Video Game Briefing August 2009

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Video Game Briefing August 2009
Avista

Video Game Briefing Partners



Highlights:

 Market Cap for all public companies in global game sector is $106.6 billion

 Over $2m of M&A deals in global sector (Last 30 days)

 Over $136m raised in global sector (Last 30 days)

 The Game Outsourcing Index is the best performing game sector index at +98.2% (LTM)

 The Asia Game Index is the best performing regional game index at -21.5% (LTM)

 Online Game/ Virtual World Universe has 230+ companies generating $10.3 billion in annual revenue plus we are tracking 115 additional new companies



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

Game Technology

08/01/2009 MaMoCa, Inc - Motion Analysis Corporation - - - -



PC, Console Games

08/06/2009 Strait Gate Games, Inc. 0.3 Entertainment Arts Research 0.3 - - -

08/05/2009 Midway Games France & UK 1.7 Spiess Media Holding UG 1.7 - - -

08/05/2009 Midway Games Germany - F+F Publishing GmbH - - - -

08/03/2009 Midway San Diego (most 0.2 THQ, Inc 0.2 - - -

assets)

Payment

08/24/2009 Twofish - Live Gamer - - - -

07/28/2009 N-Cash - Live Gamer - - - -



Online Games

08/18/2009 Agora Games - Major League Gaming - - - -

08/07/2009 MyMiniLife - Zynga - - - -

08/04/2009 J2play - Electronic Arts Inc. - - - -









August 2009 Source: Capital IQ, Company Filings, Brokers & Press 1

Avista

Video Game Briefing Partners



Recent Fundraising Deals



Total

Transaction

Date Target/Issuer Transaction Type Value ($mm) Investors

Online Games

08/19/2009 Aurora Interactive Private Placement 14.6 -

08/10/2009 ChessCube Private Placement 1.3 VenFin Ltd



08/07/2009 Wooga Private Placement - Holtzbrinck Ventures

08/07/2009 Masher Media Private Placement 0.3 Tech Coast Angels

08/06/2009 Hitogame.com Private Placement - Li Qing

08/04/2009 CondorGame Private Placement 2.2 Linekong Online (Beijing) Entertainment Tech Co

07/31/2009 Smith & Tinker Inc Private Placement - Doll Capital Management, Alsop Louie Partners, Vulcan

Capital, Leo Capital Holdings, LLC and Foundry Group.

PC, Console Games

08/04/2009 THQ Public Offering 100.0 Morgan Stanley



Payment

08/18/2009 PaymentOne Corporation Private Placement 7.0 AER Investments LLC

08/13/2009 SponsorPay Private Placement - Team Europe Ventures, Jan Beckers, and Janis Zech

08/07/2009 Jambool Private Placement 5.0 Madrona Venture Group and Bay Partners

Mobile Games

08/18/2009 Scoreloop Private Placement 2.8 Earlybird Venture Capital and Target Partners

08/12/2009 Z2live Private Placement 3.0 Madrona Venture Group









Video Game Events to be attended by Avista Partners for balance of 2009:

We will be hosting our annual Interactive Entertainment Summit in London in November 2009 which is by invitation only.









August 2009 Source: Capital IQ, Company Filings, Brokers & Press 2

Avista

Video Game Briefing Partners



Game Index Performance by sub-sector (LTM)

The Game Outsourcing Index is the best performing game sector index at +98.2%







210



190



170



150



130



110



90



70



50



30

Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09 Jul/09 Aug/09









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









Mobile Game Index Game Outsourcing Index PC/ Console Game Index









Online Game Index Payment 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.







August 2009 Source: Capital IQ, Company Filings, Brokers & Press 3

Avista

Video Game Briefing Partners



Game Index Performance by region (LTM)

The Asia Game Index is the best performing regional game index at -21.5%







110



100



90



80



70



60



50



40



30

Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09 Jul/09 Aug/09









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.



August 2009 Source: Capital IQ, Company Filings, Brokers & Press 4

Avista

Video Game Briefing Partners



Online Game/ Virtual NHN Games

World Universe has Realnetworks Games

230+ plus companies Viacom Online

Wild Tangent Tencent Games Duniu

AOL Games

with $10 .3 billion+ in Kongregate Spil Games

Yoyogames Miniclip Yahoo Games Gungho

annual revenue Zapak

iwin

Playfirst Ourgame Duowan EA Online

6 waves Roblox

Cafe.com Ganymede

Games2win Big Fish Oberon Astrum

Most Diverse Alawar Fettspielen 51wan Shanda

Microsoft Online

Gala-net MLG Gamania

Geewa Popcap 9you Aeria Run Up Mgame

Zynga



Netease Games

Jagex

Moli Group



Bigpoint Sony Online (SOE) NcSoft

Acclaim



Level Up Games





Gameforge CJ Internet






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