Viacom International, Inc. v. Youtube, Inc. Doc. 122 Att. 2 A-201
Case 1:07-cv-02103-LLS Document 214-84 Filed 03/18/10 Page 10 of 12
Hunte. Sherree
Full Name: Kent Walker Last Name: Walker First Name: Kent Job Title: Vice President & General Counsel Company; Google
Business Address: 1600 Amphitheatre Parkway Mountain View, CA 94040
Business: Mobile: Business Fax:
E-mail: E-mail Display As:
Assistant: Becky Allen (temporary assistant) [email protected]
Assistant Sarah Poteet temporary - back-up to Becky Allen)
---_._------_.. _---_...... _._-_ ... _-._.------_ .._.-_ .. - ---- Confidential VIAO 1475474
Dockets.Justia.com A-202
Case 1:07-cv-02103-LLS Document 214-84 Filed 03/18/10 Page 11 of 12
( VIACOJA)
FAX COVER SHEET
To: David Drummond Company: Phone: Fox:
From: Michael Fricklas Company: Viacom Phone: 212-258-6070 Fox: 212-258-6099
Date: February 2, 2007 Pages including 4 this cover page: Comments:
The information contained in or attached to this Facsimile message is intended only for tlte confidential use of the individual(s) named above and may be a privileged communication. If you are not the named recipient or an employee or agent responsible fOT delivering it to the named recipient, you are hereby notltied that you have received this document in error and that reView, dissemination or copying of this communication is prohibited. Uyou have received this communication in error, please notifY us immediately by collect telephone and return the original documents to us by mail. We will reimburse to you the cost of any such mailing. Thank you.
438084(1) 212/07 ------_.__ ._---- Confidential VIAO 1475475 A-203
Case 1:07-cv-02103-LLS Document 214-84 Filed 03/18/10 Page 12 of 12
( YIACOJA)
FAX COVER SHEET
To: Kent Walker Company: Google, Inc. Phone: Fax:
From: Michael Fricklas Company: Viacom Phone: 212-258-6070 Fax: 212-258-6099
Date: February 2, 2007 Pages including 4 this cover page: Comments:
The information contained in or attached to this Facsimile message is intended only for the confidential use of the individua\(s) named above and may be a privileged communication. If you are not the named recipient or an employee or agent responsible for delivering it to the named recipient, you are hereby notified that you have received this document in error and that review, dissemination or copying of this communication is prohibited. If you have received this communication in error, please notify us immediately by collect telephone and return the original documents to us by mail. We will reimburse to you the cost of any such mailing. Thank you.
438084(1) 2/2/07 .. ------_._-,--- Confidential VIAO 1475476 A-204
Case 1:07-cv-02103-LLS Document 214-85 Filed 03/18/10 Page 1 of 4
Subject:Subject: FW: FW: YouTube YouTube Term Term Sheet Sheet From:From: "Lehman, "Lehman, Nicholas"Nicholas"
From:From: Cahan,Cahan, AdamAdam Sent:Sent: Monday, Monday, July July 24, 24, 2006 2006 5:54 5:54 PM PM To:To: Patel,Patel, Kruti; Kruti; Witt, Witt, Jason;Jason; Lehman, Lehman, Nicholas Nicholas Cc: Bakish, Bakish, Robert Robert Subject: FW: FW: YouTube TermTerm SheetSheet
firstfirst in in from from youtube. youtube. have have notnot eveneven lookedlooked over over yet. yet, pleaseplease keepkeep circlecircle small small for for nownow beforebefore folks folks start start formingforming opinions pre-negotiations
From: Chris Maxcy [mailto:[email protected][mailto:[email protected]] Sent: Monday, July 24, 2006 11:59 AM To: Cahan, Adam; Bakish, Robert Cc:Cc:'zahavah';'Kevin 'zahavah'; 'Kevin Donahue' Subject: YouTube Term Sheet
Adam & Bob,
At long last, attached is a preliminary draft of the Term Sheet we've discussed. Please let me know when you are available to discuss.
Best,
Chris
Chris Maxcy
VP, Business Development
YouTube, Inc.
650.685.6402
www.youtube.com
ListList ofof attachments:attachments: VaicomVaicom TermsheetTermsheet (7 2424 06).doe06).doc ~ DEPOSITIO~~ EXHIB\TEXHIBIT ~D~JI~' . 5 ~:Q) ~i7a3/6q(;;:5 /D~
CONFIDENTIALCONFIDENTIAL VlA00727695VIA00727695 ii A-205
Case 1:07-cv-02103-LLS Document 214-85 Filed 03/18/10 Page 2 of 4
ffighlyHirrhly ConfidentialConfidential
ViacomlViacom/ You YouTubeTube (YT)~k'T) Term Term SheetSheet
STRUCTURE:S3'HUCTUKE': This This termterm sheet sheet summarizessummarizes thethe basic basic termsterms andand conditions conditions ofof a a proposed proposed contentcontent licensinglicensing agreement agreement betweenbetween Viacom, Viacom, Inc.Inc. ("Viacom")("Viacom") and and YYouTube, ouTube, Inc, Inc, ("YT").("YT"). ThisThis termterm sheetsheet is is notnot bindingbinding and and doesdoes notnot createcreate anyany rights rights oror obligationsobligations betweenbetween the the parties.parties. AnyAny agreementagreement betweenbetween the the partiesparties isis subjectsubject toto thethe executionexecution of of definitivedefinitive documentation. documentation.
TERM:TEIUCIP: TwelveTwelve (12) (12) MonthsMonths (the(the "Term"),"Terrn"), commencing commencing on __.
VIACOMVIACOM DuringDuring the the Tenn,Term, Viacom shall provide the following: OBLIGATIONS:O~LIGATIONS': (a)(a) Worldwide license license to to Viacom's domestic & internationalinternational catalog of short form videos on a streaming-only basis.
(b) PeriodicXML Periodic XML feed (weekly or monthly) of the videos it licenses to YT ("Licensed Videos") & associated metadata, including electronic metadata updating the rightsrigl~ts designations (e.g. takedowns, new adds, etcetc...) ... ) for the Licensed Videos on the YT Site (hereintherein referred to as the "Service").
(c) Viacom shall be solely responsible for obtaining and paSring paying all necessary rights to the Licensed Content including but not limited to: (i) any third-~partythird-party publishing rights, other than any music public performance rights, required in connection with the use hereunder of any audio or visual compositions (embodied in the Licensed Videos on the Service, (ii) any necessary royaltiesroyalties to so-called "royalty" participants (e.g. actors, producers,producers, writers, etc.), (iii) any distribution rights, and (iv)(iv) anyany requiredrequired unionunion payments.payments. TheThe PartiesParties agreeagree thatthat YTYT shallshall bebe solelysolely responsibleresponsible forfor obtai~ingobtaining public public performanceperformance licenseslicenses inin connectionconnection withwith YT'sYT's useuse ofof musicalmusical compositionscompositions embodiedembodied inin thethe LicensedLicensed VideosVideos performedperformed onon thethe Service.Service.
(d)(d) ViacomViacom shallrepshall rep andand warrantwarrant itsits ownershipownership to to thethe LicensedLicensed VideosVideos andand indemnify indemnify YTYT forfor anyany errors. errors.
(e)(e) ViacomViacomshall shall be be responsible responsible forfor sellingselling advertising advertising onon thethe pagespages ofof the the ServiceService wherewhere users users cancan directly directly play play thethe LicensedLicensed Videos,Videos, the'l;Vatchthe 'Watch Pages".Pages".
YouTubeY ouTube ConfidentialConfidential
CONFIDENTIALCONFIDENTIAL VlA00727696VIA00727696 A-206
Case 1:07-cv-02103-LLS Document 214-85 Filed 03/18/10 Page 3 of 4
Viacom shall pay YT on a monthly basis an amount equal to the greater of COMPENSATIONCOMPENSATION Viacomshall pay YT on a monthlybasis an amountequal to thegreater of (i)(i) fifty fifty percent percent (50%) (50%) of of Viacom'sViacom's grossgross revenues revenues associated associated withwith any any advertisingadvertising oror sponsorshipssponsorships onon thethe WatchWatch Pages Pages and and (li)(ii) $0.005$0.005 per per exhibitionexhibition of of each each Licensed Licensed Video Video on on the the Service. Service.
ViacomViacom shall shall provideprovide monthly monthly revenuerevenue reportingreporting and and paymentpaSrment toto YTYT withinwithin thirtythirty (30) (30) daysdays afterafter thethe endend ofof eacheach monthmonth
YTYT OBLIGATIONS OBLIGATIONS During During thethe Term,Term, YT shall provide the following:
(a)(a) Hosting Hosting & streaming of the Licensed Videos via thethe Service.Service. Viacom shall retain the right to add or remove Licensed Videos fromfrom the Service at any time by updating the the metadata associated with any Licensed Video(s) in the XML feed.
(b) Co-branding: Go-branding: YT shall co-brand the video player on all Watch pages of the Service where the Licensed Content is available for viewing (mockups~ocE;ups to be provided). YT shall also provide Viacom with the following branding elements:
i. YT shall prominently display in connection with the exhibition of each Licensed Video on the Sen;iceService a company logo of Viacom'sViacom's choice with an accompanying URL, and ii. Viacom may also choose a secondary text link to be displayed in connection with the exhibition of each Licensed Video. Secondary text links are configurable on a video by video basis and will take users to a site(s)site( s) of Viacom' as choosing (e.g. show website, etc.)
(c)(c) Reporting: Within thirtythirty (30)(30) days after thethe end of each month, YT will renderrender reasonably detailed accountings showing the numbernumber ofof exhibitionsexhibitions ofof LicensedLicensed VideosVideos onon thethe Service.
(d) ContentContent Claiming:Claiming: DuringDuring thethe. TermTerm YTYT shahshall de~7elopdevelop anan automatedautomated system.system usingusing fingerprintfingerprint technologytechnology toto identifyidentify videosvideos onon thethe ServiceService thatthat containcontain ViacomViacom copyrightedcopyrighted material material andand enableenable Viacom.Viacom, inin itsits discretion,discretion, toto eithereither (i)(i) licenselicense suchsuch materialmaterial forfor useuse onon thethe ServiceService asas aa LicensedLicensed VideoVideo hereunderhereunder
YouTubeY ouTube ConfidentialConfidential
CONFIDENTIALCONFIDENTIAL V1A00727697VIA00727697 A-207
Case 1:07-cv-02103-LLS Document 214-85 Filed 03/18/10 Page 4 of 4
oror (ii)(ii) have YT remove such video from the ServiceService altogether.altogether.
Neither YT nor Viacom may disclose to any third party (other than each CONFIDENTIALITYCONFIDENTI~L~LITY Neither YT nor Viacom may disclose to anythird party (other than each party's employees,employees, in their capacity as such)such) any information regarding the tennsterms and conditions of thisthis ternterm sheet without thethe prior written consent of thethe other party
YouTubeYouTube ConfidentialConfidential
CONFIDENTIALCONFIDENTIAL VlA00727698VIA00727698 A-208 YouTube Blog Page 1 of3 Case 1:07-cv-02103-LLS Document 217-22 Filed 03/18/10 Page 1 of 3
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MONDAY, SEPTEMBER 12, 2005
Search This Blog We are ecstatic to announce the changes we made to the site last night As a result of many sleepless nights, we have completed a very feature-rich release. Once again, many of these changes are in direct response to your .... Search feedback, so please keep them coming. And the changes include
Subscribe To ...... First up, video flagging. At the bottom of the video watch page, you will notice a new section for flagging a video. If you encounter a video that's inappropriate or copyrighted, please use this feature to notify us We will aggressively monitor these submissions and respond as quickly as we can
Community Gatherings
Los Angeles, CA - Vidcon - July 9- 11,2010 Second, Friends & Sharing. We poured a tremendous amount of time and effort into enhancing our sharing Past Gatherings functionality. With the new sharing feature, an easy-to-use pop-up appears over the video. From here, you Hosting a meetup? Leave a can choose with whom you'd like to share the video with. This feature is really something that you have to comment on this channel with see to appreciate. Trust mel Log in and watch a video. Then, click on 'Share this Video' I told you sol details
Twitter I youtube
youtube: 5 yrs ago today Lastly, Channels. While the video uploads have been pouring in, we realized it grew ever more difficult for @chad_hurley registered a URL viewers to find relevant and interesting videos. Though tags are very efficient at identifying specific details Now 20+ hrs of video uploaded about content, we wanted to further simplify the browsing experience. With the release of Channels, similar every min to @youtube httpl/bitly/be370y (via content will be categorized and grouped into common channels. By "flipping" to a channel such as Short @hunterwalk) Movies or Travel & Places, you can browse through all videos within the channel youtube: Top 5 "I Love You's" in the Movies httpl/youtu.be/kjTrcXyqwjgfrom @rottentomatoes and @current
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Case 1:07-cv-02103-LLS Document 219-9 Filed 03/18/10 Page 1 of 1 // / .I / / Ii I I From: SeanSe Dempsey Dempsey [email protected]
SUbject:Subjec: Fwd: Snowmass video analysisanysis
some manual analysis we did
--Forwardedm~-- Forwarded messae-- From: Salman UJlahUJlah.--..- . Date: Oct 6,6, 2006200 i11 1 :43 AMAM Subject:Subjec SnowmasSnowmass videovideo analysis anysis To: Salar KamangarKamanga
Gross TotalTota 424 (mcludes(mcludes i23 i23 that tht aren't validvalid URLs) URs)
Net TotalTota 301 100%100% No 112 37%37% PremlremPreirem 189 63%63%
Premiumlremoved-Premiumremoved- meansmea the the content content isis copyright (either inin wholewhole or or in in substantial substtial par)part) and and removed removed were links that were takentaen down No- nono copyrightcopyright but includesincludes commercials.comIercials, trailers,trers, public service,servce, promos,promos, truetre ugcugc
we are working on gvideogvdeo now.
Sean C. Dempsey Prtnci]pal,Prcipal, Corporate DevelopmentDevelopment
[email protected] EXHIBIT
~~.
-DMWtJISDknCMS EXHIBIT' NO. NO. J2... J2 {-I(.p·O'l(-llp.O' A. IGNACIOIGNAIO HOWARD HOWARD CSR,RPR
HIGHLY CONFIDENTIAL CSSU 002686
...... ,)~. A-212
Case 1:07-cv-02103-LLS Document 323-20 Filed 05/21/10 Page 1 of 6
From:From: Kim. James Sent:Sent: Friday. October 6, 2006 10:32 PM To:To: 'Sa1man DUah'
ee:Cc:
manas g e.com Subject:Subject: ProjectProject Snowmass Snowmas (aka (aka Agua) Agua) Model Model and and Dial Dial in infor for Saturday Satuay 9am 9am Pacific Pacic Attach:Attach: aguaaga model.x1s;agmodeJ.x1s;agua model.xls
AttachedAtached please please find findthe thelatet latest verson version of of thethe model.modeL.
Wewe will also als havehave a can tomorrow (Saturtlay) (Satrtay) at 9am pacillcpacific to to discuss discuss the the model moel and and to to have have a a status statu update.
Dial-inDial-in detaIlsdetaIls are are as as follows. follos. (infl)__(toØfr~ pass:
Please call me if you have any questions.
«c:c:...:-i. ... »
James Kim Mergers && Acquisitions AcÕ$lt"" CrodilCredit Subos" sui" e:6:lO CeliomCelif<>mla Sl&tSIre&t sanSan Fnll>clsco.Fniiic. CA CA 9410894108 DIecDIrect: I Fax:I FaX: •••••
From:From:SalmanUllah~ Salman Ullah__ SentSent Frlday.Octobe~ Frlday.Oçtobe~ To: Storm Diinæn; To: Stann DIIm;an;IIII.~IJ!!I __ ~"~~~ Cc;Cc: Demp'sey,Dempsey, SeanSean {GOOGLE.INC.(GOOLE,INC. (Mountaln (Mountain VIew)]Vi)) SubjectSubject: Fwd: viewsviews brokenbroken down down by by countty coti
--- FoiwidedFOlWarded message--message- From:From: SalarSalar KamagarKamangar ••• l:0C&J.S EXIBIT NO JE
A.IGNACIO~~~C~R7-' .
