Video Game Briefing March 2010 by pheydon

VIEWS: 4,830 PAGES: 24

Newsletter for March 2010 by Avista Partners on the video game sector including online, mobile, console, technology, etc. with detailed information mergers & acquisitions, fundraising, key developments, public comparables and stock index comparisons with info for last 30 days and last 12 months.

More Info
									Video Game Briefing

    March 2010
                                                                                      Avista
Video Game Briefing                                                                   Partners

Table of Contents
Last 30 Days Review:
         Highlights
         Recent Fundraising Deals
         Recent M&A Deals
Game Index Performance by sub-sector (LTM)
Game Index Performance by region (LTM)
Online Game/ Virtual World Universe
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):
         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 funding amount):
         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
Key Developments in the game sector (global to 31 March 2010)




March 2010                 Source: Capital IQ, Company Filings, Brokers & Press   2
                                                                                                                                                                                  Avista
Video Game Briefing                                                                                                                                                               Partners

Last 30 Days Review
Highlights:
    • Market Cap for all public companies in global game sector is $119.4 billion
    • Over $41m of M&A deals in global sector (Last 30 days)
    • Over $63m raised in global sector (Last 30 days)
    • The Mobile Game Index is the best performing game sector index at +115.6% (LTM)
    • The Asia Game Index is the best performing regional game index at +27.2% (LTM)
    • Online Game/ Virtual World Universe has 260+ companies generating over $12.4 billion in annual revenue plus we are tracking 300+ additional new companies

Recent Fundraising Deals
                                                                                          Total
                                                                                       Transaction
Date               Target/Issuer                                  Transaction Type     Value ($mm)                                                      Investors    Location
Online Games
03/26/2010         Renaissance 2.0 Media (Secret Builders)        Private Placement        2.3                      The Entrepreneurs Fund III and angel investors        USA
03/25/2010         Up Web Game GmbH                               Private Placement         -        Swiss RapidTainment AG and German High-Tech Grunderfonds         Germany
03/24/2010         Avatar Reality                                 Private Placement        4.2                                   Kolohala Ventures and Henk Rogers        USA
03/23/2010         Possibility Space                              Private Placement        1.5                                                                   -       China
03/22/2010         Double Fusion                                  Private Placement         -                                           Jerusalem Venture Partners        USA
03/17/2010         MetroGames                                     Private Placement        5.0                                                           Playdom          USA
03/16/2010         World Golf Tour                                Private Placement       10.0               JAFCO Ventures, Battery Ventures, Panorama Capital           USA
03/09/2010         Shanghai Youqu Network Technology Co           Private Placement         -                                          Delixi Group Corporation          China
03/03/2010         Playnatic Entertainment                        Private Placement       10.0                                                        Parta Group        Russia
03/03/2010         Exponential Entertainment                      Private Placement        1.7                           Band of Angels and other angel investors         USA
03/03/2010         Freeze Tag                                     Private Placement        0.3                                                     Angel Investors        USA
03/03/2010         Platform G (Mindjolt)                          Private Placement         -                                                      Austin Ventures        USA
Game Technology
03/11/2010         Image Metrics Limited                          Private Placement        8.0                                                                   -        USA
Payment
03/25/2010         C$ cMoney Inc.                                 Private Placement       15.0                                                Kodiak Capital Group        USA
03/03/2010         Kwedit                                         Private Placement        3.3                                                       Maveron LLC          USA
03/02/2010         Venmo                                          Private Placement        0.4                 Betaworks, Lerer Media Ventures and RRE Ventures           USA
PC/ Console Games
03/19/2010         eGames Inc.                                    Private Placement        0.5                                                                   -        USA
03/17/2010         Interplay Entertainment Corp                   Private Placement        1.0                                                           Dot Corp         USA




March 2010                      Source: Capital IQ, Company Filings, Brokers & Press                                         3
                                                                                                                                                                            Avista
Video Game Briefing                                                                                                                                                         Partners

Recent M&A Deals
                                                                        Total                                     Implied                           Implied       Implied
                                                              Transaction                                      Enterprise Implied Enterprise      Enterprise   Enterprise
Date               Target/Issuer                              Value ($mm) Buyers/Investors                    Value ($mm)   Value/Revenues     Value/EBITDA    Value/EBIT
Mobile Games
03/23/2010         Sennari (assets)                                -            Connect 2 Media                  -                -                 -             -
PC, Console Games
03/02/2010         Media Molecule                                  -            Sony Computer Entertainment      -                -                 -             -
Online Games
03/30/2010         Cyber Planet Interactive Company              0.7            Hansathan Piyachatwongs         10.9              -                 -             -
03/26/2010         C&C Media Co., Ltd.                           21.0           Perfect World Co., Ltd.         21.0              -                 -             -
03/22/2010         Red 5 Studios (majority stake)               20.0            The9 Limited                     -                -                 -             -
03/03/2010         northworks Software                            -             Travian Games                    -                -                 -             -
03/03.2010         Mindjolt                                        -            Platform G                       -                -                 -             -
03/03/2010         Offbeat Creations                               -            Playdom                          -                -                 -             -
Payment/ Offer Companies
03/22/2010         Tapjoy                                          -            Offerpal Media                   -                -                 -             -




March 2010                    Source: Capital IQ, Company Filings, Brokers & Press                                      4
                                                                                                                                                                                                   Avista
Video Game Briefing                                                                                                                                                                                Partners

Game Index Performance by sub-sector (LTM)
The Mobile Game Index is the best performing game sector index at +115.6%



     250

     230

     210

     190

     170

     150

     130

     110

       90

       70

       50
         Apr/09        May/09           Jun/09          Jul/09         Aug/09           Sep/09       Oct/09          Nov/09         Dec/09          Jan/10         Feb/10         Mar/10

                                                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.


