Internet & Digital
Media Insights
Overview, Analysis, and Trends in the
Internet & Digital Media Industry
Internet & Digital Media
Table of Contents
Contents
William Blair Internet & Digital Media Credentials ... 1
Recent Headlines... 2
IDM Intelligence ... 5
Market Snapshot ... 7
Public Equity Market Overview ... 9
Public Comparable Companies... 9
Public Comparables Detail ... 11
Equity Offerings (All Sectors) ... 18
M&A Activity ... 21
William Blair Internet & Digital Media Team ... 22
Disclosures ... 23
Internet & Digital Media
Internet & Digital Media
William Blair Internet & Digital Media Credentials 1
William Blair Internet & Digital Media Credentials
$1,000,500,000
Initial Public Offering
December 2014
$85,000,000
Senior Credit Facility
September 2014
$642,772,851
IPO & Follow-On
April 2014 &
September 2014
Not Disclosed
has been acquired by
May 2014
$92,000,000
Initial Public Offering
March 2014
$524,393,977
IPO & Follow-On
October 2013 &
March 2014
$406,932,806
IPO & Follow-On
July 2013 &
December 2013
$66,046,633
Follow-On OfferingsMay 2013 &
November 2013
$290,950,000
Initial Public Offering
November 2013
$405,375,000
IPO & Follow-On
October 2012 &
September 2013
$763,794,000
IPO & Follow-On
June 2011 &
September 2013
R
$187,000,000
Initial Public Offering
June 2013
$329,783,752
IPO & Follow-On
September 2012 &
March 2013
$361,000,000
has been acquired by
November 2012
Not Disclosed
has received a growth equityinvestment from
Strategic Technology Investors
October 2012
Not Disclosed
A wholly owned subsidiary of Yext has been acquired by
August 2012
Not Disclosed
has been acquired by
July 2012
TM
Not Disclosed
has been acquired by
June 2012
$16,006,877,370
Initial Public Offering
May 2012
$805,000,000
Initial Public Offering
Internet & Digital Media
2 Recent Headlines
Recent Headlines
The Internet & Digital Media (“IDM”) sector continued its momentum into the fourth quarter of 2014, marked by some notable M&A and financing
transactions, particularly in the Asian e-commerce, online lending platform, and ride sharing spaces. Asian e-Commerce transactions included
Flipkart’s $700 million financing led by DST, Tiger Global, ICONIQ Capital and GIC, Coupang’s $300 million financing led by BlackRock, Lazada’s $250
million financing from Temasek, and Snapdeal’s $627 million financing from Softbank. In the online lending platform sector, we saw OnDeck Capital’s
$230 million IPO (valuing the Company at $1.3 billion), LendingClub’s $1 billion IPO (valuing the Company at $5.4 billion), and AvantCredit’s $225
million financing led by Tiger Global. There was also a lot of activity in the ride sharing space—notable transactions included Uber’s massive $1.2
billion financing (valuing the Company at $40 billion) and its Southeast Asia-based rival, GrabTaxi’s $250 million financing (at a relatively humble $1
billion valuation). Overall, 2014 was a very exciting year in the IDM sector, and we expect the strong M&A and financing environment to continue into
2015 as the global macro outlook remains favorable and investors remain hungry to invest in high growth companies!
Selected Highlights
Date
Company
News Headline
Dec-28
Sony revealved that its controversial new movie, "The Interview", earned $15
million in consumer spending via rentals and purchases across various online
platforms over the first four days it was available
Dec-23
Goodwater Capital, an early-stage VC firm, released an interesting analysis that
found 27 consumer Internet giants holding at least $1 billion in cash; adding
Apple, Microsoft and Samsung to the mix (all of which have been increasingly
active in consumer startups), brings the grand total of cash held to a whopping
$605 billion, making 2015 ripe for some blockbuster deals!
Dec-20
\
DST Global, GIC, ICONIQ Capital and Tiger Global announced their $700 million
lead investment in Flipcart, India's largest e-commerce company that is popular
for selling books and electronics online; the Company raised the capital at an
approximate $10 billion valuation
Dec-17
OnDeck Capital, an online lending platform for small businesses, priced its IPO
at $20 per share, raising $230 million, valuing the Company at $1.3 billion
Dec-16
\
Bravofly Rumbo Group announced its $120 million acquisition of
lastminute.com, an online travel and leisure retailer with operations in the U.K.,
France, Germany, Spain and Italy; the Company was previously owned by Sabre
Dec-15
\
T.Rowe Price, Morgan Stanley Investment Management and Baillie Gifford & Co.
announced thier $250 million lead investment in SurveyMonkey, an online
survey platform with tools that allow users to turn survey data into insights and
reports
Dec-12
LendingClub, an online marketplace lending platform primarily for consumers
and small businesses, priced its IPO at $15 per share, raising $1 billion, valuing
the Company at $5.4 billion
Dec-11
\
Adobe announced its $800 million acquisition of Fotolia, a marketplace for
royalty-free photos, images, graphics and HD video; the Company will be
integrated into Adobe's Creative Cloud platform, allowing members to access
and purchase over 34 million images and videos
Dec-11
\
Institutional Venture Partners announced its $18 million investment in Woven
Digitial, which runs pop culture and entertainment news sites Brobible and
Uproxx (also has an exclusive partnership with theChive); the Company will
continue to have a "guy-heavy" editorial perspective for the near future
Dec-10
\
BlackRock Private Equity Partners announced its $300 million lead investment
in Coupang, the largest South Korean e-commerce retailer; the Company raised
the capital at approximately a $2.5 billion valuation; similar to Indian
e-commerce neighbors Flipkart and Snapdeal, the Company expects to beat
global e-commerce giant Amazon.com on its home turf
Internet & Digital Media
Recent Headlines 3
Selected Highlights (cont.)
Date
Company
News Headline
Dec-04
\
CVC Capital Partners announced its approximately $942 million majority
acquisition (~80%) of Sky Bet, an online casino, poker and bingo gaming and
sports betting website for consumers in the U.K and Europe, from Sky (SKYB.L);
the deal values the online betting business at approximately $1.3 billion
Dec-04
\
Though investors were not officially announced, it is believed that Sequoia
Capital, TPG, Fidelity, T.Rowe Price, Wellington, KPCB and Menlo Ventures
invested $1.2 billion in Uber, a ride sharing company; the Company raised the
capital at a $40 billion valuation
Dec-04
\
Tiger Global announced its $225 million lead investment in AvantCredit, which
specializes in making loans to borrowers whose credit scores generally lie in
the 600 range; unlike LendingClub but similar to OnDeck Capital, the Company
makes loans using its own capital
Dec-03
\
Softbank announced a $250 million investment in GrabTaxi, a Southeast Asia
app-based ride sharing company that is Uber's major rival in the region; the
Company raised the capital at a ~$1 billion valuation; the announcement from
Softbank comes after the Japanese telecom giant announced its $10 billion
commitment to high growth startups in India and Southeast Asia generally
Nov-29
\
Temasek announced its approximately $250 million investment in Lazada, a
Southeast Asian e-commerce company; the Company raised the capital at
approximately a $1.3 billion valuation
Nov-24
\
General Atlantic announced its $47 million minority investment in Vox Media,
an online media publisher that owns news site Vox.xom and popular sports
blog network, SB Nation; the Company raised the capital at a $380 million
valuation
Nov-11
Taylor Swift pulls tracks from her hot-selling album, 1989, from Spotify after
dismissively calling the streaming music provider a "grand experiment"; the
popular singer would have made $6 million this year on Spotify
Nov-11
\
Yahoo! announced its $640 million acquisition of BrightRoll, an online platform
for selling and delivering video advertising; Yahoo! hopes to strengthen its
video advertising platform by giving marketers an easier way to buy video ads
in real-time and across many different websites
Nov-04
Music royalty research firm, Kobalt, found that revenues from Spotify streams
were 13% higher on average than revenues from Apple's iTunes for customers
in the European market
Oct-28
\
Softbank announced its $627 million investment in Snapdeal, a leading Indian
e-commerce marketplace; both Snapdeal and its rival Indian e-commerce firm,
Flipkart, are facing stiff competition from global e-commerce giant, Amazon,
which announced its $2 billion investment to ramp up business in India
Oct-20
\
Ooyala, a Telstra subsidiary, announced its $80 million acquisition of
Videoplaza, an operator of one of the world's largest premium video ad serving
platforms and programmatic trading solutions used by broadcasters and media
companies in Europe and the Asia Pacific region to optimize video monetization
Oct-17
\
Great Hill Partners announced its approximately $130 million investment in
Momondo Group, an online travel search company which operates in 30+
countries through Cheapflights and Momondo; the Company raised the capital
at approximately a $210 million valuation
Public Equity Offering
M&A Transaction
Private Financing
News Highlight
Internet & Digital Media
4 Recent Headlines
Selected Highlights (cont.)
