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January 2015 Industry Update & Digital Media Insights Overview, Analysis, and Trends in the Internet & Digital Media Industry William Blair

Contents

William Blair Internet & Digital Media Credentials ...... 1 Recent Headlines...... 2 IDM Intelligence ...... 5 Market Snapshot ...... 7 Public Equity Market Overview ...... 9 Public Comparable Companies...... 9 Public Comparables Detail ...... 11 Equity Offerings (All Sectors) ...... 18 &A Activity ...... 21 William Blair Internet & Digital Media Team ...... 22 Disclosures ...... 23

Internet & Digital Media

Internet & Digital Media Table of Contents

William Blair

William Blair Internet & Digital Media Credentials

$1,000,500,000 $85,000,000 $642,772,851 Not Disclosed

has been acquired by IPO & Follow-On Senior Credit Facility April 2014 & December 2014 September 2014 September 2014 May 2014

$92,000,000 $524,393,977 $406,932,806 $66,046,633

IPO & Follow-On IPO & Follow-On Follow-On Offerings Initial Public Offering October 2013 & July 2013 & May 2013 & March 2014 March 2014 December 2013 November 2013

$290,950,000 $405,375,000 $763,794,000 $187,000,000

R

IPO & Follow-On IPO & Follow-On Initial Public Offering Initial Public Offering October 2012 & June 2011 & November 2013 September 2013 September 2013 June 2013

$329,783,752 $361,000,000 Not Disclosed Not Disclosed

has received a growth equity A wholly owned subsidiary of Yext has been acquired by investment from has been acquired by IPO & Follow-On Strategic Technology September 2012 & Investors March 2013 November 2012 October 2012 August 2012

Not Disclosed Not Disclosed $16,006,877,370 $805,000,000

TM

has been acquired by has been acquired by

Initial Public Offering Initial Public Offering

July 2012 June 2012 May 2012 November 2011

Internet & Digital Media William Blair Internet & Digital Media Credentials 1

William Blair

Recent Headlines

The Internet & Digital Media (“IDM”) sector continued its momentum into the fourth quarter of 2014, marked by some notable M&A and financing transactions, particularly in the Asian e-commerce, online lending platform, and ride sharing spaces. Asian e-Commerce transactions included ’s $700 million financing led by DST, Tiger Global, ICONIQ Capital and GIC, Coupang’s $300 million financing led by BlackRock, Lazada’s $250 million financing from Temasek, and Snapdeal’s $627 million financing from Softbank. In the online lending platform sector, we saw OnDeck Capital’s $230 million IPO (valuing the Company at $1.3 billion), LendingClub’s $1 billion IPO (valuing the Company at $5.4 billion), and AvantCredit’s $225 million financing led by Tiger Global. There was also a lot of activity in the ride sharing space—notable transactions included ’s massive $1.2 billion financing (valuing the Company at $40 billion) and its Southeast Asia-based rival, GrabTaxi’s $250 million financing (at a relatively humble $1 billion valuation). Overall, 2014 was a very exciting year in the IDM sector, and we expect the strong M&A and financing environment to continue into 2015 as the global macro outlook remains favorable and investors remain hungry to invest in high growth companies!

Selected Highlights

Date Company News Headline Sony revealved that its controversial new movie, "The Interview", earned $15 Dec-28 million in consumer spending via rentals and purchases across various online platforms over the first four days it was available

Goodwater Capital, an early-stage VC firm, released an interesting analysis that found 27 consumer Internet giants holding at least $1 billion in cash; adding Dec-23 Apple, and Samsung to the mix (all of which have been increasingly active in consumer startups), brings the grand total of cash held to a whopping $605 billion, making 2015 ripe for some blockbuster deals!

DST Global, GIC, ICONIQ Capital and Tiger Global announced their $700 million lead investment in Flipcart, India's largest e-commerce company that is popular Dec-20 \ for selling books and electronics online; the Company raised the capital at an approximate $10 billion valuation

OnDeck Capital, an online lending platform for small businesses, priced its IPO Dec-17 at $20 per share, raising $230 million, valuing the Company at $1.3 billion

Bravofly Rumbo Group announced its $120 million acquisition of Dec-16 lastminute.com, an online travel and leisure retailer with operations in the U.K., \ France, Germany, Spain and Italy; the Company was previously owned by Sabre

T.Rowe Price, Investment Management and Baillie Gifford & Co. announced thier $250 million lead investment in SurveyMonkey, an online Dec-15 \ survey platform with tools that allow users to turn survey data into insights and reports

LendingClub, an online marketplace lending platform primarily for consumers Dec-12 and small businesses, priced its IPO at $15 per share, raising $1 billion, valuing the Company at $5.4 billion

Adobe announced its $800 million acquisition of Fotolia, a marketplace for royalty-free photos, images, graphics and HD video; the Company will be Dec-11 \ integrated into Adobe's Creative Cloud platform, allowing members to access and purchase over 34 million images and videos

Institutional Venture Partners announced its $18 million investment in Woven Digitial, which runs pop culture and entertainment news sites Brobible and Dec-11 \ Uproxx (also has an exclusive partnership with theChive); the Company will continue to have a "guy-heavy" editorial perspective for the near future

BlackRock Private Equity Partners announced its $300 million lead investment in Coupang, the largest South Korean e-commerce retailer; the Company raised Dec-10 the capital at approximately a $2.5 billion valuation; similar to Indian e- \ commerce neighbors Flipkart and Snapdeal, the Company expects to beat global e-commerce giant .com on its home turf

Public Equity Offering M&A Transaction Private Financing News Highlight

Internet & Digital Media 2 Recent Headlines

William Blair

Selected Highlights (cont.)

