Avista
Video Game Briefing Partners
Highlights:
Market Cap for all public companies in global game sector is $93.8 billion; a increase of $2.4 billion or 2.6% since the March Newsletter
Over $2m of M&A deals in global sector (Last 30 days)
Over $145m raised in global sector (Last 30 days)
The Online Game Index is the best performing game sector index at +3.6% (LTM)
The Asia Game Index is the best performing regional game index at ‐41.2% (LTM)
Recent M&A Deals
Total Implied Implied Implied Implied
Transaction Enterprise Enterprise Enterprise Enterprise
Date Target/Issuer Value ($mm) Buyers/Investors Value ($mm) Value/Revenues Value/EBITDA Value/EBIT
PC, Console Games
04/16/2009 Virtual Heroes ‐ Applied Research Associates ‐ ‐ ‐ ‐
04/06/2009 California 7 Studios ‐ Activision Blizzard ‐ ‐ ‐ ‐
03/27/2009 Brighter Minds Media LLC 2.0 Rivenrock Capital LLC 2.0 ‐ ‐ ‐
Online Games
04/21/2009 Spare Change ‐ PlaySpan ‐ ‐ ‐ ‐
Recent Fundraising Deals
Total
Transaction
Date Target/Issuer Transaction Type Value ($mm) Investors
Game technology/Middleware
03/30/2009 Sim Ops Studios Private Placement 3.0 SK Telecom Ventures and Levensohn Venture Partners
Online Games
04/17/2009 Tribal Nova Private Placement 2.5 iNovia Capital and ID Capital
04/08/2009 FatFooGoo Private Placement ‐ Digital River
04/06/2009 Planetwide Media Private Placement 3.7 ‐
04/03/2009 Changyou.com Limited IPO 120.0 ‐
PC, Console Games
03/19/2009 Zeebo Inc. Private Placement 5.5
Tec Toy S.A. and QUALCOMM Inc.
Mobile Games
04/16/2009 Scoreloop Private Placement ‐ Target Partners
April 2009 Source: Capital IQ, Company Filings, Brokers & Press 1
Avista
Video Game Briefing Partners
Game Index Performance by sub‐sector (LTM)
The Online Game Index is the best performing game sector index at +3.6%
130.0
120.0
110.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09
Game Retailers Index Mobile Game Index Online Game Index PC/ Console Index Game Distributor/ Accessory Index S&P 500 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.
April 2009 Source: Capital IQ, Company Filings, Brokers & Press 2
Avista
Video Game Briefing Partners
Game Index Performance by region (LTM)
The Asia Game Index is the best performing regional game index at ‐41.2%
120.0
110.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09
Asia Game Index North America Game Index Europe Game Index S&P 500 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.
April 2009 Source: Capital IQ, Company Filings, Brokers & Press 3
Avista
Video Game Briefing Partners
Stock Comps (by sector & ranked by enterprise value):
Stock Price (local Price as % Price as % EV/Revenue EV/EBITDA P/E
currency) of LTM of LTM Market Cap Enterprise
(4/27/09) High Low (USDm) Value (USDm) CY 2007 CY 2008 CY 2009 CY 2010 CY 2007 CY 2008 CY 2009 CY 2010 CY 2007 CY 2008 CY 2009 CY 2010
PC/Console Game Publishers/ Developers
Nintendo Co. Ltd. 26,070.00 40.8% 120.7% 34,063.6 21,798.4 1.55x 1.04x 1.30x 1.28x 5.3x 3.6x 4.0x 4.2x 12.7x 13.4x 14.7x 10.6x
Activision Blizzard, Inc. 10.40 53.9% 127.8% 13,380.1 10,378.1 7.69x 3.47x 3.14x 2.97x 43.1x 16.1x 14.6x 12.7x 54.2x 16.1x 14.1x 14.1x
Electronic Arts Inc. 19.97 36.4% 140.2% 6,426.7 4,165.7 1.32x 0.93x 1.00x 0.86x NM 12.0x 10.6x 7.1x NM 41.9x 38.0x 13.4x
Konami Corp. 1,480.00 35.7% 116.1% 2,018.1 2,010.2 0.77x 0.55x 0.65x 0.64x 5.3x 3.6x 4.1x 4.1x 13.8x 8.3x 10.9x 10.4x
Sega Sammy Holdings Inc. 926.00 68.1% 160.8% 2,383.5 1,970.4 0.47x 0.40x 0.45x 0.44x 5.4x 5.9x 4.0x 3.3x NM NM 54.6x 13.6x
UBI Soft Entertainment SA 16.85 47.1% 174.4% 2,053.5 1,952.5 1.29x 1.38x 1.32x 1.26x 3.9x 4.3x 4.1x 3.5x 16.7x 16.3x 18.0x 18.7x
Namco Bandai Holdings Inc. 1,009.00 68.0% 130.9% 2,487.7 1,498.4 0.36x 0.29x 0.33x 0.33x 2.7x 2.8x 3.1x 3.0x 15.4x 13.5x 16.9x 14.9x
Square Enix Holdings Co., Ltd. 1,759.00 47.9% 117.5% 2,072.3 1,341.4 0.97x 0.76x 0.87x 0.83x 4.5x 4.8x 4.3x 3.6x 19.3x 16.3x 16.8x 12.8x
Capcom Co. Ltd. 1,707.00 46.9% 115.7% 1,076.7 1,018.2 1.48x 1.19x 1.02x 0.99x 9.3x 5.2x 4.9x 4.7x 24.8x 21.3x 11.5x 10.7x
Take‐Two Interactive Software Inc. 8.86 31.7% 159.4% 711.6 563.8 0.60x 0.40x 0.48x 0.41x 24.1x 5.5x 12.5x 5.9x NM 9.1x 29.3x 8.1x
Tecmo Koei Holdings Co. Ltd. 687.00 86.2% 100.9% 481.3 421.8 1.49x NA NA NA 5.5x NA NA NA 7.3x NA