Date
Company
News Headline
Oct-06
\
DST and SAB Capital, along with 80+ investors on the crowdfunding platform,
AngelList, announced a nearly $13 million investment in Beepi, an online used
car marketplace; the $2.7 million raised through AngelList makes it the largest
single investment raised on the platform since its founding in 2010
Oct-02
Wonga has agreed to entirely write off the debts of 330,000 customers who
were more than 30 days in arrears and to waive the interest rates and fees of
another 45,000 between 0 and 29 days in arrears; Wonga was forced to action
by the U.K.'s Financial Conduct Authority after the Company admitted its
affordability checks on consumers were inadequate
Oct-01
\
Sequoia Capital announced its $165 million investment in Houzz, an online
home-remodeling website; the Company raised the capital at a $2.3 billion plus
post-money valuation, according to some sources
Internet & Digital Media
IDM Intelligence 5
IDM Intelligence
In light of LendingClub’s $1 billion IPO, valuing the Company at $5.4 billion and OnDeck Capital’s $230
million IPO valuing the Company at $1.3 billion, we decided to focus this quarter’s intelligence piece on
the rapidly evolving “Online Marketplace Lending” ecosystem.
So first things first…what do we mean by “Online Marketplace Lending”? Is that just a fancy name for
a bank?
•
In its purest form, online marketplace lenders are different from banks because they do not make loans to borrowers from
their own balance sheets (no loan default risk); instead, they provide a proprietary technology platform that directly
connects lenders and borrowers, thereby disintermediating the bank
•
Disintermediation can create lower costs for borrowers and higher risk-adjusted returns for lenders
•
Given these important distinctions between many marketplace lenders and traditional bank lenders, investors tend to
compare companies like LendingClub with other online marketplaces serving a wide range of end markets, including:
Here’s a look at how the LendingClub platform works – connecting borrowers and lenders
Source: LendingClub investor materials and William Blair.
Benefits to
Borrowers
Benefits to
Lenders
Access to Affordable Credit Fast and Efficient Decision Transparency and Fairness Superior Customer Experience Capital Principal + Interest
$
$
$
% fee to LC % fee to LC Access to a New Asset Class Easy-to-Use Tools Transparency Attractive Risk-Adjusted ReturnsInternet & Digital Media
6 IDM Intelligence
Who exactly are the lenders here?
In the case of LendingClub, the funding comes primarily from individual investors (as shown below); however, other players in the
space are turning to more institutional capital and their own balance sheets to fund a larger portion of loans
Source: LendingClub S-1. Percentages based on $2.1 billion in loans facilitated by LendingClub for the year ended 12/31/13.
The online marketplace lending space is growing rapidly and more specialized players are entering
different sub-segments of the market
Foundation Capital, in their report “A Trillion Dollar Market By the People, For the People”, estimates that $8.8 billion of marketplace
loans will be originated in 2014; that may sound like a big number, but it only represents ~0.25% of total annual lending activity of
$3.2 trillion, meaning there’s still a whole lotta’ room for growth and disruption ahead!
Who else is out there trying to disrupt traditional lending markets?
Source: “A Trillion Dollar Market By the People, For the People” by Charles Moldow, General Partner – Foundation Capital.
Concluding remarks
:
Though we are still in the early days, we expect to see a lot more disruption in the lending market,
especially after the public markets’ favorable reception of the LendingClub and OnDeck Capital IPOs. We believe more disruption and
innovation will continue to drive efficiency in the lending market and anticipate a very active 2015 in this exciting space!
57%
27%
16%
Individuals through Investment Vehicles or Managed Accounts
Self-Managed Individual Investors
Institutional Investors
$0.1
$0.3
$0.5
$1.2
$3.4
$8.8
0.0
2.5
5.0
7.5
10.0
2009
2010
2011
2012
2013
2014E
($ in billions)$8.8
billion$3.2
trillion Total Annual Lending ActivityConsumer
Loans
Education
Financing
SMB Credit
Internet & Digital Media
Market Snapshot 7
Market Snapshot
Economic Indicators
Economic Indicators
2009
2010
2011
2012
2013
2014
NASDAQ (yr. end) 2,269 2,653 2,605 3,020 4,177 4,736
Dow Jones Industrial Average (yr. end) 10,428 11,578 12,218 13,104 16,577 17,823
USD/Euro Exchange Rate (ann. avg.) $1.39 $1.33 $1.39 $1.29 $1.33 $1.33
Federal Funds Rate (ann. avg. %) 0.16 0.18 0.10 0.14 0.11 0.09
U.S. Inflation Rate (yoy, ann. avg. %) (0.3) 1.6 3.2 2.1 1.5 1.7
3-Month LIBOR (ann. avg. %) 0.686 0.344 0.337 0.430 0.270 0.234
U.S. 10-Year Treasury Bond (ann. avg. %) 3.26 3.22 2.78 1.80 2.35 2.54
U.S. GDP Growth (yoy, ann. avg. %) (2.6) 2.9 1.6 2.4 1.6 2.4
U.S. Unemployment Rate (ann. avg. %) 9.3 9.6 9.0 8.1 7.5 6.2
Consumer Confidence (ann. avg.) 45.2 54.5 58.1 66.9 73.3 86.9
Sources: NASDAQ, Dow Jones, S&P, Federal Reserve, Bureau of Labor Statistics, Census Bureau, Bureau of Economic Analysis, Conference Board, and
The Wall Street Journal as of December 31, 2014.
All Sectors
Number of Total Global Transactions
2009
2010
2011
2012
2013
2014
Total M&A – Announced 36,416 39,986 39,171 41,531 25,849 35,058
Total Private Placements 18,792 26,725 26,712 25,813 27,528 31,493
Total PIPES 2,628 3,585 2,865 2,531 2,598 2,075
Total IPO Filings 81 181 195 89 202 322
Total IPO Pricings 52 117 104 111 174 243
Total Follow-On Filings 758 659 474 543 765 651
Total Follow-On Pricings 687 587 412 484 638 612
Internet & Digital Media
8 Market Snapshot
Technology
Number of U.S. Technology Transactions
2009
2010
2011
2012
2013
2014
Technology M&A – Announced 1,637 2,173 2,199 2,224 2,089 2,456
Technology Private Placements 2,648 3,376 4,019 3,901 4,726 4,357
Technology PIPES 148 189 91 73 82 86
Technology IPO Filings 28 65 78 32 54 67
Technology IPO Pricings 17 43 44 43 53 58
Technology Follow-On Filings 67 72 70 66 151 104
Technology Follow-On Pricings 64 68 62 58 146 98
Internet & Digital Media
Number of U.S. Internet & Digital Media Transactions
2009
2010
2011
2012
2013
2014
Internet & Digital Media M&A – Announced 382 445 496 418 358 316
Internet & Digital Media PIPES 28 55 50 35 39 34
Internet & Digital Media IPO Filings 6 11 14 9 10 19
Internet & Digital Media IPO Pricings 3 7 20 13 10 18
Internet & Digital Media Follow-On Filings 2 5 8 6 12 13
Internet & Digital Media Follow-On Pricings 2 5 7 5 12 13
Internet & Digital Media Median Multiples
Median
2009
2010
2011
2012
2013
2014
Forward CY EV/Revenue 1.8x 2.1x 1.8x 1.7x 2.3x 2.0x
Forward CY EV/EBITDA 8.9x 9.0x 7.7x 8.7x 11.4x 9.5x
Forward CY P/E 21.1x 20.8x 17.7x 17.6x 23.5x 18.4x
Forward CY P/E/G 1.3x 1.1x 0.9x 0.9x 1.2x 1.3x
Internet & Digital Media
Public Equity Market Overview 9
Public Equity Market Overview
Public Comparable Companies
Summary of Public Comparables
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E) PEG
Category
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
E-commerce / Marketplaces (1) 1.9x 1.6x 13.7x 11.1x 21.6x 16.7x 1.2x E-retail (2)(3) 1.2x 1.1x 14.8x 12.3x 44.5x 26.5x 1.5x Ad Tech 1.8x 2.2x 13.7x 10.8x 27.6x 22.7x 1.0x Content 2.8x 2.5x 12.4x 9.1x 29.0x 26.5x 1.4x Social 8.9x 6.2x 24.7x 15.1x 61.5x 39.0x 1.5x Digital Media 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x
Digital Media Infrastructure 3.0x 2.8x 11.3x 9.8x 23.8x 20.0x 1.5x
Gaming 1.8x 1.7x 8.2x 7.4x 14.1x 10.5x 1.0x
Web Services (4) 2.6x 2.5x 13.5x 14.5x 38.3x 30.2x 1.1x
Mobile (5)(6) 1.1x 0.9x 9.9x 7.7x 13.6x 12.4x 1.6x
Traditional Media 2.8x 2.7x 9.3x 8.8x 18.8x 16.0x 1.4x
Consumer Electronics 0.7x 0.6x 6.4x 5.9x 13.9x 10.4x 1.8x
Selected Europe & Latin America 1.2x 1.1x 8.8x 7.0x 20.2x 16.8x 1.1x
Selected Asia 1.8x 1.6x 9.8x 8.1x 18.9x 15.4x 0.9x
(1) P/E ratio metrics exclude GrubHub, Coupons.com, Borderfree, Liquidity Services and Care.com.
