media ridge · visual communications, was acquired by barco, a global manufacturer of visual...

MEDIABRIDGE

DIGITAL MEDIA INVESTMENT BANKINGGLOBAL REACH, VERTICAL DEPTH

Industry OverviewSeptember 2014

2014

CAPITAL ADVISORS

To Our Colleagues and Friends Attending IBC2014Another IBC is upon us, and once again, like you, we are keeping a closeeye on the key innovations and trends in our quickly evolving industry.

MediaBridge co-founders and managing partners Ethan Jacks and JohnBowen, together with two senior industry advisors, Tom Ohanian andGraham Sharp, will be on hand throughout the show. We look forward tosharing our perspective on the M&A and corporate finance activities in theindustry and our recent transactions.

Ethan E. Jacks John C. BowenManaging Partner Managing [email protected] [email protected] (m) 617.921.0075 (m)

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MediaBridge has been busy since IBC2013 …

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… advising four top-tier media technology companies in both M&A and capital-raising transactions:

Pebble Beach Systems Ltd, with its advanced automation and channel-in-a-boxproducts, was acquired by Vislink plc for $24.7 million.

Canada-based X2O Media, known for its HTML-5-based platform for advancedvisual communications, was acquired by Barco, a global manufacturer of visualsystems, for C$21 million.

Teradek LLC, an Irvine, California-based leader in wireless video technology, wasacquired by UK-based The Vitec Group plc for up to $30.4 million.

iZotope Inc., a leader in music and audio software based in Cambridge, Mass.,received $12 million in growth capital from investor ABS Capital Partners, a topprivate equity firm based in Baltimore, Md.

We look forward to meeting with you either at the show or soon thereafter to discuss yourstrategic growth plans and options.

MediaBridge Co-Founder and Managing Partner

• 30+ years experience as investment banker, corporate executive, and corporatelawyer

• Co-founded MediaBridge in 2012, after having led Covington Associatesexpansion into the digital media and technology sectors

• Served as Avid Technology senior executive (EVP Corp Development, CLO, CFO)from 1999 to 2006. Led the company during its most significant period ofgrowth. Managed 12 strategic acquisitions, doubling the company’s revenue to$1 billion and growing market cap from $400 million to $2.5 billion

• Co-founded an environmental technology company in early 90s, which achieveda public market cap of $1 billion in 1996

• BS from MIT and MBA from MIT Sloan School of Management; JD, GeorgetownUniversity Law Center

Our principals have advised on more than 30 mergers and acquisitions in the media sector worldwide.Leading the team are Ethan Jacks and John Bowen, who have more than 50 years of experience in mediatechnology with unmatched expertise in the film, video, audio, broadcast, Internet, and new media markets.

Ethan Jacks

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MediaBridge Co-Founder and Managing Partner

• Extensive investment banking, equity research, and operational IT experience

• Prior to co-founding MediaBridge, led Covington Associates expansion into the digital mediaand technology sectors, representing both privately held and publicly traded companies

• VP Equity Research at First Albany Corporation covering digital media technology,networking hardware and software, and enterprise software companies. Previouslyemployed at Sybase, McDonnell Douglas, and Digital Equipment Corp.

• Author of three significant industry research reports on media technology and CDN markets

• 15 years of experience in traditional and new media technology, and 15 years of IT industryexperience

• BS in Mechanical Engineering with Digital Systems concentration from University of NewHampshire; MBA from Babson College

John Bowen

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MediaBridge Senior Advisors Attending IBC

• 30+ years of experience in the media industry

• Current member of the digital media strategy team as Cisco Systems

• Former corporate fellow and member of founding team at Avid Technology

• Former chief strategy officer at Signiant

• Academy Award and two-time Emmy Award recipient for scientific and technical inventionTom Ohanian

Graham Sharp

• 25+ years of executive management experience in the media industry, now at The VitecGroup

• Current board member of Media Asset Capital, a full-service media consultancy, and AV3, aWeb distribution channel

• Former president and CEO of xtranormal Inc.

• Former EVP and GM of Avid’s video division, a $470 million business with 1,500 employees

• Executive management positions with Post Impressions, Discreet Logic, and Dynatech

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Senior Advisors

• President of CRX Partners, a media technology business development consultancy• CRX and MediaBridge work to provide the best combination of strategic and transaction expertise to

the professional and consumer audio/video markets• 30+ years of executive experience in professional, broadcast, and commercial audio• Senior VP Business & Professional Group Americas (Allen & Heath, Calrec, D&M Pro), D&M Holdings• Full-time consultant, D&M Holdings (M&A and post acquisition integration focus)• VP/GM, Professional Audio, Sony Broadcast & Professional

Courtney Spencer

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Josh Kline

• 15+ years experience building new businesses in digital media, with a focus on content creation,production, and distribution

• VP of media and entertainment at Box.com• Former chief strategy officer of Final Draft Inc., the world leader in script-writing software• Former executive at Secure Path Technology, an enterprise cloud-based metadata company• Co-founder and former CEO of Sample Digital Inc., where he oversaw development of Emmy

Award-winning Digital Dailies solution

• CEO of OpenDrives, where he is responsible for day-to-day operations and leads productdevelopment and technology strategy

• 20-year veteran of the media and technology industry with executive positions held at EMC'sMedia & Entertainment practice in the Cloud Infrastructure Group, Echostar, and SecurePathTechnology. Also built the digital media divisions of two high profile postproduction companies.