Date Company News Headline CVC Capital Partners announced its approximately $942 million majority acquisition (~80%) of Sky Bet, an online casino, poker and bingo gaming and Dec-04 \ sports betting website for consumers in the U.K and Europe, from Sky (SKYB.L); the deal values the online betting business at approximately $1.3 billion

Though investors were not officially announced, it is believed that Sequoia ? Capital, TPG, Fidelity, T.Rowe Price, Wellington, KPCB and Menlo Ventures Dec-04 ? \ invested $1.2 billion in Uber, a ride sharing company; the Company raised the capital at a $40 billion valuation

Tiger Global announced its $225 million lead investment in AvantCredit, which specializes in making loans to borrowers whose credit scores generally lie in Dec-04 \ the 600 range; unlike LendingClub but similar to OnDeck Capital, the Company makes loans using its own capital

Softbank announced a $250 million investment in GrabTaxi, a Southeast Asia app-based ride sharing company that is Uber's major rival in the region; the Dec-03 Company raised the capital at a ~$1 billion valuation; the announcement from \ Softbank comes after the Japanese telecom giant announced its $10 billion commitment to high growth startups in India and Southeast Asia generally

Temasek announced its approximately $250 million investment in Lazada, a Nov-29 Southeast Asian e-commerce company; the Company raised the capital at \ approximately a $1.3 billion valuation

General Atlantic announced its $47 million minority investment in Media, an online media publisher that owns news site Vox.xom and popular sports Nov-24 network, SB Nation; the Company raised the capital at a $380 million \ valuation

Taylor Swift pulls tracks from her hot-selling album, 1989, from after Nov-11 dismissively calling the streaming music provider a "grand experiment"; the popular singer would have made $6 million this year on Spotify Yahoo! announced its $640 million acquisition of BrightRoll, an online platform Nov-11 for selling and delivering video advertising; Yahoo! hopes to strengthen its \ video advertising platform by giving marketers an easier way to buy video ads in real-time and across many different websites

Music royalty research firm, Kobalt, found that revenues from Spotify streams Nov-04 were 13% higher on average than revenues from Apple's iTunes for customers in the European market Softbank announced its $627 million investment in Snapdeal, a leading Indian e-commerce marketplace; both Snapdeal and its rival Indian e-commerce firm, Oct-28 \ Flipkart, are facing stiff competition from global e-commerce giant, Amazon, which announced its $2 billion investment to ramp up business in India

Ooyala, a Telstra subsidiary, announced its $80 million acquisition of Videoplaza, an operator of one of the world's largest premium video ad serving Oct-20 \ platforms and programmatic trading solutions used by broadcasters and media companies in Europe and the Asia Pacific region to optimize video monetization

Great Hill Partners announced its approximately $130 million investment in Momondo Group, an online travel search company which operates in 30+ Oct-17 \ countries through Cheapflights and Momondo; the Company raised the capital at approximately a $210 million valuation

Public Equity Offering M&A Transaction Private Financing News Highlight

Internet & Digital Media Recent Headlines 3

William Blair

Selected Highlights (cont.)

Date Company News Headline DST and SAB Capital, along with 80+ investors on the platform, AngelList, announced a nearly $13 million investment in Beepi, an online used Oct-06 \ car marketplace; the $2.7 million raised through AngelList makes it the largest single investment raised on the platform since its founding in 2010

Wonga has agreed to entirely write off the debts of 330,000 customers who were more than 30 days in arrears and to waive the interest rates and fees of Oct-02 another 45,000 between 0 and 29 days in arrears; Wonga was forced to action by the U.K.'s Financial Conduct Authority after the Company admitted its affordability checks on consumers were inadequate

Sequoia Capital announced its $165 million investment in Houzz, an online Oct-01 home-remodeling website; the Company raised the capital at a $2.3 billion plus \ post-money valuation, according to some sources

Public Equity Offering M&A Transaction Private Financing News Highlight

Internet & Digital Media 4 Recent Headlines

William Blair

IDM Intelligence

In light of LendingClub’s $1 billion IPO, valuing the Company at $5.4 billion and OnDeck Capital’s $230 million IPO valuing the Company at $1.3 billion, we decided to focus this quarter’s intelligence piece on the rapidly evolving “Online Marketplace Lending” ecosystem.

So first things first…what do we mean by “Online Marketplace Lending”? Is that just a fancy name for a bank? • In its purest form, online marketplace lenders are different from banks because they do not make loans to borrowers from their own balance sheets (no loan default risk); instead, they provide a proprietary technology platform that directly connects lenders and borrowers, thereby disintermediating the bank • Disintermediation can create lower costs for borrowers and higher risk-adjusted returns for lenders • Given these important distinctions between many marketplace lenders and traditional bank lenders, investors tend to compare companies like LendingClub with other online marketplaces serving a wide range of end markets, including:

Here’s a look at how the LendingClub platform works – connecting borrowers and lenders

Benefits to Benefits to Borrowers Lenders

Access to Access to a $ Affordable New Asset  Credit Class $ Capital

Fast and Easy-to-Use Efficient % fee to LC Tools Decision

Transparency and Transparency Fairness % fee to LC

Superior Principal + Interest $ Attractive Customer Risk-Adjusted Experience Returns

Source: LendingClub investor materials and William Blair.

Internet & Digital Media IDM Intelligence 5

William Blair

Who exactly are the lenders here?

In the case of LendingClub, the funding comes primarily from individual investors (as shown below); however, other players in the space are turning to more institutional capital and their own balance sheets to fund a larger portion of loans

16% Individuals through Investment Vehicles or Managed Accounts

Self-Managed Individual Investors 27% 57% Institutional Investors

Source: LendingClub S-1. Percentages based on $2.1 billion in loans facilitated by LendingClub for the year ended 12/31/13.

The online marketplace lending space is growing rapidly and more specialized players are entering different sub-segments of the market

Foundation Capital, in their report “A Trillion Dollar Market By the People, For the People”, estimates that $8.8 billion of marketplace loans will be originated in 2014; that may sound like a big number, but it only represents ~0.25% of total annual lending activity of $3.2 trillion, meaning there’s still a whole lotta’ room for growth and disruption ahead!

($ in billions) $3.2 10.0 $8.8 trillion Total Annual Lending 7.5 Activity $8.8 5.0 $3.4 billion

2.5 $0.5 $1.2 $0.1 $0.3 0.0 2009 2010 2011 2012 2013 2014E

Who else is out there trying to disrupt traditional lending markets?

Consumer Loans

Education Financing

SMB Credit

Source: “A Trillion Dollar Market By the People, For the People” by Charles Moldow, General Partner – Foundation Capital.

Concluding remarks: Though we are still in the early days, we expect to see a lot more disruption in the lending market, especially after the public markets’ favorable reception of the LendingClub and OnDeck Capital IPOs. We believe more disruption and innovation will continue to drive efficiency in the lending market and anticipate a very active 2015 in this exciting space!