(2) EBITDA metrics excude Overstock.com, 1-800 Flowers.com, Blue Nile, PetMed Express, United Online, CafePress and GeekNet. (3) P/E metrics exclude Stutterfly, Overstock.com, 1-800 Flowers.com, PetMed Express, United Online and Alibaba.
(4) EBITDA and P/E Metrics exclude Tucows and Synacor.
(5) Revenue metrics exlude TeleCommunications Systems and Voltari.
(6) EBITDA and P/E Metrics exclude Millennial Media, Telenav, TeleCommunications Systems and Voltari.
Internet & Digital Media
10 Public Equity Market Overview
Indexed Stock Performance—Last 12 Months
Source: FactSet Research Systems as of December 31, 2014. 70 80 90 100 110 120 130 140 150 12/31/13 02/28/14 04/30/14 06/30/14 08/31/14 10/31/14 12/31/14
E-commerce / Marketplaces (-1.3%) E-retail (-20.6%) Ad Tech (+13.5%)
Content (+9.3%) Social (+36.8%) Digital Media Infrastructure (+19.9%)
Gaming (+24.9%) Web Services (+0.7%) Mobile (+0.3%)
Traditional Media (+13.9%) Consumer Electronics (+23.6%) Selected Asia (-0.2%) Selected Europe & Latin America (+0.4%) NASDAQ (+13.4%)
Internet & Digital Media
Public Equity Market Overview 11
Public Comparables Detail
E-commerce/Marketplaces
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
eBay $56.12 $69,721.6 $66,936.6 3.3x 2.9x 10.7x 9.7x 17.1x 15.3x 1.5x
The Priceline Group 1,140.21 59,696.8 57,385.6 5.8 4.9 14.1 11.8 18.5 15.6 1.0
Expedia 85.36 10,802.1 10,537.6 1.6 1.4 8.8 7.6 18.2 15.6 0.8 Groupon 8.26 5,545.4 4,690.2 1.3 1.1 13.7 11.1 54.7 34.7 1.9 Grubhub 36.32 2,961.0 2,683.2 8.3 6.9 26.6 21.1 77.2 nmf 1.6 HomeAway 29.78 2,808.6 2,330.4 4.4 3.7 17.2 13.6 40.7 32.3 1.6 Proto Labs 67.16 1,734.2 1,675.9 6.5 5.3 17.6 14.4 31.5 26.0 1.5 Coupons.com 17.75 1,419.0 1,233.3 4.2 3.3 25.9 16.1 nmf 29.8 na Orbitz Worldwide 8.23 911.1 1,111.5 1.1 1.1 6.6 6.1 20.6 17.8 0.4 NIC 17.99 1,174.7 1,068.8 3.6 3.4 12.8 12.7 26.6 24.3 na Dice Holdings 10.01 532.0 618.1 2.2 2.1 6.9 6.3 17.3 14.1 1.1 RetailMeNot 14.62 790.5 602.8 2.0 1.6 5.7 4.6 13.6 11.1 0.6 Monster Worldwide 4.62 409.8 586.2 0.7 0.7 5.5 5.2 14.7 11.5 1.2 Chegg 6.91 579.4 496.2 1.4 1.4 30.2 7.2 47.0 12.2 na eHealth 24.92 444.0 385.9 1.9 1.6 24.6 15.5 54.3 34.6 3.3 Liquidity Services 8.17 244.5 181.9 0.4 na 4.3 na 12.8 na 0.6 Care.com 8.28 260.7 177.6 1.0 0.8 nmf nmf nmf nmf na Borderfree 8.96 285.0 162.6 1.1 0.9 39.0 16.8 nmf nmf na Travelzoo 12.62 185.9 128.7 0.9 0.9 8.1 9.5 22.5 25.5 na Mean(1) 2.7x 2.5x 15.5x 11.1x 28.4x 20.8x 1.3x Median(1) 1.9x 1.6x 13.2x 11.1x 21.6x 16.7x 1.2x
(1) P/E ratio metrics exclude GrubHub, Coupons.com, Borderfree, Liquidity Services and Care.com. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.
Social
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Facebook $78.02 $217,507.9 $203,535.9 11.9x 9.0x 20.0x 15.1x 40.5x 30.2x 1.1x LinkedIn 229.71 28,524.6 25,093.2 8.5 6.6 30.8 22.0 82.5 55.7 2.0 Twitter 35.87 22,425.2 20,303.2 8.9 6.0 37.3 20.4 nmf 47.7 na Momo 12.00 2,237.7 2,075.5 13.3 6.2 24.7 na 75.0 21.1 na MeetMe 1.53 68.7 57.2 1.1 0.9 6.5 4.1 nmf 11.3 na Mean 8.7x 5.7x 23.9x 15.4x 61.5x 36.2x 1.5x Median 8.9x 6.2x 24.7x 15.1x 61.5x 39.0x 1.5x
Internet & Digital Media
12 Public Equity Market Overview
Digital Media
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Netflix $341.61 $20,580.8 $19,813.9 2.9x 2.4x 29.2x 19.8x nmf 45.1x na
Pandora Media 17.83 3,710.2 3,393.8 2.8 2.2 nmf 13.8 35.0 20.4 0.6
Mean 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x
Median 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x
Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.