• Began as an investment banker providing M&A advisory services to companies in the technology,gaming, and publishing industries

• Author of published works for the Motion Picture AssociationChad Knowles

Senior Advisors

• 20+ years in the entertainment industry including award-winning work as an editor, producer, anddirector

• Director of digital media and technology at the University of Southern California’s School ofCinematic Arts

• Worked on numerous feature films including the Academy Award-winning Harlan County, U.S.A.(1976), Arthur (1981), and Visions of Light (1992)

Meri Weingarten

Ashley Stephenson

• Strategic advisor specializing in the evolution of the global IT market• CEO of UK-based IT security leader Corero Network Security• Co-founded or lead several technology companies as chairman or CEO, including Reva Systems

(acquired by ODIN) and Xedia Corporation (acquired by Lucent)• Awarded “CEO of the Year” by Massachusetts Telecommunications Council• Served on the boards of directors of many venture-backed startups and industry consortia• Graduate of Imperial College, London, and an Associate of the Royal College of Science

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• 20+ years experience in business development, strategic planning, M&A, IPO, private equity, andinternational operations

• Former partner at North Bridge Ventures, covering communications, wireless, and software• Former senior executive at Shiva Corporation, contributing to a successful IPO, several acquisitions,

and a rapid growth phase• Adjunct lecturer at Babson College and former senior lecturer at MIT Sloan• Graduate of Fordham University with an MBA from Harvard Business SchoolAngelo Santinelli

Senior Advisors

• EVP and CFO of BCS Solutions Inc., a leading Southern California-based vendor ofsupply chain automation solutions incorporating RFID and other wireless-basednetwork architectures

• Served as the COO and CFO of several major venture capital and private equity-backed companies in technology, retail, and manufacturing

• From 2002 to 2007, served as CFO of M-Audio, a pioneer and leader in MIDI-basedmusic and audio products, where he led the sale of M-Audio to Avid Technology for$231 million

• Graduate of USC

Scot Ross

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Mary Modahl

• 25+ years experience in technology, media, education, and healthcare• Chief marketing officer at Health Dialog and QuantiaMD• 10 years advising universities and diverse healthcare industry players• 15 years at Forrester Research in both research and marketing executive roles• Graduated from Harvard University with a degree in economics

Representative Transactions

Transaction closed during employment with: * Covington Associates; ** Silverwood Partners; *** Avid Technology

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Representative Transactions

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Transaction Closed During Employment with: * Covington Associates; ** Silverwood Partners; *** Avid Technology

Vislink Acquires Pebble Beach Systems for $25 Million

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• MediaBridge Capital Advisors served as exclusive investmentbanking advisor to Pebble Beach Systems Ltd in connection withits acquisition in March 2014 by Vislink plc.

• Based in Weybridge, Surrey, UK, and founded in 2000, PebbleBeach Systems is a leading developer and supplier ofautomation, channel-in-a-box, and content managementsolutions for TV broadcasters, cable, and satellite operators.

• Vislink plc is a global technology business leader specializing inhigh-performance wireless communications products andservices for the broadcast, defense, and security markets.

“MediaBridge has been advising us for several years to secure the beststrategic partner for our next stage of growth. With its fantastic globaltier-1 client base in the broadcast sector, Vislink offers us an idealplatform for accelerated growth and expansion of our softwaresolutions. MediaBridge was integral to this successful outcome.”

>> Peter Hajittofi, Co-Founder and Managing Dir., Pebble Beach Systems

Barco Acquires X2O Media for C$21 Million

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• MediaBridge Capital Advisors served as exclusive investment banking advisor to X2OMedia in connection with its acquisition in March 2014 by Barco NV.

• Based in Montreal, Canada, X2O was established in 2006 as a spin-off fromVertigoXmedia, a Montreal-based company with strong expertise in the field ofbroadcast graphics automation. X2O’s innovative platform enables the connection,management, and delivery of real-time data through dynamic and interactivechannels, from any source to any screen, anywhere.

• Barco, a global technology company, designs and develops visualization products for avariety of selected professional markets. Barco is active in more than 90 countrieswith 4,000 employees worldwide and sales of €1.158 billion in 2013.

“X2O Media perfectly complements our offering and skills portfolio, and is an important step inour strategy to expand our portfolio beyond video and imaging. Customers’ expectationsregarding workflow and content management shift to end-to-end and easy-to-use visualizationsystems and cloud-based solutions. X2O Media’s platform will play a crucial role in allowingBarco to tap into these new opportunities while differentiating itself further from competition.”