HIGHLYHIGHLY CONFIDENTIAL CONFIDENTIAL CSSUCSSU 004069 004069 A-213
Case 1:07-cv-02103-LLS Document 323-20 Filed 05/21/10 Page 2 of 6
Date:Date: Ot:t Oc 5, 5, 2006 200 9:03 PMPM Subject:Fwd:vi~SUbject:Fwd:Vi~ To:To; Salman Salman Ullah _____ Ullah__
--- FoirdedFOfWarded message-- mesage- From: Steve Chen c: [email protected] c:rnilto:[email protected] :0 From: Steve Chen < [email protected]
'"c...:::- HIGHLYHIGHLY CONFIDENTIAL CONFIDENTIAL CSSUCSSU 004070 004070 -''''"" Pagepag View View Data Home Page Search Page A-214 Watch Page Implied Daily Page Vìews Implied Daily Page VieWS Video ContentContnt SplitSplit % Premium % Non-Premium Total PreiumPremium Video Video Content Content AnnualAnnual NetNet VideoVideo Streams %% Perm!ssloned Permlssloned Content Content fromfrom PartnersParters PremiumPremium StreamsStreams %% Sell Sell Through Through SoldSold Annual Annual In-StreamIn-Stream Videos Videos CPMCPM PremiumPremium Video Video ContentContent Revenue Revenue Non-Pre1umNon=Premium Content Content AnnualAnnual Net Net Video Video Streams Streams HighHigh Quaüty Quality ContentContent ...IN..N -0i-~«'"ct '" I-~Zo % Non-Premium Content that is High Value We Case 1:07-cv-02103-LLSDocument323-20Filed05/21/10Page4of6 that is High Value ~e Non-Premium Streams o U:~Ü:~ % Sell Through Z(I)Z(I 0(1)0(1 Sold Annual In-Stream Videos U(J CPM >- ..J~ High Value Non-PremlumNon-Premlum Revenue :t (!lCl Run Of Site Content 5: Annual Page Views (Watch Page) CPM Non-PremiumNo-Preium Video Video Content Content Revenue Revenue Annual Page VIews (Search Page) CPM Search Revenue Sponsored Content Annual Page ViewsVieWS (Home Page) Sell Through A-215 CPM sponsoredSponsOre AdAd Revenue GrossGros Revenue Video CostCost AllocationAllocatin Adjustment Cost Allocation Adjustment % PeltnerPartner ShareShare AdjustmentAdjustmnt Partner Share Adjustment Net Revenue (2) EBITDA EBJTDAEB/TDA MargIn D&A as % Sales EBIT EBJTMerginEB/TMsrgin Tax Rate NOPAT (FCF) (iJliJ (1) Does not inclde the impactof ofworldng wor1dngcapital. catal. Assumes Assumes D& exense equal capa. (2) Gross Gross revenue reenu minus mius parlllerparl share share adJustmel adJustmenl ....-l t')C" <-t ...... f=Oi=o we;)z~ Ilustrve Valuatin COWO Case 1:07-cv-02103-LLSDocument323-20Filed05/21/10Page5of6 PVof '07.'10 FCF CO ii:;:,¡¡ ;: Terminal EBlTDAealTOA ('11 EBITDA) Z(I)Z CI ('11 EBITDA) 0(1)0(1 Terminal Value O(J PVof1V =:i:: NPV :J::i C) Inputs :i:i: Tax Rate WACC Terminal EBlTA Multiple D&Aas%Revs A-216 A-217 Case 1:07-cv-02103-LLS Document 323-20 Filed 05/21/10 Page 6 of 6 (Units(Unit inIn MM) MM) CalendMCalendM Year Year Endmg Ending 20072007 2008 2009 2009 20102010 20112Q11 DailyDaily VIdeo Video Playbacks Playbacs AnnualAnnual Growth Groh %% EmbeddedEmbeded Videos Vide on PartnerParter SitesSiles DailyDaily Video Video Playbacks Playbcks onon YellowYellow WebMe WebMe HomeHome Page Pag SearchSearch PagePage . WatchWatch PagePag I Implie DaDy Pag View Implied DaDy Page Views HigherHigherWatch Watch MonetizationMonetition ContentCon1!nt SoldSol Annualln-SlreamAnnualln-lrem VideosVide (Watch)(Watch) 0/00/ ofof TotalTotal PagePage Views Sell5eIlThrough Through CPMCPM Hjghe~Higher Monetization Monetizon Revenue lowerlQwer WatchWatch Monetization Monetion ContentContnt SoldSold Annualln-Stream Annualln-trni VIdeosVids (Watch)(Watch) % ofTOiaI ofT Oll Page Pag ViewsView SellSell ThroughThrough CPM Lower MonetizationMonelitiòn RevenueRevenue Search MonetizationMonetition Content Sold Annualln-3treamAnnual In-Stream Videos (Search) CPM Lower'MontltizatlonLower Montitiztlon Revenue SPOnsoredSponsored AdAd MonetizationMonelition Sold Annualln-SlmamAnnualln-Stmam VideosVideo (Home(Home Page) Sell Through ePMCPM Sponsored ii,d,Revenue :Ad,Revenue Total GrossGros Revenue Revenue Minus (Partner Share)Shere) PariPartner Share Share % NeRevenue EBlTOAEBITOA EBITDA MarginMargin D&AD&A asas %% salesSales EBITEBIT EBITMarginEBITMafgin TaxTax RateRate NOPATNOPAT (FCF (FCF) (1) (1) (1)(1) Ooesnot Dos not in th ImpactofWllrklng of work cait. _ D&A eoe equa capex. ValuationValuation PV of '07-'11 FeF TerminalTerminal EBITDA EBITDA Terminal Value PVolTV Nl?V ,.... ' ,.' ':,,:¡~;~¡;~~~~:.~: "':."';.': Input iaxRaie WAee Taninal EBITDA Multiple D&Aas% Revs HIGHLYHIGHLY CONFIDENTIAL CONFIDENTIAL CSSUCSSU 004074 004074 A-218 .~ Case 1:07-cv-02103-LLS Document 219-11 Filed 03/18/10 Page 1 of 27 From: Rao,Amrit:R,Amnt Sent: Monday, October 9, 2006 11 :07 AM To: Duncan,Duca StonSfonn Cc: 1iIII'Scrougb, Chrs i• Kim. James James_ . Subject:Subjec: GreenGree BoardBoa MaterialsMaals Attach: MaterialsMaal for for Gren Green Boad.pdf Board.pdf 1: Storm.Storm .:. AttachedAttched plase please lind lind the the Green Green Board Board Materials Materials In In pdfpdf format. format. Thanksl A!nrftAmrft AmritRiloAmiitRåo CreditCrdi SuMo TeçlnoJoTe~lmoJowOroup Croup 65065 Callornl California Streat,St 33id 33,d Flcor Flcor Sail Frane. CA 9408 atrao@eod'iIs.cm ...:_.:::: ".: f.;. 1 :' Ii.:Ii.: j.. " l-. .' '. ; HIGHLY CONFIDENTIAL CSSU 003560 D¡TE:D~TE: SS 'f't ,0'1 ,Dl1 ¡I 1..-1.E~IBlT# E~IBlT 2- ¿ DEPONENT: S:~(j/\ S~CV i i ~IVWi V CASE: Viacom,Viacom, et et aI., aI., v. v. YouTube,YouTube, etet aI., aI., TheThe FootballFootball Association PremierPremier League,League, etet aI.,aI., v.v. YouTube,YouTube, etet aI.,aI., 'Case- Case Nos.Nos. 07-CV-220307-CV-2203 andand 07-CV-358207-CV-3582 :, _ A. Ignacio Howard, CSR, RPR, '.' , A. Ignacio Howard, CSR, RPR, CCRR,CCRR, CLR,CLR, No. 98309830 :::I::: (5:iè5 :::I:rr- oo(oo ()() oo Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page2of27 :iii:z CREDITCREDIT SUISS~ suiss~ :I :r!oo mm zz $! r-~i- CONFIDENTIALCOFIDENTIA ProjectProject SnowmassSnowmass Presentation to Board of DirectorsDirectors of Green A-219 October 9, 2006 PRELIMINARY PRELlMINARYl TO FURTHER REVIEW I SUBJECT TO FURTH~RREVIEW AND EVALUATION 'l MA'ÆLS MAY NOT ee us OR REUse UPO FO Al PURPse 01 THA 'THESEW."TmIi.LS MAY NOT ee U$S) OR REUse UPONFOR MiN pURPOseonlSR WRmNJ\RESWRlrro./JlGRee.MENTWlTHCREOITSUlSS5 WlT CROIT suis THAllAS S!'£ t1t1 C/C/) cc oo , 0o ~ ~en ...... .. ...-., .. ..-;....,¡:. .... •• -; ...... ~. ,...... ,~".::: ,;:' • ,"- :-.t.....~....:{ • ..,.:¢" .... - ...~..." ," '. ,...... ,~".:: ...... 1:_~ ...... ~.. '. .. ,"- .... . " . of... ,. .',..' ,'". ~ ...... ~ ...... _..~ -...... ",,,,.' .. .. ., ~"':-"""'-" .'.. -...... " '. '. .. :'.: ~ ~" . '; " ~::. ~:'.: " .,; ....' . ~,. ' . ~..,-! :I::i CONFIDENTIALCONFIDENTIL Q:iQ ::cr-r- ,-<, -( (')(' oo Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page3of27 zz SummarySummarY ofof KeyKey Trans·actionTrans.action Terms Terms :::!!:: co BasedBased on Draft Merger AgreementAgreement as of October 6, ~006 mzm as of October 6, ~006 z:: ::1;i l>r- SummarySummary of Terms.Terms : Summary r- I ¡ SUmmaryof of ImpliedImplied TransactionTra~saction Statjs~ics..Statistics .': ...•. . '. ~ $1.65$1.65 billonbillion ofof Green ClassClass AA common ~MJ($MJ stock in exchange for all shares, options, warrants andand otherother equity interests'of ImpliedImplied l GreenGreen equity interests'of Yellow Yellow Yellow : Stree"~Street ., TKI1T xn Statistics Statistics l StalisliStatistics cs (~I (Si •· NumberNumber of of shares shares based based on on Green's Green's 30 30 day average closing price two days day average closing price two days Fully·DllutedFully.Dlluted equItyEquIty Value prior to closing •. NatNatCas Cash Fully-DUutedFully-DUuadAggregate Agregate Value A-220 •· SharesShares to to be be registered registered via via S-3 S-3 pqst- pqst closing lMF!~(Mi,~ RevenueRevenye ." OneOne yearyear indemnificationindemnification period (except CY2001ECY2007E $150 period (except $150 11.Ox I . 12.3)( CY200SECY00S 299 for certaincertain representationsrepresentations andand warranties)warrnties) 29 5.5 I 8.7 I · Liabilty for breaches generally limited ~ • Liability for breaches generally limited ~CY2007E $87 I $87 24.5x I 19.6x19.6)( to 12.5% of the aggregate CY2008E 144 to 12.5% of the aggregate 144 11.5 I 15.315.S consideration ~4) consideration ~4) I CY2007E $3$34- 48.4)( I 31.3)( ·• EscrowEscrow of 12.5% of CY200SeCY200SE 78 12.5% of the aggregate 78 21.2 I 25.2 consideration (1)(1) PerYellowmanagement.PerYellmanagme. (2)(2) YelowYellow projectonsprojecUons petpe GreenGreen ManagemenManagement. ."." ClosingClosing anticipated inin 30 toto 45 days (3)(3) BasedBase onon Green Gren stock sll prtcePr of of $420.5$420.50 8&8a of of OcWber Octer 6, 2006.6, 206. Projed\on& Projio ('(') babased on on Thmas ThomasWeisel WeIsel analyst anlys research reandated dated SQptember Se 14, 14, 2006 20 fo200for2001 anand ieESleES <:OtIIl9IlSUS COnss asllmates esti for2008. for2008. ~ (4) Based cc: (4) Based onon 35%35% fatax rate rete. oQ QQ ~~ 1 ~~ ~. , "-:'. i'. '. ~'. . :r:: QQ CONFDENTAlCONFIDENTIAl. :c:i !<~ g~ SummarySummary of Financial of Financial Analyses Analyses of of Yellow Yellow Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page4of27 :!1:! co mm Dis(;ollntedDisçounted Cash SelectedSelected ~~ FlowFlow Analysis CQlTlpaniesCQ/npêlri¡es Analysis EquityEqulty ValueValue ($MM)($MM) $3,500 $3,404 $3,000 $2,583 $2,500 A-221 $2.000 $2,094 --__~ __w_ ~______------_.... Aggregate Consideration: $1,500 Consideration: $1,650MM$1.650MM $1,00$1,000 $1,193 $500 ~ ~c $0 ~------o<:) ~ Sourc BaseSource: on BasedYellw on flanc1al Yellowflnanc1al datadata perper Gmen manat pro fora for tron. o<:) ~ Greenmanagement pro fonnafor transactlon. CREDITREDIT SUISSE UISSE ~ C S 2 Ø)Q) 2 ww . ....: ' . . ".,...... ' ". ";" . "0: .":' .~,:.:.:.•• ':.:.:;, .'~;i.••• ~',!• ..~'.::;(.. >.::< .. J::i CONFIDENTIAL ~ r-i-- ~ () () Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page5of27 o z Yellow Company Overview o11:D zm =! l>): i- status: r stas: PrivatePriate Yal!owYiiow IsIs a placea plce for peoplefor pepletoto sIIaru, commentii, comenton, and on, view and vlcIeoa vlvl online. 0l. YellowYelw odglnaGyodlnaay at 88 a pe vide sh sece an ha gron Headquartefs:Headq uart: San Mateo,Mate, CA started88 a pMIOMI vfdeosharInsJ service, and has grown intoInto en en entertainment entertnmentdestInation deslOn Wllf peple wachin more than ~18C mllon Withpeople watching more than ~18CmlUlon Founded: 2005 vldeo$vlde () ()Il tlthe sit dafy. Yellow enab pele 10: ({ site dally.Yellow enables people 10: " UploadUpload, ù1gteg and shareshe Vld6QS vld6QSwOlldwk!e woidwld " BroBrowse mllOl mlllOl1$ ofof origfnalorrnivldeos vl uploadvdUpIdvd by by community i;nltymGmber& ITIi " FI,FInd, Joi Join anand crate create \/eo \/Ideo groull group$ toto connect. cone withwlth people pele WhoWhohave hae similarsimir Inte~ InÆS .. CustomfzeCus th eiilncthe GlCPOrlence by suriingby subscrtblng to tomembervld, membervk!eos. saving saving favorites,faorte andan Cleatingcill playlst playllsts " !nlaIntegrata Yelow YoUow vf08vfde08 0len wesi websltes usIng uslng \/eo \/Ideo embeds embe or or APlsAPs ... Make .. Make viosvideos publpublic or or privatepivae ~~users us ca can el elect to to broast broadCast lIelr vlcØO their vlc!eos A-222 pubUclyor puUcly orelIare sl tIlim tham privately prly WI WIth frlendsfrIends and familyfamlly UPQn U¡ uploaduploa AmountAmunt POlt-MoneyPolt-ney SeptemberSeptemer 20, 2006 2006 • Announced. Announcd C1gular.spo prmoUon to Round RalsedRased Clngular.;poIIS(lfed promoUonto V4\luatlonV.ltioll discoverunsigned unsgn band& baniand and muslOlans. musJo Round TypeTypø DateDatê ($MM) ($MM) Company Slage September 18, 18, 2006 2006 • Announced . Anl1ncdVIdeo VIeodlSIrIbutlon dIbuton and reenue 1 1st 11105 $3.5 NA ShIppingShIppin ProductProct and revenue partnOlSh!pwfthiinØllp wf WarerWarner MlIcMllSlc Group.Grop. 2 2nd 4106 8.0 NA ShIpping Prouct Product AugUllt22,AugUl 22, 2006- 2006Unveiled - Uneied now no advertlslng adveitlng conoepls-PartIc!patoryVkleo conoelsllpatoiyVkeo AtJsAts (PVA)8nd(PVA)8nd Brand Brand Channels-to Chanlsto encourage ØICOge dialoguedialoue betw InvesorInvestors Include: Include: SeqelaSequela Capiiai Cap!lal between ccmmun1l¥co1l andand marktet. marketetll. Yello Yellow name names their liM li Brand Brand Channel Chnn partner. pa, WernerWerr Brathei Brothers Recrds,Records, and and deslgntes deslgnates 8 8 channalchannel for fo P8I!8Pais HiltonHiln to pramotapraOù her her debdebut albm album ParrS. Parfs. June 27,27. 20062006 • .Annoll1ced Anollce aa elraleglo strategio partnership parerhip lIat\hat wUlWULcombine cobine NBC'sNBC's programmingprramming wllh with YelloW' YelloW's audIenceaudIence. May 10,10, 2006 2006 -launched -launced a 6&I'VIc:esece uiiitthat aUow; aUow; peple people to to upload uploa .f..._... ..... '.~ ;-:. -.... --. ". ..~'..~. ;;...... ,;":,.;" ';'~'.;~ ., :::c :: CONFIDENTIAL i5ø CONFIDENTIAL :r:: ~!: (")(" o Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page6of27 zo Yellow CompanyCompany Overview Overview (continued) (continued) ::!J:! ~ z Basic User (nterface ::1~:! >r-r- TotalTota Unique Users O.7MM 16.1MM 3 Total Pages VIewed 10MM 661MM 1 i Streams A-223 Initiated by US UnrsUsørs NA 649MM . 2 Average MInutesMinutes 11.6 min 33.7 PerPerVJsltor Vlltor 33.7 min 1 "" -. ; ... _. ."..." (... ~'-m!,jn l:.:--mbn r,n\\..('tn'\: v,:.;,,\,!~;. (Iü .. :. i.pk'.i:iiigt.:pk,,,:illg (1) RankRank wlthlnwltl anUiienUne videovideo $paÇ8 space basedbased on on July July 2006 206 metric metr per pe ComComscore Meia Media Malr Matrix ..... Current Current number number ofof videos viewed dally: 180MM .. videos vieweddally: 180MM .., r------... ~,.. CurrantCurrant number number ofof video videos uploaded uploaded dally:dally: 100,000 ,1 iT ," _...... Currntcurrent number number ofof new new dally dally registrtions: registrations: 255,000 255,00 .. ,---' ""IB ("(") ~ _..ii...... ti..... en SourceSource: Yellow Yellow management.management. '~~. .. Ii '~" . ;(~n6 .....:.:. : en .Il**""t,. ¡'~~' _.. 'I ...-- ,...... -.; c: '~í''''' ~~/I' .... -_.i I i:------\, llVki:-G (r':I~lir. oc 'ñI..~ ilim i _0 t, r.t;i:ir.:ictì ("(' " ~ ll~ (dlt ii , , ~ ;.~;.,:~.;_."i__.h~.si.~=~..~.._ti1,; 4 g~ .,.., ~... ~ .-...,...... ". ~.. ..#...... "..~....~. '.'. ..,.", . ~., - -:::::~;'" .... ~ ...... -.-. . :.. .~. ... .::~.;~.. ::.;~ ~> ~ "•... . -:::::~( .' .~ i( ::&::: CONFIDENTIALCONFIDENTIL ~~ r 169 1,29D 2,12,521 6.6&1 Monthly Oct-D5Nov-05 Nov-O 0e0-05. 0e5, Jan..Q6 A-224 Qct-05 Feb-OS Mar-oa Apr-oa May..06 Jun-06 Jul-06 Aug-06 Sep-oa Growth Oct-oS 664% 96%96% 161% 74% 116% 56% Rate 6% 44% 37% ·44% 32% 15% 117 oct '05" oct '06 CMGR~46% oct 105" oct '06 CMGR: 46% ..:i "d 1 33 (' - t,~ 00t-0500t-05 Nov-oSNov-05 Dec-5Dec-05 Jar¡06Jarr-06 Feb-06Feb-OS -Mar..QS Mar-o Apr·06 May.06 Jun-06 C/en Monthly Apr.06 May.6 Jun- JuI-06Jul-oS Aug-6Aug-Q6 Sep-6.Sep-06· Oct"()S C Growt Oct-oS c: Growth . 141%141% S6%SS% 126% QQ Rate 126% 15%15% õ!%SSO/. 35%35% 15%150/. . 28% 23% Q Rate . 28% 23% 36%36% 7%7% 39%39% WQ llø: Yei m:rt U1~ 5 enen 5 enen .._.-. • ~ ...... ¥" •• .-", .... - ~. - -. .." ::.:'!..::": -; -~_. :r:: G5ø CONFIENCONFIOENllA1. ::t::t !( g BenchmarkingBenchmarking User User Growth Growth Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page8of27 :!l:i ti m z ,..~ 54.5545 51.4 62.362. 48.0 A-225 24.3 21.8 21.21.& 12.4 12. 12.9 111 1" A 12.11 12.9 12 14.112.4 13.814.1 14.4113.8 14.41 YellowYellow 8.S 8.5 1Q5 d 16.1 8.3 8.9.5 9,5111..~ • • ~ . .~., 105 ~:a==1 :: 6. ¡~ ~~ ...... ~. -:;14&~ ==1 13'; UiWlWmJ _---= ....4"":% _-llHr.fr _..jF- - ,6Jj -e-i;lt---~:l'1l~--. r-Ill! Q1M 1. 11Iil1( li.(iMIt: 9 j! ,fti:'h!t;=- i -l:e---~:lIl , ,f!- . i i ¡ ¡ i Aug- Se.( Oct.05 1'v-05 Ceç.5 Jano0 Fe!6 Mi-oa Apr-Oe Mi-06 Jun .ii-oo Aug-05 Sep-05 Oct·05 t-bv-05 Cec-05 Jan..oa Fe!J.06 M3r-oa Apr·Oe Mly-06 iJun-Q6 i Juf..06i Soutu;So CoCcrnoQQ<8 MediMadia MeIrIx Me ~ c:c eo CI CREDITSUISS~ ~m "-. 6 :! . " .....,...... , ~ ...... ~..-.. . --~.. '.'-r..'.. ~ ~... ~~.,?";":..?-:'": :I::i CONFIDENTL c5 CONFIDENTIAL C5 :x::r ~ ! o Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page9of27 oo Online Video Market Forecasts Zz Online Video Market Forecasts 'TI 66 mm zz g~ rr- 0 2005·20102005.2010 CAGR 2.005" 2.0'\0 CA.GR.~50 /0 CAGR 79.9"1079.$% AdvertisingAdversln 40,S'f40,5~ 2005 2006 2007 2008 · SubsIptn. Advertsing II A la Carte A-226 200l-20fO 2001-2010CAGR CAGR 2.005 .. 20'\ 0 Cp..Gp.~SOOfo 36.8% ..2.005 7 .20'\,.0'7" 0 CAGR~ 50% 36.8% $1,180.0 4'1.8% ~900.1 $1,180.0 4'1% 62.6% 62.6% 42.50/0 42.5% 66.%66.4% nn C/en 69.%69.6% (I(I) cc: 20052005 20062006 2007 oo 2007 20082008 20092009 2010 BQ ·• TV. TV. Movies Movies I!Ii New.News. User-ereate. User-Created. SpoTt _ Oter c. Soii io, Miol2l Sports. Other OJ~ Source:IDO. MlItolt2l106 OJOJ OJ ' ••• ~... '-.~:._ ~ 4 ..' •• .. .'" .... ~. : ••••• - , •• ..... ~ ',. .~.. ... ",~...'.. ~"4 .'"....~, ~...... -. '...... ,...... ', ~ ...... ....-:..-... '.;.-::--'.' .', .; :. . .;. ~.; . .~~;: -:-.:.-:-.;:-::----,-,. . .;.. ; .. . :'.~:.~:'.:.:<:,::.: :...... ,..,. .---.. . ~" ....- '.' '.