Q4 2012 Market Snapshot
Transcription
Q4 2012 Market Snapshot
Signal Hill Q4 2012 Internet & Digital Media Market Snapshot Alex Hart Robert Berstein [email protected] [email protected] www.signalhill.com B a l t i m o r e │ B a n g a l o r e │ B o s t o n │ N a s h v i l l e │ N e w Yo r k │ R e s t o n Contents Signal Hill at a Glance……………………………………………………………………………………………..… 3 Signal Hill’s Internet & Digital Media Practice M&A Overview…………………………..…………….. 4 Signal Hill’s Q4 2012 Internet & Digital Media Transactions…………………………....................... 5 Notable Q4 2012 Internet & Digital Media M&A Transactions…………………….…………............. 6 Q4 2012 Internet & Digital Media M&A Summary Transactions……………………..……………..…. 7 Q4 2012 Internet & Digital Media Public Company Valuation Metrics………………….……………. 10 LTM Relative Internet & Digital Media Stock Price Performance………………………………………. 13 2 Signal Hill at a Glance Signal Hill is a premier investment banking partnership serving the M&A advisory and private capital raising needs of growth companies. Signal Hill's experienced bankers provide deep domain expertise and an unyielding commitment to clients in our sectors: Internet & Digital Media, Internet Infrastructure, Services and Software. With over 500 completed transactions and offices in Baltimore, Bangalore, Boston, Nashville, New York and Reston, Signal Hill leverages deep strategic industry and financial sponsor relationships to help our clients achieve Greater Outcomes®. Recent Mergers & Acquisitions, Strategic Advisory Transactions Mergers & Acquisitions Equity Private Placements Debt Advisory Strategic Advisory Special Committee Advisory Fairness Opinions 3 Signal Hill’s Internet & Digital Media Practice February 2013 has received a growth equity investment from Pending has agreed to be acquired by March 2012 December 2011 has been acquired by has acquired November 2012 has been acquired by September 2011 private placement October 2012 has been acquired by May 2011 private placement August 2012 has been acquired by March 2011 has been acquired by July 2012 has been acquired by February 2011 has been acquired by / January 2011 has acquired December 2010 has been acquired by February 2008 February 2008 has been acquired by has been acquired by October 2010 has been acquired by February 2008 private placement August 2010 private placement December 2007 has been acquired by June 2010 has been acquired by December 2007 has acquired June 2008 has been acquired by May 2012 has sold its Higher Education Readiness Division to January 2011 has received a majority investment from May 2008 has acquired October 2007 August 2007 has been acquired by has been acquired by a consortium led by June 2006 May 2006 & CIBC World Markets July 2007 private placement June 2007 April 2007 March 2007 January 2007 initial public offering has been acquired by initial public offering has been acquired by Includes Previous Experience private placement follow-on offering 4 Signal Hill Q4 2012 Internet & Digital Media Transactions Signal Hill Internet & Digital Media Transactions, Announced Q4 2012 Signal Hill served as financial adviser to Arbitron and rendered a fairness opinion. Nielsen Holdings N.V. (NYSE: NLSN), a leading Arbitron acquired by global provider of information and insights into what consumers watch and buy, announced that it has entered into a definitive Nielsen* agreement to acquire Arbitron (NYSE: ARB), an international EV: $1,218.7M LTM Revenue Multiple: 2.7x media and marketing research firm. The acquisition of Arbitron’s assets