March 2010                           Source: Capital IQ, Company Filings, Brokers & Press                                                   5
                                                                                                                                                                                                   Avista
Video Game Briefing                                                                                                                                                                                Partners

Game Index Performance by region (LTM)
The Asia Game Index is the best performing regional game index at +27.2%



     150

     140

     130

     120

     110

     100

       90

       80

       70
         Apr/09        May/09         Jun/09          Jul/09         Aug/09          Sep/09       Oct/09         Nov/09         Dec/09          Jan/10        Feb/10        Mar/10




                                       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.



March 2010                           Source: Capital IQ, Company Filings, Brokers & Press                                                   6
                                                                                                                                                                                                                                                                     Avista
        Video Game Briefing                                                                                                                                                                                                                                          Partners

Online Game/ Virtual
                                                                                                                           NHN Games                 Tencent Games
World Universe has                                                                           Realnetworks Games
260+ plus companies                                                                                      Viacom Online
                                                   Yoyogames Kongregate AOL Games                Wild Tangent
with $12.4 billion+ in                              Zapak          Spil Games
                                                                                                                                                                     EA Online                  Astrum
annual revenue                                                   Miniclip                          iwin                Yahoo Games        Gungho
                                                      King.com                                               Playfirst     Ourgame Duowan     Duniu                                              GGL
                                         6 waves
                                                            Roblox Games2win Cafe.com                       Ganymede
            Most Diverse                                       Feerik              Big Fish Oberon                                                                                                           Shanda Games
                                                                      Alawar                       Microsoft Online
                                                                                          Fettspielen                                                         MLG
                                                         Zynga                                                      51wan                                                         Gamania
                                                                                                                                          9you      Gala-net
                                                       GameDuell               Geewa                Motion Twin             Popcap                      Aeria                      Run Up                   Mgame


                                                                                                                  Jagex                                             Netease Games
                                                                                                                                                 Moli Group
                                                                                                                                                       Acclaim
                                                                                                                                                                                   Bigpoint      Sony Online (SOE)                                                               NcSoft

                                                                                                                                      Level Up Games


                                                                                  Many Players                                                                                      Gameforge          CJ Internet


                                                    Viwawa       Playdom                                                                               Sky Union             Liveplex
                                                                                                                                                  Vector                     Gamepot
                                                                                                                                                                 Macrowell
                                                                                                   Prizee                        Redmoon                                           Gamigo                     Hanbitsoft
         Portfolio Diversity                                                                                                                     Gigamedia Games
                                                                                                                                                                                                          The9
                                                                                                                                                  Cubinet                                           ESL
                                                                                                                                                                 Vinagame        Netdragon
                                                                                                                            Guangyu Huaxia
                                            Weeworld
                                                                                                             Sing-Gium                   Softstar                                                     Chinese Gamer               Gameon
                                                                                                                   Lizard                            CIB Net Station
                                                                                                                 Nexon
                                                                                                             Snail Game                                                       GameCyber WeMade Entertainment
                                                                                                                                                                      Upjers                                                        Perfect World
                                                                                                                     Sonokong                                   Roc Works                               Neowiz Games
                                                SGN                                                                  Gonzo Rosso
                                                                                                                            IP e-games                                               DMII
                                                                                                                                   High5                                          Asiasoft
                                                                                                                           Burda Interactive                                     China Cyber Port
                                                                                                                              Userjoy                Windysoft                             CDC Games
                                                                                                 Maid Marian                     M-Etel                    IGS Online Mycnx
                                                                                                                                                                       Games       Linekong                     Actoz
                                                                                                                                  Goorm                                                                                       Kingsoft Games
                                                                                                                   Headlock             GoodGame            VTC Game                    Ferry Game
                                                                                                                       Aruon                                                         First
                                                                                                                                                                        K2/ Gamers Outspark
                                                                                                                                               Lyto   Gravity                                    Garena                                                                           Valve Online
                                                                                                              Anipark                                                 Joymax                                                  Goa
                                                                                                                            OnNet X-legend                                Innogames         Artix
                                                                                                                                    Ongame                           Weilai                Barunson
                                                                                                                          Ini3                     JC Entertainment        Cubizone            GamesCampus
                                                                                                                                                                                                                                 Ndoors
                                                                                                          Gameus                         Shiji Tiancheng                                          Gamehi                                       Giant Interactive
                                                                   Five Minutes
                                                                               Flowplay                                                                L&K
                                                                                                                        Unalis Storm Entertainment Logic Korea                  C&C Media
                                                                                             Ankama                    CyberstepImperia Online Mygame.ph                     Dragonfly Ogplanet             Games Masters
                                                            Beemoov                                             GCREST                                                                                                        Subagames
                                                                           Jumpstart                                                                                                     Frogster                                                                Webzen
                                                                                                                 Three Rings Kog Studios              Ntreev                       Object
                                                                                                                                            CITVC Netempire IAHGames Redduck Software
                                                                                                                                       100sea                                                                                             Turbine
                                                                  Exagame            Apaja                  Wiseon           EYA Interactive                  Dream Execution                       Gamasoft
                                                         Owlient                                                                Northstar                                      Imazic Ymir Galaxy Gate
                                                                            Hive7                      Lager Network                                  G10                                                  Codemasters Online
                                            Extralives
                                                                                                               Barunson Interactive
                                                                                                                             Cipsoft
                                                                                                                                                                      Softnyx
                                                                                                                                                                 Hi-win                    InixsoftH-win
                                                                                                                                                  Gamelabs               Dreamwork Power Challenge            NetTimeSoft                           Changyou (Sohu)
                       
								
To top