~ %:i Qø CONFIDENTIALCONFIDENTIL %:i !): • Yellow has exhibited tremendous growth and has ri- established a loyal global following •· ThereThere are are very very few intemet companies exhibitIng this tye of growt and trction wih users few internet companies exhibiting this type of growth and traction with users .. Enables Green to catapult to the leader Ln online Video ... Enables Green to catapult to the leader In online Video •· On!ineOn!ine vieo video has has been a top priorit for Green and stand alone effort are In the early stages of market accptance been a top priority for Green and stand alone efforts are In the early stages · Opportnit to extend monetzation sldlls Into a large, high growt market of market acceptance • Opportunity to extend monetization sldUsinto a large, high growth market •· YeIlowYellow has has consl~tently consis.tently extended extended its leadership POItion over Gren and all other online players In 2006 its leadership position over Green and all other online players In 2006 .. Accelerates Green's push Into stickfercommunlty-orlented content ... Accelerates Green's push Into st!ckfercommunlty-orlented content ..... Revenue and cost synergies are expected to drIve increasIng profits Revenue and cost synergies are expected to drive increasing profits A-227 · Green can Immediately increase usage of Yellow as part of Its netork • Green can Immediately increase usage of Yellow as part of Its network •· GreenGreen ca can better better monetize monetize Yellow's traffc and viewlng with Its technlogy and Its relationships wi advertsers, content Yellow's traffic and viewlng with its technology and Its relationships with owners and publishers advertisers, content · Green can realize cost savIngs in ad serving, bandwidth and sales • Green can realize cost savIngs in ad serving, bandwidth and sales ·• YellowYellow can can drive drive additional additional monetlzble monetlzable traffc through Green's search engine (not currently included In ñnanclal model) traffic through Green's search engine (not currently included In financIal model) ..... Issues for Consideration:Consideration: ·• NewNew and improving businessbusines model model ·• largeLarge acqulslton acquisition for for an an earlyearly stagestge copanycompany ·• RetentionRetention issues issues ·• UncertainUncertain legal legal issues issues ·• PotentialPotential EPS EPS dilution dilution In In the the short short term term ('(') enen (f(f) 'f: c ·i oc: . ~ oo . ~ (.o CREDITSUISS~ U1~ CREDlTSUISS~ U1 88 mm ,..#...... ,'._...... -. -. . ~... .- . .-...... - .:., . :., ' J:..,'. i :",,' . ,0"':.,:,~":':. ::c:: C5c5 CONFIDENTIAl.CONFIDENTIAL ::c:: ~ (") (" Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page11of27 oz Key YellowYellow Revenue AssumptionsAssumptions :!!:! c ------m K~y Variable Description 12007E TrafficTraffic AssumptionsAssumptions 20112011ETramc E Tramc UnrnonelizedUnrronelized Assumptions CPM § Assumptions . '. . Video TrafficTraffc § ,• IN,"¡H'i _I;: .i;:...i~.. "'I~":··.;'rI!:.;;;., j...;'ill.....¡.I.1 ., '''1 .. Currently '''i .. Cuentl !hre ere-180MM videos vlewd per in '/i:i¡:: Ji.¡.~~:,¡:. .1:11'1; mil!i' : ,,1111 wesite ' !here ere -180MM videos vleweaper day on Yellow Yell i: 'n ·/ii:i/::li·l.~~:.i:· .':[1'1;m'l!" 1/11 .. 9$OMM 9$OMMavg. avg. vid view '. . •. videos viewed > .J'Shh'lfri l'Shh.1 h 'hl". hli, 'ILl'ILl (1'1,1...\(,'1,1 ... \ ( : ( ,,; webSite • r-i- ,,; per deyda by 2011E2011e :;.rWj.~~~j~~~w..e.CjI':·i!: ::. r:1,Vj~~~'~ltaw..QçI'.'i¡: .. Asumes.. Assumes 400MM 400MM avg. avg. vide videos vfWB vfeWBd perper dey dey In In2007e 2007e .. G4GRG4.GR of 24% . ~'"''l''' '. ~~: :'i.i41', ·r.··I'·q ..:,::1,, • ,;- • .~':, • ',' · 90%90% of of videosvi vieed viewed arare major major geogmpi1lc geoiali nwketsmaii !,!i.:~!i;;n:~¡~!'.!~!!;;~:~t-1:,1' ~.U,.II:!I' .hJf.":·;·:'( ~W,hJ~.d:.;.:lt ;,:.: i.:.:• 13% . 13% Ohlde06 ofvlos vfewed vfwe onon partnerwebsltes parterwebSle\I.e., (I.e.. MySpace, Myce. • .•• .•_.,""_.~all¥ ______..~l __ ,_".__ '". ___ ,__ ..""_. ____ . .~ ----.-.li"--"-'f...._.~aa)'"~i__'_H._..l...._..'__I..."_.____._..--_._-_..___''"'...._1_.....__...... ______.._..--...______,___ "____ .•__ ._.".__ ••" ______._ .._ .. _._ It.,.. , 'q" "::l~~n';:~,: l~:"'.ii:....¡¡ '!'..( l;l:,1 a ¡i~-i-i \t' .~ .1.·IA·.~~,!: .t: ,.' . !:;II¡:'11.1 : .1:.~,: .." Page views onon threeth ares areas of of th Yellow wesIte: the Yellow website: .... 670SN67SNannual annal page iie vfws vfews lil·l;I;.f!·~;:~,!,ril~:lii:·M;:,:·"i!i.i.irii:~'.!.:iil:i.:~:iii:,r!,i::ii', :!(.:!r: · HomeHome page:Pag -10% -10% of tolaf page Vi by 20116 • orlolal page Vi&W6 .. ~~~1e24% .1'j ~7~::':"··'\.~'"+;::....,~~ lÇf,. ~"!..: ...:~ ~~I'~"\:l'..:r ...:~ •· SearchSea Page: Page: --6% --46% oftolal oflntal page vi " CAGRof24% 11.3~g&$ii ~3~ge '¡v~aw.. :li,i page views ·",~aw....,'1i,1 W-'-" !'> • of 1.ll., •• """1"'; ••1·(., ....·, ••:, ••;. i"(1 . Wat Page: oi5%-"5 of •totl I page vfview ~:t ~:n:!.~~:':~fl .';~lfl:ll!~::~!"f !:j!1 ...... , rsge...... % 0, tota page ews !.r,':,~~.c:T;":'r~::I' ~;:-':': ':1' .. As$umesAsumes 1:11:1 VldE10 VldeiStream Strea to to Watc:h WatcPage Pageratfo ra ·,tt·r.:l·~ t~'i::~r,'l!i ;,! t:j~~:~ llf..:!i ~t.ti:: ~t;'t!i ~;I!i::i~:I!!\!'. 't !:Ii!!,l'i .. Implies Impli -280SN -2808N annualanl page vies In 2l07E _.--.-.....u. ___ 1 ..... _....-_...... page views...... In 2007E ______._ .. _ H4 ...... -_.._.-.il..__I...._.._.__...._-"'-_.....__._..___H4..__..__"""_.~___H..fM~_~"'.....___I_f___..___ __ """_.~ ___ H .. fM""_~"'_ ...... c_.f •• t u. . _.... _...... , •. __ I_f _____ .. _ ,.' J . ',:,:;". .'::' . ~~'!::.;¡;.:,,:.::,.. 60% ';' of" 60%total video of tol streams video on stea Yettow on website Yettow are ·Premlum" webeaie .Premum.. .. 60% of pim cont " $10 CPM rn 20D7e " 63BN premlwn 60% of promlum content .. $10 CPM rn20D75 .. 63BN premium ::: d.~::.i.~:"~.. .i'ib:l~ .1'; ...,~il AsSumes .. MS 10'" 10'" of premiumof premium content cotent provlaelll provleii allow Yellow allow Yello to moritlzaproviders provldere aDow YeUo to " Grow tfl 513 by \i vt wi! to monetize aDowYeUow In .. Growing tfl 513 videos vIeWed !lf~i~i;i~::l.¡.¡,I~r..~:Ji!itheir content IlifliiÍ'I~' In 2007E 'r;,i: lbr cotenlln 2007E . monetizemonetize thcolet 20116 not by&e vldeo ad$wll A-228 . their content 20115 not serve video ac:l$ • 75% sell through on ìj':'i,,:r'. ~:li: :','\ 'fi!¡l,gin:~ëfm' ~ :.Irt.," . '.' .. '.,,~ : · ·5050 75% reenue seadvertising throgh shareInventory onliUt adrting(afer 10% Inventor allc:llon. • 79%for. · seUYelw79%through advei selthlOh OR lnvø10 OR .. GOON In 2OO7 In1n2007E 2011 e • 50150 advertising 'ir~'I',,~ . '" J',l:i' :1.''1''revenue share.."...... lipUt (after 10%at allocation tc) for.. Yellow "'BN an vleo adInVGn10ty .. GOONIn 20115 11, .'ir.i n.hI!,! i I,ll.ln.elqlensBS . '.1.- bandWIdth. elensBS.stomge, etc.) ..""..I..~.. omge e.. --648Nsf sod annual video ad ~.iiii"i.¡.' ..iS --58N .. -lBN Videa ad Videa streams soldad Insteam 2007E sod In 2007E CAG8Rffofstreams ""'" sold ,uii.i...",'.1.'.1",'--_.....__...._-,...... __.._.-.."._-..._...... __.._._..__._.....---_..._....-..._...._---_..._.._,.-----.._----_..- .'.', ..t. I .. VP74,. CAGR of 88% .. 40% o( o( total tota vIdeo vIdeo slleams s!lms on onYellow Yel website webs 61'0 an:i Non·Premlum Non.Prwn .. -10% .. -10%of of Non-Premlum Non-Pum .." ClMCFM of of $3 $3 In 2007E .. 45BN srusl nOl .. Non-remiumNon-Premium ConlentConlant 1$1$ user use generateCS gerirateci ..klll and Is segmente annual non ....kleos and Is segmented eontentcont ca can be be monetizedmoneti .. GrcwngGrowing to $5 by premlum vkIeos betweenbetwen hIgh hIgh valuevaue contecontent and and regular regular content content using vldao to $5 by prum vks us vlao Bdseda by by 2011l: 2011f! 201152111E VIeWedvl wlawla notnot servesee .. -2.5% -2.% ofof Non-PremIum NonPremIum cotent can be maetld us VldD ael In content can be maneUzeduslng VldeD ads In .. ~8.5BN -8.5BNvideo vide ad a\reanlsad atr vId(j()vieo adsads In In 2001E20015 2007E20075 soldsol by20115by20115 .. 100BN100BN In IR2011E 20115 •· seiSell through through endsnd revenue reenueshare share 8SSumptlons asumpt consstent consistent with with .."CAGRof78% CAGRof78% premiumpremlum vldao vido assumpltonsasumplton .., __ ••_ ..., ..... _.'"'-'"'1_ ... _ ...... •. -900MM-SOOMMvldeo vi ad ad stms streams sod solei in in2007E: 20071: _ ... __ .__ . __.-_ ..... _._.,_.-_._. __ ...... 'c ... ill.iiI -_._-.__.__....._._.'-1_'_.__..,.....___ __ ..... ___ • ____ ._ •• _ ... _ ... •• i I i.IP __.Mii).p,JII./ i , ... " ____ ._,"_··._._. .... -...... _1.... __ .... _'11"'1._,...... '·._._·· ___ " .... •· NOn-taetedNon-tarseted run run ofof sitesIte adsads SBlVed seied onon Search serch and WatchWat Pages Pages • e03BN · e03BNpage~by20115 pevlby 20115 . CPM ~ CPMof of $0.14 $0.14 •· 254BN paSS views vie in in 2007E20075 "CAGRof24% .." SponsoredSponsorea advertisingedvertlsg on on YellowsYellow's homB pae ~.e'l Pell HUron (") home page ~,e•• Pells HUron .. 67SN page page vIeWs VI byby 20115 2011e .. (" sponsoredspore by by Foxs Fox's PrIson Pin erak) ereak) .. CPM of of $Sin $Sin 2007e, 207e en .... CAGRof24%CARof24% grow!n{Jgre to In$5 $5 by by 2011 2011 e fI)C/ •. AssumAssumes 100% 100"/0 nelleelllhrough throgh on adveltlslngadveing Inventory Inventory c::c ======~ •. 28BN page page views vlewsln In 2007520075 o ______Qo 9 to)w ~GrMftl\WlaQ_plO""""'forlla_ 9 ~ ,.;, . ~ .... ~.~" :.:.:.:.: ~'. ~'. :: :r: CONFiDENIA (5ei CONFiDENTIAl :s:::i ~ ! Gr"~nW.!orical Calondar Yoar Financials '01-'05 200t t1 :<002 2003 2004 2005 CAGR en~ RevenueRevenue $66$66 $345 $979 en ,$1.961 $4.024 161% c: %% YIYGrwt YIYGrowth 299% Qc: 18496 100"'£ 106% Q E6JTOAE6ITOA 3838 237 627 1,280 QQ 2.624 189%189% CREDIT Suiss~ M~ 43% 1l9~ 64% CREDlT SUlSS~M. 43 ~ ~ 10 ~ SOISOIIfQOI: HlslcricalHIs!crica! fillngaand an lln:. 10 -.~-. fillngsand analySt rssean;b, --" ..~....": ...... d.,..,...... :., .'.l ... 01. ~ . '.;'" .', $. r . ~ .1 '''",'',..:.¡ . '.(.. .i...... o.., ;..J,.' .'...... • ~ ,.-,...... ' . 'I: ',' • :.f: ::~. . 'f:". " :.r: ::~ -'C-'.,::.'.--..,::'. ~~ CONFIDENTALCONFIDENTIAL ::x::i !:(!( g~ YellowYellow DCF DCF Analysis Analysis Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page13of27 !!!! oo mm zz :.:f:: ): Discounted r»i- Cash Flow Analysis DiscountDlscountRate: Rate: __ _~ Eq~VallJ.Eqll Vale (GMM)(GMM) $3.500$3,50 - $3,404 $3,000 A-230 $.2,500$. $2.00$2.000 Aggregate $1.50 Aggregate $1.500 ConsIderation: $1,650MM $1,00$1,000 $50$5OG $0 9.OX9.Ox 11.0x 13.0xis.0x 9.0x 11.OXii.Ox 13.0x is.0x 9.0x H.Oxii.0x 13.OX13.Ox ("(") DCF analysis implies an equity reference range for en Yellow of approximately $2.1 BN -.$3.4BN . en en Sourc:Source: Based Based on Veirow flandaJ dala par Gree manaement pro forma for lransot c on Yerrowflnan~aJ data par Green managementpro formafor lransaotlon. o=c ~=~ 11 ¡:j:j ...... ,. " ~ .r •. "J ..... •.• ~ ...... :'" " ~ .r.."J.A.....•• . .~.•• <_ .~_...... ::...... -;:. 'r . '" . . -;=~- .~:;.:~. ':".:' ....., .-.-:~---.... -_.. - ...-;:~-.~:;.:.: .. " ..;\ ....; :: ::x: CONFIDENTIL (5Gi CONFIDENTIAL :l::i !:i r-i- DCF Equity Reference Range CY07E· CY11E Revenue CAGR $576 CY07 - CY11 CAGR: $759 $1,406 CY07 - CY11 CAGR: 40% 50% 75% 40.0% I 40.0% $1,267$1,267 $1,643$1,643 $1,972$1,972 $2,962$2,962 45.0% I 1,430 1,8531,85 2,224 3,3383,33 A-231 52.9% 1I 1.7341,734 2,252 [ 2,702 ) 4,066 (2,702 J 55.0% I 1,754 2,273 2,728 4,090 60.0% I 1,917 2,483 2,483 2,980 4,466 Note: Based on a 225% ál$count TB and a 11,Qx leonina! EBfTDA multle, Not8: Based on a 22.5%ril8count TSte and a 11.Dxterminal ESITDA multiple, c:c:J = Denoes= Denotes basebase casecae 1"'1i.·t· ·i.r ...... ~II~,,~••, .. -" H'·,,, m" r. 5r.ilIP..;rI"."Hfr~gil'l1~:"W~"~r. .It ...... ~Gmeo;H1Cl ~I? oI<{I~'·II"fl ill! "'",:.:It ,~I~~ ::.. ' y.:r:"·;';':tl·1r~Ii";':r.·fjll • i''' l ~ ~ 'r.r"j'1 . f,fl' ilf!~gl olE ~ C;~iJlrIr!iS'ifi'tfJill.~r.!t 1'. ~'..1r:·)1Jt ilij: Gre"" Historic,,} C:lh",dar Y,mr FiIl>Jl1ciHls '01-'05 20(11 2002 2003 ("(") 2004 . 2005 CAGR o0 Revenue $86 $34S $979 $1,961 $4.024 161% oen %YIYGtcWfh c: 299% f~% 1CKm 10~ c: esITOA o 3838 237 627 1,280 2,624 189% 0 Malgh 189% Sc:> 4S4S% 69% 64% 6S'h 66% Ulto) CREDITCREDIT SUISS~SUISS~ U1 SoSouIw: til8lill H!alort<:al fiing;æidfillflg;~d anaya llaro. 12 ë:(j analy&t l ..... ~ . 'wl' ". '...,...... ~ .' .". ..., .. • • , .... ••••• .. 'I ...... ; 4. .._ ..... ~..... n:. . . , ...... "I ...... ; 4~ 0'- .....~...a.n:...... : ... ~ . ...'w".. ~ .~'...... ~. . . . ....~:. ~.~ : . .v...... ':-;,.; :t:i c;Q CONFIDENTIAL.CONFIDENTIAl. :x::i !(!( ~ SelectedSelected Companies Companies Analysis Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page15of27 ::!!:! Analysis co m z-lZ ): ~~~t"'l'~;';:~;~:", ~ F:!~~~tr,';,":~:~~ COMPJ,tJ'Y (FY~J rr- 10i6iu(; 1I1s;!1 lOw V"lut:' V.,lcc '1n,'Ar CYOb CYV'! Plrr,!,,''''''''' G"rl~';' C)'lUl C'r'lJG CYIJ/ <:V~~o~ ~I CYUS C"fOr. CY(i:;:~ t:Yi}1i GY3; C',V(! {uem lien $239 I.''') :zo8 l4i.40 ~.47 (41~1 3.3'" 37.107 S3 ;.;. 3259 37;J77 (3~! 2S l3.l1l 13.847 . I '.1 tf::r.:eeh.4 I'!~T"".i .;'" . 01" LI... ,. . : ¡. ,.. j. ¡ WKkdil'i Øn SgnttindCsuzrs,"1 ~ Wod (De) RoIN(.. ~¡ (D..) s:a.e (3~) 3a $6,3 1134 (O) S7~ CN HO\ (0..) aM 2,1fQ (37.l%) ~ 1,617 Ki(Oo. 2f 11 8_ro.l (4%) ~ LLL æ.91 ~l%l 12. ' S2 ~.. i;! ::i .sn: lVD~'lI~,".*,we"ill~ A-232 (t)y_ ... (tY'-"'-"~lO_doll_l_otV_--"Yl_""-. .. ~IO_do"," otV_~"Y' ~'*''''''_I_",ci_.."".2Or.~_ __ __ ~'*''''''...... t_I~ ..ct_''''OI ImpliQ-(i Relevant Mu1Hp1e Equity Reffl((,nCC ~3nr:{; t Slatistic,>J Rnfemn:: ! J~(ln!)p.~11 low High Low High ~i!B$A.F'MisrfiCS;:':30,!;i';;!i;i'r.!it~m,;:tE~:~:Fm~;.i~;b·#~f.1yJ!I;k:~iW:.,;w:~:~~'lIl2~~~:!~,!!!f128ijlii'W=g!!!jj"W:~G'f,cn Multiple CY2007E $67 18.0x - ¡'mi1iå 2i3.0K $1.214 - $1,551 IJ $1.322 CY200ae C'ae 144144 13.. 1ao13.0 $1.865. $2,613 I I $2199 1M $1.865 $2,583 $2,199 -- ..·,·t-~::.=-·::I!lt:t .... ~:OÑJ1IÅif:šÁ"¡lšoš:;~li~.~;i!i~~t~I;$~æo\'~.D!;tl~S'ASEO.Oro~AT£tO.tAJ'RJIIOS.~ ":;~,,•.~:(lf."~'II\M!I!!tIoI'l',~P,IiI~m.w:"f!l~§$!I~~~i)~<-l'MI.~~Ij.JW'r"P«'OmanManugomentp!OloIma forWnttdlon. en c:~ Implied equity referencereference range of approximately $1.2BN to $2.6BN based on selected o range of approximately $1.2BN Qo to $2.6BN based on seie.cted ~ company analysis ~ 13 .'" .~ '~" '":.""-":."' . . .,... ,," ." ...... ,. .. t' ...." '..."....; .'",:.,. . - . .._,;,,,,,,..,,.~.. :t::i C5ø CONFIDENTIAl..CONFIDENTI :t::i ~!( C')C' o Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page16of27 z Selected Internet Transactions !!:! Transactions o m ~ ($MIA)l$M). ',,', ri- Fully-Diluted Equity Date EquityAgg. Ag(J. ~ Date TargetTarget AcquirorAcquiror Vallie~ Value LTM NTM V<11uc 081091060810906 Atm Enlertnmenf V;lluc LTM NTM Atom Enlertslnmenf VlacomVlcom ~ 04/24106 $200'. .. '. $200$20'o. I l .!NA ~ i 04/241Ó6Xflre Xf VlacomV1com NA NA 03106106 102 102 NA 030616 MUageMUage NBC Universal NA 01f17106 665 60960 01(17(06 dMaredMare Broadcssllng(3)Brocssllng(3) Green 35.9x36,9x 22.6X Gre 1.238 1,2381,2El 091121050912/05 SkypGSky (2 (2) eSay NA NA IGN(lt eSy 4,040 4.0404,040 09509I08I05 IGN (1) News NA NA Ne Corp . 650 650 07118105071815 Intermix Intermix (I) (I, 65 41.9x NA NawsCorpNews Cop 575 03/21/0503(21/05 AskAsk Jeeves 571 . NM 37.4x31Ax InterAttlVeCorpInterACUeCorp .1.966.1,9G6 03121105031f05 FlickFlicl ~ c:c (:)o Qo W~ CREDlTSUISS~CREDITSUlSS~ ;:ùf 14 ..... -~::."':---.. .;.;. ...~: ".. "., . j:'" ~:/; .. '::', ..?'.?'. . .'.' ~~. ~~.; . . ,:',,;-.' ::c:: (5è5 CONFIDENTIALCONFIDENT ::c:: ! Green Yellow P(QjcctiotlS !1) CY2007E CY2008E CY2007E CY2008E Net Income $4,295 $5,596 $35.1 $80.7 EPS $13.00 $16.94 Annus11zedPIE (2) Wid. Avg. SI1al6$(MM) A-234 .¡ *; llOi liOf ni 11. Ilti in or cen PW' lIiillllnanra V1Rbie;ffoiieu i.motl 4Ij: aqUl\y -.peon eicriGlCpellft, -- pi prce tn~ dei.cm an am_ oflnti.. te ohlinl and ot nOlH~on II8It __ purchase price trutmen~deprac'-!lOll and amortI_ oflnlanglll!.... tel: o/>II'goIIIIIoMftllland _ nOIH1lG~on (1)(1) YelloW Yeup!Dje ...... - .~ .,'ò'.., ...... . ~.'~ .r .-: . r ~ "~.i::~ .. ~!, . .:, ~ ~~, A-235 Case 1:07-cv-02103-LLS Document 219-11 Filed 03/18/10 Page 18 of 27 ~co ¡.; ~. ~' ~ Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page19of27 n zog Discounted CashCash FlowFlow Analysis DetailDetail !! o!! zm $! r i- Income statemnt t, , . ~ ~ ~ i: i, ~ RøvnueRlIVIIl1ua andan marginmargn assumptions: asspt: Yc:lowYc:tow Projections Projections CAGRCAGR · 57%57% CAGR CAGR from from 2007&2011e2007E-2011E! CY2007E CY2008ECY2008E CY2009E CY2010E CY2011ECY2011E 07E.07E· 11E 11E · 35 350/0operallgoperating margin margins In 2007EIn 2007E rllng rising n-emlìYlJ(temrIiiilYrJ !o50%to 50% by2Q11e RevnueRevenue $16'05150 $29$299 $477 $681 $9$902 57%57% TexTexrateof35% rate of 35% ,,~ . em 00" 4S% 33S33S6 ,,~ em 00" 4S CahCash Flow: EBlTOA EB1TOA 67 144 246 374- 49496 65%65% ,. AsmeAssumes O&AO&A expense ex equ equals 10% 10% ofof sales sa "~rpi1 46n 48K 6ai "~r¡ 46 48 sa ~ ~ In 2007E, 207E decllnlngdecln to to 6% 6% byby terminal 1I1n year year EBlTSBlT 62 120 :115:?15 34340 451 71%71% (201'1E) . Ii .1!ili. A-236 .1l!!. ái~ ~ 1m .1 ~ AsesAssumes ne net Vlrkng W'Orklng capllcapllal dodoes not not haveh8 l!I!I TMlRsTMiRsle SS% SS% 35% :15% 85% SS SS :1 85 meinmeaningful ImpatImpact onon froo fr cash ca flowfl NOPAT 34 78 1M>1M) 22221 293 71% 29 71% Discount RateRate and an Terminal Terminal MuWpI..:MuWpI•• : l'us;!'Ius; DepcltionDepreciation & Amortlzaflon AmorOl 15 24 31 34 45 ~" WACCWACC rangrang& of 20 - -26% 26% (detail (detil In awens!b<>In awst) " IJlnIJatgln 1'%1(;% 8% ~ 5% s"S" LesLess: capitalÇaia ExpendllU_ Exll- um ~ G.G.1l iWiW. wiWl ~ T erlnelTennfnal ealTOA EBITOA ex exit mutlle multlple of of~ ~- -1 1SxSx UnleclUnleverecl Fl6e Free CUbeu Flow Flow $3$34 $7$78 $140 $22$221 $~ 71%71% " GIoi;hG/O,;1h . 12æ128S6 80% S8S8% a3a3% IIIt!strmivelllt:~trm¡vc PresentPrcsnnt Value:isValue ns of of Dc~cmliêr Dc<:cmher 31) 31, 2006 2006 DiscoiiniDiscount Rale; Rate;20.0% 20.0% 22.5%22.5% 25,0%25.0% Terminal Forward Forward EBITDA i.1ultiple: EBITOA 1.1ultiple:. 9.0x·· .'. 11.0x·9.0"., .. 13.Qx ,11.0" ,13,()x(I.Ox (1,0" 11.0"11.0x 1S.0x1;),Ox 9.0" 11.0x9.0" 11.0x. '13,llx . ·13.0x fmp9dfmp09d Unreved Unfewn-ed NeNet IncoB IncomB MulbplBMulbplB 15.2X15.2 18.6)( 22.0x 16.2x 18.& 22Ox22.OX 15.2x 18.6x 18.6x 22OX22.OX 1mp{'m1tmpmJ Perpetuity'perptu Growth Gr RateRate 7.8% 10.0%10.% 11.6% 10.2%10. 