>> Eric Van Zele, CEO, Barco

“The MediaBridge team was with us every step of the way in our acquisition process withBarco,” said David Wilkins, founder and CEO of X2O Media. “MediaBridge’s expertise in allaspects of the transaction, particularly the transaction structure and closing execution, wassuperb. We are delighted to be joining the Barco family, and we are deeply appreciative of theeffort from the MediaBridge team in completing the deal on excellent terms.”

>> David Wilkins, CEO, X2O Media

Vitec Group Acquires Teradek for $30 Million

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• MediaBridge Capital Advisors served as exclusive investment banking advisor to TeradekLLC in connection with its acquisition in August 2013 by The Vitec Group plc.

• Teradek is a world leader in wireless video devices and platforms used by broadcasters,filmmakers, businesses, and Web channels to wirelessly transmit high-quality images. Itsproducts are used in live electronic news gathering, real-time monitoring and recording,aerial visual capture, and webcasting.

• The Vitec Group plc is a leading international provider of products and services for thebroadcast, photographic, and military-aerospace-government markets. The acquisitionwill not only strengthen Vitec's product offerings – particularly to the growing number ofindependent videographers and business users – but will complement Vitec's existingvideo activities, including its range of broadcast microwave systems, and allow Teradek'sproducts to be sold through Vitec's global sales and distributor network.

“This represents a major step forward for Teradek, which I believe willexpand our reach, fuel our continued growth, and enhance our focuson product innovation. We will undoubtedly benefit from theresources and reach of Vitec Videocom and will embrace theopportunity to work alongside some of its other market-leadingbrands.”

>> Nicol Verheem, CEO and Co-Founder, Teradek

iZotope Receives $12 Million Investment from ABS Capital

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• MediaBridge Capital Advisors served as exclusive investment banking advisor to iZotope Inc. inconnection with a $12 million investment from ABS Capital Partners, which closed in August2013.

• Leading audio technology company iZotope will use the funds to develop new products, expandits markets, and increase sales and marketing efforts. With over $2 billion raised since inception,ABS Capital Partners has invested in over 100 growth companies over the past two decades.

• iZotope creates professional audio products for the music, entertainment, and educationindustries. Its product portfolio is comprised of solutions for audio creation, repair, mixing andmastering. iZotope’s clients include musical giants such as Depeche Mode, Garbage, Skrillex, andWu-Tang Clan; and radio stations and TV programming such as CBS' “Survivor,” the DiscoveryChannel’s “Deadliest Catch,” the World Cup broadcast, and the Grammy Awards. iZotopetechnology is also directly integrated into products made by industry leaders such as Adobe,Avid, and Sony; video games from companies like Microsoft, Harmonix, and Ubisoft; and agrowing number of mobile phone applications.

“iZotope is a company driven by a wealth of creative brainpower. Coupledwith our position as a market leader, this funding will enable us to realizemore of our creative vision, accelerating innovation and new products forour loyal customer base.”

>> Mark Ethier, CEO and Co-Founder, iZotope

Public Market Overview

Market Capitalization - Large CapPublicly Traded Media Technology Companies

August 2006

August 2008

August 2010

August 2012

August 2014

($USD in millions)

Adobe Akamai Arris Autodesk Cisco Ericsson Harman Naspers Panasonic Sony

Cash: 3,330 757 552 1,906 52,074 10,222 584 1,298 6,277 15,268

Total Debt: 1,506 595 1,575 747 20,909 3,442 559 3,680 6,334 10,497

Enterprise Value (EV): 33,937 10,603 5,454 11,001 96,851 34,303 7,813 53,342 28,598 20,748

EV/ LTM Revenue 8.3x 6.0x 1.1x 4.6x 2.1x 1.1x 1.5x 9.1x 0.4x 0.3x

EV/ LTM EBITDA 45.4x 17.1x 9.6x 30.3x 7.9x 7.6x 14.2x 40.5x 4.6x 4.2x

Share Price as a % of52 Week High 96.3% 95.7% 85.4% 91.4% 95.8% 95.0% 97.0% 92.5% 90.7% 93.3%

Source Capital IQ. 1) Stock Prices as of 9/1/2014. 2) Cash includes short-term investments

17

18,725

22,719

15,153

15,377

35,761

6,324

3,873

8,653

6,651

10,765

1,267

1,161

1,062

1,544

4,431

7,818

7,957

6,553

7,039

12,160

135,950

142,067

115,708

102,209

128,016

52,414

36,235

32,918

30,063

40,641

5,415

1,992

2,281

3,092

7,837

5,017

9,141

15,655

22,483

50,801

46,686

42,882

26,417

15,706

28,312

43,638

38,457

28,211

11,291

20,251

Adobe Akamai Arris Autodesk Cisco Ericsson Harman Naspers Panasonic Sony

Market Capitalization - Mid CapPublicly Traded Media Technology Companies

18

($USD in millions)