will further Nielsen’s “Watch” segment’s audience measurement across screens and forms of listening. Incentive Targeting acquired by Google Signal Hill served as exclusive financial advisor to Incentive Targeting. Incentive Targeting, a unique marketing platform that enables shopper insights and preferences and then creates targeted promotional campaigns, has been acquired by Internet giant Google. The acquisition will enhance Google’s ongoing efforts to help consumers save time and money and enable retailers to deliver relevant discounts to the right customers. Escalate Media acquired by H.I.G. Growth Partners Signal Hill served as exclusive financial advisor to Escalate Media. Escalate Media Holdings, a newly formed entity comprised of Escalate Media, LP and womensforum.com, which are leading online advertising companies that encompass a number of owned and operated websites as well as an online advertising network and an affiliate network, has been acquired by H.I.G. Growth Partners, the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity firm. *Pending 5 Notable Q4 2012 Internet & Digital Media Transactions The Internet & Digital Media sector experienced over 200 announced or closed deals in Q4 2012, four of which are profiled in detail below. A cursory overview of all deals can be found on the following pages. Selected Internet & Digital Media Transactions, Announced Q4 2012 *Pending Kayak acquired by priceline.com* EV: $1,629.5M LTM Revenue Multiple: 5.8x Kayak Software, an operator of websites and mobile apps for comparison shopping on airline, hotel and rental car bookings, has agreed to be acquired by priceline.com, an online travel agent. Kayak went public in July 2012; it will continue to operate as its own entity. The acquisition will be the largest in priceline.com’s history. Ancestry.com acquired by Permira Advisers EV: $1,544.4M LTM Revenue Multiple: 3.4x Ancestry.com, a genealogy website that helps users trace their family roots, has been acquired by a group led by private equity firm Permira Advisers. Ancestry.com put itself up for sale after the failure of a TV show it sponsored titled “Who Do You Think You Are?” The transaction will take Ancestry.com private. Eloqua acquired by Oracle EV: $871.0M LTM Revenue Multiple: 9.7x Eloqua, a cloud-based marketing automation firm, has been acquired by software giant Oracle. The acquisition is expected to create a comprehensive customer experience, transforming the way organizations market, sell, support and service their clients. Hyper Marketing acquired by Epsilon EV: $460.0M LTM EBITDA Multiple: 9.0x Hyper Marketing (“HMI”), a group of companies that offer the full breadth of ROI-based marketing services, has been acquired by Epsilon, a unit of Alliance Data Systems Corporation, a leading provider of loyalty and marketing solutions derived from transaction-rich data. The acquisition will bring together Epsilon’s consumer data insights, data management and analysis capabilities with HMI’s marketing services. 6 Internet & Digital Media M&A Transactions Date Announced Target Acquirer LodgeNet Interactive Corporation 12/31/2012 (OTCPK:LNET) 12/28/2012 Pearson DeBoer Creative Solutions Colony Capital, LLC; PAR Capital Management, Inc.; NALA Investments, LLC BOLD Communications Group LLC 12/24/2012 HighBeam Research, Inc. Yippy, Inc. (OTCPK:YIPI) 12/22/2012 InsideNOVA.com Northern Virginia Media Services 12/21/2012 12/21/2012 12/20/2012 12/20/2012 12/20/2012 12/20/2012 The TJX Companies, Inc. (NYSE:TJX) Kantar Media North America Viratech