Ad Tech
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14
($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Microsoft $46.45 $382,880.5 $318,257.5 3.2x 2.9x 8.9x 8.1x 16.0x 14.1x 1.5x Google 530.66 358,535.9 307,118.9 4.9 4.2 9.9 8.4 17.5 14.9 1.1 Criteo 40.42 2,426.0 2,117.8 4.4 3.5 15.8 11.5 38.3 30.5 0.8 comScore 46.43 1,587.9 1,573.9 4.2 3.7 18.3 15.2 27.1 21.9 0.9 Constant Contact 36.70 1,162.5 1,008.1 2.6 2.2 13.3 10.8 28.1 22.7 1.1 Bazaarvoice 8.04 627.4 572.9 2.8 2.4 nmf nmf nmf nmf na Rocket Fuel 16.12 665.7 562.4 0.9 0.7 51.9 11.5 nmf nmf na Blucora 13.85 567.9 534.9 1.1 na 6.9 na 9.7 12.7 0.5 Rubicon Project 16.14 580.3 476.4 3.0 2.4 41.6 15.9 nmf 52.1 na QuinStreet 6.07 269.4 226.7 0.8 0.8 13.7 11.2 48.8 na na Marchex 4.59 196.7 116.0 0.8 0.8 7.3 7.2 32.5 27.0 na YuMe 5.04 166.5 109.1 0.5 0.5 16.2 8.2 nmf 72.5 na Tremor Video 2.87 146.6 68.7 0.4 0.3 nmf 23.8 nmf nmf na ReachLocal 3.44 100.3 48.4 0.1 0.1 nmf 3.1 nmf nmf na Mean 2.1x 1.9x 18.5x 10.8x 27.2x 29.8x 1.0x Median 1.8x 2.2x 13.7x 10.8x 27.6x 22.7x 1.0x
Internet & Digital Media
Public Equity Market Overview 13
E-retail
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Alibaba $103.94 $258,362.3 $251,337.5 15.7x 11.9x 29.7x 22.3x nmf 28.0x na Amazon.com 310.35 143,693.9 139,909.9 1.3 1.1 17.3 13.2 nmf nmf na HSN 76.00 3,980.1 4,118.3 1.1 1.1 11.2 10.3 21.0 18.9 1.5 Cnova 7.91 3,471.8 3,551.9 0.7 0.5 22.3 11.9 88.1 30.6 2.1 Cimpress 74.84 2,440.1 2,863.2 na na na na na na na zulily 23.40 2,932.9 2,588.8 1.4 1.0 nmf 13.9 52.9 nmf 0.8 Wayfair 19.85 1,645.9 1,913.0 1.2 0.9 nmf nmf nmf nmf na Shutterfly 41.70 1,615.6 1,622.1 1.5 1.4 7.8 6.6 nmf 45.8 na Stamps.com 47.99 763.6 731.9 4.5 4.0 14.5 12.3 17.8 15.0 0.9 1-800-Flowers.com 8.24 528.8 591.5 0.5 na 6.8 na 18.2 na 1.1 Overstock.com 24.27 583.1 470.4 0.3 na 9.4 na nmf na na Blue Nile 36.01 426.6 394.8 0.8 0.7 15.1 12.4 36.1 28.6 1.8 PetMed Express 14.37 291.3 241.1 1.0 na 8.5 na 16.1 na 3.2 United Online 14.55 207.1 130.8 0.6 na 3.7 na 15.3 na na CafePress 2.35 40.8 30.3 0.1 0.1 3.9 na nmf nmf na Geeknet 8.28 55.6 24.9 0.2 na 12.4 na 72.0 24.4 na Mean(1) (2) 2.1x 2.3x 16.9x 12.9x 48.0x 27.2x 1.6x Median(1) (2) 1.2x 1.1x 14.8x 12.3x 44.5x 26.5x 1.5x
(1) EBITDA metrics excude Overstock.com, 1-800 Flowers.com, Blue Nile, PetMed Express, United Online, CafePress and GeekNet. (2) P/E metrics exclude Stutterfly, Overstock.com, 1-800 Flowers.com, PetMed Express, United Online and Alibaba.
Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.
Content
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14
($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Yahoo! $50.51 $47,850.7 $37,888.8 8.4x 8.4x 28.6x 27.3x 44.8x 40.2x na TripAdvisor 74.66 10,670.7 10,440.7 6.7 5.5 17.7 14.0 29.2 23.0 1.1 IAC 60.79 5,094.3 5,159.2 1.6 1.5 8.7 6.9 18.2 13.8 3.2 Zillow 105.89 4,288.7 3,724.8 8.4 6.5 nmf 25.8 nmf 65.8 na Yelp 54.73 3,968.9 3,604.9 6.7 4.9 nmf 18.2 nmf 60.1 na AOL 46.17 3,596.0 3,587.8 1.3 1.2 6.7 6.2 19.1 16.6 1.4 Shutterstock 69.10 2,448.6 2,091.3 4.8 3.9 21.5 16.0 nmf nmf na WebMD Health 39.55 1,429.8 1,682.2 2.6 2.4 9.1 8.0 31.3 24.4 2.5 Trulia 46.03 1,740.2 1,654.1 4.9 3.9 nmf 19.4 nmf 69.3 na Shutterstock 22.90 1,766.6 1,567.8 5.6 4.2 59.6 28.4 nmf 52.3 na Bankrate 12.43 1,298.1 1,419.1 2.3 2.1 8.9 7.6 15.4 13.3 0.9 Tree.com 48.34 547.5 463.9 2.5 2.2 nmf 13.1 nmf 19.8 na XO Group 18.21 489.5 403.9 2.9 2.6 13.4 10.7 41.9 nmf na Angie's List 6.23 364.6 344.9 1.0 0.9 15.9 9.1 nmf 28.5 na TechTarget 11.37 367.6 333.1 2.8 2.3 12.4 na 28.7 na 1.1 Spark Networks 3.59 87.4 78.0 1.4 1.3 11.3 6.1 34.2 nmf 2.3 Demand Media 6.12 112.6 73.1 0.5 na 3.5 na nmf nmf na Mean 3.8x 3.4x 16.7x 11.4x 29.2x 35.6x 1.8x Median 2.8x 2.5x 12.4x 9.1x 29.0x 26.5x 1.4x
Internet & Digital Media
14 Public Equity Market Overview
Gaming
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Activision Blizzard $20.15 $14,488.5 $14,982.5 3.2x 2.9x 8.7x 7.9x 14.1x 12.7x 1.0x Electronic Arts 47.02 14,618.7 12,821.7 2.9 2.8 11.3 10.1 20.6 17.6 1.7 King Digital Entertainment 15.36 4,911.1 3,934.7 1.8 1.9 4.8 4.9 7.8 8.3 na
GameStop 33.80 3,667.8 3,647.8 0.4 0.3 4.2 4.0 8.3 7.4 0.6 Take-Two Interactive 28.03 2,358.0 2,019.1 1.3 1.2 8.2 7.4 19.9 17.3 0.7 Zynga 2.66 2,401.6 1,575.8 1.9 1.7 17.1 13.4 86.6 nmf 3.7 iDreamSky Technology 17.08 722.9 559.9 1.8 1.2 7.1 4.3 10.8 6.9 na Mean 1.9x 1.7x 8.8x 7.4x 24.0x 11.7x 1.5x Median 1.8x 1.7x 8.2x 7.4x 14.1x 10.5x 1.0x
Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.
Digital Media Infrastructure
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Adobe $72.70 $36,258.3 $34,033.1 6.8x 5.5x 20.0x 14.7x 33.2x 21.6x 2.0x Akamai 62.96 11,206.5 11,095.7 4.9 4.2 11.3 9.6 22.9 19.1 1.4 Dolby 43.12 4,409.7 3,631.7 3.7 3.5 na na 26.3 23.9 3.5 Rovi 22.59 2,140.0 2,859.5 5.1 4.5 12.0 9.8 12.1 9.1 0.8 Gogo 16.53 1,409.4 1,484.4 2.9 2.3 25.1 11.6 nmf nmf na Monotype Imaging 28.83 1,129.4 1,046.8 5.1 4.6 12.9 11.3 22.8 20.0 1.5 TiVo 11.84 1,214.4 710.1 1.5 1.4 5.6 4.3 30.4 18.3 na RealD 11.80 592.2 575.3 3.0 2.7 7.5 7.1 nmf 52.3 na Harmonic 7.01 617.3 520.1 1.2 1.2 7.8 8.3 24.8 20.0 na DTS 30.75 528.5 472.0 3.1 2.9 11.4 10.5 17.7 15.1 1.0 Smart Technologies 1.20 146.0 257.2 0.5 na 6.7 na nmf na na Boingo Wireless 7.67 276.8 256.4 1.9 1.7 8.0 6.0 nmf nmf na Brightcove 7.78 251.1 230.7 1.7 na 74.0 nmf nmf na na Limelight Networks 2.77 273.4 172.5 1.1 1.1 nmf 70.6 nmf nmf na Envivio 1.34 37.1 (0.8) nmf na nmf na nmf na na Mean(1) 3.0x 3.0x 16.9x 15.2x 23.8x 22.2x 1.7x Median(1) 3.0x 2.8x 11.3x 9.7x 23.8x 20.0x 1.5x
Internet & Digital Media
Public Equity Market Overview 15
Web Services
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Web.com $18.99 $997.5 $1,502.5 2.6x 2.5x 9.3x 8.4x 7.8x 7.0x 0.5x LogMeIn 49.34 1,203.1 1,006.7 3.9 3.4 17.6 14.5 38.3 30.2 1.1 Wix.com 21.00 799.9 706.1 3.5 2.6 nmf 43.0 nmf nmf na Digital River 24.73 788.4 537.7 1.3 1.3 9.3 7.4 41.5 31.4 4.1 Carbonite 14.27 384.8 313.4 2.3 2.0 17.8 15.9 nmf nmf na Tucows 19.41 219.5 206.0 1.2 na 10.3 na 19.2 na na Synacor 2.00 54.8 33.0 0.3 na 23.1 na na na na Mean(1) 2.7x 2.3x 13.5x 17.8x 29.2x 22.8x 1.9x Median(1) 2.6x 2.5x 13.5x 14.5x 38.3x 30.2x 1.1x
(1) EBITDA and P/E metrics exclude Tucows and Synacor.
Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.
Mobile
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Amdocs $46.66 $7,272.2 $6,057.7 1.6x 1.6x 8.1x 7.6x 13.6x 12.4x 1.6x Glu Mobile 3.90 417.1 350.4 1.4 1.3 11.7 7.8 17.5 11.1 na TeleCommunication Systems 3.12 186.1 265.4 0.7 na 6.6 na 12.7 na na Millennial Media 1.60 222.6 146.1 0.4 0.4 nmf 22.3 nmf nmf na Telenav 6.67 266.3 134.7 0.8 0.6 nmf 20.7 nmf 66.9 na Voltari 0.66 3.1 25.9 na na na na na na na Mean(1) (2) 1.1x 1.0x 9.9x 7.7x 15.6x 11.7x 1.6x Median(1) (2) 1.1x 0.9x 9.9x 7.7x 13.6x 12.4x 1.6x
(1) Revenue metrics exlude TeleCommunications Systems and Voltari.
(2) EBITDA and P/E metrics exclude Millennial Media, Telenav, TeleCommunications Systems and Voltari. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.
Traditional Media
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Comcast $58.01 $149,265.7 $193,950.7 2.7x 2.6x 8.0x 7.4x 17.6x 15.2x 1.5x Walt Disney 94.19 159,719.0 174,358.0 3.3 3.1 11.3 10.2 19.4 16.9 1.5 Time Warner 85.42 71,623.5 90,970.5 3.2 3.0 11.3 10.0 18.1 14.7 1.2 Naspers 131.18 51,974.4 54,864.2 7.4 6.3 nmf nmf 39.1 29.0 3.1 Viacom 75.25 30,629.5 42,535.5 2.9 2.8 9.3 8.8 12.2 10.8 0.9 CBS 55.34 28,714.6 35,495.6 2.5 2.4 10.3 9.4 15.0 12.3 1.1
McGraw Hill Financial 88.98 24,158.1 23,898.1 4.5 4.2 11.2 10.2 20.5 18.2 1.4
Scripps Networks 75.27 10,320.4 11,941.0 4.2 4.0 9.7 9.2 16.8 15.0 1.4
Gannett 31.93 7,210.8 10,209.8 1.6 1.5 6.6 6.0 12.8 10.6 0.9
News Corp 15.69 9,112.3 6,538.3 0.7 0.7 6.9 6.1 29.5 25.4 1.8
Graham Holdings 863.71 5,004.0 4,848.4 1.4 1.4 7.9 7.1 26.5 25.8 3.0
New York Times 13.22 1,987.1 1,873.6 1.2 1.2 7.5 7.3 26.6 23.9 na
Mean 3.0x 2.8x 9.1x 8.3x 21.2x 18.2x 1.6x
Median 2.8x 2.7x 9.3x 8.8x 18.8x 16.0x 1.4x
Internet & Digital Media
16 Public Equity Market Overview
Consumer Electronics
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Apple $110.38 $647,361.0 $575,860.0 2.7x 2.5x 8.1x 7.5x 13.9x 12.7x 1.1x Samsung 1,215.76 178,117.6 134,817.5 0.7 0.7 3.4 3.1 10.4 9.3 16.0 Hewlett-Packard 40.13 73,601.7 78,386.7 0.7 0.7 5.8 5.7 10.1 9.7 2.1 Toshiba 4.28 18,110.2 33,730.2 0.6 0.6 6.4 5.9 12.1 10.4 na Sony 20.64 23,732.5 32,844.5 0.5 0.5 6.1 5.0 38.7 nmf na Nokia 7.94 28,967.9 22,959.3 1.5 1.4 9.6 9.3 21.3 18.9 na LG 54.15 9,243.7 16,356.3 0.3 0.3 4.4 4.2 8.0 7.2 0.1 Go Pro 63.22 8,077.7 7,838.4 4.7 4.0 nmf nmf 50.2 nmf 1.4 HTC 4.47 3,704.5 1,973.3 0.3 0.3 16.1 16.2 nmf nmf na Acer 0.67 1,874.4 1,159.7 0.1 0.1 7.5 7.2 27.7 25.2 9.2 Mean 1.2x 1.1x 7.5x 7.1x 21.4x 13.3x 5.0x Median 0.7x 0.6x 6.4x 5.9x 13.9x 10.4x 1.8x
Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.
Selected Europe and Latin America
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
United Internet $45.44 $9,263.1 $9,447.5 2.2x 2.1x 10.5x 9.4x 20.5x 17.4x 1.0x MercadoLibre 127.67 5,637.3 5,518.4 8.5 6.9 24.2 19.3 38.4 31.1 1.3 UBM 7.53 3,329.8 4,103.9 2.8 2.8 10.7 10.4 13.3 12.8 2.5 Rightmove 35.03 3,389.5 3,380.0 12.4 11.3 16.8 15.2 21.7 19.2 1.4 Technicolor SA 5.62 1,883.5 2,617.0 0.6 0.7 3.7 4.2 7.1 9.1 na Ubisoft 18.36 1,978.9 2,032.0 1.1 1.0 3.1 2.7 12.9 11.7 1.3 Moneysupermarket.com 3.65 1,987.7 2,020.0 5.1 4.8 13.5 12.6 19.0 17.7 0.9 Tomorrow Focus 4.56 266.1 303.9 1.2 1.1 9.6 8.2 19.3 14.9 0.6 GameLoft 4.04 346.4 277.3 0.9 0.8 6.4 5.1 20.2 16.1 0.2 Goldbach Group 18.12 106.5 76.0 na na na na na na na MeetMe 1.53 68.7 57.2 1.1 0.9 6.5 4.1 nmf 11.3 na Hi-Media 3.03 136.1 48.0 0.2 0.2 5.5 3.8 51.3 27.0 na TradeDoubler 1.31 55.5 34.4 0.2 0.2 7.9 5.8 78.2 32.9 na Cupid 0.29 20.5 2.8 na na na na na na na Mean 3.0x 2.7x 9.9x 8.4x 27.5x 18.4x 1.2x Median 1.2x 1.1x 8.8x 7.0x 20.2x 16.8x 1.1x
Internet & Digital Media
Public Equity Market Overview 17
Selected Asia
Stock
Price
Equity
Value
Enterprise
Value
Ent. Value/Sales
Ent. Value/EBITDA
P/E Ratio
(CY ’15E)
PEG
Company
12/31/14 ($ MM)
($ MM)
2015E
2016E
2015E
2016E
2015E
2016E
Ratio