August 2006

August 2008

August 2010

August 2012

August 2014

Belden Coship Dolby EVS Evertz Go Pro Rovi TiVo Technicolor Yamaha

Cash: 445 42 772 48 93 105 442 783 350 606

Total Debt: 1,562 221 0 39 2 108 1,158 173 1,183 119

Enterprise Value (EV): 4,276 1,221 4,007 575 1,107 6,608 2,907 1,016 3,395 2,315

EV/ LTM Revenue 2.0x 4.3x 4.2x 3.3x 3.7x 6.4x 5.2x 2.3x 0.8x 0.6x

EV/ LTM EBITDA 13.5x NM 12.2x 8.7x 13.8x 78.0x 14.9x 11.6x 4.9x 6.2x


1,579

1,584

1,105

1,529

3,160

344

335

603

481

1,040

2,317

4,569

6,410

3,474

4,757

738

1,159

701

652

583

841

1,363

1,100

962

1,196 6,527

1,191

1,581

4,554

1,661

2,191

4,391

1,230

395

832

2,599

688

863

931

1,131

1,626

4,274

3,484

2,017

1,944

2,758

Belden Coship Dolby EVS Evertz GoPro Rovi Technicolor TiVo Yamaha


Market Capitalization - Small CapPublicly Traded Media Technology Companies

19

($USD in millions)

August 2006

August 2008

August 2010

August 2012

August 2014

Avid Barco Brightcove ChyronHego Dalet Demand DTS Envivio Harmonic JVC

Cash: 71 127 21 5 8 132 70 42 134 476

Total Debt: 0 77 1 3 8 74 30 0 0 765

Enterprise Value (EV): ND 834 176 99 23 108 369 5 468 720

EV/ LTM Revenue NA 0.6x 1.5x 1.8x 0.5x 0.3x 2.7x 0.1x 1.0x 0.2x

EV/ LTM EBITDA NA 8.8x NM 19.7x 7.8x 5.9x 12.0x NM 18.1x 4.4x


1,691

861

438

358

329

1,070

550

556

723

874

353

196

42

92

21

20

101

22

30

813

165

314

579

623

424

409

141

50

478

834

596

535

602

240

489

372

Avid Barco Brightcove ChyronHego Dalet Demand DTS Envivio Harmonic JVC


Market Capitalization - Small Cap (cont’d)Publicly Traded Media Technology Companies

20

August 2006

August 2008

August 2010

August 2012

August 2014

($USD in millions)

Kudelski Orad RealD Quantum SeaChange Synacor Vislink Vitec Group VIZRT

Cash: 123 5 28 104 103 26 13 15 37

Total Debt: 417 20 35 204 0 3 14 131 0

Enterprise Value (EV): 1,078 35 472 417 139 33 94 556 279

EV/ LTM Revenue 1.1x 0.8x 2.4x 0.8x 1.0x 0.3x 0.9x 1.1x 2.1x

EV/ LTM EBITDA 8.5x 7.1x 8.6x 57.7x NM NM 11.1x 5.8x 10.3x

Share Price as a % of52 Week High 80.8% 93.6% 70.6% 78.6% 49.8% 70.1% 96.9% 83.6% 96.3%

1,478

654

1,334

533

792

32

22

6

20

805

542

465

430

367

316

385

317

245

264

264

268

249

215

56

215

64

38

56

100

376

317

293

454

443

237

215

227

210

316

Kudelski Orad RealD Quantum SeaChange Synacor Vislink Vitec Group VIZRT


Market CapitalizationPublicly Traded Media Distribution Companies

21

($USD in millions)

August 2006

August 2008

August 2010

August 2012

August 2014

Charter Comcast EchoStar Netflix Pandora Sirius Time Warner Verizon

Cash: 9 3,854 1,689 1,714 324 170 4,480 6,424

Total Debt: 14,039 46,549 2,390 900 0 4,624 22,563 110,044

Enterprise Value (EV): 31,073 185,681 5,401 27,888 5,259 25,043 83,931 311,246

EV/ LTM Revenue 3.6x 2.8x 1.6x 5.7x 6.6x 6.3x 2.7x 2.5x

EV/ LTM EBITDA 10.3x 8.3x 7.2x 67.0x NM 19.0x 10.3x 5.9x

Share Price as a % of52 Week High 93.8% 96.9% 93.9% 98.4% 66.9% 86.8% 87.4% 92.8%

3,900

7,841

17,043

73,602

61,773

49,584

89,356

141,570

2,818

1,656

2,356

4,604

1,363

1,877

7,064

3,317

28,702

1,995

5,583

5,761

4,225

3,839

9,698

20,589

68,156

58,646

34,581

39,428

65,848

103,108

100,012

85,537

122,331

206,515

Charter Comcast EchoStar Netflix Pandora Sirius Time Warner Verizon


Publicly Traded Media Content CompaniesMarket Capitalization

($USD in millions)

