Q1 2018 Market Report Digital Brief 019

1 LUMA’s Singular Focus on Digital Media

Ø LUMA’s exper,se is at the intersec,on of Media, Marke,ng and Technology

Ø Digital At this intersec,on exists: Media Content § Digital Content: content sites, MCNs, game publishers, aggregators § Ad Tech: display, search, video, mobile, social, Ad Tech Technology content marke,ng/na,ve, connected TV § MarTech: data, analy,cs, sales and marke,ng MarTech automa,on, email, predic,ve tools, commerce Marke1ng technology, shopper marke,ng, payments

2 U.S. Digital Media M&A Activity by Sector # of Transac1ons 80 Ø 2017 M&A ac,vity was headlined by 70 media’s mega mergers, which will likely spur con,nued consolida,on 60 26 this year 50 29 32 31 40 26 Ø MarTech saw two billion dollar 24 transac,ons: SAP acquiring 30 CallidusCloud and GTCR and 20 23 20 27 19 Sycamore Partners acquiring 10 22 CommerceHub 13 4 10 10 0 Ø Tronc sold the storied Los Angeles Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Times and other local media Ad Tech MarTech Digital Content proper,es to improve its financial posi,on and pursue further M&A

3 Source: LUMA Ad Tech M&A Activity # of Transac1ons 25 Ø Observa1ons § Ad Tech M&A ac,vity is off to a 20 modest start with only one deal over $100 million § Pandora acquired AdsWizz for 15 15 $145 million to capitalize on the programma,c audio market 10 11 Ø Looking Ahead – Market Dynamics 5 10 9 § While the uncertainty around the 7 4 implementa,on of GDPR and 0 2 1 privacy concerns could cause Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 buyers to pause M&A, we expect consolida,on to con,nue as +$100M <$100M strategics and PE take advantage of high industry growth rates and an abundance of a[rac,ve targets 4 Source: LUMA Ad Tech – Q1 2018 Notable Deals Capital Enterprise Acquirer Comments Raised Value

Pandora has acquired AdsWizz to expand its programma,c audio adver,sing stack and $3M $145M grow revenue streams by helping other audio publishers mone,ze through AdsWizz

AerServ has been acquired by InMobi to enhance mone,za,on for publishers globally N/A $90M and further enhance the InMobi Exchange, a premium mobile programma,c pla_orm

Swedish telco Ericsson has acquired Placecast, a loca,on-focused DSP and DMP, to $8M N/A strengthen Emodo, Ericsson’s programma,c mobile ad pla_orm

5 Source: Capital IQ; Crunchbase MarTech M&A Activity # of Transac1ons 30 Ø Observa1ons § SAP has agreed to acquire 25 CallidusCloud for over $2 billion § Private equity firms GTCR and 20 Sycamore Partners have agreed to 22 acquire CommerceHub for $1 15 19 18 billion 10 19 17 Ø Looking Ahead – Marke1ng Clouds & PE § 5 2017 was a quiet year for the 5 5 5 Marke,ng Clouds with Salesforce 0 1 2 and Adobe taking a break, but Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Salesforce re-entered the game acquiring CloudCraze +$100M <$100M § We expect Marke,ng Clouds to remain selec,ve buyers and PE firms to remain the most ac,ve acquirers 6 Source: LUMA MarTech – Q1 2018 Notable Deals Capital Enterprise Acquirer Comments Raised Value

Socware giant SAP has agreed to acquire CallidusCloud to bolster SAP’s CRM business NASDAQ $2,308M with the company’s sales performance and pricing capabili,es

Salesforce acquired Cloudcraze, a B2B e-commerce socware pla_orm built $30.6M N/A on top of Salesforce, and will integrate it into Salesforce Commerce Cloud

Private equity firms GTCR and Sycamore Partners have agreed to acquire NASDAQ $1,090M CommerceHub, an e-commerce distribu,on and marke,ng pla_orm

Shared work space startup WeWork has acquired Conductor, a digital $60.6M N/A marke,ng company to provide extra services to WeWork’s customers

Dealer Inspire, a web marke,ng pla_orm for dealerships, and Launch Digital N/A $165M Marke,ng, a digital marke,ng agency, have been acquired by Cars.com

GoDaddy acquired Main Street Hub, a social marke,ng pla_orm for small $46M $175M businesses, to expand its suite of marke,ng capabili,es

West Corpora,on has acquired PR solu,ons and services of Nasdaq, which includes N/A $335M PR Solu1ons GlobeNewswire, a global press release pla_orm

