Video Game Briefing
April 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 30 April 2010)
April 2010 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.
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
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Email: info@avistapartners.com
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London W1S 4EL
United Kingdom
www.avistapartners.com
April 2010 Source: Capital IQ, Company Filings, Brokers & Press 3
Avista
Video Game Briefing Partners
Last 30 Days Review
Highlights:
• Market Cap for all public companies in global game sector is $120.8 billion
• Over $2bn of M&A deals in global sector (Last 30 days)
• Over $57m raised in global sector (Last 30 days)
• The Mobile Game Index is the best performing game sector index at +107.0% (LTM)
• The Asia Game Index is the best performing regional game index at +25.9% (LTM)
• Online Game/ Virtual World Universe has 260+ companies generating over $13.2 billion in annual revenue plus we are tracking 350+ additional new companies
Recent Fundraising Deals
Total
Transaction
Date Target/Issuer Transaction Type Value ($mm) Investors Location
Online Games
04/16/2010 Sichuan Xunyou Network Technology Private Placement 14.6 TrustBridge Partners, ICON Dongli, Shenzhen Fortune Venture Capital & Chengdu China
Xinxing Business Start-up
04/15/2010 Hairy Entertainment Private Placement 0.6 angel investors USA
04/13/2010 Blue Frog Gaming Private Placement 1.2 angel investors USA
04/01/2010 Tiny Speck Private Placement 5.0 Accel Partners and Andreessen Horowitz USA
04/01/2010 ZinkyZonk Private Placement 0.05 EM Media UK
04/01/2010 FreshPlanet Private Placement 1.5 SoftTech VC, Kima Ventures, CapISF, Laurent Kratz, Pierre Gerard, Jacques-Antoine USA
Granjon and Ilan Benhaim
Game Hardware
04/21/2010 Qualtré Inc. Private Placement 8.0 Matrix Partners and Pilot House Ventures USA
Mobile Game
04/30/2010 Moblyng Private Placement 2.65 Mohr Davidow Ventures and Deep Fork Capital USA
04/22/2010 Istpika Private Placement - GMO VenturePartners Japan
04/06/2010 Beijing Moca World Technology Co. Private Placement 2.00 Infinity Venture Partners China
Payment
04/27/2010 Zong Private Placement 15.0 Matrix Partners USA
04/13/2010 Social Growth Technologies Private Placement 0.2 angel investors USA
04/09/2010 Kontagent Private Placement 1.0 Jameson Hsu, Greg Thomson, Mike Sego, Naval Ravikant and Extreme Venture Partners USA
04/01/2010 Billing Revolution Private Placement 0.5 angel investors USA
PC/ Console Games
04/27/2010 Mindscape Private Placement 5.3 - France
04/23/2010 Paradox Interactive Private Placement - Investment AB Spiltan Sweden
April 2010 Source: Capital IQ, Company Filings, Brokers & Press 4
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
PC, Console Games
04/08/2010 Sector3 Pty Ltd - Trickstar Games - - - -
04/05/2010 Codemasters (50%) - Reliance Big Entertainment Ltd. - - - -
Online Games
04/26/2010 Merscom - Playdom - - - -
04/26/2010 LabPixies - Google - - - -
04/21/2010 Irata Labs - News Corp - - - -
04/21/2010 Shenzhen Domain Computer 20.8 Shenzhen Tencent Computer System Co. 46.5 - - -
04/20/2010 Turbine Inc. - Warner Bros. - - - -
04/15/2010 NHN Games 214.4 Webzen 214.4 - - -
04/12/2010 CIB Development Sdn Bhd 11.9 CIB Interactive Sdn Bhd 11.9 - - -
04/09/2010 Qian Wan Technology Co. Ltd. (80%) 0.1 Long Shapiro Core Information Services 0.1 - - -
Payment/ Offer Companies
04/21/2010 Cybersource Corporation 1,800.0 Visa Inc. 1,672.0 6.3x 31.8x 95.5x
04/15/2010 GlobalCollect - Welsh, Carson, Anderson & Stowe - - - -
April 2010 Source: Capital IQ, Company Filings, Brokers & Press 5
Avista
Video Game Briefing Partners
Game Index Performance by sub-sector (LTM)
The Mobile Game Index is the best performing game sector index at +107.0%
210
190
170
150
130
110
90
70
50
May/09 Jun/09 Jul/09 Aug/09 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/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.