August 2006

August 2008

August 2010

August 2012

August 2014

CBS Discovery Lions Gate News Corp Perform Scripps Viacom Walt Disney

Cash: 261 515 50 3,145 136 202 1,585 4,090

Total Debt: 6,247 7,074 1,255 0 70 1,385 12,778 16,136

Enterprise Value (EV): 37,506 31,576 5,648 7,258 1,066 12,730 45,765 169,421

EV/ LTM Revenue 2.5x 5.3x 2.3x 0.8x 2.7x 4.9x 3.4x 3.5x

EV/ LTM EBITDA 10.3x 12.7x 17.8x 10.3x 21.5x 10.5x 10.4x 11.7x

Share Price as a % of52 Week High 87.1% 96.3% 85.7% 95.1% 43.7% 92.0% 90.4% 98.6%

22

22,530

11,002

9,925

23,266

31,247

13,268

16,761

24,416

980

1,181

982

2,134

4,443 10,227

1,419

1,127

6,790

6,953

8,805

11,169

26,228

18,312

19,574

25,754

34,323

62,474

60,702

64,091

88,763

154,283

CBS Discovery Lions Gate News Corp Perform Scripps Viacom Walt Disney


Video Markets Overview

Broadcast and Video Trends to Watch

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1. Consolidation – The broadcast sector is in the midst of a significant period of realignment and consolidation, asrecently demonstrated by acquisitions from companies like Belden, Harris and Vitec. Macro-economic effects, inparticular the continuing low cost of capital, facilitate the financing of transactions. Micro-economic effects,including product rationalization and operating efficiency, addressable market expansion, improved core strategiccapability, and the human capital within innovative executive teams, are further driving strategic M&A. Sellerrationales include strong valuations, gaining access to a larger organization’s resources and channels, and attainingglobal marketing reach.

2. Innovation – Innovation in today’s media landscape, as evidenced by companies like Teradek, Pebble Beach, andGoPro, is driven by transformative, lower-cost, high-performance technologies; adoption of IT-based/softwarearchitectures; and the growth of multiplatform and new-media distribution alternatives. Innovation creates abeneficial balancing force against consolidation, as it adds to the number of participants in the marketplace andcreates more choices for customers. Innovative vendors are producing solutions that reduce cost of ownership byorders of magnitude. However, deep innovation is often costly. Fortunately record amounts of venture and privateequity capital are available from top international investors.

3. Expansion of IT-based Solutions – There is a marked trend toward the acquisition of IT-based software expertiseby traditional hardware companies like Barco and Vislink in a move to standardize IT and cloud-based technologies.With IT-based architectures, not only can technology and service-provider companies evolve and adapt more quicklyto changing business requirements, but they benefit from higher-margin businesses and the potential for recurringrevenue models. Companies that sell traditional hardware-based solutions are eager to move into software-definedproducts that are less expensive for customers and easier to bring to market and maintain.

4. Programming in the “New” Golden Age of Television – Compelling Content and Constant Connectivity – Boldand successful programming like Netflix’ ground-breaking “House of Cards,” and runaway hits like AMC’s “BreakingBad” and “Mad Men,” requires an exceptional blend of artistic creativity, higher budgets for superior productionvalues, and both traditional and online distribution infrastructures that provide the consumer with unfetteredcontrol of their programming of choice. Media enterprises that can consistently deliver this combination ofresources will realize extraordinary market value.

Select TransactionsDate Target Name Value($MM)

EV/ LTMRevenue Acquirer Name

Aug-14 Ooyala $270 - Telstra CorporationJul-14 Cache-A Corporation - - ProMAX SystemsJul-14 LiveRail - - FacebookJun-14 AdColony $350 6.6x Opera SoftwareJun-14 Shotgun Software $54.5 - AutodeskJun-14 Dropcam $555 - Nest LabsJun-14 Afterlive.tv - - TwitterJun-14 mDialog - - Google/DoubleClickMay-14 AMX $365 - Harman Pro GroupMay-14 BrandAds - - Extreme ReachApr-14 itaas - - Cognizant TechnologyApr-14 SeaWell Networks - - ARRIS GroupApr-14 Digital Rapids - - Imagine CommunicationsApr-14 Unreel - - Ross VideoMar-14 Pebble Beach Systems $25 2.6x VislinkMar-14 LiveTV $500 4.0x Thales AvionicsMar-14 Sample Digital $12 3.0x Prime Focus TechnologiesMar-14 Automated Data Systems - - Ross VideoMar-14 Conax $250 2.4x KudelskiMar-14 Snell - - Quantel LimitedMar-14 X2O Media $19 4.2x Barco NVMar-14 PlayBox Technology - - Masstech GroupFeb-14 Grass Valley USA $220 0.8x Miranda TechnologiesFeb-14 Wegener Corporation & Westport Res. - - Novra TechnologiesFeb-14 Plantri - - ANNOVA SystemsFeb-14 Digitalsmiths Corporation $135 - TiVoFeb-14 Doremi Labs $113 - Dolby LaboratoriesFeb-14 Azuki Systems - - EricssonFeb-14 Capablue - - Arqiva BroadcastJan-14 Outcast Media - - GilbarcoJan-14 Unicorn Media $51 - BrightcoveJan-14 Pilat Media Global $72 1.6x SintecMedia