7 Source: Capital IQ; Crunchbase Digital Content M&A Activity # of Transac1ons 35 Ø Observa1ons § With the start to 2018, Digital 30 Content M&A remains robust 25 § Tronc has agreed to sell the Los Angeles Times and San Diego 20 Union-Tribune to Nant Capital for 27 16 25 27 15 21 $590 million 10 Ø Looking Ahead – Mega Mergers Impact § 2017’s mega mergers, sparked by 5 10 the digital disrup,on of media, 4 5 5 4 0 signaled the need for greater scale st Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 § The mergers between Disney – 21 Century Fox and AT&T – Time +$100M <$100M Warner remain pending, but will have massive implica,ons in the media world 8 Source: LUMA Digital Content – Q1 2018 Notable Deals Capital Enterprise Acquirer Comments Raised Value

Jon Miller, backed by TPG, has acquired a majority stake in Wikia Inc.’s Jon Miller $39M $200M Fandom, a network of pop culture sites, to accelerate its growth

THQ Nordic, formerly known as Nordic Games, has acquired Koch Media, the N/A $150M parent company of Deep Silver, the maker of game ,tles including Saints Row

Tronc has agreed to sell the Los Angeles Times and other local publica,ons N/A $590M to Nant Capital, an investment firm run by billionaire Patrick Soon-Shiong

Google acquired Tenor, a popular GIF keyboard with over 300 million daily ac,ve users $32M +$100M and 12 billion searches every month, which will con,nue to operate independently

Google sold Zagat, which the search giant bought for $151 million in 2011, to popular N/A N/A dining reviews media company The Infatua,on

9 Source: Capital IQ; Crunchbase Ad Tech – Q1 2018 Stocks Performance

50% Ø Observa1ons 40% § Ad Tech grew 4% in market value with the con,nued growth of 30% TTD and rebound of CRTO 20% § Acer a sluggish end to 2017,

10% MRIN fell 38% to under $40 million in market cap in Q1 2018 0% -10% Ø Highlights

-20% § CDLX had its IPO in February and has risen 12% since its first day of -30% trading with a market cap of -40% $292 million 1/2/18 2/2/18 3/2/18 § RUBI reported promising Q4 CDLX CRTO MRIN RUBI TLRA TTD NASDAQ 2017 results, announcing substan,al cost reduc,ons and forecas,ng a return to growth by 10 Market Data as of 3/31/2018 Q4 2018 MarTech – Q1 2018 Stocks Performance

60% Ø Observa1ons § 50% MarTech stocks surged to start 2018, rising 15% in market value 40% § By the end of Q1 2018, MarTech grew to over $105 billion in 30% collec,ve market value, largely 20% led by CRM and SHOP

10% Ø Highlights 0% § SEND completed its first full quarter as a public company -10% growing 15% since the start of -20% the year 1/2/18 2/2/18 3/2/18 § LPSN announced impressive CRM HUBS LPSN SEND SHOP YEXT NASDAQ revenue guidance for 2018, expec,ng its first return to double-digit growth since 2015 11 Market Data as of 3/31/2018 Q1 2018 Key Startup Financings to Watch Lead Investor Capital Raised Valuation Comments

With about 40% of its revenue and 45% of its paying customers now coming $75M $900M from outside the U.S., Asana will use its new capital to grow interna,onally

Cheddar, a financial news media company, grew revenue to $11 million in $22M $160M 2017 and has booked $18 million for 2018 as it looks to extend distribu,on

The food delivery company Doordash plans to use this funding to increase $535M $1,400M the number of ci,es it currently operates in from 600 to 1,600

Front, the shared inbox provider, will use this funding to expand globally and $66M N/A improve their product offering beyond collabora,ve inboxes

AR startup Magic Leap is planning to release its smartglasses, Magic Leap $461M $6,000M One, later this year and will use funding to build out its socware offering

Robinhood, the popular stock trading app, raised a new round of funding $350M $5,300M from DST Global, quadrupling its valua,on in just a year’s ,me

TheSkimm, known for its popular newsle[er, has over 7 million subscribers $12M N/A and is looking to expand its products set and subscrip,on business

12 Source: Crunchbase LUMA’s Recent Deals

13 LUMA’s Diferentiated Value Proposition

1. Peerless Industry Knowledge 2. Strategic Approach 3. Execu1on Excellence

14 LUMA’s Content-Driven, Expert-Based Approach LUMAscapes (over 6 million views

DISPLAY MOBILE VIDEO SOCIAL NATIVE SEARCH MARTECH COMMERCE GAMING STRATEGIC from 211 countries) BUYERS Publica1ons (over 3 million views)

Digital Briefs

Conference Keynotes Corporate Teach-ins

Completed Deals at Premium Valua1ons

15 Investment Banking. Evolved.

New York | Palo Alto

16