12.4% 14.0% 14.0% 12.6% 14'.8%14.8% 16.4% 16.4% PVofUnleveiFCF(CY0re-CY10E)PVofUnleveredFCF(CY2007S-CY2010E) $296 $29S $26$296 $2 $296 $281$21 $281$281 $261 $267$267 $267 $267 $267$267 PVoI'TerminaIValue{CY2011E&8eyond)PVofTeiIValue(CY2011E&8end) U2l ga ~ U2.l.lm ga~ ~ ~ .i im ~ ~ ~~ ~ ~ ~ I~ledI~!edAggr~gate Agr~gateValue Value $2,446$2,446 $21327$2.1327 $3,405 $3,40 $2,2$2,263 $2703 $2,703 $3,144 $3,144 $2,095$2,095 $2.50$2.502 $28$2,S08 Less:LØ$ Net Debt/ICash) Nettt) Debt/ieash).1.1.1 ttl .1.1.1.1.1 .1.1.11 .:.1 11 J.J. I Implied equity Value $2.447 $2,926 $3,404 $2.26Z $2.702 $3.143 $2,094 $2,601 $2,907 I (')(" I Imlied Eqit Value $2447 $2,926 $3,40 $2262 $2702 $3,143 $2,004 $2,601 $27 I Ch SOIWe:SO: &seSSsed Ql QlI YellowYel 1IMnolal1lnol dalB dapar par Green Grn management lIem propr formafora1orfor 11a1lSSC1lon. iia ChC/ (1) Based Bad onYelIowmall8g'!fllentdalaOI Yelmanaenl dala as cfSoplambt.r19.of Søplbt19. 2008. 20. C o o CREDlT SUJSS~suiss~ 17 ~ .. ':-~""r-. . '~::.'."";;.::'...... :.,...;. ... '~::.'."'..;;'::'. ":";' ::.:. ,"',.' ..':,.¡. :: :I: CONFIDENTIAL Qe5 CONFIDENTIAL. :I::: !<~ n(' Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page20of27 oo zz WeightedWeighted Average CostCost ofof CapitalCapital CalculationCalculation :no:! om mzz ~ r-~r- MoWciaanUn Cdtmt fndCSJD¥mfr (Ol SØNleo! $3.9 Re6lil (OK Iillii) (Ol 1 f 34 Kn(D)CNerNelrl(Oac.) 2117 985 IllG io,l 26.91 A-237 'i.n', .~.*:~·;~:~;~_~~2~. 1~ ~..t~·I·, \., ~iWl?1~~·~:r-:;:~!"lU;~!";r.;I~ll;!.:(~ijllF~~lf.s4S"?ll (lf~~iiidtbl (2)llaod",, ___ _. P._ '1! 0. P._..'l!•. • ...... ":••••• ~••• ":' h.....h .. ••. .:~; .'.-"..._-- .-.:" .... --.- . . ',:. ... ---.-...... --_..... --...... - .. .,.o.'f!!''.•'"::'t!:';-, A-238 Case 1:07-cv-02103-LLS Document 219-11 Filed 03/18/10 Page 21 of 27 <»0) ,..T" ~,~ ~:~ :~ . ~"'1::..1 ;',;., jg oCO (i .0 r,:,; t: r~.; t:CO ii ~ .; ~ ~w~W )( - V)V') .->< V)V') ""'0 ~ :;-:::> cC ifV) CD(l) l-I- ';: c.c.. 0 ,.' wëW '~\ . Cict: ( I ~~ m UU 8 ; HJGHLHJGHL V CONFIDENTIAL CSSU003580 cSSU003580 ,.t, . ~ : ~ :z:::: G)(5 CONFIDENTIALCONFIDENTIA :z:::: ~~ YellowYellow CY06 Historical and () Historical and o Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page22of27 8zz ProjectedProjected Financial Performance "T1!! Performance 6o mm zz if ($) i!r-i- .Revenue Q106A a20SA Q306E Q406E Revenue $286,676$286,676 $1,372,199 $1,372,199 $6,582,390 $11,000,000$11,000,000 CostCot ofof RevenuesRevenues 1,689,0861,689.086 2,§§0.0~52.860,095 !P16~.5.776.4 8.250.0008.250,000 Gross Margin (1,402,410) (1,4a7,896) Margin (1,487,896) 805,940 2,750,000 NM NM 12%12% G&A 25% 258,476 461,597 s&MS&M 620,43562Ó,435 801.242 137,104 240,161 R&D 801,675 1,035,299 A-239 370.115370,175 424,543 424,543 707,330 913,460 Operating Expenses 765.755765,755 1,126,301 1.126,301 2,129,4402r129,440 2,750,000 Operating Income lncome (2,168,165) (2,614.197) (2,614,197) (1,323,500) 0 Note: Figures through August Figures through August 2006 areare actuals.actuels. September through Decber 31, 2006 basad on Yeirow management forest. Septembarthrough December31, 2006 basad on Yellow management forecast. (') ~ c~ o o toto) CREDITSUISS~CREDITSU1SS~ g ..-~ 20 :..:~ ,,~_,,~__ ._.; ... :'."'1:,'1. • . _ .," .. ~ ...~~... ..~ '-,.-:...... A-240 Case 1:07-cv-02103-LLS Document 219-11 Filed 03/18/10 Page 23 of 27 .. C' ¡". t., ¡;; :..~ ;.. :; .' ~ (i, "r: o~ t: (J I-UJ --)( CJ "' ø~ -CJ C t::J CD l= .. Q. o :"': C. i. . ~ t. c: Ü ;. I U I() ¡~ HIGHLY CONFIDENTIAL HIGHLY CONFIDENTIAL CSSU 003582003582 ;,! :: "" ::::c CONADENCONADENTIAL C5 ::::c ~!< Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page24of27 Green Historical. StockStock TradingTrading Performance ~." Õ6 Januaty 3, 3, 2005 throughthrough OctoberOctber 6. 6. 20062006 Avr~r;it;oAv("~r;1t.o St;lt·(,lic~St;lt'(ilic~ m z 'hDI~~ """i z /000$) Volume Price Current Price Price (10/6f06) (10/6r06) $420.50$420.50 $4.ao$42O.ao 7,37.336 (OOOs) Closing High Pric(' (1111106) 471.63 ~ Closing High Pric,, (1/11106) 471,63 410.70 5,763 $500 Clo$iiigClo,;ing LOVJ LoVJPrice Price (3114105) (3/14105) 174,99174.99 40"'740",,-7 6.S96,S98 150,000150.000 396.396.24 6,606,604 t,vnragc(wnragc Volume Volume (0005) (0005) 10,07110,077 389.69 6.7t 6.766 140,000140.000 .. . '~., 393.1393.31 S,51s.856 $450 ¡:~~!"J~~,Ob5;:~~~:~~~.Ob51':;:i.d~:~~ i,,¡:i.d~:~~ 130,000 ·'t~lI1\Ce~multl-ye)af.,:~!I .'t:allS.1'••' k;siilli<;slIleemlIll\ mul :;Wi. :1':1?U '~pipile;'~prPlf\f!Ie'Ja~~;~~4 120,000 )tb~oI)r-c~oIoQy ai~al)~ ui'¡'''I'¡.ill'l¥oI·"I'i·,ill' :~~ren.~Green Toolliai' Tooiw . ''.,', .• I::~ ." $400 I. .. 't,'0'1 $40 ...... ~ 110,000110,00 ...... ' ..' .. '~,., .., ...... _.~..""." 1 100,000100.00 liM'BQ:!l·...'2IlG5'·, -• 1;¡¡~.2i-~.:.. J .... $30$360 ,.~~~!....J~~~! ...... A-241 ~9re1~.1:'!:~:i~9reonlen1~.1:·!:!!i ..... 90.00090,000 ~:a5ilri;.~~:aaill\1l1ln;;..~ ~'.. ..Sde I' po~: ",:~a .. 'ì"~.fpr.~.:.; .: ". . BO.OOOBO,OOO .~..f~ ~ ,0, ,'110', ,·,1 $300 :i~:i~:;~Jr~:¡t:;::):J~~l:t:;::) :.:::.:: 70,000 \ eo.ooo $250 \, 60,000 40,000 $200 30,000 20,000 $160 10.000 m_!bl¥II4 $100 0o (') (" 113105 3/16105 5126105 818105 10/18105 1212910512/2915 3/14106 5141065124106 81410e814lO WC/ 11305 Wen c::;c: SouR:«SoR: FactetFact.et Q Note:Noe: @ G DenotesDen eamngseamngs BMOIlr.cement llncnt dale.date. Qo 22 g (.,)(. ...... '" #..,...... , ...¥~.. .,..-:~.:. . ..;;.::.; ~.:' . ... . - .... -...-;. ...~. -~~~ ". "':;" ~.:" . ";;'::,; "" ,,; ..., "',""'.,.. '. -. ::I::: CONFIDENTIAL C5ê5 :::r::: !<~ Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page25of27 (') o(1 Summary of Green Analyst Estimates z Summary of Green Analyst Estimates J!:: ~ .... '. .,.. ... ~ f\n:i:vsi E::tim,jU;:: fot FY F.;idf;(1 tH.c(-.nbu ~'j. z Pr;ce 1..1GI() ....1~~ r t-'.I(::mc' f.I1:l:vSI E::'hm,iU;:: f~;I~I~~,;ldf;{1tH.c(-.nbu ~::.:"':...'------'"'U"',!.,,.-. z 1 :;j Price 1.1 GI(I...1~~ rJf.".(::ml' r:riin:it. lll~.~ ----- :: O,õlcO,;lc Comi:;inyComj);my RecomfTct'dl\ticJlRec(>mfT.cI'dl\ticJl "rilrgc1.1ilrgc1. nólctl~) n"'lc{'~) .rY¡~10.Gr..rY~.'no.Gr. lY2ùüi(fY211IJi( r't'200r.=rvioor.a l:n'lClIiEl:n'JClIiE FY20U7E FY20U7E I;V;'OuUE i:v;.oúUF.~F·~~·R ~F'~~'R..;~..;~ l>i: _.m r- 1Q\!/1l51_ _1m SlitBiJ 1<180.00loW.OO S7ifJtJ$7if $!1,8e5$lI "'-"I $6$6,CrZ3 SU4$U4 $11.8$11.811 lC1lC1/5108 8er8eIIrSklomo Skl lIuyllUl &25.0052500 7.~7.oS lG.21l5lØ, $13.&20$13 .• 4,44~ 6,40$ $M42 ...,4" 12.1!4 • lU3 •. ~"O$ $M l,4 . 12 ' 10/410610l WR HarbllCtWR Harnbrtcht BuyBUl 41!5.0041l00 15JllO15 7,1497,14l lG,8W10,W 10.2310. 12.12.87 VmilOVmJlO6 usausa HolHoIcI 4&0.004Sl00 7.0647.05 am 8.48.914 8.4968. '• v.ov.co • . 11.411.40 '• atlJatltJI)II PMl1lP_I!oI~~Glol.Ip Ea~Gi BuyBUl 62Il.OO62 &0.0%eM 7(t,617(t 11,41411,14 .,(1.4,(1$1• 6,16,241 9.129.12' • l2..12.... . MVI06 SlllllIotdF, ...... O_ 51s.oo51s. 6.9OlIØ,9O Il,II!111l11! 04.318 9.94 11.78 Mgll SlloF.naO_ ~B~ -418 .wM81 l.l 11.11 atØ8M~ 'TWollPoi\lS'ThomooWol;t'PortM", Buy 7.7.103 ii5I,lIS7 W~a 8,19$e,19$ ,.94V.l 13.013.co MOIM .'.- ~~ .. .." ", . .'.' :~ .~ ::x::: CONFIOENTIAL G;ø ::x::: ~ Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page26of27 '0(')(' Green Income Statement z Green Summary Income Statement :II:: .;. f; . o mo GrHf.mGrH(m QU3r1erl Qum1erl Finnncinl Finnncinl Perlorrnilncc Peiiorrnilncc Grecn Anf'ualGrecn Anf'ual Pcrfcnilancc Pcrfcnnancc FY20 0 FY200 S/\5/\ FY2006E FYFY2006E Ended O"cQmh"rFY Ended lJ"cQll\h~r 31,31, ~ Mar-GSArJlar·05A Jun·OSA Jun-05A Scp-OSA Scp-G5A Dec·05A Dcc-05A M¡i-06A Jiin.06A, Sop-U6E Dec-OUE 20051\,2005/1, 20a6E20()6E 2007E2007E f!f: NetRavenueNet Renu $795 $890 $1.049 $1,290$1,290 $1,531 $2,100 $89 $1.531 $1,671 I --I$1.aoo $1,a $2,100 $4,0241$4,021 $7,103$7,103 $9MT COCOst of GoodsGoos SoldSod ~ m j2j2!t .woW. JzaJZ Wol Z;lAai .2~ £.£1 = ~ GlProfUGlOSSProf{l 711 787 92592 1.1441.144 ~ 1,352 69 1,5l321,51 1,846 3,56 6,2506.250 8,691 = 1,41,6911 1,46 3.561.( 8,61 R&D 79 96 152 157157 174 2121-- 22922 249 4814841 86486 1,169 S&M 83 91 1~51tl5 165165 175 15211821 198 263 4414401 817 1,1871,161 G&AG& liZii Z2.Z2 jzjz. .w.w. .11ai1 ml 1lil1l m ml s illi.1il OpemtglncoOperating Income 492 523 516 718718 ass 9251921 1.00S1,OOS 1.1571,157 2,30812,308 ( 3.973 6,4856,85 Plus:Plus DepreciationDeprclati .!l2.l §Z .& ~ .111.1 j4j4§1 I .w.1M ~ UEIUE!I ~ .m EBITOAEBITA 548 590 672 814 1,0291,( 1,051 I ( 1,1401,140 1,305 2,624-2,624. 4,524,523 6,1956.195 InterestIntent (Incoe) (Income) I ExpenseExns !l1§l .w.l.w !2Ql!2 !2Jl!2 !1Jll!1 !W ~.!.WIl~, !. !í (ml(m LWlLW Pretax lneome 605 543 595695 7857SB G55 1.273 2,432~ Prll lnme G5 1.03111,0311 1,1111,111 1.273 2.4321~1 4.3704,370 e.oese,os Income Taxes Tax llill m jM .alil..a 2Rl1æi ~Iæ.i ~aá ~ mizatl 1..2ll2.1. Wi A-243 Net IncoIncome 358 381 437 469 691697 7721771 770170 879 1,1,641646 1 3.1183,118 4,24,295 EPS $1.25$1.2 $1.33 .. $1.51 $1.54$1.5 $2.29 $2.491$2.41 $2.42 $2.73$273 $5.641$5641 $9.94$9,94 $13.00 Average Shares Shes 286.6 287.2 289.728.7 304.030.0 304.1304,1 310.0310. I S17A 32322A 291.91 313.6 330.4330. IIBIEISIIIS EPS $2.42$22 $2.76 $9.95 $13.07 -I -I MíMillll!!J§. GlPrItGloII#Profit 90%90 81m SB% B~ 11 86~88~ 88% 89,,189" ( R&R&D 10% 11'1611'1 1$ 13% I 13% 12% 1imflln I S&MS& 10% 11% md 11" 1m13% 119d11!N I 8'}6 G&A rn 8' 9"9,dI 8'}6im ~----e"B" 89~I I OpiJi'8tiiiIinOOfllftOpri InOO 62'A62'Æ ~ ~---- Cl31TlJAëlA 69%69 I1~ ~ TtlReTtIJ(Re/e 29"291' ~3Ø 31% Nettn.Nettncom. ~ 43" 4zr4zr. Growth RatesBires ii Rel'lnU6Rel'l/nue YIYYIY 22% 27U2m 30%30 25" 93% 88%B8% 1 ~ 03% 106" . 77"77% sgi639~1 RevBnt/6 Q>tl {23% 12% 18$618$ 2." 1m 1m9% I Em 17% .1 - . Rønt Qo (2) 2.'3" - - . OpeOIl6l!Jllml/t!l:Om . ~. ..-. ... \-~'.\-~'. .~~..t'~~ •.t... . ".' _..... ~ .. ~ .." ...... '"',.. .,:.~} :.~~ :5æ CONFIDENTIL.CONFIDENTIAl. (i)(i :::r:::: !( !( Case 1:07-cv-02103-LLSDocument219-11Filed03/18/10Page27of n o z :!!:! o mo ~r-i- CS does not provide any tax advice.advice. Any tax statement hereInherein regardIng anyany USUS federalfederal tax Is not intended or wrttenwritten to to bebe used, used, and and cannot cannot be be used, used, by by any any taxpayer for thethe purpose of avoiding any penalties. Any such statement herein herein was written was to writtensupport the to marketing support or promotion the marketing of or promotion of the transactlon(s)transacton(s) or matter(s)mattr(s) to to whIchwhich the statement relates. Each taxpayer shouldshould seek seek advice advice based based on on the the taxpayer's tapayer's particularparticular cIrcumstances cIrcumstance fromfrm anan independentIndepeent tax tax advisor. advisor. 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For thisthis purpose, purpose, the the tax ta treatment tratmnt of of a transactiona traction IsIs the the purported purpor or or claImedclaimed U.s. federafederal Income tax tax treatment tratment ofof the the transaction transcton and the taxtax structure strctre of of a a transacton transaction Is Is any factfac thatthat may be relevant to to understanding undersnding the purported or orc1afmed claimed U.S. U.S.federal federal IncomeInco tax tax tratment treatment of of the transaction.trnsacton. CS has has adopted adopted pollces pollcies and and guidelines guidelines desIgneddesigned to preservepreserve theth IndependenceIndependence ofof lISlis research researc analysts.analys. CS's CS's policies policies prohibit employees employees frofrom directy directly or or IndIrectly IndIrectly offeringofering aa favorable favorable research researc ratingrang or specifloSpeoio pricepric target,target, or offeringoffenng to to change chang aa researchreseare rating rating oror prceprlce target,target, as consldertlonconsIderation for for or or an an Inducemellt Induceme~t toto oblalnoblsJn buslness buslness oror othero.ther compensation. compenstion. CS'sCS's pollclespolicies prhIbitprohIbit research research analysts analysts from from beingbeing (')(' compensatedcopensate for for their their Involvement Involvement In In Inveslmant Investment banking transactions.trnsactions. fA fA C C>C) CREDITSUISS~ 25 ~ ()I)0) en .;.4..~'.~~. .;.4,.~ ..~~. . ~.'. ~'- .' :.f .... ~.'. ....~":~": ~;:~;: ' '...... A-245 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 1 of 25 From: Kim, James Sent: Saturday, October 7, 2006 7:19 PM To: Scarborough. Chris ScarbylZach. Attached is a draft ofthe materials. I'm around to discuss. Thx, James « ...» HIGHLY CONFIDENTIAL CSSU 003326 A-246 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 2 of 25 A BY EVALUATION CONTEMPLATED AND SPECIFICALLY AS REVIEW THAN OTHER PURPOSE FURTHER ANY FOR TO UPON RELIED OR SUISSE. SUBJECT Sn.owmass USED I SUISS~ BE CREDIT 2006 NOT WITH 9, MAY Materials AGREEMENT MATERIALS DRAFT IBC Project CREDIT CONFIDENTIAL October PRELIMINARY THESE WRITTEN . ::I: 'T1 G) ::I: m ~ ~ r- is z 5> ...... ~ en o o (') (JJ c: A-247 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 3 of 25 1 based 2006. (3) 7, 8.7 15.3 12.3x 19.6x 31.3x 25.2 Street Green consensus 121,458 October and Projections Statistics 2006 I I I I I I I I I I I I 2006. provided 14, 6, 6,2006. Q 5.5 data 11.5 11.0x 48.4x 24.5x 21.2 1,650 Yellow October October Statistics of September Illustrative as Statistics Txn dated provided Management of 78 $420.50 data 144 299 $67 $34 respectively. Green of research on Value 2008, price analyst and based management stock Summary 2007 Weisel Aggregate Green Green for _uu_ . projections on on Thomas Based Based Yellow estimates on CY2008E CY2007E CY2008E CY2007E EBITDA (2) NOPAT (1) (3) ($MM) IFully-Diluted Terms 1- 2006 6, [200/0] of to options, with October days Common announce of A 45 as Transaction limited aggregate interests period, to shares, 9 is Terms the all 30 Class publicly of consideration of in equity for Key carveouts and Agreement October Green breaches of other [10%] on of sign of for to indemnification Summary Merger and aggregate exchange anticipated customary in billion the market year Draft Liability Escrow of consideration on • • after Expected certain $1.65 One Closing Stock Yellow warrants ~ ~ ~ ~ Summary Based R Dl F CONFIDENTIAL A T 00 <:) I\,) :::I: ~ <:) en :::I: r- " z z en -< (5 c: (") o (") 6 -t m 5> r- A-248 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 4 of 25 2 = Last Green Offer $1,650MM Analysis Field IPO _ Football discuss To __ Update • Analysis ustratlve III IPO Selected Transactions Analyses Selected Companies Valuation of DCF Analysis Illustrative ($MM) ------_----...!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!.---- Summary .LI 0 CREDITSUISS~ $2,000 $1,500 $1,000 CONFIDENTIAL D ~o It 4 T :J: (5 :J: r oo( z (") o i5 z " m .... » r- (") en o en c: o I\l ~ co A-249 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 5 of 25 3 million grown Video videos NBC's to online. have partner, to 100 saving has upload videos videos their APls members who site. site Hilton or and videos than combine upon Channel videos, upload upload revenue Web between Web Paris view promotion will people more to to broadcast embeds for and service, family Brand community to and that with Yellow Yellow member by and dialogue on, people people to: first video to elect the the watching concepts-Participatory sharing channel to to a their connect can distribution using friends allows allows people partnership to uploaded video people comment PDAs PDAs encourage that with that users Clngular.sponsored video names worldwide subscribing - advertising with and and groups websltes videos enables by designates Group. share, strategic musicians. personal new on service a service to' videos playllsts Yellow a privately private audience. a and a video and Paris phones Music phones as or Yellow original Announced Channels-to - destination -Announced share videos them of people experience Unveiled create creating bands album daily. Yellow's public - for mobile mobile and Records, started Warner Announced 2006 2006 Launched Launched the marketers. Brand share - and and - Yellow site - with tag millions or debut 20, 18, their their 2006 Interests with place and and videos Join the a 2006 unsigned her 2006 2006 22, Brothers entertainment is originally from on from 27, Upload, Browse Find, 10, Similar Customize favorites, publicly Integrate Make 10, (PVA) an ~ ~ Yellow ~ September Yellow discover videos ~ September partnership Into ~ community ~ August promote Ads May directly Warner June programming May directly J ___ u _____ Paypal Paypal Yahool Overview Executive, Executive, Treasurer, -!3aCkgrounc{- -- CA CEO CTO CFO Jritle-- Mateo, Company Private San 2005 . -. . ---- - Yu Chen Hurley Headquarters: Status: Founded: Management Chad Steve ~ame Gideon Yellow CO.,u-IDENTJAL D R A :x: C5 :x: Z (') o !< 6 m z -f ." r » C') en tN en c: o ~ o o A-250 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 6 of 25 4 1 ..~ video I , I I , I , I I .-.... \ only , " , . . uploading ond ... 01 Your - " Member .. , wAG"P"ult Counl" ...... ,-_ Wi . Sln$I T~"" ZWl'b Th fX:hF~~:: ~ 100 muw.DI SpoII,'M"" ",o.Mo"N_ IE' -!!:}...;r..q:~ 'ftW ,~-,.' ... " '\ \ I I "'- $"INM , 'NOlO! .. lOIII: M:HIUU ...•...•..•••••.• CtrIOIOi.' '" 1 Il1terface :-: ; i i I: t*"------ \ ~/! ..... '\ ,~ User ...... " 10.200 .... ..... , \118\ '_,107_ (onlft'lllftl112& I~~O ~":t:oxf"~"!. Basig ~ ... formed . ",-o (continued) User .. ... video-channels .... R«IOtIIIt""ao .~ P'1UM'JtQ!Q1tr 'l1"IlIt'Mto. lt1t (1) 3 1 1 per Overview Rank metric 100,000 6,2006. 180MM 2006 2006 min daily: July daily: on October July 16.1MM 661MM 33.7 Based viewed uploaded provided Metric 2005 Company date space. min videos videos . 10MM O.7MM of of video 11.6 October Metrix online Management number number Media within Yellow Yellow Rank Current Current . ) Source: ~omscore CONFIDENTIAL ::x:: c; ::x:: -< r () o Z "M 6 m z ::f l> r en () c: o en o ~ ~ (..) A-251 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 7 of 25 5 Jul-06 % Growth % ~ Rate 8.3 4.7% 64.0 Compounded Aug-05 Montl:lly :e~' m •• 54.5 Jul-06 .--' 52.3 Jun·06 51.4 14.1 May-06 .---:=1H2~.7~=! / 48.0' Apr-06 ~ ., 41.9 12.9 12.4 Mar·06 --" ...--. • ..... 37~ 10.5 - Growth Feb-De ___ "-2.' 35.6 12.1 Jan-06 User _ 32~ 12.4 Dec-05 ~ . ...... - . "JS.7 11.1 Nov-05 .---- 9.5 24.3 Oct-05 Metrix .---.--- - ll..&.4=, 8.5 21.6 Sep-05 Media Benchmarking , score 9.1 Com . . 