Tencent $14.51 $134,569.7 $132,001.3 8.5x 6.9x 19.3x 15.3x 27.0x 21.3x 3.4x Baidu 227.97 79928.4 75733.3 6.8 5.2 20.3 14.6 25.6 18.7 0.7 JD.com 23.14 31522.2 26813.5 1.0 0.7 nmf 66.7 nmf nmf na Rakuten 14.04 18572.2 19490.2 3.5 3.2 14.4 12.2 30.3 24.4 1.3 Naver Corp 652.31 19221.4 18311.8 na na na na na na na Yahoo Japan 3.63 20667.5 16689.5 4.5 4.3 8.8 8.2 18.7 17.5 3.7 NetEase 99.14 12889.3 9729.9 4.3 3.7 9.8 8.2 14.2 12.2 1.0 Qihoo 360 57.26 7210.6 7224.8 3.6 2.7 12.4 8.5 17.6 12.4 0.4 Ctrip.com 45.50 6475.6 6589.3 4.1 3.2 nmf 26.5 nmf 42.5 na Nintendo 105.21 12454.3 5792.7 1.3 1.4 18.8 17.8 60.0 74.7 na Yandex 17.96 5716.9 5756.8 5.6 4.6 13.5 11.1 20.9 17.0 0.7 Nexon 9.39 4043.3 3457.2 2.3 2.2 5.7 5.6 12.0 11.5 0.8 Mixi 37.39 3111.3 2877.2 2.7 2.4 5.6 5.1 9.7 8.7 0.6 Bitauto Holdings 70.41 2921.8 2756.0 5.6 4.4 19.3 13.9 25.8 18.9 0.5 SouFun 7.39 3050.7 2734.6 3.3 2.8 9.2 7.1 13.3 10.6 1.3 Konami 18.53 2568.4 2466.5 1.2 1.2 8.1 7.9 19.0 18.3 0.6 Weibo 14.24 2808.6 2310.4 4.9 3.5 38.6 14.1 59.7 19.7 1.2 Youku Tudou 17.81 3525.7 2192.2 2.4 1.8 nmf nmf nmf nmf na Sohu.com 53.18 2046.7 1838.7 0.9 0.8 15.3 5.5 nmf 35.4 na 51job 35.85 2116.7 1576.9 4.5 3.8 13.5 10.9 18.5 15.6 0.9 Changyou.com 27.36 1445.8 1497.0 1.8 1.7 17.2 10.1 17.7 11.6 3.8 Jumei International 13.62 1949.4 1356.9 1.4 1.1 11.4 7.3 18.0 12.4 0.6 SINA Corp 37.41 2472.1 1220.3 1.4 1.1 24.9 8.2 43.0 19.7 6.6 Leju Holdings 10.76 1436.7 1173.6 1.9 1.6 7.3 5.6 12.9 10.1 0.4 DeNA 12.07 1564.2 1141.3 0.9 0.9 4.0 3.9 11.5 10.9 0.9 MakeMyTrip 25.99 1083.2 1016.7 6.1 4.7 81.4 40.4 nmf 53.6 na Gree 6.04 1431.1 958.3 1.1 1.1 4.3 4.4 11.3 11.9 0.3 E-Commerce China 9.29 750.2 477.2 0.3 0.2 9.2 4.9 18.7 10.1 0.3 Perfect World 15.76 783.6 442.3 0.6 0.5 3.5 2.9 7.1 6.0 0.5 Tuniu Corp 12.00 621.0 379.6 0.4 0.2 nmf nmf nmf nmf na ChinaCache 9.19 233.0 164.9 0.5 0.4 5.9 5.3 47.1 nmf 1.6 Renren 2.51 901.4 89.2 0.9 0.9 nmf nmf nmf nmf na Jiayuan.com 4.75 141.7 48.9 0.4 0.3 8.4 3.0 29.7 10.6 na Xunlei 7.30 474.6 40.5 0.2 0.2 0.7 0.5 27.0 15.2 1.4 Taomee Holdings 3.45 122.5 13.8 0.3 0.3 10.0 6.7 49.3 38.3 na Mean 2.6x 2.1x 14.0x 11.3x 24.7x 20.2x 1.4x Median 1.8x 1.6x 9.8x 8.1x 18.9x 15.4x 0.9x
Internet & Digital Media
18 Public Equity Market Overview
Equity Offerings (All Sectors)
IPOs Filed Monthly
IPO Backlog
IPOs Priced Annually
IPOs Priced Monthly
Note: Data as of December 31, 2014; data does not include REITs, closed-end funds, and SPACs. Source: Equidesk. 0 10 20 30 40 50 Ju l 0 9 Au g 0 9 Se p 0 9 Oct 0 9 N ov 09 De c 0 9 Ja n 1 0 Feb 1 0 M ar 1 0 Apr 1 0 M ay 10 Ju n 1 0 Ju l 1 0 Au g 1 0 Se p 1 0 Oct 1 0 N ov 10 De c 1 0 Ja n 1 1 Feb 1 1 M ar 1 1 Apr 1 1 M ay 11 Ju n 1 1 Ju l 1 1 Au g 1 1 Se p 1 1 Oct 1 1 N ov 11 De c 1 1 Ja n 1 2 Feb 1 2 M ar 1 2 Apr 1 2 M ay 12 Ju n 1 2 Ju l 1 2 Au g 1 2 Se p 1 2 Oct 1 2 N ov 12 De c 1 2 Ja n 1 3 Feb 1 3 M ar 1 3 Apr 1 3 M ay 13 Ju n 1 3 Ju l 1 3 Au g 1 3 Se p 1 3 Oct 1 3 N ov 13 De c 1 3 Ja n 1 4 Feb 1 4 M ar 1 4 Apr 1 4 M ay 14 Ju n 1 4 Ju l-1 4 Au g-14 Se p-14 Oc t-1 4 N ov -1 4 De c-14 0 20 40 60 80 100 120 140 Ju n 1 0 Ju l 1 0 Au g 1 0 Se p 1 0 Oct 1 0 N ov 10 De c 1 0 Ja n 1 1 Feb 1 1 M ar 1 1 Apr 1 1 M ay 11 Ju n 1 1 Ju l 1 1 Au g 1 1 Se p 1 1 Oct 1 1 N ov 11 De c 1 1 Ja n 1 2 Feb 1 2 M ar 1 2 Apr 1 2 M ay 12 Ju n 1 2 Ju l 1 2 Au g 1 2 Se p 1 2 Oct 1 2 N ov 12 De c 1 2 Ja n 1 3 Feb 1 3 M ar 1 3 Apr 1 3 M ay 13 Ju n 1 3 Ju l 1 3 Au g 1 3 Se p 1 3 Oct 1 3 N ov 13 De c 1 3 Ja n 1 4 Feb 1 4 M ar 1 4 Apr 1 4 M ay 14 Ju n 1 4 Ju l 1 4 Au g 1 4 Se pt 1 4 Oct 1 4 N ov 14 De c 1 4 0 100 200 300 400 500 600 700 800 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 5 10 15 20 25 30 35 Ju n 1 0 Ju l 1 0 Au g 1 0 Se p 1 0 Oct 1 0 N ov 10 De c 1 0 Ja n 1 1 Feb 1 1 M ar 1 1 Apr 1 1 M ay 11 Ju n 1 1 Ju l 1 1 Au g 1 1 Se p 1 1 Oct 1 1 N ov 11 De c 1 1 Ja n 1 2 Feb 1 2 M ar 1 2 Apr 1 2 M ay 12 Ju n 1 2 Ju l 1 2 Au g 1 2 Se p 1 2 Oct 1 2 N ov 12 De c 1 2 Ja n 1 3 Feb 1 3 M ar 1 3 Apr 1 3 M ay 13 Ju n 1 3 Ju l 1 3 Au g 1 3 Se p 1 3 Oct 1 3 N ov 13 De c 1 3 Ja n 1 4 Feb 1 4 M ar 1 4 Apr 1 4 M ay 14 Ju n 1 4 Ju l-1 4 Au g-14 Se p-14 Oc t-1 4 N ov -1 4 De c-14
Internet & Digital Media
Public Equity Market Overview 19
2012-2014
(1)Selected IPOs From the IDM Sector
At Initial Filing At Offering Price Change %
Pricing Date Issuer (Midpoint) Price Shares Offered (mm) Deal Value at Midpoint (mm) Price Shares Offered (mm) Deal Value (mm) % Change Initial/Act Deal Value Mkt Cap (at Pricing) (mm) Deal Value as % Mkt Cap
(at pricing) File/ Offer Offer/ 1 Day Current Offer/