Corp. (OTCPK:VIRA) Oracle Corporation (NasdaqGS:ORCL) ProbioticSmart, LLC Adobe Systems Inc. (NasdaqGS:ADBE) Sierra Trading Post, Inc. AdGooroo, LLC Cancer.im, Inc Eloqua, Inc. (NasdaqGS:ELOQ) American Livestock Supply, Inc. Behance, Inc. 12/20/2012 Bloomspot, Inc. Chase Bank USA, National Association 12/20/2012 Leger Metrics Leger Marketing Inc. 12/20/2012 QRCodesCreator.com Denso Wave Incorporated 12/20/2012 12/19/2012 12/19/2012 12/19/2012 12/18/2012 12/18/2012 12/18/2012 12/18/2012 12/17/2012 12/17/2012 12/16/2012 12/14/2012 12/13/2012 12/13/2012 12/13/2012 12/12/2012 Publicis Groupe SA (ENXTPA:PUB) Warburg Pincus LLC Dropbox, Inc. Pet360, Inc. Nielsen Holdings N.V. (NYSE:NLSN) RP Graphics Group Inc. EPAM Systems, Inc. (NYSE:EPAM) The Ogilvy Group, Inc. RJM BV Great Hill Partners, LLC Bobit FleetGroup Allegis Group, Inc. Terillion, Inc. Anedot, Inc. Airbnb, Inc. Dropbox, Inc. Orange County Register Communications Inc. Perfect Sense Digital, LLC Research Triangle Institute Bella Bean Organics, Inc. W2O Group Rokkan Inc. CROSSMARK, Inc. Snapjoy, Inc. Zootoo, LLC Arbitron Inc. (NYSE:ARB) Data In Motion Marketing Empathy Lab, LLC The Royal Order of Experience Design, Inc. Weedmaps, LLC SheKnows LLC LimoforSale.com Gettinghired, LLC GuestComment LLC Hivemind Labs, Inc, Youcansend.me Localmind, Corp. AG Entertainment Inc. 12/12/2012 Churm Media, Inc. 12/12/2012 12/12/2012 12/12/2012 12/12/2012 KickApps Corporation MPR Associates, Inc. OrganicFood2You LLC Vm Foundry Properties, L.L.C. Date Announced Target Acquirer 12/11/2012 Capable Networks, LLC Magenium Solutions LLC 12/11/2012 Scribit LLC 12/11/2012 Telescope, Inc. Outbrain Inc. H.I.G. Growth Partners, LLC; Moorgate Partners, Investment Arm InComm, Inc. InfoCommerce Group, Inc. 12/10/2012 Adility LLC 12/10/2012 Anne Holland Ventures Inc., Subscription Site Central and Subscription Site Insider 12/10/2012 FeaturedUsers, Inc. 12/10/2012 Human Capital Solutions, LLC 12/7/2012 The Write Sound 12/6/2012 Social Code Mobile (SC2) Inc. 12/5/2012 MediaTrust, Inc. 12/5/2012 Accesso LLC 12/5/2012 Redcats USA, Inc. 12/5/2012 12/4/2012 12/4/2012 12/4/2012 12/4/2012 12/4/2012 12/4/2012 12/4/2012 12/4/2012 12/4/2012 12/4/2012 12/3/2012 12/3/2012 12/3/2012 12/3/2012 12/3/2012 12/2/2012 Oodle, Inc. Affiniscape, Inc. AR New York Corp. Blue Ribbon Motoring, LLC Edvisors Network, Inc. Hungry Thumb OnTheAir Inc. Orbis Global Inc. Postmedia Network Inc., SwarmJam TapMe, Inc. Tello, Inc. Bottlerocket Marketing Group, LLC Buysight, Inc. Findly, Inc. and StaffCV Limited Guanabee Media LLC TwigTek, Inc., YouRenew.com Z57, Inc. IZEA, Inc. (OTCPK:IZEA) Beyond.com, Inc. Rock Wreckognition Isaac Daniel Group, Inc. WebXU, Inc. (OTCBB:WBXU) Lo-Q Plc (AIM:LOQ) Charlesbank Capital Partners, LLC; Webster Capital Interactivity Marketing, Inc. Brazos Higher Education Service Corporation, Inc. QVC, Inc. YourMembership.com, Inc. Publicis Worldwide BV AutoZone, Inc. (NYSE:AZO) College Loan Corporation Tatango, Inc. Yahoo! Inc. (NasdaqGS:YHOO) Infor Global Solutions, Inc. CityXpress Ltd. MediaMath Inc. Urban Airship, Inc. Brand Connections, LLC AOL Advertising, Inc. First Advantage Corporation Gawker Media, LLC Clover Wireless, LLC Constellation HomeBuilder Systems, Inc. 11/30/2012 11/30/2012 11/28/2012 11/28/2012 Bundle Corporation Legal Clicks LLC Geni, Inc. Incentive Targeting, Inc. Capital One Digital Innovation Lab ProTek Capital, Inc. (OTCPK:PRPM) MyHeritage Ltd. Google Inc. (NasdaqGS:GOOG) 12/5/2012 2ndPole 12/5/2012 InterviewStream, LLC 7 Internet & Digital Media M&A Transactions Date