8.3 CREDITSUISS~ 21.' Aug-05 Source: r---1If CONFIDENTIAL ~ r :J: -< ~ 'TI 6 m z ::! l> r en () c: en o o w w w I\) A-252 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 8 of 25 2010 2010 - - 69.6% 52.6% 41.8% 42.5% 36.8% 66.4% CAGR 40.5% 79.9% CAGR 2005 2005 Advertising 2010 2009 Other 0 Sports 0 2008 50.~% User-Created 0 Cp..G!t: News "A Forecasts -- .'~" 0 RO, 2010 2007 • ...... , ..... ~._ ___ Movies •. 05 0 20 TV o Market 2006 $601.6 - Video 2006 2005 Maroh $230.0 Online d:::r:i:=: IDC. •. ~\ Souroe: 111.9 CONFIDENTIAL ::::t ::::t oo( z 'TI (5 r Z m l> is (") o W W w ::! 0 c: r- W 0 (") '" '" A-253 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 9 of 25 7 online growth following gain of other to and all global type sales video able and this and loyal a been online technology profits Green in not its companies exhibiting bandwidth over have with 2.0 established position they network increasing Web has position serving, one its viewing and companies ad of and drive and in efforts Positioning part growing Green will number internet as leadership growth traffic for alone its and clear fastest private Yellow stand cost savings priority the synergies of and Yellow's of to top their tremendous extended a cost usage handful with leading significant and a monetize been catapult Rationale the exhibited to has only of traction consistently realize increase better relationships has 2006 are revenue in one has traction video can can can is and There SUISS~ Company meaningful players advertiser Green Green Green - Online Yellow • • • • • • Numerous Enables Green Yellow ~ ~ ~ Transaction CREDIT • I CONFIDENTIAL ~ o o w w en c: o en ::J: ~ "T1 ::J: r- Z m z 5> o -f (j) 6 o A-254 8 . . .. Case 1:07-cv-02103-LLS Document. 219-12 Filed 03/18/10 Page 10 of 25 ...... , oo ads •• serve will " E non ...... , , 2007E not in 2011E video videos 2011 ...... ~ In will viewed in premium annual ads •••••• serve ...... •••• " ~ ,,', premium 100BN 99BN not 45BN viewed In2007E videos video 63BN ...... , ...... E AOL -$5 Page ...... is , 2011 ...... that a by .. by I by 2007E, 2007E on CPM 2007E Home $13 $5 ...... In In , $5 in to to to $3 $3 $0.14 CPM estimates Page of of of CPM YHOO ...... , ...... CPM GreenMail Home -$0.50 growing ...... and CPM CPM Growing Green CPMis-$3 2011E 2011E Growing $10 u ...... " , .. .. ~ ~ ...... ~ ...... , , ...... oo E E ...... ,. E on to 2011 ...... , ad views 2011 viewed by 2011 ...... ~ by streams inventory E content by page monetized Yellow video through ad content ...... videos ...... " views E " be ads views 2011 sell 24% 24% allow Non-Premium 24% their avg. by video Model sold annual annual can of of 2011 premium page of of ...... page advertising 79% video to ...... of by day " • 8.5BN 64BN ...... CAGR per by2011E ~ 950MM CAGR 670BN using - 67BN content CAGRof78% sold -10% CAGR CAGRof24% - 603BN CAGRof88% providers monetize streams 50% ...... ~ ...... ~ ...... ~ ...... ads , ...... etc.) , with ...... Yellow ~ trailers, monetize ..... " Pages ...... to video Hilton TV " expenses ,., Yellow / segmented ...... in " for on is ...... _,,, ~ MySpace, consistent Paris using Watch u Yellow ...... Non·Premium inventory Premium , markets movie day and ..... 2007E t (i.e...... (i.e. and , as ... are are in 10 allow per ...... ratio allocation ...... 11 , page day 2007E videos such content monetized views Search in views assumptions inventory advertising views 10% website per geographic Page website be viewed website: on home on providers ...... sold page I ...... page ...... can regular , content page share (after ... 2007E major 2007E n .... partnerwebsites Yellow generated Yellow Watch , videos viewed Yellow in total In served and total 2007E to total split are Break) on on on advertising content 2007E etc.) through Yellow's of ...... the in of streams , user of " content sold in ads on revenue of on is videos sell ad views assumptions share 45% ...... 45% Prison copyrighted site content 10% -180MM ...... viewed viewed .Stream views , - and ...... streams - streams , views is - avg. storage, of premium areas page video 100% are streams video 2007E through 3 of Content Fox'S etc. value page run Video in ad page Page: revenue video videos videos video on Page: advertising Page: by sell I through Non-Premium ...... there of of 1:1 10% 400MM ...... Content annual high ~~ Assumptions __ 900MM of total tote video premium videos, 28BN Sell bandwidth, Assumes 254BN SO/50 75% views ••••• of of I 13% 90% Search Home content Watch • • • • - • • • ...... ~ • • • • • 2007E 2.5% 5BN 280BN ...... sponsored Sponsored between Non-Premium 40% - in Non-targeted - music Premium - 60% Page Assumes their Currently, Assumes Assumes website ouo ~ .. .. ~ ...... :-:;-;0 ...... I ...... Revenue ...... " ...... , Key ...... CONFIDENTIAL to) to) to) en en o o en c: () m z z -I c l> r :!J J: J: o !< (5 () A-255 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 11 of 25 9 the bandwidth over of streaming of employees operating by2011E costs 60 video costs other in consist months to-200 of headcount 6 server -$3MM (bandwidth) last • Majority Current approximately growing expenses and • • 65% 66% 24% 41% 57% 71% 71% 101% 102% '07-'11 CAGR ..... 43 84 45 ~ 496 $835 451 158 33% 55% 293 33% 33% $902 2011E $1,297 35 77 ~ 274 Performance 374 340 $565 43% 58% ill. 55% 221 35% 35% 33% $681 2010E 20 67 ~ 75 FI.nancial 212 Projections 246 $342 215 60% 140 80% 52% 35% 29% $640 $477 $950 2009E Year Case ---45%----50%--~-0D%:J 9 53 ~ 42 78 148 144 $168 120 99% 48% "400/0 35% 26% $379 $299 128% 2008E Octobef7;2006. Calendar 3 36 85 Financial 67 15 provided 52 18 $51 34 NM NM Yellow 45% 35%--~-- 35% 23% Management $174 $150 2007E Green expenses. Video on share Long-Term based revenue (1) Non-Premium Ads Ads Income Video basecl"onGreenManagemenlaafil Site partner Taxes Value Revenue D&A of SU1SS~ of Growth Margins Growth Revenue TaxRate Margms Margins Premium High Run Sponsored % % % Net % % % ($MM) Gross Net EBITDA Less: Operating Income Financials NOPAT (1) ProjectIOns I I Yellow CREDIT CONFIDENTIAL D R F A T ::J: Ci oo( ::J: r (") o Z "TI 6 m z ~ r- en (") c: o o en c...> ~ en A-256 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 12 of 25 10 1.0x 1.0x 1.1x 2.0x 0.7x 29% 43% 25% 23% 33% NM 17.3x 14.4x 17.0x 34.3x 47.0x 22.6x 34.0x 30.1x 37.0x High (1) $2,332 $2,440 $1,706 NM NM l1.4x 46.4x 29.ex Value Equity NA NM 11.1x 10.3x 31.ex Low $1,579 $1,023 $1,555 6.2x Implied 12.5x 46.6x 21.3x S.7x NM 16.0x 17.1x 13.5x 42.7x 2006. 3.1x 3.0x 4.5x 2,9x 0.8x 6, High 17.0 30.0 5O.0x discount 3.5x 1.0x 5.9x 3.1x Range Ootober liquidity 7,2006. 20% 4.2x a 3.9x 3.4x 1.4x 3.7x 8.5x provIded wilt Reference data October Low Japan, 11.0 20.0 30.Ox NA Statistics 19.7x 18.ax 26.4x 24.SX Multiple provided olVahOOI management 45.5x 24.6x 32.2x 32.0x 30.4x on capitallzaUon NM Management 45.4x 32.2. 51.6x based 46.7x· (2) 78 144 Green $O,OMM 609 culTOlltmarkal 1,519 1,350 of upon $4,860 of Statistic Selected Trading 34% cash based net 643 Assumad 1,517 1,727 1,385 2,119 $5,309 Yellow projections Japan. Vahool Assumes Yellow In CY2007E CY2008E CY2007E CY2008E 38.5% 29.8% 99.0"A. 97.6% 35.9% (1) (2) ($MMJ ownership (0.5%) (4.3%) (32.6%) (23.9%) (37.8%) Vahool of Research 9.85 11.34 valua 24.11 21.17 $39.98 Street Companies mBl1 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 13 of 25 11 adding content? NA NA NA NA NA NA NA NA NA NA NTM 21.0x 37.4x 16.8x 18.9x 15.8x 23.0x 23.1x 22.2x 54.9x Consider mobile EBITDA NA NA NA NA NA NA NA NA NA NA LTM NM NA NM 1S.4x 3S.Sx 41.Sx 28.0x 24.3x 21.9x 30.0x 16.6x 52.9x 37.1x NA NA NA NA NA NA NA NA NA NA NA NTM S.6x 5.3x 4.8x 4.0x 3.9x 4.8x 4.Sx 6.2x 5.5x 13.0x NA NA Revenue NA NA LTM 6.7x 8.1x 7.2x 6.6x 4.9x 2.9x 7.1x 6.4x 3.7x 14.6x 11.3x 43.3x 10.0x 10.4x ·6.5x 11.1x 10.1x payments. SO 27 102 366 60S 485 571 Agg. 650 560 524 350 160 410 415 456 556 $200 Value 2,600 1,406 contingent in 50 29 102 366 665 485 575 650 560 667 350 415 512 160 410 576 $200 Fully~Diluted Value' $1.1BN 1,238 1,238 Equity 2,600 1,966 1,858 1,532 $200mm. of includes and revenues Co value & releases. Times Transactions CY06 CYOS. Corp Corp pic Scripps Universal and press York Jones as transaction and Acquiror Vlacom Viacom EWScripps NBC Green GUS eBay News News E.W. eBay Experian InterActiveCorp Yahoo eBay New Dow Yahool ValueCllck Yahoo! eBay $60mm cash of filings calculated SEC NTM $102MM 2005. revenues Inc Internet and on reports, (3) June (1) CYOS Broadcasting(4) (2) of CY04 based Entertainment (1) as as Jeeves research value Target uSwitch(1) Atom Xfire iVillage dMarc PriceGrabber.com Skype IGN Intermix Shopzilla LowerMyBills.com Shopping.com Flickr Ask Rent.com MarketWatch About.com MusicMatch Pricerunner.com Kelkoo PayPal estimated on calculated calculated Analyst TM LTM Based L Transaction Date ($MM) OS/OS/06 04/24/06 03/16/06 03/06/06 01/17/06 12/14/05 09/12105 07/1S/OS 09/08/05 06/07/05 06/01/05 05/04/05 03/21/05 03/21/05 12116/04 11114/04 02/16/05 08/03/04 09114/04 03/26/04 07/08/02 Source: (1) (2) (3) (4) :~:~~t!}"\-ll\-!I!I!:qI!:::·}:I!..:!::nlt.I!I!trl:r·Jtr':':l~it·t!:IIIIIlt!:::r·\ilI1·lII.l·}Jllt.J!::::·II.:1J1Ill\::1IJI:jJ!l!I~j~~11111!I~:~:Irri\::.trl~~;~~I:Il.J~~1~~:l}! Selected CONFIDENTIAL D R F A T ::J: c; ::J: -< r 'T1 (") Z o 6 m z -I ); r (") en c: o o w w en w (X) A-258 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 14 of 25 12 High (1) $2,024 $1,949 Value Equity 2006. Low 30, $1,552 $1,350 Implied September ended period High 30.0x 13.0x the RClnge for flnanclals. data 2007E Analysis Reference year Low 9.0x 23.0x management on calendar Multiple on based based $O.OMM Yellow of (2) for $67 $150 cash Yellow Transactions net Statistic statistics Yellow, for financial Forward Adjusted CY2007E CY2007E ($MM) (1) (2) Selected CREDITSUISS~ CONFIDENTIAL D R F A T ::z: G; ::z: r oo( (") o Z "TI 6 m z :::! l> r- en (") en c: o ~ o w c.o A-259 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 15 of 25 13 13.0x $2,908 11.0x $3.4BN - BN 9.0x $2.1 of Analysis Yellow 13.0x $3,144 - for Flow 11.0x Cash 'range Analysis 9.0x valuation Discounted a DCF implies 13.0x • Yellow 11.0x $2,927 analysis DCF 9.0x J Value $0 SUISS~ Rate: ($MM) $500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 Equity Illustrative CREDIT CONFIDENTIAL Docaunt R F A T :J: c; :J: ~ (') o z 6 " z m -I l> r en (') en c o ~ o ,J:I. o A-260 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 16 of 25 14 75% 3,339 4,067 4,091 4,467 $1,406 $2,963 Performance 2,225 2,729 2,981 $1,973 EJ Range CAGR Financial Revenue Valuation margin E DCF 40% on $576 1,431 1,735 1,755 1,918 CY11 $1,268 ;. multiple. EBITDA CYOlE: Illustrative and EBITDA terminal 25% 941 $366 growth $834 1,138 1,156 1,264 11.0x Sensitivity a and rate revenue case DCF on I I I I discount base 22.5% CAGR: 40.0% 45.0% 52.9% 55.0% 60.0% a based Denotes on = CY11 - Based o CY07 Note: Sensitivity Illustrative CREDITSUISS~ CONFIDENTIAL D R F A T :J: oo( (5 :J: r (') z o -n 6 m z ~ r- (') (J) o (J) c: o ~ ... A-261 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 17 of 25 16 24.7 24.8 32.4 32.6 excess NM NM $80.7 expanse, 2006. 30. June Yellow NM $22 respectively. $38 $35.1 ended CY2007E CY2008E 2006. and period the respeotively. 2007 for In Impact 2008. Items. 10·0 Syns.: Income and from PIT 2007 Interest for of schedule $3MM 24.6x options 330.4 oonsensus $16.94 and $5.596.3 and non-recurrlng/transacllon MM IBES $1 2006. and other 30, and 2006. Green Assumes June 14. 32.4x 330.4 $13.00 2006. CY2007E-----CY200flE $4.294.6 ended Transaction 7. .• September period charges/benellts October the 2006. tax dated 6, for provided 10-0 research October data Intangibles. from of of as analyst Forma Accretlonl(DJ/ulion): 304.4MM Green Weisel of Management for 0.9% 1.5% amortization (MM) Green Thomas and amounts) 29.2%. $420.50 on on of Pro of outstanding 2.7 4.8 rate Shares share based based prices tax shares (2) per depreciation (1) current Green Green Average SUISS~ projections on on on proJections except Income treatment, 2.005 $1.136 Yellow Based Based Based Green ($MM, Projections Net EPS Annualized PIE Weighted (1) (2) (3) (4) Green CREDIT CONFIDENTIAL D R F A T :J: (5 :J: ~ n o z " a m z ~ r CIJ n CIJ c: o o ~ it A-262 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 18 of 25 ...... ,ro oQ) C/) C/) ~ ro «c ~ o LL. ..c C/) ro o "'C ...... ,Q) C :::l o >< o -- .~ -a o c CI) ..J < D i=z C. w a u:: « « z o o HIGHLY CONFIDENTIAL CSSU 003343 A-263 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 19 of 25 17 Q Ox 76% 22. $267 2M2 16.4% $2,908 $2,908 13x based not cash 9· 2007E declining Q of free In does E) expense 62% 18.ex $267 E 11.0x 13.0x ~ on 25.0% 14.8% 25% $2,502 $2,502 Multiples: projections - expense D&A 2007E, (2011 2007E·2011E assumptions capital 2011 multiple in 20 margins 0 by Impact of D&A year exit from 35% 9.0x 27% 1S.2x $267 ~ Terminal sales margin 12.6% of $2,095 $2,095 Assumptions assumes 50% with working of range to CAGR management operating and and net rate terminal EBITDA DCF 10% meaningful In-line by a 57% rising 35% Tax Rate WACC statement: Green 5% Detail Flow: Revenue on • Management equals Capex to have Assumes flow Terminal Q 31,2006 ~ Income ~ Cash ~ ~ ~ Discount Assumes 91% 22.0x $281 13.0x ~ 14.0% $3,144 E 0 December -11 57% 65% 71% 71% 71% 64% CAGR of 18.6x $281 11.0x ~ 22.5% 12.4% $2,703 $2,703 $3,144 as 07E E Value Yr.) Q Analysis 45 5% ~ 496 451 33% 293 55% 1§§ 50".6 35% 33% $902 9.0x 37% $293 1S.2x $261 1982 10.2% $2,263 $2,263 CY2011 Present (Terminal 34 5% 374 340 !Ml 43% 221 55% 50% 1.ll! 35% 58% $681 $221 Flow CY2010E Illustrative 0 ZQ 31 7% 246 215 !W 140 60% 52% 45% 35% 80% $140 $296 22.0x 106% 13.0x" 3109 Proje"ctions 11.0".4. $3,405 $3,405 CY2009E 6. Cash Yellow 0 ~ 78 24 8% 144 ~ 120 99% 40% 35% $78 $299 $477 77% 128% 18.ex $296 Analysis 11.0x 2631 20.0% 10.0% $2,927 $2,927 DCF 0 67 52 j§ 34 15 ll§} 45% 48% 35% $34 35% 10% $150 9.0x 48% 1S.2x $296 7.8% 2.1§.a $2.448 $2,448 CY2007E CY2008E Case Base Discounted j Beyond) CY2010E) .. - & Multiple Multiple: moun Rate /'J Flow (1) Income Amortization (CY2007E (CY2011E ..... & EBITDA Offer Net Growth Value Cash to FCF ".,.' Expenditures Management Free Oebt/(Cash) Rate: Forward levered EqultyValue ...... Unlevered Perpetuity Aggregate Capital Depreciation • Net Un Growth Marpin MargIn Marpin Effect Growth PAT levered % % % TexRate % % ($MM Revenue EBITDA EBIT Tax NO Plus: Un Less: Discount Terminal Implied Implied PVof PVofTermfnalValue Less: Implied Yellow Implied Illustrative Premiuml(Discount) CONFIDENTIAL D R F A T ::I: (5 ::I: r- -< (') o z 6 " m ~ z » r- (JJ (") (JJ c: w o w o t A-264 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 20 of 25 18 16.3% 17.2% 16.1% 18.3% 15.5% 15.5% 16.8% 18.9% 15.9% 18.2% 17.7% 17.3% 17.3% 15.8% 16.0% 18.9% 19.6% 18.2% 16.3% 16.3% 0.9% 1.7% 1.5% 1.7% 2.3% 16.4% 14.5% 16.5% 17.7% 14.0% Analysis 16.5% 14.8% 18.5% 16.5% 14.0% 1.645 1.649 1.370 1.826 1.300 1.649 1.649 1.410 1.300 1.933 Capital Bioombelll) of (Source: 0.4% 4.7% 0.0% 9.4% 0.0% 0 of7.10%. 100 $21 143 premium risk Cost 99.6% 95.5% 91.4% 100.0% 100.0% market equity 643 and 2,119 1,517 1,727 $5,309 2006, 7, 9.85 October 11.34 24.11 21.17 $39.98 01 as 2006. Average 5, ... 4.77% of OOlober data. 38% (Dec.) dated of Treasury Ibbotson rate U.S. (Dec.) debt tax 2006 research litigation) as (Dec.) (ex based BARRA marginal twenly·year ""',""'.,,""',,_ treated on on on (Dec.) Nelmrks premia ... (Dec.) Based Based Based Converts Size MonslerWorldwide Nelflbc RealNetworks CNET Knot ~&'l@!mm)l*,rumB.f;!1:j:'j:~:!l;:WjWi:!#:i!1!.Iil:'1:ilIIR'li~'i'li~~J!W"i!.I:i":!k:~'!*;j:i$".s:<'6.f..t CREDITSUISS~ CONFIDENTIAL D R F A _ A T ::J: (5 ~ ::J: C') o Z 'T1 6 m z ::! r » C') CIJ CIJ C o w o w ~ <» Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 21 of 25 - ~ Q) "c: Q) o> c Q) .->< ~ -c (9 c CD -' ct C. i= c. wz c HIGHLY CONFIDENTIAL CSSU 003346 A-266 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 22 of 25 20 ' (OOOs) Volume 10,000 0 120,000 100,000 150,000 30,000 140000 50,000 80,000 130,000 110,000 70,000 90,000 40,000 20,000 60,000 ~ r 7,336 5,855 5,753 5,398 5,604 5,756 (OOOs) to for US eBay statistics 410.70 396.24 389.69 407.27 393.31 the $420.50 mUlti-year provider with exclusive Avelaqe outside Days Days Days Days Days 10 60 90 5 30 advertising eBay become agreement Announces Last Last Last Last Last Current for in at and of the revenue and agreement provider be properties, for search MySpace to targeted over cash payments web up-front $900MM BN Fox In acquire 2006 an to $1.1 share exchange keyword least Fox's Including exclusive advertising Announces with 31, for of $102MM of March 2006 agreement earnout on 17, Broadcasting trends years George 2006 statement potential 2B, January dMarc a consideration Announces three CFO growth comments press to of clarify revenue Issues Reyes's February to In Shirley for Directors 2005 President University, of Dr. 5, BN stake 2005 AOL $1 5% a 20, Board as investment to Princeton ApPoints October Its Tilghman, Wamer's effective 2005 Pixar, Mather, December strategic an of Announced Time Audit Directors 29, of Ann the of CFO of SEC of stock Board the on former Committee November Its Appoints Chair 2005 shares offering with ~ 18, common ...... A 10,077 174.99 reglstrati 471.63 public $420.50 Performance a 2006 date. 14,159,265 Flies August for Class statement 6, with ••••..••••.•••••• Java the .••••••.•• • 2005 multi-year, and October 4, agreement announc~ment (1111/06) promote (3/14/05) Toolbar (OOOs) to (10/6/06) Price Price technology Sun October Green Announces strategic earnings through Trading an Volume Low Price High to 2005 for Urchin 28, Denotes Factset 2005 @ 3, Current Closing Closing Average undisclosed March Announces agreement acquire Software Note: Source: Green January Price $500 $350 $300 $200 $150 $100 $450 $400 $250 CONFIDENTIAL ~ ..., o o ~ c: en en (") m z -n 6 r Z ::! » :J: C5 (") o :J: !