Internet & Digital Media 6 IDM Intelligence

William Blair

Market Snapshot

Economic Indicators

Economic Indicators 2009 2010 2011 2012 2013 2014 NASDAQ (yr. end) 2,269 2,653 2,605 3,020 4,177 4,736 Dow Jones Industrial Average (yr. end) 10,428 11,578 12,218 13,104 16,577 17,823 USD/Euro Exchange Rate (ann. avg.) $1.39 $1.33 $1.39 $1.29 $1.33 $1.33 Federal Funds Rate (ann. avg. %) 0.16 0.18 0.10 0.14 0.11 0.09 U.S. Inflation Rate (yoy, ann. avg. %) (0.3) 1.6 3.2 2.1 1.5 1.7 3-Month LIBOR (ann. avg. %) 0.686 0.344 0.337 0.430 0.270 0.234 U.S. 10-Year Treasury Bond (ann. avg. %) 3.26 3.22 2.78 1.80 2.35 2.54 U.S. GDP Growth (yoy, ann. avg. %) (2.6) 2.9 1.6 2.4 1.6 2.4 U.S. Unemployment Rate (ann. avg. %) 9.3 9.6 9.0 8.1 7.5 6.2 Consumer Confidence (ann. avg.) 45.2 54.5 58.1 66.9 73.3 86.9 Sources: NASDAQ, Dow Jones, S&P, Federal Reserve, Bureau of Labor Statistics, Census Bureau, Bureau of Economic Analysis, Conference Board, and as of December 31, 2014.

All Sectors

Number of Total Global Transactions 2009 2010 2011 2012 2013 2014 Total M&A – Announced 36,416 39,986 39,171 41,531 25,849 35,058 Total Private Placements 18,792 26,725 26,712 25,813 27,528 31,493 Total PIPES 2,628 3,585 2,865 2,531 2,598 2,075 Total IPO Filings 81 181 195 89 202 322 Total IPO Pricings 52 117 104 111 174 243 Total Follow-On Filings 758 659 474 543 765 651 Total Follow-On Pricings 687 587 412 484 638 612 Sources: Dealogic, Capital IQ, and PlacementTracker as of December 31, 2014.

Internet & Digital Media Market Snapshot 7

William Blair

Technology

Number of U.S. Technology Transactions 2009 2010 2011 2012 2013 2014 Technology M&A – Announced 1,637 2,173 2,199 2,224 2,089 2,456 Technology Private Placements 2,648 3,376 4,019 3,901 4,726 4,357 Technology PIPES 148 189 91 73 82 86 Technology IPO Filings 28 65 78 32 54 67 Technology IPO Pricings 17 43 44 43 53 58 Technology Follow-On Filings 67 72 70 66 151 104 Technology Follow-On Pricings 64 68 62 58 146 98

Internet & Digital Media

Number of U.S. Internet & Digital Media Transactions 2009 2010 2011 2012 2013 2014 Internet & Digital Media M&A – Announced 382 445 496 418 358 316 Internet & Digital Media PIPES 28 55 50 35 39 34 Internet & Digital Media IPO Filings 6 11 14 9 10 19 Internet & Digital Media IPO Pricings 3 7 20 13 10 18 Internet & Digital Media Follow-On Filings 2 5 8 6 12 13 Internet & Digital Media Follow-On Pricings 2 5 7 5 12 13

Internet & Digital Media Median Multiples

Median 2009 2010 2011 2012 2013 2014

Forward CY EV/Revenue 1.8x 2.1x 1.8x 1.7x 2.3x 2.0x

Forward CY EV/EBITDA 8.9x 9.0x 7.7x 8.7x 11.4x 9.5x

Forward CY P/E 21.1x 20.8x 17.7x 17.6x 23.5x 18.4x

Forward CY P/E/G 1.3x 1.1x 0.9x 0.9x 1.2x 1.3x

Sources: 451 Capital IQ, FactSet Research Systems, and PlacementTracker as of December 31, 2014.

Internet & Digital Media 8 Market Snapshot

William Blair

Public Equity Market Overview

Public Comparable Companies

Summary of Public Comparables

Ent. Value/Sales Ent. Value/EBITDA P/E Ratio (CY ’15E) PEG Category 2015E 2016E 2015E 2016E 2015E 2016E Ratio E-commerce / Marketplaces (1) 1.9x 1.6x 13.7x 11.1x 21.6x 16.7x 1.2x

E-retail (2)(3) 1.2x 1.1x 14.8x 12.3x 44.5x 26.5x 1.5x Ad Tech 1.8x 2.2x 13.7x 10.8x 27.6x 22.7x 1.0x

Content 2.8x 2.5x 12.4x 9.1x 29.0x 26.5x 1.4x Social 8.9x 6.2x 24.7x 15.1x 61.5x 39.0x 1.5x Digital Media 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x Digital Media Infrastructure 3.0x 2.8x 11.3x 9.8x 23.8x 20.0x 1.5x Gaming 1.8x 1.7x 8.2x 7.4x 14.1x 10.5x 1.0x

Web Services (4) 2.6x 2.5x 13.5x 14.5x 38.3x 30.2x 1.1x

Mobile (5)(6) 1.1x 0.9x 9.9x 7.7x 13.6x 12.4x 1.6x Traditional Media 2.8x 2.7x 9.3x 8.8x 18.8x 16.0x 1.4x Consumer Electronics 0.7x 0.6x 6.4x 5.9x 13.9x 10.4x 1.8x Selected Europe & Latin America 1.2x 1.1x 8.8x 7.0x 20.2x 16.8x 1.1x Selected Asia 1.8x 1.6x 9.8x 8.1x 18.9x 15.4x 0.9x (1) P/E ratio metrics exclude , Coupons.com, Borderfree, Liquidity Services and Care.com. (2) EBITDA metrics excude Overstock.com, 1-800 Flowers.com, Blue Nile, PetMed Express, , CafePress and GeekNet. (3) P/E metrics exclude Stutterfly, Overstock.com, 1-800 Flowers.com, PetMed Express, United Online and Alibaba. (4) EBITDA and P/E Metrics exclude Tucows and Synacor. (5) Revenue metrics exlude TeleCommunications Systems and Voltari. (6) EBITDA and P/E Metrics exclude Millennial Media, Telenav, TeleCommunications Systems and Voltari.