12/10/2014 Momo $13.50 16.0 $216.0 $13.50 16.0 $216.0 0.0% $2,517.5 8.6% 0.0% 26.1% (11.1%) 12/10/2014 LendingClub $11.00 66.7 $733.7 $15.00 66.7 $1,000.5 36.4% $5,421.2 18.5% 36.4% 56.2% 68.7% 11/19/2014 Cnova $13.25 26.8 $355.1 $7.00 26.8 $187.6 (47.2%) $3,072.4 6.1% (47.2%) 2.1% 13.0% 10/01/2014 Wayfair $26.50 12.7 $335.2 $29.00 12.7 $366.9 9.4% $2,400.0 15.3% 9.4% 30.1% (31.6%) 09/18/2014 Alibaba $63.00 368.1 $25,032.3 $68.00 368.1 $25,032.3 7.9% $167,620.4 14.9% 36.3% 38.1% 52.9% 08/06/2014 iDreamSky $13.00 8.9 $132.8 $15.00 8.9 $132.8 15.4% $634.8 20.9% 15.4% 6.3% 13.9% 06/23/2014 Xunlei Ltd $10.00 8.4 $84.1 $12.00 8.4 $100.9 20.0% $832.6 12.1% 20.0% 24.2% (39.2%) 05/21/2014 JD.com $17.00 107.7 $1,830.9 $19.00 107.7 $2,047.0 11.8% $25,974.6 7.9% 11.8% 10.0% 21.8% 05/15/2014 Jumei International $20.50 12.7 $260.4 $22.00 12.7 $279.9 7.5% $3,148.8 8.9% 7.3% 9.9% (38.1%) 05/15/2014 TrueCar Inc $13.00 8.9 $115.7 $9.00 8.9 $80.5 (30.4%) $639.3 12.6% (30.8%) 11.8% 154.4% 05/08/2014 Tuniu Corp $10.00 9.2 $92.0 $9.00 9.2 $82.8 (10.0%) $431.4 19.2% (10.0%) 11.9% 33.3% 04/16/2014 Leju Holdings $11.00 10.0 $110.0 $10.00 10.0 $100.0 (9.1%) $1,320.3 7.6% (9.1%) 18.6% 7.6% 04/04/2014 GrubHub $21.00 8.1 $171.0 $26.00 8.5 $221.4 29.5% $2,038.0 10.9% 23.8% 30.8% 39.7% 04/02/2014 Rubicon Project $16.00 7.8 $124.6 $15.00 7.8 $116.8 (6.3%) $520.7 22.4% (6.3%) (15.3%) (69.5%) 03/25/2014 King.com $22.50 25.5 $574.4 $22.50 22.2 $499.5 (13.0%) $7,086.0 7.0% 0.0% (15.6%) (31.7%) 03/20/2014 Borderfree $15.00 5.8 $86.3 $16.00 5.0 $80.0 (7.2%) $487.6 16.4% 6.7% 25.0% (44.0%) 03/06/2014 Coupons.com $13.00 11.6 $150.5 $16.00 12.1 $193.2 28.4% $1,170.7 16.5% 23.1% 87.5% 10.9% 01/23/2014 Care.com $15.00 6.2 $92.3 $17.00 6.2 $104.6 13.3% $505.7 20.7% 13.3% 42.9% (51.3%) 11/16/2013 Zulily $17.00 13.2 $224.8 $22.00 13.2 $291.0 29.4% $2,685.4 10.8% 29.4% 71.4% 6.4% 11/12/2013 Chegg $10.50 17.3 $181.1 $12.50 15.0 $187.5 3.5% $1,079.0 17.4% 19.0% (22.6%) (44.7%) 11/06/2013 Twitter $18.50 80.5 $1,489.3 $26.00 80.5 $2,093.0 40.5% $14,162.1 14.8% 40.5% 72.7% 38.0% 11/05/2013 Wix $15.50 8.9 $137.3 $16.50 7.7 $127.1 (7.4%) $600.9 21.1% 6.5% (1.2%) 27.3% 10/29/2013 Criteo $24.50 8.3 $202.9 $31.00 9.3 $288.1 42.0% $1,714.2 16.8% 26.5% 14.2% 30.4% 09/19/2013 Rocket Fuel $25.50 4.6 $117.3 $29.00 4.6 $133.4 13.7% $942.3 14.2% 13.7% 93.4% (44.4%) 08/06/2013 YuMe $13.00 5.8 $75.0 $9.00 5.1 $46.1 (38.5%) $286.2 16.1% (30.8%) 0.0% (44.0%) 07/18/2013 RetailMeNot $21.00 10.5 $219.5 $21.00 10.5 $219.5 0.0% $1,054.4 20.8% 0.0% 31.9% (30.4%) 06/26/2013 Tremor Video $12.00 8.6 $103.5 $10.00 7.5 $75.0 (27.5%) $485.0 15.5% (16.7%) (15.0%) (71.3%) 06/20/2013 Gogo $16.00 12.7 $202.4 $17.00 11.0 $187.0 (7.6%) $1,462.2 12.8% 6.3% (5.9%) (2.8%) 10/10/2012 Shutterstock $14.00 5.2 $72.5 $17.00 5.2 $88.0 21.4% $558.3 15.8% 21.4% 27.4% 306.5% 09/19/2012 Trulia $15.00 6.9 $103.5 $17.00 6.9 $117.3 13.3% $448.4 26.2% 13.3% 41.2% 170.8% 07/19/2012 Kayak(2) $23.50 4.0 $94.6 $26.00 4.0 $104.7 (3.8%) $1,002.5 9.1% 10.6% 27.6% na 05/17/2012 Facebook $31.50 400.6 $12,618.9 $38.00 421.2 $16,006.9 26.8% $81,247.2 19.7% 20.6% 0.6% 105.3% 04/26/2012 Acquity Group(2) $9.00 12.8 $115.0 $6.00 11.1 $66.7 (42.0%) $141.1 47.2% (33.3%) (97.8%) na 04/24/2012 Envivio $11.00 8.9 $98.1 $9.00 7.8 $69.8 (28.9%) $239.9 29.1% (18.2%) (5.7%) (85.1%) 03/28/2012 CafePress $17.00 4.5 $76.5 $19.00 4.5 $85.5 11.8% $322.6 26.5% 11.8% 0.2% (87.6%) 03/28/2012 Millennial Media $10.00 10.2 $102.0 $13.00 10.2 $132.6 30.0% $973.6 13.6% 30.0% 92.3% (87.7%) 03/01/2012 Yelp $13.00 8.2 $106.9 $15.00 8.2 $123.3 15.4% $898.1 13.7% 15.4% 63.9% 264.9% 02/24/2012 Bazaarvoice $9.00 9.0 $81.0 $12.00 9.0 $108.0 33.3% $682.3 15.8% 33.3% 37.6% (33.0%) 02/23/2012 Proto Labs $14.00 4.9 $69.2 $16.00 4.9 $79.1 14.3% $371.0 21.3% 14.3% 81.3% 319.8% 02/17/2012 Brightcove $11.00 5.8 $63.3 $11.00 5.8 $63.3 0.0% $290.1 21.8% 0.0% 30.0% (29.3%) 02/09/2012 Synacor $11.00 7.8 $86.2 $5.00 6.8 $34.1 (60.5%) $127.9 26.7% (54.5%) 5.0% (60.0%) Mean(3) $858.2 1.8% $6,209.9 16.9% 5.1% 22.3% 16.4% Median(3) $123.3 7.5% $898.1 15.8% 10.6% 24.2% (11.1%) (1) As of December 31, 2014. (2) No longer trading due to acquisition.
(3) Excludes Alibaba and Facebook with exception of price change statistics. Note: Only companies trading on U.S. exchanges are included.