< A-267 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 23 of 25 21 • • • i2:fs·!· 14.44 15.92 17.59 17.62 18,63 14.80 .... FnnOIlE ...... L::::i~iQ:J r· • • • • • • , estimate estimate 12.74 14.24 13.14 11.46 13.28 12.62 EPS 13.20 13.58 11.87 12.70 12.28 14.10 13.10 12.55 13.15 11.41 12,84 12.87 11.40 11.75 13.00 12,93 11.37 13.28 13.25 14.10 12.75 13.56 12.94 ·;~~~h $11.55 High Low FY7007E'-'" ...... = = ~" r::::::i~;~~:J • • • r • • • • • • , .. J 9.76 8.75 9.90 9.84 9.65 9.90 9.67 9.76 8.99 ~,R~ ::.:J 9.00 9.91 9.97 8.74 8.93 :: 9.94 9.12 9.94 9.58 9.75 ::: 10,09 10.30 13.24 10.17 10.11 10.16 10.20 10.17 10.04 10.46 10.23 $9,94 ..1g:~.!· C I~ ... L C:::::::~;7.i} ...... ~1. • • • ,., ••••• I 7,133 7.907 7,250 9265 8,153 !1,~~;U .. $8,542 December FY2008E~_~F_Y2006E ..... r··~··· l. • • I Ended . ••••••• FY J 6,466 5,836 6.011 6,522 6,377 6,367 6,118 5,735 5,763 5.661 6,110 6,275 6,078 6,804 5.655 5.873 8,557 "',~~Q,., 6,241 6,221 6,403 6,196 5,496 5479' $6,023 EBITDA for FY2001E ...... r:::::::~:i~~:i , , i • • • . E5timat~'20 4,449 4,457 4,408 4,433 4,414 4,470 4,341 4,465 4,289 4,492 4,358 3,998 4,318 4,471 4,342 4,418 4,272 4,368 3,921 4,031 4,523 4,339 3,974 $4,441 FY200GE C::::~~~~:i [::::i~7.~] An;)lyst • • 13,578 14,271 14,014 13,274 14,384 $13,520 FY2008E C::::i:~;'~ii~] C:::l?,§g~] .. 9,976 ~,.~.?~ 9,831 9,810 9,923 9,380 9,915 9,675 9,667 9,662 9,827 9,666 9,188! 10,031 10,841 10,397 10,426 10.833 10,342 10,310 10,237 11,513 10,883 10.398 10,461 10,431 10,265 10,819 $9,556 .1~Jg.Rj .!.l·&!.l Revenue . FY2007E ...... L. I ! Estimates 7,209 7,071 7,409 7,134 7,125 6,981 !I.1.~~., 7,080 7,389 7,275 7,003 7,254 7,035 7.050 6,930 !.,.~.?U 7,103 7,214 7,033 7,080 7,146 7,058 7,042 7.004 6,909, 6.933 7,054 7,149 6,922 $7,020 ···?'~·~7.·1 FY2006E ...... L , i , (%) 25.0% 40.0% 35.0'10 32,0% 30.0% 15.0% 48,0'10 23,0% 32.0% 30,0% 50,0% Grmvth Rate i L Price Analyst 500.00 525.00 515.00 Target 465,00 600.00 515.00 540.00 525,00 500,00 500.00 455,00 450.00 520.00 525,00 500,00 $490,00 of Buy Buy Buy Buy Buy Buy Buy Strong BUY Buy Buy Buy Buy Ho!d Buy Buy Buy Hold Strong Strong Buy Buy Buy Buy Buy Buy Buy Buy Buy Bu~ Strong Slrong Strong Recommendation Buy Buy Buy Buy Buy Buy Buy Hold Underperform ~ Co. Groue Group 1$) & Partners Research Summary capital Markets Securities Markets Markets Partners __ Stockbroking Company Equity Sachs Company & Financial Securities Brothers Weisel Stanley Blair Company & Crest Equ~ies Crown Lynch Research World capital Jaffray & Nicolaus capital Securities Global Albany Hambrecht :h, Be PaoWio Merrill Solen Lehman BMO Piper First Filit Compan~ JPMorgan ThlnkEquity Jefferies Jackson JMP StWel 8earSteams Guzman Citlgroup Morgan Needham RBC Argus William Thomas carls Stanford Cowen Oppenheimer CI Global Goldman UBS Prudential WR Global _ Date /fMlf. 10/5/06 10/4/06 7/22106 8I1610~ 10/6106 9/14106 8128/06 8114106 818106 9/19/06 9/14/06 8/16106 7127106 7124106 7122106 7122106 7122106 7122106 7/24106 7/22106 7/21/06 7/21106 7/24/06 7/30/06 7/21/06 7/21/06 9/25106 9/19106 9/14106 8128106 818106 9/13/06 9/11/06 8/1106 Green CREDITSUISS~ for 2007 F D used financial 2008 analysis. Consensus CONFIDENTIAL for financial analysis. lWPused T 0l=Io 00 o (") ~ o en en c: ::I: ::I: Z -< ." -I (") o 5 6 r m z r » A-268 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 24 of 25 22 . 9% Z1Q W. 12% 12% 29% 88% 55% 39% 38% 31% 43% 63% !lli.l 1,167 5,485 4,295 1,189 330.4 6,063 8,691 ~ 6,195 .t..nm $9,867 $13,07 $13,00 8% 864 817 11% ~ 77% 76% 12% ~ 72% ~ 88% 44% 29% 64% 56% ~ 4,370 3,973 313.5 3,118 $9,94 $9,95 ~ 4,523 6,250 $7,103 1 ; 1 . 1 1 i I I I 1 1 1 -I . I . 8% 11% 12% 024 ~I 4841 4401 89% 567 ill ~I ~I 57% 41% 66% 32% awl 105~ 113% 106% 1,646, 2,432, $5,64' 2,3081 291,91 2,6241 3, $4, 8% 879 249 263 17% 16% 12% ~ 77% 12% ~ 2M 42% 1ZZ 63% 61% 31% 62% !.1.W 1,157 1,273 1,646 1,305 322,4 $2,73 $2,76 $2,100 8% 8% 9% (3%) 196 770 11% 13% 229 13% ~ 21a 75% 72% ~ ~ 88% 88% 61% 43% 31% 63% !.1Q.Z1 1,111 1,562 1,140 317,4 $2,42 $2,42 ,1,005 $1,800 1 1 1 ; . l 1 1 1 1 1 i I 1 1 1 1 1 4% 9% 9% 9% 1821 7721 9251 13% 11%1 jg§1 2121 77% ~I ~I 469 88% 88% 88% 25% 46% ill !.Wi 1,031 310.0 1,051 $2.49' 1, $1,671 8% ~ 175 955 174 697 888 11% 19% 11% ~ 48% 81% 83% 27% 24% 88% 93% ill ill 46% 67% 63% 58% 55% 56% 55% ill 1,029 304,1 $2,29 Statement g6, 2% 9% !Z.Ql 155 814 469 788 718 12% ~ 23% 25% 25% 89% ill. 63% 56% 40% 36% ill 114% 117% 304,0 $1,54 1,144 1,352 $1,290 $1,531 2006, 14, ~ ~ 9% rul 152 157 596 18% 14% 10% 10% 105 576 14% 12% 437 925 672 42% 27% 88% 55% 30% 64% ill 106% 694% 289,7 $1,51 $1,049 Income September 96 97 ~ ~ 6% 6% 8% !4Ql 381 543 590 523 11% 12% ~ ~ ~ 787 11% 27% 88% 43% 66% 59% 30% 113% 342% $890 $1.33 287,2 dated 83 ~ 79 2Z M 7% !til research 358 505 76% 548 492 10% 711 10% 62% 47% 29% 22% 69% ill 90% 45% '23% 113% 421% $795 286.6 $1,25 analyst Weisel Summary Expense Thomas I on QlQ Sold SUISS~ Income based Shares Income Income Rates (Income) Taxes EPS Goods Income Profit Depreciation of Income Revenue Rate Tax Margins IISIEIS Projections OperatIng Operating Pretax EPS GrollllProflt Growth S&M G&A G&A Operating S&M Gross Net R&D Plus: Net EBITDA Income Interest EPSYIY EPSQlQ Cost Average R&D EBITDA Net/ncome Green CREDIT D R F CONFIDENTIAL T A ~ ~ :J: :J: en 0 (5 to) to) n m " CD z z -f 0 c: 6 r n en 0 » A-269 Case 1:07-cv-02103-LLS Document 219-12 Filed 03/18/10 Page 25 of 25 23 of to the and these the specific target, U.S. an been accurate and/or or by provided CS these employees being The price respect and structure have are such use which from addition, or claimed from CS. tax revise to with In for that engagement (including company or prohibit understanding Any by sources. intended or (or, rating and to CS. employees, complete forecasts your not analysts of public writing designed with policies your otherwise and is analyses) matter(s) being in purported of or mandate relevant research treatment performance penalties. from or tax tax circumstances a were CS's the be or research tax is each managements agreed any update other estimates agreement may the potential as to or (and financial change information managements federal such or materials analysts. prohibit that to such of particular kind, the You US written such future transaction except fact a avoiding that any actual a transaction(s) These of opinions with on to obligation representatives by of any of poliCies offering any of an research no advice. is the or judgments its your relied CS's with of taxpayer's assumed of or referred legal forecasts and (including has discussed limitation target, purpose or treatment estimates). the you or regarding have assumes and and kind contemplated tax transaction on the price we CS a connection without otherwise any the promotion of estimates for in through or of and herein reviewed compensation. independence or accounting or reasonable based estimates specific or sources, information transaction. the specifically ("CS") or tax, persons, by other purpose, from structure available as the transactions. as all or company materials taxpayer such public of advice this includes tax rating represent of all statement summarized than Suisse and marketing preserve your any For the or from obtained prepared . to and tax currently of seek banking any by the other business and construed Credit to part, was treatment sources, research best Any be in by information affairs verification tax obtained or used, obtain the structure. should designed materials you synergies) purpose the public or to support such investment disclose be to should and materials transaction in to favorable and any advice. whole and income from these a may in the for extent reflecting by tax herein these independent guidelines of taxpayer cannot provided the savings partiCipants written for federal treatment inducement upon any offering and business agents) obtained bases To an and tax involvement Each been cost U.S. disclosed, on the was or advisor. relied preparing contained treatment other be their such in or for policies have contemplated with or indirectly provide used, tax tax transaction to not forecasts for respects. or claimed potential responsibility herein relates. used used be prepared Nothing not or of and may no SUISS~ be familiar to adopted income materials relating potential material directly not does has transactions consideration you all CS may in persons materials. reasonably representatives purported federal from to statement as other estimates compensated CS materials information independent the statement assumes estimates These written . CREDIT R D F CONFIDENTIAL T A ~ o o o (J1 (") en en c oo( (5 m r :J: z z -I c !! o r- :J: () » A-270 Case 1:07-cv-02103-LLS Document 222-12 Filed 03/18/10 Page 1 of 2 Message: Proposal from MPAA on Content Identification and Filtering e Proposal from MPAA on Content Identification and Filtering From Garfield, Dean Date Thursday, October 12, 20067:12 PM To '[email protected]' Cc Subject Proposal from MPAA on Content Identification and Filtering ~"'~.U~•• '.·I(';Jo· .. i'.t"N.uN"·U.·N"Ji'.t"""':~U".uU" .. i'.t.·.·/~iV',"'"·N.VNU~"H."'U".r"NoNU'''·#UUIIIU·,,~-r.{o"''oHV'',"I''i.·(V(oNi,".·ua'lu·,"''(IUO"''U"""/"U"~VNN·".r".T.·U",",,,.VU.v".·N·UNUU"U"'UN~V ... ·U·N"NI"" ... ·'""No'.v."".VJ'off'"""-.I"'''~ .. j~YouTube -- Proposed Pilot Filtering ProjeCt.doc (37 Kb ) ~""""'i'o·N""N""NII"N""NII,"N~N"I'"""NNV,U'U_Y.U"NI'U",UNor,.u"".N""N""''''''NNN'''NNIIIN\IH''"_''",""NN'N'''''''''_N''NJI.wNN'NNJ'UN./'NN''N~''~I''N __1'N.o.IUNN.r.·'JVH'N"fN,N.N.N'U'''',J''.I'N''N'N,''"''NN.V'~N'N.YNN_ i Hi Chris. I trust that things are well. Congrats on the Google deal. How does it feel to be rich? !Hopefully, you are still working -- at least for now. In that regard, I have attached a proposal for moving' 'I' forward on our last discussion. As you may imagine, all the studios are getting ca)Js every day to , comment on the Google deal and so there is a lot offocus on this issue. Please let me know when it !would be a good time to continue our conversation. Thanks. ! !~e-~ ...... 1 MPAANouTube Copyright Identification and Filtering Pilot Test Proposal October 13, 2006 Overview: YouTube and the MP AA member studios have an interest in working cooperatively to develop a process and systems to identify, and filter (if not otherwise licensed) anyon-going infringing content available on YouTube. In order to expedite this effort, a pilot test is proposed to identify and filter a subset of the MPAA's members' content. Leveraging the technology and processes currently being put into place, the MPAA proposes to create a quick to implementation test in cooperation with YouTube. Objectives • Demonstrate the ability to automatically identify and filter studio content. • Fast implementation of a prototype system that proves the process. • Minimize the out of pocket costs. Proposal • Current YouTube Process: Based on previous discussions it is our understanding that currently the process at YouTube occurs as follows: 1) Users upload video files to the YouTube site. 2) Files are checked using an lvID5 hash to filter previously taken down content. 3) YouTube transcodes the video files into flash. 4) The encoded files are published on the YouTube site. • Music Filtering Process: Based on public reports and the MPAA's familiarity with Audible Magic'S general processes, we would estimate that the new identification and filtering process currently being implemented involves: 1) Users upload video files to YouTube site. 2) Files are checked using an !\lIDS hash to filter previously taken down content. 3) Using Audible Magic tools, soundtrack on files is fingerprinted and sent to Audible Magic servers for identification. 4) YouTube transcodes the video CONFIDENTIAL MPAA012777 A-271 Case 1:07-cv-02103-LLS Document 222-12 Filed 03/18/10 Page 2 of 2 files into flash. 5) Audible Magic sends identification and business rules for usage to YouTube. 6) If approved, the encoded files are published on the YouTube site. • MPAA Test: Proposed is a test using a modified version of Audible Magic's music filtering service. We propose that: o The MPAA provides Audible Magic with the information necessary to identify segments/scenes of films or TV shows. o Audible Magic will provide its fingerprint generation tools to the studios. Studios will provide fingerprints for its works to Audible Magic. o MPAA and You Tube develop a test involving approximately 1,000 works. o Defined and limited reporting capabilities (Special or custom reports asked for by individual studios will be charged at time and materials) • Test Parameters: Test will operate for 30 days. After which the parties will agree on a plan for further deployment. • The development and test occur after the current soundtrack identification process is put into production. CONFIDENTIAL MPAA012778 A-272 Case 1:07-cv-02103-LLS Document 222-13 Filed 03/18/10 Page 1 of 2 Message: Proposal from MPAA on Content Identification and Filtering ~ Proposal from MPAA on Content Identification and Filtering From Garfield, Dean Date Wednesday, November 08,20067:59 PM To 'Kelly Liang' Cc '[email protected]' --- Subject Proposal from MPAA on Content Identification and Filtering . r~'V~~T'~b~":"':";;'~';~;;'~"~i'I~;m~iJ~~~i~'~'p;'~j.;;":H~w~~;;v;·b;·;"··;·;~~d:;~'··(·3;wK'b")'·'·w.. '.w"""'",w"".·,,w.· .. ,,,,.w,,,, r~~~~~!Iie:~'~~~!~;::;;ir:~~~~~~~~i~~:f;If:~::f:~~~;~~~~f~~~~:·~f~::T::~~~;~:~~;~:", I~~~~~ .. fo~ar~ n~~t w~~~: .L~t .~.e ..~o~. :w?~t ~~.~~~ ?e~t ~or y?.u .. Th~~~~ ~d .~ake care: ...... _...... u_ ...... ·.· ... _...... _._._ ...... _._ ...... _...... _...... ______...... ___ ... __ ._._._ ...... _. ______._ ...... ~ MPAANouTube Copyright Identification and Filtering Pilot Test Proposal November 9, 2006 OVerView: YouTube and the :MP AA member studios have an interest in working cooperatively to develop a process and systems to identify. and filter (if not otherwise licensed) anyon-going infringing content available on YouTube. In order to expedite this effort. a pilot test is proposed to identify and filter a subset of. the MPAA's members' content. Leveraging the technology and processes currently being put into place, the ~ AA proposes to create a quick to implementation test in cooperation with YouTube. Objectives .; .• Demonstrate the ability to automatically identify and filter studio content. • Fast implementation of a prototype system that proves the process. Proposal • Current YOilTube Process: Based on previous discussions it is our understanding that currently the process at YouTube occurs as follows: 1) Users upload video files to the YouTube site. 2) Files are checked using an MD5 hash to filter previously taken down content. 3) YouTube transcodes the video files into flash. 4) The encoded files are published on the YouTube site. • Music Filtering Process: Based on public reports and the MPAA's familiarity with Audible Magic's general processes, we would estimate that the new identification and filtering process currently being implemented involves: 1) Users upload video files to YouTube site. 2) Files are checked using an MD5 hash to filter previously taken down content. 3) Using Audible Magic tools, soundtrack on fires is fingerprinted and sent to Audible Magic servers for identification. 4) YouTube transcodes the video files into flash. 5) Audible Magic sends identification and business rules for usage to YouTube. 6) If approved, the encoded files are published on the YouTube site. • :MPAA Test: Proposed is a test using a modified version of Audible Magic's music filtering service. We propose that: o The MPAA provides Audible Magic with the infonnation necessary to identify segments/scenes offilms or TV shows. CONFIDENTIAL 1 MPAA012806 EXH'~NO.