Internet & Digital Media Public Equity Market Overview 9

William Blair

Indexed Stock Performance—Last 12 Months

150

140

130

120

110

100

90

80

70 12/31/13 02/28/14 04/30/14 06/30/14 08/31/14 10/31/14 12/31/14

E-commerce / Marketplaces (-1.3%) E-retail (-20.6%) Ad Tech (+13.5%) Content (+9.3%) Social (+36.8%) Digital Media Infrastructure (+19.9%) Gaming (+24.9%) Web Services (+0.7%) Mobile (+0.3%) Traditional Media (+13.9%) Consumer Electronics (+23.6%) Selected Asia (-0.2%) Selected Europe & Latin America (+0.4%) NASDAQ (+13.4%)

Source: FactSet Research Systems as of December 31, 2014.

Internet & Digital Media 10 Public Equity Market Overview

William Blair

Public Comparables Detail

E-commerce/Marketplaces

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio eBay $56.12 $69,721.6 $66,936.6 3.3x 2.9x 10.7x 9.7x 17.1x 15.3x 1.5x The Priceline Group 1,140.21 59,696.8 57,385.6 5.8 4.9 14.1 11.8 18.5 15.6 1.0 85.36 10,802.1 10,537.6 1.6 1.4 8.8 7.6 18.2 15.6 0.8 8.26 5,545.4 4,690.2 1.3 1.1 13.7 11.1 54.7 34.7 1.9 Grubhub 36.32 2,961.0 2,683.2 8.3 6.9 26.6 21.1 77.2 nmf 1.6 HomeAway 29.78 2,808.6 2,330.4 4.4 3.7 17.2 13.6 40.7 32.3 1.6 Proto Labs 67.16 1,734.2 1,675.9 6.5 5.3 17.6 14.4 31.5 26.0 1.5 Coupons.com 17.75 1,419.0 1,233.3 4.2 3.3 25.9 16.1 nmf 29.8 na Orbitz Worldwide 8.23 911.1 1,111.5 1.1 1.1 6.6 6.1 20.6 17.8 0.4 NIC 17.99 1,174.7 1,068.8 3.6 3.4 12.8 12.7 26.6 24.3 na Dice Holdings 10.01 532.0 618.1 2.2 2.1 6.9 6.3 17.3 14.1 1.1 RetailMeNot 14.62 790.5 602.8 2.0 1.6 5.7 4.6 13.6 11.1 0.6 Monster Worldwide 4.62 409.8 586.2 0.7 0.7 5.5 5.2 14.7 11.5 1.2 6.91 579.4 496.2 1.4 1.4 30.2 7.2 47.0 12.2 na eHealth 24.92 444.0 385.9 1.9 1.6 24.6 15.5 54.3 34.6 3.3 Liquidity Services 8.17 244.5 181.9 0.4 na 4.3 na 12.8 na 0.6 Care.com 8.28 260.7 177.6 1.0 0.8 nmf nmf nmf nmf na Borderfree 8.96 285.0 162.6 1.1 0.9 39.0 16.8 nmf nmf na Travelzoo 12.62 185.9 128.7 0.9 0.9 8.1 9.5 22.5 25.5 na Mean(1) 2.7x 2.5x 15.5x 11.1x 28.4x 20.8x 1.3x Median(1) 1.9x 1.6x 13.2x 11.1x 21.6x 16.7x 1.2x (1) P/E ratio metrics exclude GrubHub, Coupons.com, Borderfree, Liquidity Services and Care.com.

Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Social

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio $78.02 $217,507.9 $203,535.9 11.9x 9.0x 20.0x 15.1x 40.5x 30.2x 1.1x LinkedIn 229.71 28,524.6 25,093.2 8.5 6.6 30.8 22.0 82.5 55.7 2.0 35.87 22,425.2 20,303.2 8.9 6.0 37.3 20.4 nmf 47.7 na Momo 12.00 2,237.7 2,075.5 13.3 6.2 24.7 na 75.0 21.1 na MeetMe 1.53 68.7 57.2 1.1 0.9 6.5 4.1 nmf 11.3 na Mean 8.7x 5.7x 23.9x 15.4x 61.5x 36.2x 1.5x Median 8.9x 6.2x 24.7x 15.1x 61.5x 39.0x 1.5x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media Public Equity Market Overview 11

William Blair

Digital Media

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio $341.61 $20,580.8 $19,813.9 2.9x 2.4x 29.2x 19.8x nmf 45.1x na Pandora Media 17.83 3,710.2 3,393.8 2.8 2.2 nmf 13.8 35.0 20.4 0.6 Mean 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x Median 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Ad Tech

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Microsoft $46.45 $382,880.5 $318,257.5 3.2x 2.9x 8.9x 8.1x 16.0x 14.1x 1.5x 530.66 358,535.9 307,118.9 4.9 4.2 9.9 8.4 17.5 14.9 1.1 Criteo 40.42 2,426.0 2,117.8 4.4 3.5 15.8 11.5 38.3 30.5 0.8 comScore 46.43 1,587.9 1,573.9 4.2 3.7 18.3 15.2 27.1 21.9 0.9 Constant Contact 36.70 1,162.5 1,008.1 2.6 2.2 13.3 10.8 28.1 22.7 1.1 Bazaarvoice 8.04 627.4 572.9 2.8 2.4 nmf nmf nmf nmf na Rocket Fuel 16.12 665.7 562.4 0.9 0.7 51.9 11.5 nmf nmf na 13.85 567.9 534.9 1.1 na 6.9 na 9.7 12.7 0.5 Rubicon Project 16.14 580.3 476.4 3.0 2.4 41.6 15.9 nmf 52.1 na QuinStreet 6.07 269.4 226.7 0.8 0.8 13.7 11.2 48.8 na na Marchex 4.59 196.7 116.0 0.8 0.8 7.3 7.2 32.5 27.0 na YuMe 5.04 166.5 109.1 0.5 0.5 16.2 8.2 nmf 72.5 na Tremor Video 2.87 146.6 68.7 0.4 0.3 nmf 23.8 nmf nmf na ReachLocal 3.44 100.3 48.4 0.1 0.1 nmf 3.1 nmf nmf na Mean 2.1x 1.9x 18.5x 10.8x 27.2x 29.8x 1.0x Median 1.8x 2.2x 13.7x 10.8x 27.6x 22.7x 1.0x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media 12 Public Equity Market Overview

