Avista
Video Game Briefing Partners
2009 – Year in Review
Highlights:
• Almost $3.6 bn of total deals in global sector with online games representing 71.5% of that total
• Over $1.2 bn of M&A deals in global sector with online games representing 61.9% of that total
• Over $2.3 bn total capital raised in global sector with online games representing 76.8% of that total
• Over $925m total venture capital raised in global sector with online games representing 67.7% of that total at $627.3m which was 47.2% down from 2008 though the number
of deals was only down by 7.8%
• The Mobile Game Index was the best performing game sector index at +82.9%
• The North America Game Index was the best performing regional game index at +12.3%
Breakdown of All Deals by sub-sector for 2009
Game Distribution/
Game Technology Payment/Offer/Analytics
Accessories
2.6% 2.3%
3.7%
Game Hardware
1.0%
PC/Console
14.9%
Mobile
3.9%
Online
71.5%
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 1
Avista
Video Game Briefing Partners
Breakdown of M&A Deals by sub-sector for 2009
Game Distribution/
Accessories
10.5% PC/Console
23.3%
Mobile
4.3%
Online
61.9%
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 2
Avista
Video Game Briefing Partners
Breakdown of All Fundraising Deals by sub-sector for 2009
Game Hardware
1.5%
PC/Console Mobile
10.4% 3.6%
Game Technology
4.1%
Payment/Offer/
Analytics
3.6%
Online
76.8%
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 3
Avista
Video Game Briefing Partners
Breakdown of All Venture Capital Fundraising Deals by sub-sector for 2009
PC/Console Game Hardware
0.9% 3.9%
Mobile
8.2%
Game Technology
10.3%
Payment/Offer/
Analytics
9.0%
Online
67.7%
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 4
Avista
Video Game Briefing Partners
Distribution by size of round for All Venture Capital Fundraising for 2009 for Online Games
50
45
40
35
30
25
20
15
10
5
0
Undisclosed $0-5m <$5-10m <$10-15m <$15-20m <$20-25m <$25-30m <$30-40m <$40-50m <$50m+
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 5
Avista
Video Game Briefing Partners
Summary of All Venture Capital Fundraising by Year for Online Games
1400.0 140
1189.2
1200.0 120
116
107
1000.0 100
Total funding fell by
47.2% in 2009 though #
800.0 80 of deals fell only by 7.8%
69 627.3
600.0 60
373.3 388.7
400.0 40 40
298.6
208.7 196.2
200.0 22 20
17
83.0 67.0 11
47.6
6 4 21.2
4 3
0.0 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 6
Avista
Video Game Briefing Partners
Game Index Performance by sub-sector for 2009
The Mobile Game Index is the best performing game sector index at +82.9%
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 7
Avista
Video Game Briefing Partners
Game Index Performance by region for 2009
The North America Game Index is the best performing regional game index at +12.3%
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 8
Avista
Video Game Briefing Partners
Last 30 Days Review
Highlights:
• Market Cap for all public companies in global game sector is $105.8 billion
• Over $89m of M&A deals in global sector (Last 30 days)
• Over $138m raised in global sector (Last 30 days)
• The Online Game Index is the best performing game sector index at +75.1% (LTM)
• The North America Game Index is the best performing regional game index at +7.4% (LTM)
• Online Game/ Virtual World Universe has 260+ companies generating over $12.4 billion in annual revenue plus we are tracking 250+ additional new companies
Recent Fundraising Deals
Total
Transaction
Date Target/Issuer Transaction Type Value ($mm) Investors
Online Games
01/25/2010 Drimmi Private Placement - Mangrove Capital Partners and ABRT Fund
01/20/2010 6waves Private Placement 17.5 Insight Venture Partners
01/20/2010 Shanghai Storm Information Technology Private Placement 20.0 Shenzhen Fortune Venture Capital Management
01/20/2010 Netelusion Limited Private Placement 1.6 -
01/18/2010 CITVC Netempire Entertainment Co. Ltd. Private Placement 19.0 -
01/15/2010 Sparkplay Media, Inc. Private Placement 2.8 -
01/07/2010 CCP Private Placement 16.3 -
01/05/2010 DNA Games Private Placement 2.0 -
01/04/2010 Bluehole Studio Private Placement 15.5 K-net Investment and Stone Bridge Capital
Game Technology
01/25/2010 Localize Direct Private Placement 0.35 TeknoSeed
01/05/2010 Gaikai Private Placement 5.0 -
Payment
01/21/2010 Rixty Private Placement 1.2 Javelin Venture Partners, Accelerator Ventures, First Round Capital, Freestyle Capital, Nueva Ventures & Soft Tech VC
01/19/2010 Boku Private Placement 25.0 DAG Ventures, Benchmark Capital, Index Ventures, and Khosla Ventures
January 2010 Source: Capital IQ, Company Filings, Brokers & Press 9
Avista
Video Game Briefing