April 2010 Source: Capital IQ, Company Filings, Brokers & Press 6
Avista
Video Game Briefing Partners
Game Index Performance by region (LTM)
The Asia Game Index is the best performing regional game index at +25.9%
140
130
120
110
100
90
80
70
60
May/09 Jun/09 Jul/09 Aug/09 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/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.
April 2010 Source: Capital IQ, Company Filings, Brokers & Press 7
Avista
Video Game Briefing Partners
Online Game/ Virtual
Mail.ru Games
World Universe has Webzen
Realnetworks Games Tencent Games
260+ plus companies
Viacom Online
with $13.2 billion+ in YoyogamesKongregate AOL Games Wild Tangent
annual revenue Zapak Spil Games
EA Online
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
51wan
9you Gala-net
GameDuell Geewa Motion Twin Popcap Aeria Run Up Mgame
Gamania
Zynga Jagex
Moli Group Netease Games
Acclaim
Bigpoint Sony Online (SOE) NcSoft
Level Up Games
rockyou
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 Perfect World
Upjers Neowiz Games
Sonokong Roc Works
SGN Gonzo Rosso
IP e-games IGS Online Games DMII
High5 Asiasoft
Burda Interactive China Cyber Port
Userjoy Windysoft CDC Games
Slide M-Etel Mycnx Linekong SZ Network Actoz Kingsoft Games
Goorm GoodGame VTC Game Ferry Game
Headlock
Aruon First
K2/ GamersOutspark
Lyto Gravity Garena Valve Online
Anipark Joymax Goa
OnNet X-legend Innogames Artix Warner Bros. Online Games
Beemoov Ongame Weilai Barunson
Ini3 JC Entertainment Cubizone GamesCampus
Five Minutes Gameus Ndoors
Shiji Tiancheng Gamehi Travian Giant Interactive
Crowdstar Flowplay L&K
Unalis Storm Entertainment Logic Korea C&C Media
Ankama CyberstepImperia Online Mygame.ph Dragonfly Ogplanet Games Masters
Owlient GCREST Subagames
Jumpstart Kog Studios Ntreev Frogster
Three Rings 100sea
Object
CITVC Netempire IAHGames Redduck Software
Exagame Apaja Wiseon EYA Interactive Dream Execution Gamasoft
Northstar Imazic Ymir Galaxy Gate
Hive7 Lager Network G10 Codemasters Online
Barunson Interactive Softnyx InixsoftH-win
Extralives Cipsoft Gamelabs Hi-win
Min Communications Aramaru Taewool Dreamwork Power Challenge NetTimeSoft
CaveCrspace Blizzard
Sulake Young Internet Expotato Digitalic Nowcom Games
Gaia Online Mediasite Gameart Studio Allm CCR F4 YedangOnline
Watagame Radiance YNK Korea
Entropia G-Bits
Urban Rivals IMVU Cedar Online Digipark Ice Entertainment Gnisoft Maiet
Apeha.ru Indy21 Entwell ESTsoft games Funcom
Stardoll Seedc Wisecat Changyou (Sohu)
Tri-d Second Life Wizard101 Alt1 CCP
Atoonz Zwinky Rhaon On Soft Fusion Fall Softon IMC Games
Mind Candy Combats.ru Ons
Cartoon Doll Emporium eRepublik
Club Penguin Webkinz
Least Diverse
Casual Casual to Hardcore Focus Hardcore
April 2010 Source: Capital IQ, Company Filings, Brokers & Press 8