William Blair

E-retail

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Alibaba $103.94 $258,362.3 $251,337.5 15.7x 11.9x 29.7x 22.3x nmf 28.0x na Amazon.com 310.35 143,693.9 139,909.9 1.3 1.1 17.3 13.2 nmf nmf na HSN 76.00 3,980.1 4,118.3 1.1 1.1 11.2 10.3 21.0 18.9 1.5 Cnova 7.91 3,471.8 3,551.9 0.7 0.5 22.3 11.9 88.1 30.6 2.1 Cimpress 74.84 2,440.1 2,863.2 na na na na na na na zulily 23.40 2,932.9 2,588.8 1.4 1.0 nmf 13.9 52.9 nmf 0.8 19.85 1,645.9 1,913.0 1.2 0.9 nmf nmf nmf nmf na Shutterfly 41.70 1,615.6 1,622.1 1.5 1.4 7.8 6.6 nmf 45.8 na Stamps.com 47.99 763.6 731.9 4.5 4.0 14.5 12.3 17.8 15.0 0.9 1-800-Flowers.com 8.24 528.8 591.5 0.5 na 6.8 na 18.2 na 1.1 Overstock.com 24.27 583.1 470.4 0.3 na 9.4 na nmf na na Blue Nile 36.01 426.6 394.8 0.8 0.7 15.1 12.4 36.1 28.6 1.8 PetMed Express 14.37 291.3 241.1 1.0 na 8.5 na 16.1 na 3.2 United Online 14.55 207.1 130.8 0.6 na 3.7 na 15.3 na na CafePress 2.35 40.8 30.3 0.1 0.1 3.9 na nmf nmf na Geeknet 8.28 55.6 24.9 0.2 na 12.4 na 72.0 24.4 na Mean(1) (2) 2.1x 2.3x 16.9x 12.9x 48.0x 27.2x 1.6x Median(1) (2) 1.2x 1.1x 14.8x 12.3x 44.5x 26.5x 1.5x (1) EBITDA metrics excude Overstock.com, 1-800 Flowers.com, Blue Nile, PetMed Express, United Online, CafePress and GeekNet. (2) P/E metrics exclude Stutterfly, Overstock.com, 1-800 Flowers.com, PetMed Express, United Online and Alibaba. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Content

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Yahoo! $50.51 $47,850.7 $37,888.8 8.4x 8.4x 28.6x 27.3x 44.8x 40.2x na TripAdvisor 74.66 10,670.7 10,440.7 6.7 5.5 17.7 14.0 29.2 23.0 1.1 IAC 60.79 5,094.3 5,159.2 1.6 1.5 8.7 6.9 18.2 13.8 3.2 105.89 4,288.7 3,724.8 8.4 6.5 nmf 25.8 nmf 65.8 na 54.73 3,968.9 3,604.9 6.7 4.9 nmf 18.2 nmf 60.1 na AOL 46.17 3,596.0 3,587.8 1.3 1.2 6.7 6.2 19.1 16.6 1.4 Shutterstock 69.10 2,448.6 2,091.3 4.8 3.9 21.5 16.0 nmf nmf na WebMD Health 39.55 1,429.8 1,682.2 2.6 2.4 9.1 8.0 31.3 24.4 2.5 Trulia 46.03 1,740.2 1,654.1 4.9 3.9 nmf 19.4 nmf 69.3 na Shutterstock 22.90 1,766.6 1,567.8 5.6 4.2 59.6 28.4 nmf 52.3 na Bankrate 12.43 1,298.1 1,419.1 2.3 2.1 8.9 7.6 15.4 13.3 0.9 Tree.com 48.34 547.5 463.9 2.5 2.2 nmf 13.1 nmf 19.8 na XO Group 18.21 489.5 403.9 2.9 2.6 13.4 10.7 41.9 nmf na Angie's List 6.23 364.6 344.9 1.0 0.9 15.9 9.1 nmf 28.5 na TechTarget 11.37 367.6 333.1 2.8 2.3 12.4 na 28.7 na 1.1 Spark Networks 3.59 87.4 78.0 1.4 1.3 11.3 6.1 34.2 nmf 2.3 Demand Media 6.12 112.6 73.1 0.5 na 3.5 na nmf nmf na Mean 3.8x 3.4x 16.7x 11.4x 29.2x 35.6x 1.8x Median 2.8x 2.5x 12.4x 9.1x 29.0x 26.5x 1.4x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media Public Equity Market Overview 13

William Blair

Gaming

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Activision Blizzard $20.15 $14,488.5 $14,982.5 3.2x 2.9x 8.7x 7.9x 14.1x 12.7x 1.0x 47.02 14,618.7 12,821.7 2.9 2.8 11.3 10.1 20.6 17.6 1.7 Digital Entertainment 15.36 4,911.1 3,934.7 1.8 1.9 4.8 4.9 7.8 8.3 na GameStop 33.80 3,667.8 3,647.8 0.4 0.3 4.2 4.0 8.3 7.4 0.6 Take-Two Interactive 28.03 2,358.0 2,019.1 1.3 1.2 8.2 7.4 19.9 17.3 0.7 2.66 2,401.6 1,575.8 1.9 1.7 17.1 13.4 86.6 nmf 3.7 iDreamSky Technology 17.08 722.9 559.9 1.8 1.2 7.1 4.3 10.8 6.9 na Mean 1.9x 1.7x 8.8x 7.4x 24.0x 11.7x 1.5x Median 1.8x 1.7x 8.2x 7.4x 14.1x 10.5x 1.0x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Digital Media Infrastructure