Video M&ASelect Transactions from 2014

Source Capital IQ, Press Releases, Public Filings, *Includes Cash

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Select Transactions


Source Capital IQ, Press Releases, Public Filings

Date Target Name Value($MM)


Dec-13 VideoIQ $32 2.9x Avigilon CorporationDec-13 EdgeCast Networks $390 - Verizon Digital Media ServicesDec-13 Aspera - - IBMDec-13 Imagine Communications - - Harris Broadcast CommunicationsDec-13 Rhythm NewMedia $57 4.9x BlinkxNov-13 Mosart Medialab $17 3.2x VIZRTNov-13 MediaSite $8 1.0x Sonic FoundryOct-13 Symmetricom $304 1.1x MicrosemiOct-13 Megahertz Broadcast Systems - - OKNO-TVOct-13 Aurora Networks $323 1.5x PaceSep-13 Wegener - - Novra TechnologiesSep-13 Broadcast Text International - - The Carlyle GroupSep-13 Saffron Digital $224 1.1x SymmetricomAug-13 Teradek $30 - Vitec GroupAug-13 Adap.tv $405 - AOLAug-13 Amplifier Technology $6 0.8x VislinkAug-13 CPC Computer Programing and Captioning - - TelestreamAug-13 Montalto - - Ross VideoAug-13 MOG Technologies - - InfostradaAug-13 Grab Media - - BlinkxAug-13 Prime Focus Limited, Backend Business $38 - Prime Focus World Creative ServicesAug-13 Stringwire - - NBC News DigitalJul-13 Boxee $30 - Samsung ElectronicsJul-13 Red Bee Media - - EricssonMay-13 Hego $29 1.9x Chyron CorporationMar-13 Skyfire Labs $155 35.9x Opera SoftwareMar-13 Harmonic, Optical Equipment Business $46 0.9x Aurora NetworksMar-13 Acme Packet $2,004 6.0x OracleFeb-13 Harris Broadcast Communications $225 - Gores Broadcast SolutionsFeb-13 MIPS Technologies $100 5.4x Imagination Technologies GroupFeb-13 Olympus Corporation (11.5% stake) $535 - SonyFeb-13 MIPS Technologies, Certain Patents $350 5.4x Allied Security

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Dec-12 Argo Systems - - Sintec Media

Dec-12 KickApps Corporation - - PerfectSense Digital

Dec-12 Vervue $32 - Akamai Technologies

Sep-12 FastSoft $14 - Akamai Technologies

Aug-12 Zencoder $30 21.4x Brightcove

Jul-12 NDS Group $5,022 5.1x Cisco

Jul-12 Miranda Technologies $356 1.9x Belden

Jul-12 Avid, Consumer Video Editing Assets $3 - Corel Corporation

Jul-12 QuickPlay Media - - Madison Dearborn Partners

Jul-12 Technicolor, Broadcast Services Division $37 - Ericsson

Jun-12 Thrane & Thrane $479 2.4x Cobham

Jun-12 Hyro, Digital Division $18 - KIT digital

May-12 Seachange, Broadcast Server and Storage Business $5 - Vantage Point Capital

May-12 Seachange, On Demand Division $27 - Vubiquity

Apr-12 RadiantGrid Technologies - - Wohler

Mar-12 Gennum Corporation $501 3.6x Semtech

Mar-12 Contendo $268 9.0x Akamai Technologies

Feb-12 Roxio - - Corel Corporation

Feb-12 IP Video Systems $20 - Barco

Jan-12 Trident Microsystems, Set Top Box Business $65 - Entropic Communication

Jan-12 Telestream - - Thoma Bravo

Jan-12 Sezmi Corporation $52 - KIT digital

Select Transactions



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Select Transactions from 2014PE/VC Activity in Video Markets

28


$5-10m

$10-20m

$20-65m

$0-5m

Select Investors

Select Investors

PE/VC Activity in Video MarketsSelect Transactions from 2013

$5-10m

$10-20m

$20-65m

$0-5m


29

Select Investors

PE/VC Activity in Video MarketsSelect Transactions from 2012

$5-10m

$10-20m

$20-65m

$0-5m


30

Audio Markets Overview

Music and Audio Trends to Watch1. Continuing Consolidation – Electra Partners added DiGiCo and Calrec to its portfolio, which already included Allen &

Heath, acquired in 2013. With some of the strongest brands in live sound and broadcast mixing, the expanded groupwill have new leverage in a number of ways. In the past year, Gibson acquired Cakewalk and WOOX Audio from Philips.Also in the past year, audio-centric Harman International acquired control system manufacturer AMX, and RiversidePartners acquired a 60% stake in DPA Microphones. In the broader world of audio, the blockbuster deal was Apple’sacquisition of Beats for $3 billion.