~ ~ IgnaciOvct'R C~~S~~ A-273 Case 1:07-cv-02103-LLS Document 222-13 Filed 03/18/10 Page 2 of 2 o Audible Magic will provide its fingeIprint generation tools to the studios. Studios will provide "fingeIprints for its works to Audible Magic. o MPAA and YouTube develop a test involving approximately 1,000 works. The MPAA will provide a list of keyword or phrases based on the list of works. o YouTube will provide a custom web-based interface for the studios to efficiently identify their works (using thumbnails and streaming capabilities) and determine appropriate action (removal, promotional material, royalty generation, etc.). o After content has been manually reviewed, an Audible Magic fingerprint and MD5 hash will be created and placed into the database (either blacklist or whitelist) for future use. 0" Defined and limited reporting capabilities (Special or custom reports asked for by individual "studios will be charged at time and materials) • Test Parameters: Test wiH operate for 45 days. After which the parties will agree on a plan for further: deployment. Key metrics include: number of fingerprint checks requested from Audible Magic, number" of fingerprints generated from manual review (blacklist and whitelist), number of positive matches from the fingerprint database, and number of false positive matches resulting from the fingerprinting proce:ss. '" " CONFIDENTIAL MPAA012807 A-274 Case 1:07-cv-02103-LLS Document 222-14 Filed 03/18/10 Page 1 of 2 From: Kaltman, Elizabeth Sent: Monday, February 12,2007 10:32 AM To: Winter, Craig Los Angeles Times MySpace erasing disputed content The social networking website has set up a filter for weeding out copyrighted video. By Meg James Times Staff Writer February 12,2007 Internet social networking giant MySpace.com plans to announce today that it has introduced a video-filtering program that should automatically remove copyrighted material from its website. The pilot program, according to MySpace, which is part of Rupert Murdoch's News Corp. empire, will begin by weeding out unauthorized content belonging to Universal Music Group and NBC Universal. The use of copyrighted material on the popular website has led to a major skirmish in recent months after Google Inc. purchased MySpace rival Y ouTube. The move is significant because it illustrates that media companies - including music labels and television programmers - want to be compensated for use of their material, and they appear to be gaining leverage in their negotiations. Until now, such websites as MySpace and YouTube took the position that they could legally allow content to stay on their sites unless they received a formal notice to remove the material. This month, Viacom Inc. flexed its muscle by ordering YouTube to remove 100,000 clips on its site that Viacom said were unauthorized. Viacom isn't alone. In November, Universal Music sued MySpace alleging that the site illegally profited from its copyrighted songs and music videos. With the new program, MySpace said it now is the largest Internet video site to offer free video-filtering to copyright holders. It is using a digital fingerprinting technology licensed from a company called Audible Magic. Josh Bernoff, principal analyst with Forrester Research, said the MySpace announcement reflected a changing corporate culture, one that seems to want to work more closely with the major entertainment companies. "They've realized that they really have a choice of being part of an anything-goes-pirate kind of culture," Bernoff said. "But that makes it difficult to negotiate with any media company because the media companies are going to say we don't deal with pirates." But MySpace's move is not without risk, Bernoff said, because it could ultimately steer away some users who want to post whatever clip they want. That, he said, may send users to competing sites with fewer restrictions. HIGHLY CONFIDENTIAL - Produced Pursuant to Protective Order - Civil Action Nos. 07-CV-2103. 07-CV-3582 MPAA-0011721 A-275 Case 1:07-cv-02103-LLS Document 222-14 Filed 03/18/10 Page 2 of 2 Elizabeth Kaltman Communications Director Motion Picture Association ofAmerica, Inc. (MPAA) (818) 995-6600 ext. 293 HIGHLY CONFIDENTIAL - Produced Pursuant to Protective Order - Civil Action Nos. 07-CV-2103. 07-CV-3582 MPAA-0011722 A-276 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 1 of 54 Page 1 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK VIACOM INTERNATIONAL, INC., COMEDY ) PARTNERS, COUNTRY MUSIC ) TELEVISION, INC., PARAMOUNT ) PICTURES CORPORATION, and BLACK ) ENTERTAINMENT TELEVISION, LLC, ) ) Plaintiffs, ) ) vs. ) NO. 07-CV-2203 ) YOUTUBE, INC., YOUTUBE, LLC, ) and GOOGLE, INC., ) ) Defendants. ) ------) ) THE FOOTBALL ASSOCIATION PREMIER ) LEAGUE LIMITED, BOURNE CO., et al.,) on behalf of themselves and all ) others similarly situated, ) ) Plaintiffs, ) vs. ) NO. 07-CV-3582 ) YOUTUBE, INC., YOUTUBE, LLC, and ) GOOGLE, INC., ) ) Defendants. ) ) ------~V~ID~E~O~T~A~PE~D~D~E~P=·O~S~I~T~I~O~N~O~F CHAD HURLEY SAN FRANCISCO, CALIFORNIA WEDNESDAY, APRIL 22, 2009 BY: ANDREA M. IGNACIO HOWARD, CSR, RPR, CLR JOB NO. 16789 DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321a-4dOc-b1 a1-88a8c2f3221f A-277 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 19 of 54 Page 113 ... 1 HURLEY, CHAD 12:02:02 2 Q And then farther over it says the final 12:02:04 3 column on the right says "earnings"; you see that? 12:02:07 4 A Yes. 12:02:07 5 Q This -- this spread spreadsheet is -- is -- 12:02:09 6 is communicating how much YouTube is earning based on 12:02:16 7 ads sold on different types of web pages at different 12:02:20 8 dates; isn't that right? 12:02:21 9 MR. SCHAPIRO: Objection; calls for 12:02:22 10 speculation; mischaracterizes the document. 12:02:24 11 THE WITNESS: Yeah. Again, I -- I don't 12:02:25 12 remember what this -- this spreadsheet is referring 12:02:29 13 to, you know. To me, it potentially looks like it's, 12:02:34 14 you know, managing or tracking ad impressions. 12:02:38 15 MR. BROWNE: Q. NOW, do you have an 12:02:40 16 understanding, though, as to what -- what is meant my 12:02:43 17 "channel watch," and it says -- like, look at the 12:02:45 18 first row. It says "Watch Top"; do you know what that 12:02:48 19 means? 12:02:48 20 A Uh-huh. Not specifically, you know, like -- 12:02:54 21 you know, it may be referring to a page. 12:02:58 22 Q The Watch Page? 12:02:59 23 A It could be. I I don't remember the 12:03:02 24 document, but it could be. 12:03:02 25 Q What is -- what is -- what is the Watch Page? DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221f A-278 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 20 of 54 Page 114 1 HURLEY, CHAD 12:03:07 2 A Well, typically, we refer to Watch Pages 12:03:10 3 where a video is being watched where it's being 12:03:12 4 played. 12:03:13 5 Q On the YouTube website? 12:03:14 6 A Yes. 12:03:14 7 Q Okay. And this -- this document is 12:03:16 8 communicating that YouTube was selling advertisements 12:03:19 9 as of June 1st, 2006, on the Watch Page; isn't that 12:03:21 10 right? 12:03:23 11 A I guess. I guess that's what it's tracking. 12:03:25 12 I don't know. I don't remember again. 12:03:26 13 Q Aside from this document, as the CEO of I,; 12:03:29 14 YouTube, in June of 2006, you -- you know that YouTube t, I 12:03:33 15 was, in fact, selling advertisements on its Watch Page 12:03:37 16 at that time; right? 12:03:38 17 A You know, again, I don't call -- recall 12:03:41 18 specific dates. It looks like this -- this document 12:03:44 19 is implying that, but I -- I can't remember. 12:03:46 20 Q And then down a little bit further it says 12:03:49 21 "results"; do you see that? 12:03:51 22 A Uh-huh. 12:03:51 23 Q Is there a -- is there something called a 12:03:53 24 results page on YouTube? 12:03:55 25 A Typically, results, just like in a search DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221f A-279 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 21 of 54 Page 115 1 HURLEY, CHAD 12:03:58 2 engine, is the results -- it's a page that you get 12:04:01 3 when you're looking for something, searching for 12:04:03 4 something. It lists 12:04:03 5 Q And as of -- as of June -- :1 12:04:04 6 A -- results. 12:04:05 7 Q Oh, I'm sorry. 12:04:06 8 A Just a list of results. 12:04:07 9 Q And as of June 2006, You Tube was selling 12:04:10 10 advertisements on -- on its results page; isn't that ii 12:04:13 11 right? 12:04:13 12 MR. SCHAPIRO: Objection; lacks foundation. 12:04:15 13 THE WITNESS: I -- I don't know. I -- I 11 12:04:25 14 can't remember. I;' 12:04:25 15 MR. BROWNE: Q. Do you have any reason to 12:04:27 16 believe that it wasn't? 12:04:32 17 A No, I mean, I can't remember, so I wouldn't 12:04:34 18 know why. Wouldn't have any reason not to. 12:04:38 19 Q And then a little bit down -- well, just the 12:04:43 20 next group down below, it says "browse" under that I 12:04:47 21 channel column; do you see that? 12:04:49 22 A Yes. 12:04:49 23 Q Do you know what that's referring to? 12:04:54 24 A I think it's referring to -- probably to 12:04:57 25 the the browse pages, the pages where you have the c ie, DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221 f A-280 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 22 of 54 Page 116 1 HURLEY, CHAD 12:04:59 2 ability to -- to browse. Not simply you know, not 12:05:03 3 search the result, but page of videos. 12:05:05 4 Q And -- and and how does that work? How do 12:05:07 5 the browse pages work at YouTube? At least how did 12:05:10 6 they work as of June 2006? 12:05:12 7 A I can't remember how they -- they -- they 12: 05: 14 8 worked at that time, but, typically, you can just look 12:05:17 9 at videos by category. 12:05:22 10 Q And in June of 2006, YouTube was selling 12:05:26 11 advertisements on its -- on its browse pages; isn't 12:05:28 12 that right? 12:05:29 13 A Again, I can't remember. It looks like a 12:05:33 14 spread shot -- spreadsheet is implying that, but I 12:05:37 15 I don't know. 12:05:37 16 Q And then it says "channels" under the column 12:05:43 17 marked "channel." 12:05:44 18 A Uh-huh. 12:05:45 19 Q What -- what's channels? 12:05:48 20 A Typically, channels are, you know, the 12:05:51 21 profile page of a user. You know, representing 12:05:56 22 yourself within the YouTube community. It's kind of 12:05:59 23 how you express yourself, how you broadcast yourself. 12:06:02 24 Q And as of June 2006, YouTube was selling 12:06:04 25 advertisements on its channels pages; right? DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221f A-281 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 23 of 54 Page 117 1 HURLEY, CHAD 12:06:08 2 A Again, I -- I don't know. I don't remember. 12:06:10 3 Again, the document looks like it's implying that. 12:06:13 4 Q Now, I'm just looking down the earnings 12:06:16 5 column on the right, and I see the largest earnings 12:06:19 6 numbers seem to equate to the Watch Pages. Why is 12:06:24 7 that? 12:06:24 8 MR. SCHAPIRO: Objection; document speaks for I.; 12:06:25 9 itself. I~ 12:06:26 10 THE WITNESS: Yeah, again, I -- I don't know l~ 12:06:30 11 the reasons. I don't remember this document, but it 12:06:33 12 looks like the case in this -- in this spreadsheet. 12:06:37 13 MR. BROWNE: Q. Could YouTube make more 12:06:39 14 money selling advertisements on the Watch Pages than P 12:06:43 15 elsewhere on its site? 12:06:45 16 A In -- in terms of what -- I mean, when? 12:06:47 17 What -- what are you implying here? Can you -- can 12:06:47 18 you 12:06:50 19 Q I wasn't really implying anything. 12:06:52 20 A Can you restate the question? 12:06:53 21 Q Sure. 12:06:54 22 Did YouTube make more money selling 12:06:56 23 advertisements on its Watch Pages than it did selling I 12:07:00 24 advertisements on other portions of the YouTube I, 12:07:02 25 website? I~ DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd·321 a-4dOc·b1 a1·88a8c2f3221f A-282 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 24 of 54 Page 173 1 HURLEY, CHAD 14:27:39 2 they -- they thought about the clip, I guess. You 14:27:41 3 know, one through five. One being bad and five being 14:27:45 4 great. 14:27:46 5 Q Does that five stars there indicate that the lil 14:27:48 6 people were rank -- ranking it as five stars, or does ~ 14:27:52 7 that indicate something else? 11 I 14:27:53 8 A It looks like I can't -- I can't tell the -- 14:27:55 9 the color. It's either zero stars or all five stars. 14:27:59 10 Q Oh, okay. I have just one question about 14:28:03 11 this. 14:28:03 12 On the bottom right-hand corner it says 14:28:07 13 "featured videos." 14:28:08 14 How did it come to be that those particular 14:28:10 15 videos are featured on this Watch Page with the 14:28:12 16 Arsenal versus Manchester United video clip? 14:28:16 17 A Again, with -- with the name changes 14:28:20 18 recently, I'm not sure. I think -- well, it looks 14:28:21 19 like they're all partners. Expert Village, Blooms 14:28:26 20 Bloomberg, Beyonce. They're all partner videos that 14:28:28 21 have been randomly selected. 14:28:29 22 Q And YouTube generates revenue from its 14:28:33 23 partner deals; right? 14:28:35 24 A Yeah, potentially, yes. 14:28:41 25 Q Now, the re- -- the related video -- I'm DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221f A-283 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 25 of 54 Page 174 i 1 HURLEY, CHAD ~ 14:28:46 2 sorry. ,:' 14:28:46 3 On the right-hand corner, it also says 14:28:48 4 "related videos"; do you see that? 14:28:51 5 A Yep. 14:28:51 6 Q What -- what -- and then -- and then I think 14:28:53 7 it has a list of similar videos? 14:28:55 8 A Uh-huh. 14:28:55 9 Q How did that list come to be generated? 14:28:58 10 A Again, I think it's -- well, it's a technical I 14:29:01 11 question that I don't know the answer for. Somehow I~ 14:29:03 12 some kind of algorithm choosing what -- what's 14:29:06 13 appropriate to show. 14:29:08 14 Q So there's some algorithm at YouTube that -- 14:29:12 15 that determined that the videos in this block were 14:29:15 16 related to the video that's playing on the watch 14:29:18 17 block? 14:29:18 18 MR. SCHAPIRO: Objection; calls for 14:29:20 19 speculation. 14:29:21 20 THE WITNESS: Yeah, I -- I -- again, I don't 14:29:26 21 know the details of how that actually works, but it's 14:29:29 22 trying to show related videos, however that is 14:29:32 23 determined. 14:29:32 24 MR. BROWNE: Okay. I have just one document 14:29:39 25 and then I'm done. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221f A-284 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 26 of 54 Page 177" 1 HURLEY, CHAD 14:45:51 2 cofounders -- 14:45:52 3 A That's correct. 14:45:52 4 Q -- of YouTube; correct? 14:45:54 5 A That's correct. 14:45:54 6 Q And did you perceive the three of you as 14:45:55 7 being partners at the time? 14:45:57 8 MR. SCHAPIRO: Objection; vague. 14:46:01 9 THE WITNESS: Partners in -- in what way? 14:46:03 10 MR. BASKIN: Q. Well, did you perceive the 14:46:04 11 other two gentlemen as being your partners? 14:46:07 12 MR. SCHAPIRO: Objection; vague. Partners? 14:46:10 13 MR. BASKIN: Q. Do you understand the word 14:46:12 14 "partner"? 14:46:14 15 A Partner in in terms of, you know, a 14:46:17 16 corporate structure partner? 14:46:21 17 Q Well, did you view these two gentlemen as 14:46:22 18 your partners? 14:46:23 19 MR. SCHAPIRO: Same objection. 14:46:24 20 THE WITNESS: Yeah, I mean, we were a we 14:46:27 21 were a team trying to develop this. 14:46:30 22 MR. BASKIN: Q. Now, as I understand it -- 14:46:34 23 let me ask you to put in front of you what I guess was 14:46:37 24 Hurley 7, and on the bottom of Hurley 14:46:56 25 MR. SCHAPIRO: Hold on, Counsel. I don't DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221 f A-285 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 27 of 54 Page 178 1 HURLEY, CHAD 14:46:58 2 have it yet. 14:47:00 3 MR. WILLEN: Here it is. 14:47:01 4 MR. SCHAPIRO: Okay. I got it. 14:47:08 5 MR. BASKIN: Okay. 14:47:08 6 Q If we go to the bottom of the first page of 14:47:10 7 Hurley 7, you have the paragraph that Mr. Browne 14:47:14 8 referred you to in the course of your earlier 14:47:16 9 testimony; do you remember that? 14:47:18 10 A Yeah, I think I recall that. 14:47:19 11 Q And in particular, in that paragraph, if I'm 14:47:23 12 reading it right, Mr. Chen is accusing your other 14:47:37 13 partner/colleague/cofounder of being a copyright thief 14:47:44 14 and dropping the copyrights or uploading the copy 14:47:48 15 the stolen copyrighted materials onto the YouTube 14:47:53 16 website? 14:47:53 17 MR. SCHAPIRO: Objection; blatant 14:47:57 18 mischaracterization of the document. 14:47:59 19 MR. BASKIN: Q. Is that the way you read 14:47:59 20 that paragraph, sir? 14:48:02 21 A I don't think that's what he's trying to say. 14:48:03 22 I think Steve obviously saw some type of videos that 14:48:07 23 he thought may look professional. I -- I don't know 14:48:07 24 Steve -- what videos Steve was referring to. 14:48:09 25 Q Well, I didn't ask you what videos he was DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc·b1 a1-88a8c2f3221f A-286 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 28 of 54 Page 179 { 1 HURLEY, CHAD 14:48:11 2 referring to. 14:48:12 3 What I'm asking you is, do you read that ~ 14:48:13 4 paragraph as saying that "Jawed --" who is Jawed, sir? 14:48:18 5 A He was one of the cofounders of the site. 14:48:22 6 Q "Was putting stolen videos on the site." 14:48:24 7 Do you read that, sir? 14:48:29 8 A Yeah, well, Steve was saying "Please stop 14:48:33 9 putting stolen videos on the site." 14:48:34 10 Q And he in the last line of that paragraph, 14:48:39 11 if I'm reading it right, he's accusing one of the 14:48:43 12 cofounders of YouTube of blatantly stealing content 14:48:48 13 from another site and trying to get everyone to see 14:48:52 14 it; do you see that? Ij 14:48:53 15 MR. SCHAPIRO: Objection to the 14:48:54 16 characterization of "accusing." 14:48:57 17 MR. BASKIN: Q. Do you see that, sir? 14:48:59 18 A Well, I see what Steve is saying. I think 14:49:03 19 maybe for -- for some of this, he's just referring 14:49:06 20 you know, he's saying he's referring to content from 14:49:09 21 another site. I don't know if that -- you know, he 14:49:12 22 had authorized -- authorization to do that or what 14:49:14 23 type of content that was. I have no idea. 14:49:18 24 Q Well, I appreciate if you have no idea, 14:49:20 25 because you didn't ask; is that right, sir? Ii i I~ DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a4dOc-b1 a1-88a8c2f3221f A-287 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 29 of 54 Page 180 1 HURLEY, CHAD 14:49:21 2 MR. SCHAPIRO: Objection; argumentative. 14:49:24 3 MR. BASKIN: Q. Did you ask? I 14:49:25 4 A Ask what? 14:49:25 5 Q Did you ask Mr. Chen what he meant by this I 14:49:28 6 paragraph? [1 14:49:28 7 A I don't remember this e-mail. I -- 11 14:49:29 8 Q Do you remember I;i k 14:49:30 9 A I don't know. 14:49:30 10 Q Do you remember ever discussing with Mr. Chen I' 14:49:32 11 this paragraph? ~ 14:49:33 12 A Potentially. I can't recall. 14:49:35 13 Q I didn't ask potentially what you can or 14:49:38 14 cannot do. 14:49:38 15 MR. SCHAPIRO: Objection. 14:49:39 16 MR. BASKIN: Q. Do -- do you recall 14:49:40 17 discussing this with Mr. Chen? I~ 14:49:41 18 A I don't remember it. I; [: u 14:49:43 19 Q Do you remember confronting Mr. Karim with i, 14:49:46 20 this, the accusation in this paragraph? Ii 14:49:49 21 MR. SCHAPIRO: Objection to the Ii 14:49:50 22 characterization. lfl 14:49:51 23 remember having THE WITNESS: I can't a ~ 14:49:53 24 discussion with him, no. I j 14:49:55 25 MR. BASKIN: Q. Do you remember consulting DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221 f A-288 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 30 of 54 Page 181 1 HURLEY, CHAD 14:49:57 2 counsel regarding this paragraph, any legal counsel? i, 14:50:00 3 A I don't even know if we had counsel at the Ii 11 14:50:03 4 time. I -- I don't remember at this time. Ij 14:50:04 5 Q Is it your testimony that the first time you 14:50:10 6 have knowledge of this incident from this deposition 14:50:13 7 today? 