Announced 11/28/2012 11/27/2012 11/26/2012 11/26/2012 Target PARTNERS+simons, Inc. Snoring Isn't Sexy, LLC HotPads, Inc. McGraw-Hill Education, Inc. Acquirer 11/26/2012 Hub Marketing Solutions, LLC Baird Capital Partners TMJ Practice Management Associates, Inc. Zillow, Inc. (NasdaqGS:Z) Apollo Global Management, LLC (NYSE:APO) Precision Dialogue 11/26/2012 MicroGiving, Inc. DonorCommunity, Inc. 11/21/2012 RMG Networks, Inc. SCG Financial Acquisition Corp. (NasdaqCM:SCGQ) Virtual Piggy, Inc (OTCBB:VPIG) Poplyn eCommerce Inc. Rental Compare, LLC InsuranceCalculator.net Hi Score Corporation (OTCPK:HSCO) BubbleUP Marketing Corp. 11/21/2012 11/21/2012 11/21/2012 11/20/2012 11/20/2012 11/20/2012 Croakies, Ecommerce Operations Gamblers Gifts, Inc. RentStuff, Inc. AffordableInsurancePlans.com PRO SEO LLC Whytespace Ltd. 11/19/2012 11/19/2012 11/19/2012 11/19/2012 11/17/2012 11/16/2012 4 Paws Marketing, LLC eCD Market, LLC Exhedra Solutions, Inc. Icapture Marketing AutomotiveInsuranceCalculator.com Bondfunds.com And MunicipalBonds.com, LLC InsuranceHotline.com Streetwise Media, Inc. Gorilla Nation Media, LLC, Publishing Assets Meteor Solutions Inc. SpringVid Inc. TreeHugger, Inc. Acceptional, Inc. One Jackson, Inc. Russer Communications Singularity Hub 50 Below Sales & Marketing, Inc., Retail Division Assets BroBible, LLC Esingularity.org Everlater, Inc. 11/16/2012 11/16/2012 11/15/2012 11/15/2012 11/15/2012 11/15/2012 11/14/2012 11/14/2012 11/14/2012 11/14/2012 11/13/2012 11/13/2012 11/13/2012 11/13/2012 Date Announced 11/13/2012 11/13/2012 11/13/2012 11/13/2012 Target GoJane.com, Inc. Good Dog/Bad Dog Creative Design, Inc. SNAPforSeniors, Inc. Techjobs.com Acquirer Aéropostale, Inc. (NYSE:ARO) Exakt Marketing, LLC CareLike, LLC NetJobs Group AB (OM:NJOB) 11/13/2012 The Adlib Group Inc. The Autumn Group Advertising and Design Inc. 11/13/2012 The Associated Press, Inc., iCircular Business Wanderful Media Unit 11/12/2012 Ziff Davis Media Inc. j2 Global, Inc. (NasdaqGS:JCOM) 11/12/2012 11/9/2012 11/9/2012 11/8/2012 11/8/2012 11/8/2012 Digital Net Agency, Inc. StoneCastle Cash Management, LLC Freelancer Australia Pty Limited Eniche Solutions InsuranceCalculator.net Mitre Media Corp. 11/8/2012 11/8/2012 11/8/2012 11/8/2012 11/7/2012 11/7/2012 Amerimarq Tek Corp. Hyper Marketing Incorporated 4Mads North Country Media Group, Inc. The Sportman’s Guide, Inc. Kayak Software Corporation (NasdaqGM:KYAK) Exclusively.In, Inc. Layer One Media, Inc. LegalTells LLC SpaceMaster, Inc. EatDrinkWebsites, LLC Cumberland Marketing, LLC Kanetix Ltd. American City Business Journals, Inc. Crave Online Media, LLC Rio SEO, Inc. Buy Real Marketing, Inc. MNN Holdings, LLC Bell Curves LLC TaskRabbit, Inc Corcoran Consulting & Coaching Inc. Singularity University, Endowment Arm ARI Network Services Inc. (OTCBB:ARIS) 11/7/2012 11/6/2012 11/5/2012 11/5/2012 11/5/2012 11/5/2012 11/5/2012 11/5/2012 11/5/2012 11/5/2012 11/5/2012 Second Story, Inc. WrestleNewz.com Efficient Learning Systems Inc. Longboard Media, Inc. Bitplay, Inc. LIUsedCars.com Oncontact Software Corporation PIE Advertising LLC Plaid Skirt Marketing, LLC Road New Media Corporation SkuLoop, Inc. Woven Digital, LLC Nine Eye Interactive Media MapQuest, Inc. 11/2/2012 Oriental Trading Company, Inc. 11/2/2012 Nexopia.com, Inc. 11/2/2012 Smartguys Advertising & Design, Inc. BGGR, Inc. Epsilon Data Management, LLC InSequent, Inc. Digital Generation, Inc. (NasdaqGS:DGIT) Northern Tool + Equipment Company, Inc. priceline.com Incorporated (NasdaqGS:PCLN) Myntra Designs Private Limited Red Arrow