2. Desktop Production Systems – The emergence of electronic dance music as a powerful force has brought greater focusto sampling and synthesis, as exemplified by our client iZotope. Meanwhile, leadership positions in the DAW market areevolving, with increasing differentiation between larger/established facilities (mostly Avid-based, especially in the U.S.)and a rapidly growing self-contained producer/engineer/composer market that can choose from an expanding range ofDAW products. These include Apple’s Logic Pro X, a $199 powerhouse that includes a huge instrument library, as well asseveral competitors with similarly powerful systems.

3. Consumer Audio – Following a period of relative indifference to sound quality in an age dominated by mobile musicconsumption, the CEA and major CE brands are promoting “high-resolution audio” to consumers as a way of educatinglisteners to the availability of high-quality recorded music and high-fidelity home playback systems. Meanwhile, the U.S.premium headphone ($100+) market segment passed $1 billion in 2013 according to NPD, increasing by 21% over 2012.The CEA forecasts this segment will grow in 2014 to $1.5 billion. Overall 2013 U.S. headphone sales were $2.3 billion, up11% over 2012, according to NPD. The CEA forecasts revenues of $430 million for Bluetooth speakers in 2014, or 12%growth over 2013. Automotive electronics (including car audio) is still the “800-pound gorilla,” with 2014 expectedrevenues reaching $11 billion for factory systems, increasing 20% over 2013, according to the CEA.

4. Music Industry – Total album (digital and CD) unit sales have slipped by about 3.5% in the first half of 2014 compared tothe first half of 2013, according to Nielsen SoundScan’s mid-year 2014 data. According to Electronic MusicianMagazine, the takeaway is “consumers are listening to more music, they just don’t want to pay for it.” A bright spot isthe health of subscription and ad-supported streaming, with growth of 89% in equivalent albums over the same period,according to Nielsen SoundScan. This is a primary emerging trend for the future of music distribution.

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Jun-14 Abacast - - WideOrbitJun-14 Pioneer Home Electronics - - ONKYO CorporationJun-14 WorxAudio Technologies - - PreSonus Audio ElectronicsJun-14 Comfort Audio - - SonovaMay-14 Beats Electronics $3,000 5.0x AppleApr-14 WOOX Innovations $135 - Gibson BrandsMar-14 Calrec Audio $23 - Electra PartnersMar-14 Revolabs - - Yamaha CorporationMar-14 Sabine $10 - ClearOneMar-14 Topspin Media - - Beats MusicFeb-14 Formosa Prosonic Industries $17 - Wistron CorporationFeb-14 Lastar - - LegrandFeb-14 ZUUS Media $30 - Ubiquity BroadcastingDec-13 Soundsphere - - MSE Audio GroupDec-13 line 6 - - Yamaha CorporationOct-13 Duran Audio $25 - Harman InternationalOct-13 Bang & Olufsen of Chelsea - - Kensington Audio VisualSep-13 Livio Radio $10 - Ford Global TechnologiesSep-13 Cakewalk - - Gibson BrandsAug-13 Westwood One $252 1.1x Cumulus MediaAug-13 Music Intelligence Solutions - - R&R World (Tunehog)Jul-13 Blue Microphones - - The Riverside CompanyJun-13 Allen & Heath $66 - Electra Private EquityMay-13 Teraki $16 - Sunrise (China) Technology GroupMay-13 Red Box Recorders - - ISIS Private EquityApr-13 Bob Carver - - Emotiva Audio CorporationFeb-13 Martin Professional $146 - Harman International

Audio M&ASelect Transactions 2014 and 2013


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Oct-12 McIntosh Laboratory - - Fine Sounds

Oct-12 Beats Electronics (25.1% stake) $151 - HTC Europe

Jul-12 MOG $14 - Beats Electronics

Jul-12 IMM Sound $27 - Dolby Laboratories

Jul-12 Phorus $13 - DTS

Jul-12 M-Audio and AIR Software Group $14 - Numark Industries

Jun-12 Trident Microsystems, MAP-Xtm Audio Line $1 - CSR

Jun-12 Turbosound - - MUSIC Group Macao

Jun-12 Industrial Accoustics - - AEA Investors

May-12 Redmatica - - Apple

May-12 Intrinctiv - - Soundcloud

Apr-12 SRS Laboratories $148 3.4x DTS

Mar-12 A-Line Accoustics - - Atlas Sound

Mar-12 Imagine Research - - iZotope

Feb-12 SoniVox - - Numark Industries

Audio M&ASelect Transactions 2012

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PE/VC Activity in Audio MarketSelect Transactions from 2014 and 2013