Internet & Digital Media
20 Public Equity Market Overview
2012-2014
(1)Selected Follow-Ons From the IDM Sector
Deal Value as % Mkt Cap (mm)
Price Change % Pricing Date Issuer Deal Value ($ MM) % Primary Shares
% Secondary
Shares
Mkt Cap (at pricing)
(mm) File/Offer Discount to Last Trade Offer/ 1 Day Current Offer/
12/02/14 JD.com 618.9 0.0% 100.0% 33,040.7 1.9% (5.0%) 5.0% 3.4% 0.2% 11/11/14 TrueCar 125.2 26.6% 73.4% 1,343.5 9.3% (1.5%) (2.8%) 2.9% 25.0% 09/03/14 GrubHub 421.3 10.8% 89.2% 3,219.5 13.1% (5.9%) (1.4%) (1.5%) (7.7%) 07/23/14 MeetMe 11.5 100.0% 0.0% 90.0 12.8% (13.4%) (13.4%) 3.5% (29.0%) 07/17/14 Orbitz Worldwide 321.8 0.0% 100.0% 978.9 32.9% (8.0%) (8.0%) 8.2% 11.3% 05/30/14 Glu Mobile 34.5 100.0% 0.0% 330.1 10.5% (13.8%) (13.8%) 3.9% 2.0% 05/22/14 Orbitz Worldwide 49.5 0.0% 100.0% 755.2 6.6% (12.7%) (4.6%) 9.7% 14.8% 05/22/14 Activision Blizzard 859.0 0.0% 100.0% 14,922.0 5.8% (0.8%) (0.8%) (0.8%) 132.0% 05/21/14 TechTarget 31.3 0.0% 100.0% 208.9 15.0% (20.1%) (0.2%) 8.0% 33.1% 04/25/14 Viggle 35.0 100.0% 0.0% 158.7 22.1% (85.5%) (52.9%) (28.1%) (64.1%) 03/27/14 58.com 456.0 33.3% 66.7% 3,054.4 14.9% (26.7%) (2.9%) 6.1% 2.9% 03/21/14 Criteo 236.3 10.0% 90.0% 2,613.2 9.0% (23.6%) (1.1%) (2.5%) (11.7%) 01/07/14 Groupon 163.1 0.0% 100.0% 8,103.7 2.0% (0.8%) (0.8%) 0.7% (36.6%) 12/20/13 Facebook 3,853.5 38.6% 61.4% 140,016.5 2.8% (0.9%) (0.1%) 4.9% 38.9% 12/11/13 HomeAway 256.1 7.5% 92.5% 3,275.2 7.8% (7.3%) (2.5%) 1.2% (27.2%) 12/11/13 RetailMeNot 187.4 40.8% 59.2% 1,415.5 13.2% (14.6%) (3.5%) 1.2% (44.2%) 11/20/13 Spark Networks 25.0 0.0% 100.0% 161.2 15.5% (11.0%) (11.0%) (7.0%) (42.5%) 10/30/13 Yelp 288.9 100.0% 0.0% 4,675.0 6.2% (2.7%) (0.1%) 1.1% (20.6%) 09/19/13 Shutterstock 317.4 31.9% 68.1% 2,092.6 15.2% 9.5% (0.5%) 17.4% 1.5% 09/18/13 Pandora 523.3 75.2% 24.8% 4,850.0 10.8% 4.2% (2.5%) 9.4% (32.1%) 09/12/13 Glu Mobile 13.2 100.0% 0.0% 184.6 7.2% (12.9%) (12.9%) 8.1% 70.0% 09/04/13 LinkedIn 1,380.0 100.0% 0.0% 28,022.8 4.9% (9.4%) (6.7%) 11.4% 0.0% 08/19/13 Zillow 473.7 56.3% 43.7% 3,209.7 14.8% (10.1%) (3.2%) (1.6%) 27.1% 05/02/13 Spark Networks 41.0 32.6% 67.4% 151.8 27.0% (13.8%) (4.7%) 7.2% (44.8%) 03/14/13 Trulia 212.5 56.4% 43.6% 947.4 22.4% 6.3% (2.2%) 3.1% 52.3% 10/23/12 Millennial Media 162.7 8.0% 92.0% 1,097.9 14.8% (11.7%) (0.7%) 13.9% (89.9%) 09/06/12 Zillow 190.1 87.0% 13.0% 1,062.7 17.9% 1.3% (1.1%) 1.1% 142.4% 05/15/12 Angie's List 112.2 8.1% 91.9% 757.3 14.8% (4.0%) (1.1%) 4.1% (56.4%) 05/10/12 Web.com 136.4 0.0% 100.0% 752.2 18.1% (4.1%) (1.7%) (2.1%) 14.1% 03/28/12 Zynga 593.0 0.0% 100.0% 8,832.3 6.7% (10.3%) (2.0%) 7.0% (78.7%) Mean(2) $285.4 37.4% 62.6% $4,493.3 12.9% (10.6%) (5.3%) 3.1% (5.6%) Median(2) $190.1 26.6% 73.4% $1,343.5 13.1% (9.4%) (2.5%) 3.4% (4.4%) (1) As of December 31, 2014.
(2) Deal value and market cap at pricing excludes Facebook. Note: Only companies trading on U.S. exchanges are included.
Internet & Digital Media
M&A Activity 21
M&A Activity
2009-2014 Sector Breakdown
2009-2014 Deal Value Breakdown
(1)2,275 Transactions
($ in millions)(1) Data does not include deals with an undisclosed deal value.
Note: Includes North American Internet & Digital Media M&A transactions from December 1, 2009 to December 31, 2014. Sources: Capital IQ, 451 research, and various media outlets.
M&A Activity – 2014
Vertical
Number of Deals
Percentage of Total
Content 76 29.5% E-commerce 64 24.8% Gaming 13 5.0% Online Advertising 55 21.3% Services 26 10.1% Social Network 9 3.5% Digital Media 15 5.8% Total 258 100.0%
Note: Includes North American Internet & Digital Media M&A transactions from January 1, 2014 to December 31, 2014. Sources: Capital IQ, 451 research, and various media outlets.
39.7% 18.6% 4.7% 18.1% 6.0% 7.0% 5.9% Content Services Gaming E-commerce Online Advertising Social Networking Digital Media 52 78 48 74 121 58 76
Internet & Digital Media
22 William Blair Internet & Digital Media Team
William Blair Internet & Digital Media Team
Rob Metzger,
head of technology, joined the corporate finance department of William Blair in 1999. While at William Blair
and in his prior position at ABN AMRO Incorporated, he focused on the corporate finance needs of insurance, financial
technology, and specialty finance companies. Mr. Metzger graduated in 1989 with highest honors from the University of
Illinois, receiving a B.S. in accountancy. In 1995, he graduated with distinction from Northwestern University’s Kellogg
School of Management, receiving an M.B.A. in finance and strategy. He is a certified public accountant.
[email protected]
+1 312 364 8517
James Hoak,
vice president at William Blair, has more than nine years of investment banking experience and has completed
more than 40 transactions. Mr. Hoak’s responsibilities consist of leading West Coast investment banking execution efforts on
public and private capital raises and M&A transactions. Before joining William Blair, he worked at Financial Technology
Partners and at RBC Capital Markets. Mr. Hoak received a B.B.A. from the University of Iowa and an M.B.A. from
Northwestern University’s Kellogg School of Management.
[email protected]
+1 415 248 5908
Raphael Grunschlag,
managing director and head of European technology banking, has been an investment banker with
William Blair since 2012 and focuses on expanding the firm’s technology practice across Europe and the Middle East. He has
more than 16 years of investment banking experience, having advised on more than $24 billion of transactions across M&A,
ECM, and debt financings. Before joining William Blair, Mr. Grunschlag served as head of European technology investment
banking at Bank of America Merrill Lynch (2005-2011), led the European Internet and software team for the CSFB
Technology Group (1999-2005), and worked at Hambrecht & Quist (1995-1999). He holds a master’s degree in international
affairs from Columbia University’s School of International and Public Affairs as well as a bachelor’s degree in Middle Eastern
and Asian languages and cultures from Columbia.
[email protected]
+44 20 7868 4501
Internet & Digital Media
Disclosures 23
Disclosures
William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Conduct Authority
("FCA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or
institutions situated within the United States and are not offered to persons or institutions outside of the United States.
This material has been approved for distribution in the United Kingdom by William Blair International Limited, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being “Eligible Counterparties” and Professional Clients). This Document is not to be distributed or passed on to any “Retail Clients.” No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision.
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