Labs, LLC Gadzoog LLC Advanced Solutions International, Inc. StearClear LLC Charles Tombras Advertising, Inc. Sapientnitro USA, Inc. Rebellion Media Group Inc. John Wiley & Sons Inc. (NYSE:JW.A) Bazaarvoice, Inc. (NasdaqGS:BV) Jive Software, Inc. (NasdaqGS:JIVE) Long Island Exchange Inc. WorkWise, Inc. Brand Connections, LLC Digital Net Agency, Inc. Perisson Petroleum Corp. Revionics, Inc. Berkshire Hathaway Inc. (NYSE:BRK.A) Ideon Media Asher Agency, Inc. 8 Internet & Digital Media M&A Transactions Date Announced Target 11/1/2012 11/1/2012 10/31/2012 10/31/2012 10/31/2012 10/30/2012 10/30/2012 10/29/2012 10/25/2012 10/25/2012 10/25/2012 10/25/2012 10/25/2012 10/24/2012 10/23/2012 10/23/2012 JDA Software Group Inc. The Sonoma Index-Tribune StampWants.com, Inc. Buyfolio, Inc. nclud, LLC Profit-Tell International, Inc. Trusteria Services, Inc. JumpTime, Inc. AIM Education, Inc., Learn360 InsiderTrips.com PHPMonster.com Stamped, Inc. Tender Creative LLC Infotree Web Services, LLC The Smart Book, LLC VOIS, Inc., Prior to Reverse Merger with Mind Solutions Inc. 10/22/2012 Ancestry.com Inc. 10/22/2012 10/18/2012 10/17/2012 10/17/2012 10/17/2012 10/17/2012 10/17/2012 Acquirer JDA Software Group Sonoma Media Investments, LLC The Stanley Gibbons Group plc (AIM:SGI) Zillow, Inc. (NasdaqGS:Z) BrowserMedia, LLC Audio Messaging Solutions, LLC Fiore Communications, Inc. OpenX Technologies, Inc. Facts on File, Inc. Cruise Travel Outlet Inc. Armia Systems, Inc. Yahoo! Inc. (NasdaqGS:YHOO) VSA Partners, Inc. ForeSite Technologies, Inc. Pelican Publications & Consulting VOIS, Inc. (OTCPK:VOIS) Permira Advisers Ltd.; Spectrum Equity Investors; Permira Investments Limited Catalogs Online, Inc. Bright Mountain Holdings, Inc. (OTCBB:BMHI) Vesuvius Technologies, LLC Beezid Inc. Daylife, Inc. NewsCred, Inc. Escalate Media, LP and Womensforum.com H.I.G. Growth Partners, LLC Inflexxion, Inc., MyStudentBody Hazelden Foundation MarketingPilot Software, LLC Microsoft Dynamics WebmasterWorld, Inc. Internet Marketing Ninjas, Inc. 10/16/2012 10/16/2012 10/16/2012 10/16/2012 Date Announced 10/11/2012 10/11/2012 10/11/2012 10/10/2012 10/10/2012 10/9/2012 10/9/2012 10/9/2012 10/8/2012 10/6/2012 10/4/2012 10/4/2012 10/4/2012 10/4/2012 10/3/2012 10/3/2012 Target Relocation.com LLC Pardot LLC GeeksWithBlogs, LLC Vertis Holdings, Inc. Makeover Solutions, Inc. avVenta Worldwide, LLC. Liquid Spins, Inc. Vine SeeHere.com The Pink Elephant, Corporation KOG Games Inc. Margaret Kool Marketing Inc. Prime Access, Inc. WinHire, Inc. Digispace Solutions, LLC getSpotOn, Inc. Acquirer Moving.com, Inc. ExactTarget, Inc. (NYSE:ET) Watson Technology Group Quad/Graphics, Inc. (NYSE:QUAD) StyleCaster Media Group, LLC Accenture plc (NYSE:ACN) Max Sound Corporation (OTCBB:MAXD) Twitter, Inc. Shutterfly, Inc. (NasdaqGS:SFLY) The Decatur Daily KOG Corporation RED The Agency Inc. Global Advertising Strategies, Inc. Renaissance Partner Group, Inc. Andiamo Corporation (OTCPK:ANDI) Airbnb, Inc. 10/3/2012 PRIMATABLE Hotel Tonight Inc. 10/3/2012 StartupDigest Inc.com Startup Weekend 10/2/2012 10/2/2012 10/2/2012 10/2/2012 10/2/2012 10/2/2012 ClickMotive LP Cre8asiteforums Full Partner, LLC Lucidmedia Networks, Inc. MercadoMagico.com Threefold Photos, Inc. Wanderfly, Inc. ADRevolution, LLC Godvine.com Morningstar Inc., Hemscott Businesses DealerTrack, Inc. Internet Marketing Ninjas, Inc. Synduit LLC Videology, Inc. NeoMagic Corp. (OTCPK:NMGC) True Ventures; Freestyle Capital; Lowercase Capital; Audrey Capital; resolute.vc TripAdvisor Inc. (NasdaqGS:TRIP) Tactara, LLC Salem