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Select Investors

PE/VC Activity in Audio MarketSelect VC/PE Transactions from 2012 and 2011

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Media Markets Overview



Sep-14 Perform Group $726 2.8x Access IndustriesSep-14 Baseline, LLC. $50 - GracenoteSep-14 Twitch Interactive $970 - Amazon.comAug-14 [x+1] $236 3.3x Rocket FuelJul-14 SpotXchange $144 - RTL GroupJul-14 ITV $822 3.1x Liberty GlobalJul-14 RayV - - Yahoo!Jun-14 Phase 4 Films Group of Companies $25 0.5x Entertainment OneMay-14 TV18 Broadcast Limited $355 5.6x Independent Media TrustMay-14 Network18 Media & Investments $160 2.4x Independent Media TrustMay-14 DIRECTV $68,895 2.1x AT&TMay-14 Digital Cinema Destinations $66 1.4x Carmike CinemasMay-14 Live Foundry - - SnapchatMay-14 Channel 5 Broadcasting $760 - Viacom InternationalMay-14 Tvinci Ltd. - - KalturaApr-14 Loom - - DropboxApr-14 AEG Digital Media - - All Mobile VideoApr-14 Bigframe $15 - AwesomenessTVApr-14 Cloud Takes - - TechnicolorMar-14 Maker Studios $950 - The Walt Disney CompanyMar-14 LIN Media $2,472 3.8x Media GeneralMar-14 Image Group Limited - - Betley WhitehorneMar-14 Grupo Corporativo ONO $14,608 6.4x VodafoneMar-14 Pando Networks $11 - MicrosoftMar-14 FreeWheel Media $360 - ComcastMar-14 The Culver Studios $85 - Hackman Capital PartnersFeb-14 Time Warner Cable $68,708 3.1x ComcastFeb-14 Veveo $82 - RoviFeb-14 SET Media $30 - ConversantJan-14 Federated Media Publishing $19 - LIN Digital MediaJan-14 Project Rover $91 - AOLJan-14 Nielsen Audio, Audience Measurement Services - - comScore

Select Transactions

Media M&ASelect Transactions 2014


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Dec-13 Local TV $2,725 - Tribune Broadcasting CompanyDec-13 Media Convergence Group $35 - The E. W. Scripps CompanyDec-13 Advanced Inflight Alliance $225 1.3x Global EntertainmentDec-13 IMG Worldwide $2,300 - Silver Lake, William MorrisDec-13 Gracenote $170 - Tribune CompanyOct-13 Chellomedia $1,034 2.1x AMC NetworksOct-13 NTS $162 2.7x Tower Three PartnersOct-13 Convergent Media Systems Corporation $16 - Ballantyne StrongSep-13 Globecomm Systems $267 0.8x Wasserstein & CoAug-13 Titan Broadcast Management $115 - Sinclair Broadcast GroupAug-13 Baja Broadband $268 3.2x TDS TelecommunicationsAug-13 Jumptap $245 3.8x Millennial MediaAug-13 Orb Networks - - QUALCOMMAug-13 Digital Generation $829 2.1x Extreme ReachAug-13 Fisher Communications $355 2.1x Sinclair Broadcast GroupAug-13 FTR $6 0.9x Record HoldingsJul-13 Matcha - - AppleJul-13 Communications Corporation of America $270 - Nexstar BroadcastingJul-13 Bresnan Broadband $2,619 5.1x Charter CommunicationsJul-13 Servicios Audiovisuales Overon (51% stake) $53 1.2x Imagine Media AudiovisualJul-13 AlloCine $67 - FimalacJul-13 Parlophone Records $764 1.6x Warner Music GroupJul-13 Post Modern Group $24 - Global Eagle EntertainmentJun-13 Belo $2,185 3.0x GannettJun-13 Keynote Systems $341 2.8x Thoma BravoMay-13 Orb Networks - - QualcommMay-13 Headland Media $24 2.0x KVH IndustriesMay-13 NBCUniversal Media (remaining 49% stake) $16,700 1.7x Comcast CorporationApr-13 Maverick Media, Rockford and Eau Claire $16 - Mid-West Family BroadcastingMar-13 Rhythm & Hues Studio $18 - Prana StudiosMar-13 Ziggo $811 - Liberty GlobalMar-13 TV Guide Entertainment (50% stake) $100 - CBS CorporationMar-13 Charter Communications (26.6% stake) $2,617 3.0x Liberty MediaFeb-13 D.EXPRES $21 2.1x Bauer Ausl and 1Feb-13 Bluefin Labs - - TwitterJan-13 Switchover Media - - Discovery Communications

Media M&ASelect Transactions from 2013


Select Transactions

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Select Investors

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PE/VC Activity in Media MarketSelect Transactions from 2014


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Select Investors

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PE/VC Activity in Media MarketSelect Transactions from 2013 and 2012


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Why MediaBridge?

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• Exclusive focus on media technology and decades of experiencein media technology and IT markets

• Relevant and recent deal execution experience

• Personal relationships with and knowledge of leading industryacquirers

• Commitment as senior bankers to transaction managementleading to optimum results

• Broad financial, legal, and operational skills to best handlecomplex transactions

• Reputation and integrity

Global Reach, Vertical Depth

Ethan E. Jacks John C. BowenManaging Partner Managing [email protected] [email protected] (m) 617.921.0075 (m)

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media ridge · visual communications, was acquired by barco, a global manufacturer of visual...

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