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Adobe $72.70 $36,258.3 $34,033.1 6.8x 5.5x 20.0x 14.7x 33.2x 21.6x 2.0x Akamai 62.96 11,206.5 11,095.7 4.9 4.2 11.3 9.6 22.9 19.1 1.4 Dolby 43.12 4,409.7 3,631.7 3.7 3.5 na na 26.3 23.9 3.5 Rovi 22.59 2,140.0 2,859.5 5.1 4.5 12.0 9.8 12.1 9.1 0.8 Gogo 16.53 1,409.4 1,484.4 2.9 2.3 25.1 11.6 nmf nmf na Monotype Imaging 28.83 1,129.4 1,046.8 5.1 4.6 12.9 11.3 22.8 20.0 1.5 TiVo 11.84 1,214.4 710.1 1.5 1.4 5.6 4.3 30.4 18.3 na RealD 11.80 592.2 575.3 3.0 2.7 7.5 7.1 nmf 52.3 na Harmonic 7.01 617.3 520.1 1.2 1.2 7.8 8.3 24.8 20.0 na DTS 30.75 528.5 472.0 3.1 2.9 11.4 10.5 17.7 15.1 1.0 Smart Technologies 1.20 146.0 257.2 0.5 na 6.7 na nmf na na Boingo Wireless 7.67 276.8 256.4 1.9 1.7 8.0 6.0 nmf nmf na Brightcove 7.78 251.1 230.7 1.7 na 74.0 nmf nmf na na Limelight Networks 2.77 273.4 172.5 1.1 1.1 nmf 70.6 nmf nmf na Envivio 1.34 37.1 (0.8) nmf na nmf na nmf na na Mean(1) 3.0x 3.0x 16.9x 15.2x 23.8x 22.2x 1.7x Median(1) 3.0x 2.8x 11.3x 9.7x 23.8x 20.0x 1.5x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media 14 Public Equity Market Overview

William Blair

Web Services

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Web.com $18.99 $997.5 $1,502.5 2.6x 2.5x 9.3x 8.4x 7.8x 7.0x 0.5x LogMeIn 49.34 1,203.1 1,006.7 3.9 3.4 17.6 14.5 38.3 30.2 1.1 Wix.com 21.00 799.9 706.1 3.5 2.6 nmf 43.0 nmf nmf na Digital River 24.73 788.4 537.7 1.3 1.3 9.3 7.4 41.5 31.4 4.1 Carbonite 14.27 384.8 313.4 2.3 2.0 17.8 15.9 nmf nmf na Tucows 19.41 219.5 206.0 1.2 na 10.3 na 19.2 na na Synacor 2.00 54.8 33.0 0.3 na 23.1 na na na na Mean(1) 2.7x 2.3x 13.5x 17.8x 29.2x 22.8x 1.9x Median(1) 2.6x 2.5x 13.5x 14.5x 38.3x 30.2x 1.1x (1) EBITDA and P/E metrics exclude Tucows and Synacor. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Mobile

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Amdocs $46.66 $7,272.2 $6,057.7 1.6x 1.6x 8.1x 7.6x 13.6x 12.4x 1.6x Glu Mobile 3.90 417.1 350.4 1.4 1.3 11.7 7.8 17.5 11.1 na TeleCommunication Systems 3.12 186.1 265.4 0.7 na 6.6 na 12.7 na na Millennial Media 1.60 222.6 146.1 0.4 0.4 nmf 22.3 nmf nmf na Telenav 6.67 266.3 134.7 0.8 0.6 nmf 20.7 nmf 66.9 na Voltari 0.66 3.1 25.9 na na na na na na na Mean(1) (2) 1.1x 1.0x 9.9x 7.7x 15.6x 11.7x 1.6x Median(1) (2) 1.1x 0.9x 9.9x 7.7x 13.6x 12.4x 1.6x (1) Revenue metrics exlude TeleCommunications Systems and Voltari. (2) EBITDA and P/E metrics exclude Millennial Media, Telenav, TeleCommunications Systems and Voltari. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Traditional Media

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio $58.01 $149,265.7 $193,950.7 2.7x 2.6x 8.0x 7.4x 17.6x 15.2x 1.5x Walt Disney 94.19 159,719.0 174,358.0 3.3 3.1 11.3 10.2 19.4 16.9 1.5 Time Warner 85.42 71,623.5 90,970.5 3.2 3.0 11.3 10.0 18.1 14.7 1.2 Naspers 131.18 51,974.4 54,864.2 7.4 6.3 nmf nmf 39.1 29.0 3.1 Viacom 75.25 30,629.5 42,535.5 2.9 2.8 9.3 8.8 12.2 10.8 0.9 CBS 55.34 28,714.6 35,495.6 2.5 2.4 10.3 9.4 15.0 12.3 1.1 McGraw Hill Financial 88.98 24,158.1 23,898.1 4.5 4.2 11.2 10.2 20.5 18.2 1.4 Scripps Networks 75.27 10,320.4 11,941.0 4.2 4.0 9.7 9.2 16.8 15.0 1.4 Gannett 31.93 7,210.8 10,209.8 1.6 1.5 6.6 6.0 12.8 10.6 0.9 News Corp 15.69 9,112.3 6,538.3 0.7 0.7 6.9 6.1 29.5 25.4 1.8 Graham Holdings 863.71 5,004.0 4,848.4 1.4 1.4 7.9 7.1 26.5 25.8 3.0 New York Times 13.22 1,987.1 1,873.6 1.2 1.2 7.5 7.3 26.6 23.9 na Mean 3.0x 2.8x 9.1x 8.3x 21.2x 18.2x 1.6x Median 2.8x 2.7x 9.3x 8.8x 18.8x 16.0x 1.4x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media Public Equity Market Overview 15

William Blair

Consumer Electronics

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Apple $110.38 $647,361.0 $575,860.0 2.7x 2.5x 8.1x 7.5x 13.9x 12.7x 1.1x Samsung 1,215.76 178,117.6 134,817.5 0.7 0.7 3.4 3.1 10.4 9.3 16.0 Hewlett-Packard 40.13 73,601.7 78,386.7 0.7 0.7 5.8 5.7 10.1 9.7 2.1 Toshiba 4.28 18,110.2 33,730.2 0.6 0.6 6.4 5.9 12.1 10.4 na Sony 20.64 23,732.5 32,844.5 0.5 0.5 6.1 5.0 38.7 nmf na Nokia 7.94 28,967.9 22,959.3 1.5 1.4 9.6 9.3 21.3 18.9 na LG 54.15 9,243.7 16,356.3 0.3 0.3 4.4 4.2 8.0 7.2 0.1 Go Pro 63.22 8,077.7 7,838.4 4.7 4.0 nmf nmf 50.2 nmf 1.4 HTC 4.47 3,704.5 1,973.3 0.3 0.3 16.1 16.2 nmf nmf na Acer 0.67 1,874.4 1,159.7 0.1 0.1 7.5 7.2 27.7 25.2 9.2 Mean 1.2x 1.1x 7.5x 7.1x 21.4x 13.3x 5.0x Median 0.7x 0.6x 6.4x 5.9x 13.9x 10.4x 1.8x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Selected Europe and Latin America