Web Network Investis Ltd. Club Vibes Media International Inc. ThinkNear, Inc. EmbanetCompass, LLC Alloy Education, Minority Nurse Magazine And Website 10/16/2012 BTG Test Prep, LLC myZone Media Inc. Telenav, Inc. (NasdaqGS:TNAV) Pearson plc (LSE:PSON) Springer Publishing Company, LLC 10/2/2012 10/1/2012 10/1/2012 10/1/2012 Hobsons Inc. 10/1/2012 Online Print Solutions, Inc. 10/16/2012 Pinhole Press and Pinhole Pro liveBooks, Inc. 10/16/2012 The Carberry News-Express Ltd. FP Canadian Newspapers Limited Partnership (TSX:FP) Tagged Inc. River Capital, Inc. 10/1/2012 Penton Media, Inc., Chief Marketer, Multichannel Merchant, Direct and PROMO Brands 10/1/2012 Popover Games, Inc. and Foghorn Games, Titan Gaming Inc. LLC 10/1/2012 SimplySoles SKYE Associates LLC 10/16/2012 Urbantag 10/12/2012 Blue Wave Products, Inc. Electronics for Imaging, Inc. (NasdaqGS:EFII) Access Intelligence, LLC 9 Internet & Digital Media Public Company Valuation Metrics e-Commerce ($ in millions, except per share amounts) Price Company 12/31/2012 e-Commerce Amazon.com 250.87 eBay 51.00 priceline.com 620.39 Liberty Interactive 19.68 Expedia 61.44 Netflix 92.59 Copart 29.50 Mercadolibre 78.55 Live Nation 9.31 Groupon 4.86 HomeAway 22.00 Vistaprint 32.86 Liquidity Services 40.86 OpenTable 48.80 Shutterfly 29.87 Orbitz 2.72 Blue Nile 38.48 Zipcar 8.24 Stamps.com 25.20 1-800-Flowers.com 3.67 Overstock.com 14.31 Travelzoo 18.99 Vitacost.com 6.78 Digital River 14.38 PetMed Express 11.10 U.S. Auto Parts Network 1.83 Median Mean % Dec./Inc. from LTM High Low (5.0%) (4.0%) (19.9%) (6.1%) (2.2%) (30.6%) (4.0%) (24.8%) (15.3%) (81.2%) (21.4%) (24.3%) (38.6%) (7.3%) (14.7%) (42.7%) (14.5%) (49.3%) (24.3%) (10.9%) (10.6%) (40.0%) (21.6%) (24.7%) (20.9%) (66.1%) 45.9% 72.6% 32.2% 23.5% 119.3% 75.3% 30.7% 22.4% 16.2% 86.9% 14.6% 17.2% 31.8% 45.5% 40.0% 31.4% 67.7% 39.7% 35.3% 66.8% 187.9% 14.7% 36.4% 11.7% 22.0% 7.0% Fully Diluted Eq. Val. 113,634 65,990 30,936 10,717 8,286 5,143 3,681 3,468 1,743 3,187 1,828 1,126 1,285 1,109 1,081 286 481 330 393 238 336 300 227 511 214 57 Net Cash 5,248 4,617 3,083 (5,715) 1,001 398 (298) 173 (1,172) 1,196 244 (200) 63 86 90 (288) 30 (70) 37 (57) 55 58 35 321 62 (16) Fully Diluted Ent. Val. 108,386 61,373 27,853 16,432 7,286 4,745 3,979 3,295 2,915 1,991 1,584 1,326 1,222 1,023 991 574 451 400 356 295 280 242 192 190 151 73 YoY Revenue Growth CY '12E CY '13E 29.0% 20.6% 20.5% 4.7% 15.6% 12.3% 5.4% 25.8% 5.4% 45.0% 21.5% 19.1% 40.0% 15.5% 26.4% 0.9% 17.5% 14.8% 15.1% 2.7% 4.9% 0.9% 27.4% (3.8%) (0.8%) (6.2%) 27.7% 16.0% 19.5% 5.3% 13.5% 13.2% 8.7% 24.4% 4.3% 16.9% 20.6% 15.9% 20.3% 17.0% 17.9% 4.5% 11.7% 11.6% 13.2% 5.8% 8.3% 6.5% 18.5% (0.7%) 0.0% (4.6%) LTM Enterprise Value / Revenue EBITDA CY '12E CY '13E LTM CY '12E CY '13E 1.9x 4.6x 5.5x 1.7x 1.9x 1.3x 4.2x 9.2x 0.5x 0.9x 5.9x 1.3x 2.6x 6.6x 1.8x 0.7x 1.2x 1.5x 3.2x 0.4x 0.3x 1.6x 0.6x 0.5x 0.6x 0.2x 1.7x 4.4x 5.3x 1.6x 1.8x 1.3x 4.2x 8.8x 0.5x 0.9x 5.7x 1.2x 2.4x 6.3x 1.7x 0.7x 1.1x 1.4x 3.0x 0.4x 0.3x 1.6x 0.6x 0.5x 0.7x 0.2x 1.4x 3.8x 4.4x 1.6x 1.6x 1.2x 3.8x 7.0x 0.5x 0.7x 4.7x 1.0x 2.0x 5.4x 1.4x 0.7x 1.0x 1.3x 2.7x 0.4x 0.2x 1.5x 0.5x 0.5x 0.7x 0.2x NM 15.6x 15.2x 8.5x 10.4x 32.4x 11.6x 25.8x 7.0x 15.2x 32.7x 12.8x 12.5x 22.0x 19.1x 5.7x 34.5x 10.0x 15.3x 7.4x 15.6x 7.0x NM 3.6x 5.8x 6.8x 30.9x 13.0x 14.2x 8.7x 9.3x 33.6x 11.0x 24.3x 7.0x 7.1x 19.8x 9.9x 11.1x 14.7x 9.7x 4.6x 19.9x 24.7x 12.1x 6.9x 8.8x 7.4x NM 2.9x 6.0x 6.0x 22.8x 11.2x 11.6x 8.1x 8.1x 24.8x 9.8x 19.3x 6.2x 7.9x 15.8x 9.0x 9.0x 12.2x 7.6x 4.3x 15.8x 18.3x 10.3x 5.6x 7.0x 7.5x NM 2.7x 5.6x 5.0x 1.5x 2.3x 1.5x 2.2x 1.3x 1.9x 12.6x 14.7x 9.9x 13.0x 9.0x 10.6x CY R 10 Internet & Digital Media Public Company Valuation Metrics Internet Content & Services ($ in millions, except per share amounts) Price Company 12/31/2012 Internet Content and Services Google 707.38 Facebook 26.62 Yahoo! 