12           Sep-12           Oct-12           Nov-12      Dec-12


             S&P 500 Index                                           Game Distributor/ Accessory Index                      Game Retailer Index                                    Mobile Game Index



             Game Outsourcing Index                                  PC/ Console Game Index                                 Payment Index                                          Online Game Index


Note: the companies making up each index are those listed in the corresponding comps in the following pages. The indexes are based on a weighted market cap and are rebased to 100 at the start.


January 2013                        Source: Capital IQ, Company Filings, Brokers & Press                                                    21
                                                                                                                                                                                                   Avista
Video Game Briefing                                                                                                                                                                                Partners

Game Index Performance by region (January 1, 2012 – December 31, 2012)
The Europe Game Index is the best performing regional game index at +14.3%



      130.00%



      120.00%



      110.00%



      100.00%



        90.00%



        80.00%



        70.00%



        60.00%
             Jan-12              Feb-12          Mar-12            Apr-12           May-12           Jun-12           Jul-12          Aug-12            Sep-12           Oct-12           Nov-12      Dec-12


                                  S&P 500 Index                             Europe Game Index                              North America Game Index                                 Asia Game Index


Note: the companies making up each index are those listed in the corresponding comps in the following pages. The indexes are based on a weighted market cap and are rebased to 100 at the start

January 2013                        Source: Capital IQ, Company Filings, Brokers & Press                                                    22

				
DOCUMENT INFO
Description: Video Game Sector 2012 Annual Review by Avista Partners including online, mobile, console, technology, etc. with detailed information mergers & acquisitions, fundraising, key developments, public comparables and stock index comparisons.