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio United Internet $45.44 $9,263.1 $9,447.5 2.2x 2.1x 10.5x 9.4x 20.5x 17.4x 1.0x MercadoLibre 127.67 5,637.3 5,518.4 8.5 6.9 24.2 19.3 38.4 31.1 1.3 UBM 7.53 3,329.8 4,103.9 2.8 2.8 10.7 10.4 13.3 12.8 2.5 Rightmove 35.03 3,389.5 3,380.0 12.4 11.3 16.8 15.2 21.7 19.2 1.4 Technicolor SA 5.62 1,883.5 2,617.0 0.6 0.7 3.7 4.2 7.1 9.1 na 18.36 1,978.9 2,032.0 1.1 1.0 3.1 2.7 12.9 11.7 1.3 Moneysupermarket.com 3.65 1,987.7 2,020.0 5.1 4.8 13.5 12.6 19.0 17.7 0.9 Tomorrow Focus 4.56 266.1 303.9 1.2 1.1 9.6 8.2 19.3 14.9 0.6 GameLoft 4.04 346.4 277.3 0.9 0.8 6.4 5.1 20.2 16.1 0.2 Goldbach Group 18.12 106.5 76.0 na na na na na na na MeetMe 1.53 68.7 57.2 1.1 0.9 6.5 4.1 nmf 11.3 na Hi-Media 3.03 136.1 48.0 0.2 0.2 5.5 3.8 51.3 27.0 na TradeDoubler 1.31 55.5 34.4 0.2 0.2 7.9 5.8 78.2 32.9 na Cupid 0.29 20.5 2.8 na na na na na na na Mean 3.0x 2.7x 9.9x 8.4x 27.5x 18.4x 1.2x Median 1.2x 1.1x 8.8x 7.0x 20.2x 16.8x 1.1x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media 16 Public Equity Market Overview

William Blair

Selected Asia

Stock Equity Enterprise (CY ’15E) Price Value Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio PEG Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio $14.51 $134,569.7 $132,001.3 8.5x 6.9x 19.3x 15.3x 27.0x 21.3x 3.4x 227.97 79928.4 75733.3 6.8 5.2 20.3 14.6 25.6 18.7 0.7 JD.com 23.14 31522.2 26813.5 1.0 0.7 nmf 66.7 nmf nmf na 14.04 18572.2 19490.2 3.5 3.2 14.4 12.2 30.3 24.4 1.3 Naver Corp 652.31 19221.4 18311.8 na na na na na na na Yahoo Japan 3.63 20667.5 16689.5 4.5 4.3 8.8 8.2 18.7 17.5 3.7 NetEase 99.14 12889.3 9729.9 4.3 3.7 9.8 8.2 14.2 12.2 1.0 Qihoo 360 57.26 7210.6 7224.8 3.6 2.7 12.4 8.5 17.6 12.4 0.4 Ctrip.com 45.50 6475.6 6589.3 4.1 3.2 nmf 26.5 nmf 42.5 na Nintendo 105.21 12454.3 5792.7 1.3 1.4 18.8 17.8 60.0 74.7 na 17.96 5716.9 5756.8 5.6 4.6 13.5 11.1 20.9 17.0 0.7 Nexon 9.39 4043.3 3457.2 2.3 2.2 5.7 5.6 12.0 11.5 0.8 Mixi 37.39 3111.3 2877.2 2.7 2.4 5.6 5.1 9.7 8.7 0.6 Bitauto Holdings 70.41 2921.8 2756.0 5.6 4.4 19.3 13.9 25.8 18.9 0.5 SouFun 7.39 3050.7 2734.6 3.3 2.8 9.2 7.1 13.3 10.6 1.3 Konami 18.53 2568.4 2466.5 1.2 1.2 8.1 7.9 19.0 18.3 0.6 Weibo 14.24 2808.6 2310.4 4.9 3.5 38.6 14.1 59.7 19.7 1.2 Youku Tudou 17.81 3525.7 2192.2 2.4 1.8 nmf nmf nmf nmf na Sohu.com 53.18 2046.7 1838.7 0.9 0.8 15.3 5.5 nmf 35.4 na 51job 35.85 2116.7 1576.9 4.5 3.8 13.5 10.9 18.5 15.6 0.9 Changyou.com 27.36 1445.8 1497.0 1.8 1.7 17.2 10.1 17.7 11.6 3.8 Jumei International 13.62 1949.4 1356.9 1.4 1.1 11.4 7.3 18.0 12.4 0.6 SINA Corp 37.41 2472.1 1220.3 1.4 1.1 24.9 8.2 43.0 19.7 6.6 Leju Holdings 10.76 1436.7 1173.6 1.9 1.6 7.3 5.6 12.9 10.1 0.4 DeNA 12.07 1564.2 1141.3 0.9 0.9 4.0 3.9 11.5 10.9 0.9 MakeMyTrip 25.99 1083.2 1016.7 6.1 4.7 81.4 40.4 nmf 53.6 na Gree 6.04 1431.1 958.3 1.1 1.1 4.3 4.4 11.3 11.9 0.3 E-Commerce China 9.29 750.2 477.2 0.3 0.2 9.2 4.9 18.7 10.1 0.3

Perfect World 15.76 783.6 442.3 0.6 0.5 3.5 2.9 7.1 6.0 0.5 Tuniu Corp 12.00 621.0 379.6 0.4 0.2 nmf nmf nmf nmf na ChinaCache 9.19 233.0 164.9 0.5 0.4 5.9 5.3 47.1 nmf 1.6 Renren 2.51 901.4 89.2 0.9 0.9 nmf nmf nmf nmf na Jiayuan.com 4.75 141.7 48.9 0.4 0.3 8.4 3.0 29.7 10.6 na Xunlei 7.30 474.6 40.5 0.2 0.2 0.7 0.5 27.0 15.2 1.4 Taomee Holdings 3.45 122.5 13.8 0.3 0.3 10.0 6.7 49.3 38.3 na Mean 2.6x 2.1x 14.0x 11.3x 24.7x 20.2x 1.4x Median 1.8x 1.6x 9.8x 8.1x 18.9x 15.4x 0.9x Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media Public Equity Market Overview 17