19.90 LinkedIn 114.82 Yandex 21.54 TripAdvisor 41.92 IAC/InterActiveCorp 47.24 CoStar Group 89.37 AOL 29.61 Pandora 9.18 Bankrate 12.45 Yelp 18.85 Demandware 27.32 Zillow 27.75 Monster Worldwide 5.62 Demand Media 9.29 United Online 5.59 Angie's List 11.99 LivePerson 13.14 Zynga 2.36 Blucora 15.71 Dice Holdings 9.18 WebMD 14.34 Bazaarvoice 9.35 eHealth 27.48 Renren 3.45 Trulia 16.24 Move 7.57 Brightcove 9.04 The Active Network 4.91 TechTarget 5.55 XO Group 9.30 Spark Networks 7.80 MeetMe 3.49 Tree.com 18.03 Geeknet 16.10 Median Mean % Dec./Inc. from LTM High Low (8.7%) (40.8%) (0.4%) (8.5%) (48.7%) (12.3%) (15.0%) (1.0%) (32.6%) (64.7%) (52.0%) (41.0%) (20.3%) (40.8%) (46.0%) (25.7%) (7.1%) (39.5%) (33.0%) (85.2%) (15.7%) (16.5%) (64.4%) (55.7%) (2.1%) (56.2%) (38.9%) (24.8%) (64.5%) (72.3%) (29.6%) (7.4%) (2.9%) (36.2%) (0.1%) (25.5%) 27.1% 51.7% 38.7% 87.4% 29.8% 70.6% 15.6% 59.2% 99.5% 29.7% 24.4% 33.7% 28.0% 25.2% 12.2% 58.8% 54.0% 34.1% 15.6% 12.9% 47.2% 32.1% 9.2% 8.1% 96.8% 15.0% 10.6% 19.0% 9.4% 6.7% 39.3% 28.8% 116.1% 125.0% 235.8% 33.4% Fully Diluted Eq. Val. 232,441 57,670 23,535 12,337 7,049 5,967 4,179 2,526 2,478 1,561 1,246 1,193 812 928 658 791 509 693 734 1,850 640 547 703 668 557 1,298 444 298 251 297 219 226 162 129 205 105 Net Cash 36,724 9,550 8,331 677 382 119 434 (40) 743 81 (123) 123 103 229 (21) 113 (136) 51 103 1,223 76 8 169 142 131 892 92 31 25 76 57 73 11 (6) 90 38 Fully Diluted Ent. Val. 195,717 48,120 15,205 11,661 6,667 5,848 3,745 2,566 1,735 1,481 1,368 1,070 709 699 679 678 644 643 631 627 564 539 534 527 426 406 352 267 226 222 162 153 151 135 115 67 YoY Revenue Growth CY '12E CY '13E 38.6% 34.9% (10.6%) 81.6% 48.6% 19.3% 35.7% 38.3% (1.6%) 54.7% 10.6% 64.2% 35.5% 72.3% (13.6%) 14.6% (3.2%) 72.7% 17.7% 6.3% 76.3% 8.3% (17.4%) 59.3% 3.3% 47.4% 72.7% 3.4% 36.5% 24.6% (5.5%) 4.4% 28.1% NA 69.1% 0.3% 23.1% 30.0% 3.3% 50.9% 32.0% 19.9% 16.3% 22.1% 0.5% 41.0% 7.4% 52.1% 26.3% 41.3% (4.4%) 13.9% (0.1%) 49.0% 17.4% (11.0%) 15.9% 11.3% (9.6%) 28.5% 10.8% 42.9% 45.8% 9.4% 22.5% 13.0% 1.5% 6.9% 22.8% NA 16.2% 17.5% LTM Enterprise Value / Revenue EBITDA CY '12E CY '13E LTM CY '12E CY '13E 4.1x 10.4x 3.1x 13.9x 7.9x 8.0x 1.4x 8.1x 0.8x 3.9x 2.9x 8.8x 9.9x 6.8x 0.7x 1.9x 0.7x 4.7x 4.2x 0.5x 1.5x 2.8x 1.1x 3.9x 2.8x 2.5x 5.9x 1.4x 2.8x 0.6x 1.6x 1.2x 2.6x 3.2x 1.8x 0.5x 3.7x 9.6x 3.4x 12.3x 7.2x 7.7x 1.3x 7.4x 0.8x 3.5x 2.9x 7.8x 9.3x 6.1x 0.8x 1.8x 0.7x 4.1x 4.0x 0.5x 1.4x 2.8x 1.2x 3.5x 2.7x 2.3x 5.3x 1.3x 2.6x 0.5x 1.6x 1.2x 2.4x NM 1.2x 0.6x 3.0x 7.4x 3.3x 8.1x 5.4x 6.4x 1.2x 6.0x 0.8x 2.5x 2.7x 5.1x 7.3x 4.3x 0.8x 1.6x 0.7x 2.8x 3.4x 0.6x 1.2x 2.5x 1.3x 2.7x 2.5x 1.6x 3.6x 1.2x 2.1x 0.5x 1.6x 1.1x 2.0x NM 1.1x 0.5x 12.3x 44.1x 7.7x NM 17.9x 19.0x 11.3x 41.0x 3.9x NM 10.2x NM NM NM 5.6x 10.4x 5.3x NM 29.6x NM 7.7x 7.3x 13.5x NM 21.9x NM NM 14.1x NM 23.6x 9.4x 8.4x NM NM NM 31.4x 10.4x 17.3x 9.4x NM 16.0x 16.6x 7.9x 31.7x 4.1x NM 10.5x NM NM 33.6x 4.4x 6.7x 4.8x NM 21.8x 3.9x 6.8x 7.0x 8.4x NM 17.4x NM NM 10.0x NM 5.1x 8.4x 6.0x NM NM 8.3x 16.0x 8.8x 13.1x 8.6x 33.2x 11.9x 13.9x 6.1x 22.7x 4.2x NM 9.8x NM NM 20.6x 3.8x 5.7x 4.9x NM 16.8x 4.8x 5.6x 6.4x 9.1x NM 14.6x NM 35.4x 7.7x NM 4.4x 7.6x 5.2x NM NM 7.1x 9.2x 2.8x 3.9x 2.7x 3.6x 2.5x 2.8x 11.8x 16.2x 8.4x 11.7x 8.6x 11.2x CY R 11 