14:50:14 8 MR. SCHAPIRO: Objection; lacks foundation; 14:50:16 9 mischaracterizes the testimony. 14:50:17 10 THE WITNESS: Like I said, I don't -- I don't 14:50:21 11 remember seeing this e-mail in the past, so I don't 11 14:50:24 12 remember it. 14:50:24 13 MR. BASKIN: Q. When you -- back in 2005, 14:50:33 14 when this incident happened, according to Mr. Chen, 14:50:39 15 were you reporting to work every day? 14:50:43 16 A Sure. We worked around the clock, yeah. 14:50:44 17 Q You were CEO of YouTube at the time; were you 14:50:47 18 not? 14:50:48 19 A Yes, I was. 14:50:48 20 Q And during the course of reporting to work 14:50:52 21 every day, did you see Mr. Chen virtually every 14:50:55 22 working day? 14:50:58 23 A I don't know about every day, but a fair 14:51:02 24 amount. 14:51:02 25 Q And did you see Mr. -- how do you pronounce 11 Is ,C" ¢.",", DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd·321 a-4dOc·b1 a1-88a8c2f3221f A-289 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 31 of 54 I"' Page 182 i: 1 HURLEY, CHAD 14:51:05 2 it, Karim? 14:51:07 3 A Karim. 14:51:07 4 Q Did you see Mr. Karim virtually every day? 14:51:10 5 A No. 14:51:10 6 Q How frequently did you see Mr. Karim? 14:51:13 7 A I can't recall. I mean, early on he was 14:51:14 8 involved with a few things, but ultimately he ended up 14:51:18 9 deciding to go back to school, so we didn't really see 14:51:21 10 him very often at all. 14:51:22 11 Q And you had his telephone number, I take it; 14:51:25 12 did you not? 14:51:26 13 A I believe so. 14:51:27 14 Q Now, how far was Mr. Chen's office from yours 14:51:31 15 back in and around September 2005 or July 2005? How 14:51:38 16 many feet was his office from yours? 14:51:42 17 A I'm not sure. I can't remember where we sat. 14:51:44 18 If this was in Sequoia's office when we had little 14:51:48 19 incubator space, or if it was when we were in 14:51:52 20 San Mateo, we had our little -- little place there. 14:51:55 21 Q Okay. Well, assuming it's-one or the other, 14:51:59 22 what was the furthest distance that Mr. Chen's office 14:52:02 23 was from yours back in September 2005? 14:52:04 24 A I mean, we were always close to each other. 14:52:06 25 I -- I don't know the distance, exactly, but I could DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221 f A-290 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 32 of 54 Page 183 ~ 1 HURLEY, CHAD 14:52:09 2 see him. 14:52:09 3 Q And would it be fair to say that you were 14:52:13 4 e-mailing with Mr. Karim virtually every day during 14:52:15 5 this period? 14:52:18 6 A I -- I -- I don't remember. I -- I -- I 14:52:22 7 probably doubt it. I was more in touch with Steve 14:52:25 8 during this entire process. 14:52:26 9 Q Do you remember e-mailing with Mr. Karim 14:52:31 10 frequently during this period? 14:52:33 11 A Maybe in the beginning, but then, again, like 14:52:36 12 I was saying, he decided to go back to school and we 14:52:38 13 didn't stay in touch as much. 14:52:40 14 Q And I take it you don't remember sending him 14:52:43 15 an e-mail inquiring as to the validity of this 14:52:47 16 allegation on the part of Mr. Chen? 14:52:49 17 MR. SCHAPIRO: Objection to the 14:52:49 18 characterization. 14:52:50 19 THE WITNESS: I may have. I mean, this is 14:52:52 20 obviously not what we wanted him to do, if -- you 14:52:55 21 know, if, in fact, he didn't have authorization. 14:53:00 22 MR. BASKIN: Q. Are you saying you now have 14:53:01 23 a memory of doing it or you may have done it? 14:53:03 24 A I may have -- 14:53:04 25 MR. SCHAPIRO: Objection; form. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221f A-291 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 33 of 54 ,1 Page 184, ii 1 HURLEY, CHAD ~ 14:53:05 2 THE WITNESS: -- done it. I mean, I could 14:53:06 3 imagine. I mean, we wouldn't want him to -- to do 14:53:09 4 that, and so if -- 14:53:12 5 MR. BASKIN: Q. Do you have any -- 14:53:13 6 MR. SCHAPIRO: Can you let him finish his 14:53:15 7 answer? 14:53:16 8 MR. BASKIN: No, not at all. 14:53:17 9 MR. SCHAPIRO: No, you're not going to let I, 14:53:18 10 him finish his answer? I;; 14:53:20 11 MR. BASKIN: I said not at all. He's welcome I' 14:53:22 12 to finish his answer. 14:53:23 13 Q Do you have any recollection 14:53:23 14 MR. SCHAPIRO: Hold on. 14:53:25 15 Did you finish your answer? 14:53:25 16 THE WITNESS: I can't remember what I was 11 14:53:26 17 trying to say, so sorry. 14:53:29 18 MR. BASKIN: Q. Do you remember whether I~ 14:53:32 19 these videos that Mr. Chen is alleging that Mr. Karim ~ 14:53:41 20 stole were any of those Viacom videos, sir? 14:53:44 21 A I have no idea, but I don't remember. fl 14:53:47 22 Q Do you remember whether the videos that 14:53:55 23 Mr. Chen accuses Mr. Karim of stealing, whether they 14:54:00 24 were many or a few? 14:54:03 25 MR. SCHAPIRO: Same objection. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc·b1 a1-88a8c2f3221f A-292 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 34 of 54 Page 185 1 HURLEY, CHAD 14:54:04 2 THE WITNESS: Yeah, I don't I don't 14:54:05 3 remember. I can't recall the number. 14:54:06 4 MR. BASKIN: Q. And do you remember whether 14:54:10 5 he was being accused of stealing entire movies and 14:54:13 6 posting it on the website? 14:54:16 7 A Again, I don't -- I don't recall. 14:54:19 8 Q When -- in your life at YouTube, is it fair 14:54:33 9 to say that it was a an unusual event to have a i. 14:54:39 10 cofounder accused of being the copyright thief? 14:54:45 11 MR. SCHAPIRO: Objection to the 14:54:46 12 characterization. 14:54:47 13 THE WITNESS: Can you -- can you repeat the 14:54:48 14 question? 14:54:55 15 MR. BASKIN: Q. Well, is it an unusual event 14:54:58 16 during your time as CEO to have one of your cofounders ~ 14:55:02 17 being accused of putting stolen videos on the You Tube 14:55:06 18 website? 14:55:06 19 MR. SCHAPIRO: Objection. 14:55:09 20 THE WITNESS: I would assume it's -- it's 14:55:11 21 unusual, because I -- you know, seeing this, I 14:55:13 22 don't -- I don't remember it and it's not what our 14:55:16 23 site was about. 14:55:17 24 MR. BASKIN: Q. Now, were you a frequent 14:55:24 25 user of e-mails back in this time period? DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221 f A-293 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 35 of 54 Page 186 1 HURLEY, CHAD I~ 14:55:26 2 A I can't remember to -- to what extent I Il 14:55:29 3 receive or send e-mails, no. II' 14:55:30 4 Q What about today? Are you a frequent user of I; 14:55:33 5 e-mails? 14:55:34 6 A I've never really enjoyed e-mail. 14:55:35 7 Q How many e-mails do you receive and send 14:55:39 8 during the course of a business day today? 14:55:42 9 A I don't know the exact number. Probably 14:55:43 10 receive a lot more than I respond to. That's for 14:55:46 11 sure. 14:55:46 12 Q You think you receive and send hundreds of 14:55:52 13 e-mails in the course of a day? 14:55:53 14 MR. SCHAPIRO: Objection; compound. 14:55:54 15 THE WITNESS: Again, I don't know the 14:55:56 16 specific numbers. I receive more than I send. I.' 14:55:59 17 MR. BASKIN: Q. Back in 2005, do you have a ~ 14:56:02 18 recollection when this event was happening how many 14:56:09 19 e-mails you receive and send during the course 14:56:12 20 course of one of those business days? 14:56:14 21 A I can't -- 14:56:14 22 MR. SCHAPIRO: Objection to the form. 14:56:23 23 Mr. Hurley, you got to wait until he finishes 14:56:26 24 asking his question to answer it. 14:56:29 25 THE WITNESS: Okay. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1a1-88a8c2f3221f A-294 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 36 of 54 Page 187 1 HURLEY, CHAD 14:56:30 2 MR. BASKIN: Q. Do you know what happened to 14:56:33 3 your e-mails from 2005? 14:56:39 4 A Well, like I said, during the -- you know, 14:56:42 5 the procedure to prepare for this case, I -- at one 14:56:44 6 point I tried to transition from POP to lMAP or IMAP 14:56:50 7 to pop. I mean, different ways to handle e-mail and 14:56:53 8 lost it. 14:56:54 9 Q Well, I didn't know that you lost e-mails 14:56:55 10 in when -- when did you lose e-mails, sir? 14:57:01 11 A I can't remember the specific date. We were 14:57:03 12 in the office in San Mateo. I just remember being 14:57:05 13 upset and having to go over to talk to Bradley to see 14:57:08 14 if he can recover it. 14:57:10 15 Q And you lost all of your e-mails? 14:57:11 16 A I believe so. 14:57:12 17 Q And who is Bradley, by the way? 14:57:22 18 A Bradley is one of the engineers. 14:57:24 19 Q And Bradley, you discussed -- strike that. 14:57:28 20 You discussed with Mr. Bradley the fact that 14:57:32 21 you lost almost all your e-mails? 14:57:35 22 A Yeah. I mean, I just remember getting up and 14:57:37 23 going over to talk to him to see if there's a way 14:57:41 24 to -- to recover it, and if there was a way, he was 14:57:43 25 trying to look into it. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1a1-88a8c2f3221f A-295 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 37 of 54 Page 188 iJ 1 HURLEY, CHAD 14:57:44 2 MR. SCHAPIRO: Is there a time frame? 14:57:46 3 THE WITNESS: Right, you know, when it 14:57:47 4 happened. I-- 14:57:49 5 MR. BASKIN: Q. Is it fair to say that these 14:57:50 6 lost e-mails occurred during the summer of 2005 when 14:57:58 7 you and Mr. Karim and Mr. Chen were sending e-mails 14:58:03 8 back and forth to each other about copyright 14:58:06 9 compliance on the You Tube site? 14:58:09 10 MR. SCHAPIRO: Objection; vague; occurred? 14:58:12 11 THE WITNESS: You know, it just happened. It 14:58:13 12 didn't happen because of any kind of discussions we 14:58:16 13 were having. I was trying to be more efficient with 14:58:18 14 my e-mail and unfortunately didn't know what the hell 14:58:20 15 I was doing. 14:58:21 16 MR. BASKIN: Q. Well, do you recall if it 14:58:24 17 happened in 2005 or 2006 that you lost all these 14:58:28 18 e-mails.Mr. -- sir? 14:58:34 19 A I -- like I said, I can't recall a specific 14:58:36 20 day. 14:58:37 21 Q If I told you that as far as we can tell, for 14:58:43 22 July of 2005, you produced from your custodian account '1 ij 14:58:48 23 33 e-mails, does that sound like a pretty scanty 14:58:53 24 number of e-mails for the course of a month, sir? 14:58:56 25 MR. SCHAPIRO: Objection; argumentative; DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1 a1-88a8c2f3221f A-296 Case 1:07-cv-02103-LLS Document 324-1 Filed 05/21/10 Page 52 of 54 Page 203 1 HURLEY, CHAD 15:16:52 2 MR. SCHAPIRO: Objection. 15:16:54 3 MR. BASKIN: Q. Is that correct? 15:16:55 4 A Potentially one of the ways, yes. I' r 15:16:57 5 Q Was there any other way to monetize your I 15:16:59 6 website, other than selling advertisements? 15:17:05 7 A You know, I can't recall at the time. We 15:17:07 8 continued to look for ways to build a -- a business, 15:17:10 9 but primarily it's going to be supported by ads. 15:17:13 10 Q And the larger the user base, the higher 15:17:17 , 11 number of ads that could be sold; correct? 15:17:19 12 MR. SCHAPIRO: Objection; asked and answered. I~ 15:17:20 13 THE WITNESS: Yeah, again, that could be the 15:17:21 14 case. 15:17:22 15 MR. BASKIN: Q. Well, that is the case; is 15:17:24 16 it not? 15:17:24 17 MR. SCHAPIRO: Objection; argumentative. 15:17:26 18 THE WITNESS: Like I said, it could be the 15:17:27 19 case. i:: 15:17:28 20 MR. BASKIN: Q. Well, when you sell ads 15:17:30 21 today, do you sell it based on the user base? Likely 15:17:35 22 number of viewers? 15:17:36 23 A I I'm not sure exactly how we sell today. 15:17:39 24 Like -- like I said, the site continues to change. 15:17:42 25 You'd have to ask probably Suzie for -- for that DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a-4dOc-b1a1·88a8c2f3221f A-297 Case 1:07-cv-02103-LLS Document 324-2 Filed 05/21/10 Page 12 of 56 Page 217 ,: 1 HURLEY, CHAD 15:42:48 2 to do that by telling Google that _ bid was 15:42:56 3 $800 million higher than it really was; is that right, 15:43:01 4 sir? 15:43:01 5 A I mean, using a -- a typical bluffing tactic, 15:43:06 6 sure. It worked. 15:43:30 7 Q Now, let me show you -- can you find this for 15:44:01 8 me? No, I don't need it. Forget it. 15:44:08 9 During your time as CEO of Yahoo 15:44:33 10 MR. SCHAPIRO: Objection. 15:44:38 11 THE WITNESS: YouTube. 15:44:39 12 MR. BASKIN: Withdrawn. Sorry. 15:44:40 13 Q You -- you have been CEO of You Tube from its 15:44:43 14 founding to today; correct? 15:44:44 15 A Yeah, pretty much. 15:44:45 16 Q Now, during that time period, has You Tube I~ 15:44:51 17 experienced the phenomenon where individuals seek to 15:44:57 18 upload entire movies serially on the website? 15:45:09 19 A I -- I can't think of a specific example. I 15:45:12 20 mean, could have happened in the past. 15:45:15 21 Q You truly cannot think of a single example of 15:45:18 22 a movie that was serially loaded on the website? 15:45:23 23 MR. SCHAPIRO: Objection; asked and answered. 15:45:24 24 THE WITNESS: Like I said, I can't remember 15:45:26 25 if a -- an -- an example. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd·321 a-4dOc-b1 a1-88a8c2f3221f A-298 Case 1:07-cv-02103-LLS Document 324-2 Filed 05/21/10 Page 13 of 56 Page 218 1 HURLEY, CHAD 15:45:27 2 MR. BASKIN: Q. Well, for example, how about 15:45:32 3 United 93? Is that a movie that was loaded onto the 15:45:40 4 YouTube website in ten-minute intervals? Do you know, 15:45:48 5 sir? 15:45:49 6 A I can't -- I can't recall. I'm not aware of 15:45:51 7 that, to the best of my knowledge. 15:45:54 8 Q How about Slither? 15:46:04 9 A Again, I don't know. 15:46:08 10 Q And how about Breakup? 15:46:11 11 A Don't know. 15:46:11 12 Q How about Transformers? 15:46:16 13 A I can't recall. 15:46:18 14 Q How about Sicko? 15:46:24 15 A I can't -- can't recall. 15:46:26 16 Q How about Tropic Thunder? 15:46:33 17 A May have happened. I can't recall. 15:46:34 18 Q You do not recall whether you learned that a 15:46:39 19 single one of these movies had been uploaded serially 15:46:43 20 onto the website? 15:46:45 21 A I may have, but I don't remember 15:46:47 22 specifically. 15:46:53 23 Q And am I right that it is strike that. 15:46:57 24 Do I understand your testimony that you do 15:47:01 25 not -- you're not aware of a single incident where an "".;;' ,<;.- ."'k"~"'-'.~O'" DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a04dOc-b1 a1-88a8c2f3221f A-299 Case 1:07-cv-02103-LLS Document 324-2 Filed 05/21/10 Page 14 of 56 Page 219 1 HURLEY, CHAD 15:47:04 2 entire movie was serially loaded onto the website in 15:47:09 3 ten-minute intervals? 15:47:11 4 A I'm -- I'm sure it -- it's -- it's happened 15:47:13 5 in the past. I -- it probably was brought to my 15:47:16 6 attention at some time. I -- I don't recall any 15:47:19 7 specific instance. 15:47:20 8 Q Well, are you familiar with circumstances 15:47:31 9 when movies, entire movies, were uploaded onto the 15:47:38 10 YouTube website while they were still in the theater? C 11 15:47:48 11 A Again, it may have happened. Someone may 15:47:52 12 have sent me an e-mail, but I can't -- I can't recall 15:47:54 13 which movies or when that happened. 15:47:57 14 Q Well, without regard to which movies, do you 15:48:00 15 recall that happening, that entire movies being 15:48:04 16 uploaded onto your website while they were still in 15:48:11 17 first runs in the movie theaters? 15:48:13 18 A I can't remember. 15:48:16 19 Q Do you recall incidents where entire movies 15:48:26 20 were uploaded onto your website before they reached 15:48:30 21 the movie theater? 15:48:34 22 A Again, it may have happened. I -- I don't 15:48:36 23 recall a specific example. 15:48:38 24 Q Well, again, without regard to whether you \1 15:48:41 25 can name a specific movie, do you recall being advised 0 DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321a-4dOc-b1 a1-88a8c2f3221f A-300 Case 1:07-cv-02103-LLS Document 324-2 Filed 05/21/10 Page 15 of 56 Page 220 1 HURLEY, CHAD 15:48:51 2 that entire movies were uploaded onto YouTube even 15:48:57 3 before the movie hit the movie theaters? 15:49:01 4 A You know, may have happened. You know, I 15:49:05 5 would forward it onto the appropriate people to deal Ii 15:49:07 6 with it, if it did. 15:49:08 7 Q But you -- as you sit here today, it's your 15:49:10 8 testimony you don't remember one such incident? 15:49:12 9 MR. SCHAPIRO: Objection; mischaracterizes 15:49:14 10 the testimony. 15:49:14 11 THE WITNESS: Yeah, again, like I said, I 15:49:17 12 can't remember a specific example. 15:49:18 13 MR. BASKIN: Q. Well, if that happened, is !, 15:49:29 14 that the sort of incident that what you might 15:49:32 15 expect you would remember, sir? 15:49:38 16 A I received a lot of e-mails, and like all of 15:49:42 17 these documents, I -- you know, I don't necessarily 15:49:44 18 recall every single conversation. You know, I've 15:49:48 19 built a team where I'm able to forward and delegate. 15:49:53 20 Q Well, because I didn't ask whether you 15:49:55 21 remembered each conversation. I asked if you were 15:49:58 22 advised bye-mail or orally that entire movies were 15:50:06 23 being uploaded onto the YouTube website. 15:50:12 24 MR. SCHAPIRO: Objection; that's not what you 15:50:14 25 asked. DAVID FELDMAN WORLDWIDE, INC. 805 Third Avenue, New York, New York 10022 (212)705-8585 89dc4aOd-321 a4dOc-b1a1-88a8c2f3221f