Internet & Digital Media Public Company Valuation Metrics Interactive Marketing ($ in millions, except per share amounts) Price Company 12/31/2012 Interactive Marketing ValueClick 19.41 Web.com 14.80 ExactTarget 20.00 Millennial Media 12.53 Digital Generation 10.91 comScore 13.78 Constant Contact 14.21 Blinkx 1.06 QuinStreet 6.72 Velti 4.50 ReachLocal 12.91 Marchex 4.11 % Dec./Inc. from LTM High Low (11.2%) (24.9%) (33.1%) (55.1%) (30.3%) (42.4%) (55.8%) (30.4%) (43.5%) (69.3%) (7.7%) (36.7%) 40.7% 40.4% 15.9% 39.2% 45.3% 21.9% 23.6% 96.7% 18.7% 46.6% 113.4% 37.5% Fully Diluted Eq. Val. Net Cash 1,460 698 1,362 982 301 491 434 384 287 292 368 152 (55) (671) 212 122 (386) 42 88 42 1 14 96 36 Fully Diluted Ent. Val. 1,515 1,368 1,150 859 688 449 346 342 287 279 272 117 YoY Revenue Growth CY '12E CY '13E 18.1% 146.2% 38.5% 76.1% 20.3% 9.0% 17.2% 54.0% (15.0%) 47.7% 21.0% (6.4%) 12.4% 7.8% 28.0% 58.2% 3.3% 11.2% 13.5% 25.7% (1.2%) 25.4% 16.6% 3.6% Median Mean LTM Enterprise Value / Revenue EBITDA CY '12E CY '13E LTM CY '12E CY '13E 2.3x 3.7x 4.3x 5.6x 1.8x 1.8x 1.4x 2.2x 0.8x 1.1x 0.6x 0.8x 2.3x 2.8x 4.0x 4.7x 1.8x 1.8x 1.4x 2.2x 0.9x 1.0x 0.6x 0.9x 2.0x 2.6x 3.1x 3.0x 1.7x 1.6x 1.2x 1.8x 0.9x 0.8x 0.5x 0.8x 7.9x 40.4x NM NM 6.1x 20.0x 15.3x 20.6x 5.7x 10.2x 34.7x 29.5x 7.1x 9.5x NM NM 5.5x 10.3x 9.4x 21.9x 4.9x 3.9x 11.7x 6.6x 6.2x 8.5x NM 48.7x 5.1x 9.1x 7.8x 12.8x 4.6x 3.1x 9.1x 6.2x 1.8x 2.2x 1.8x 2.0x 1.7x 1.7x 17.6x 19.0x 8.2x 9.1x 7.8x 11.0x CY R Diversified Marketing ($ in millions, except per share amounts) Price Company 12/31/2012 Diversified Marketing WPP 14.43 Experian 15.93 Nielsen 30.59 Omnicom 49.96 Alliance Data Systems 144.76 Publicis 59.66 Equifax 54.12 Dentsu 26.65 Interpublic Group 11.02 Havas 5.50 Valassis 25.78 Acxiom 17.46 MDC Partners 10.65 Harte-Hanks 5.90 % Dec./Inc. from LTM High Low (1.3%) (10.6%) (4.6%) (8.8%) (2.5%) (2.0%) (2.5%) (13.5%) (9.4%) (7.1%) (8.5%) (8.1%) (30.2%) (42.4%) 33.0% 15.5% 22.3% 14.0% 44.2% 28.9% 42.8% 31.9% 21.9% 32.4% 37.9% 45.0% 15.6% 14.8% Fully Diluted Eq. Val. 18,352 15,722 11,079 13,198 7,217 11,740 6,473 6,640 4,754 2,100 1,011 1,302 331 370 Net Cash (5,034) (2,270) (6,386) (3,174) (7,043) (1,258) (726) 275 (952) (649) (507) (79) (570) (77) Median Mean Statistics exclude companies with <$50m Enterprise Value Fully Diluted Ent. Val. 23,385 17,992 17,465 16,373 14,260 12,998 7,198 6,365 5,705 2,749 1,519 1,381 901 448 YoY Revenue Growth CY '12E CY '13E 8.2% NA 2.1% 2.6% 13.8% 14.4% 10.1% (6.1%) (0.4%) 9.1% (5.1%) (1.6%) 12.8% (6.2%) 3.5% 7.8% 4.6% 3.9% 12.0% 6.5% 10.6% 9.0% 3.0% 3.1% (2.2%) 1.7% 7.3% (2.9%) LTM Enterprise Value / Revenue EBITDA CY '12E CY '13E LTM CY '12E CY '13E 1.4x 3.9x 3.1x 1.2x 4.1x 1.6x 3.4x 0.3x 0.8x 1.2x 0.7x 1.2x 0.9x 0.5x 1.4x 3.8x 3.1x 1.2x 3.9x 1.5x 3.3x 0.3x 0.8x 1.2x 0.7x 1.2x 0.8x 0.6x 1.3x 3.5x 3.0x 1.1x 3.5x 1.4x 3.0x 0.3x 0.8x 1.1x 0.7x 1.2x 0.8x 0.6x 8.6x 11.6x 12.6x 7.6x 13.4x 8.6x 10.5x 6.8x 7.0x 7.9x 5.3x 6.0x 28.0x 5.1x 8.4x 11.1x 11.0x 7.9x 12.1x 8.4x 10.3x 7.7x 6.5x 7.5x 5.0x 5.8x 8.5x 5.3x 7.9x 10.3x 10.3x 7.5x 10.6x 7.8x 8.7x 7.3x 6.0x 7.2x 4.9x 6.0x 7.3x 5.2x 1.2x 1.7x 1.2x 1.7x 1.2x 1.6x 8.3x 9.9x 8.1x 8.2x 7.4x 7.6x CY R 12 LTM Relative Internet & Digital Media Stock Price Performance Last Twelve Months Indexed Internet & Digital Media Stock Price Performance 50% 40% 30% 20% 10% 0% -10% -20% 1/1/12 4/1/12 S&P 500 Internet Content and Services 7/1/12 eCommerce 10/1/12 Interactive Marketing 1/1/13 Diversified Marketing 13 www.signalhill.com Baltimore│ Bangalore│ Boston│ Nashville│ New York│ Reston Member, FINRA 14