William Blair

Equity Offerings (All Sectors)

IPOs Filed Monthly

50

40

30

20

10

0 Jul 09 Jul 10 Jul 11 Jul 12 Jul 13 Jul-14 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jun 12 Jun 10 Jun 11 Jun 13 Jun 14 Oct 09 Oct 10 Oct 11 Oct 12 Oct 13 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Oct-14 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 Dec 12 Dec 09 Dec 10 Dec 11 Dec 13 Apr 10 Apr 11 Apr 12 Apr 13 Apr 14 Apr Sep-14 Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Dec-14 Nov 09 Nov 10 Nov 11 Nov 12 Nov 13 Nov Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Aug-14 May 10 May 11 May 12 May 13 May 14 Nov-14

IPO Backlog

140 120 100 80 60 40 20 0 Jul 10 Jul 11 Jul 12 Jul 13 Jul 14 Jan 11 Jan 14 Jan 12 Jan 13 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Oct 10 Oct 11 Oct 12 Oct 13 Oct 14 Sep 10 Sep 11 Sep 12 Sep 13 Feb 11 Feb 12 Feb 13 Feb 14 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Apr 11 Apr 12 Apr 13 Apr 14 Apr Aug 10 Aug 13 Aug 11 Aug 12 Aug 14 Nov 12 Nov Nov 10 Nov 11 Nov 13 Nov 14 Nov Mar 11 Mar 12 Mar 13 Mar 14 May 11 May 14 May 12 May 13 Sept 14

IPOs Priced Annually

800 700 600 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

IPOs Priced Monthly

35 30 25 20 15 10 5 0 Jul 10 Jul 11 Jul 12 Jul 13 Jul-14 Jan 11 Jan 12 Jan 13 Jan 14 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Oct 10 Oct 11 Oct 12 Oct 13 Sep 10 Sep 11 Sep 12 Sep 13 Oct-14 Feb 11 Feb 12 Feb 13 Feb 14 Dec 10 Dec 11 Dec 12 Dec 13 Apr 11 Apr 12 Apr 13 Apr 14 Apr Sep-14 Aug 10 Aug 11 Aug 12 Aug 13 Dec-14 Nov 12 Nov Nov 10 Nov 11 Nov 13 Nov Mar 11 Mar 12 Mar 13 Mar 14 Aug-14 May 11 May 12 May 13 May 14 Nov-14

Note: Data as of December 31, 2014; data does not include REITs, closed-end funds, and SPACs. Source: Equidesk.

Internet & Digital Media 18 Public Equity Market Overview

William Blair

2012-2014(1) Selected IPOs From the IDM Sector

At Initial Filing At Offering Price Change % Shares Deal Value Shares % Change Mkt Cap Deal Value as Price Offered at Midpoint Offered Deal Value Initial/Act (at Pricing) % Mkt Cap File/ Offer/ Offer/ Pricing Date Issuer (Midpoint) (mm) (mm) Price (mm) (mm) Deal Value (mm) (at pricing) Offer 1 Day Current 12/10/2014 Momo $13.50 16.0 $216.0 $13.50 16.0 $216.0 0.0% $2,517.5 8.6% 0.0% 26.1% (11.1%) 12/10/2014 LendingClub $11.00 66.7 $733.7 $15.00 66.7 $1,000.5 36.4% $5,421.2 18.5% 36.4% 56.2% 68.7% 11/19/2014 Cnova $13.25 26.8 $355.1 $7.00 26.8 $187.6 (47.2%) $3,072.4 6.1% (47.2%) 2.1% 13.0% 10/01/2014 Wayfair $26.50 12.7 $335.2 $29.00 12.7 $366.9 9.4% $2,400.0 15.3% 9.4% 30.1% (31.6%) 09/18/2014 Alibaba $63.00 368.1 $25,032.3 $68.00 368.1 $25,032.3 7.9% $167,620.4 14.9% 36.3% 38.1% 52.9% 08/06/2014 iDreamSky $13.00 8.9 $132.8 $15.00 8.9 $132.8 15.4% $634.8 20.9% 15.4% 6.3% 13.9% 06/23/2014 Xunlei Ltd $10.00 8.4 $84.1 $12.00 8.4 $100.9 20.0% $832.6 12.1% 20.0% 24.2% (39.2%) 05/21/2014 JD.com $17.00 107.7 $1,830.9 $19.00 107.7 $2,047.0 11.8% $25,974.6 7.9% 11.8% 10.0% 21.8% 05/15/2014 Jumei International $20.50 12.7 $260.4 $22.00 12.7 $279.9 7.5% $3,148.8 8.9% 7.3% 9.9% (38.1%) 05/15/2014 TrueCar Inc $13.00 8.9 $115.7 $9.00 8.9 $80.5 (30.4%) $639.3 12.6% (30.8%) 11.8% 154.4% 05/08/2014 Tuniu Corp $10.00 9.2 $92.0 $9.00 9.2 $82.8 (10.0%) $431.4 19.2% (10.0%) 11.9% 33.3% 04/16/2014 Leju Holdings $11.00 10.0 $110.0 $10.00 10.0 $100.0 (9.1%) $1,320.3 7.6% (9.1%) 18.6% 7.6% 04/04/2014 GrubHub $21.00 8.1 $171.0 $26.00 8.5 $221.4 29.5% $2,038.0 10.9% 23.8% 30.8% 39.7% 04/02/2014 Rubicon Project $16.00 7.8 $124.6 $15.00 7.8 $116.8 (6.3%) $520.7 22.4% (6.3%) (15.3%) (69.5%) 03/25/2014 King.com $22.50 25.5 $574.4 $22.50 22.2 $499.5 (13.0%) $7,086.0 7.0% 0.0% (15.6%) (31.7%) 03/20/2014 Borderfree $15.00 5.8 $86.3 $16.00 5.0 $80.0 (7.2%) $487.6 16.4% 6.7% 25.0% (44.0%) 03/06/2014 Coupons.com $13.00 11.6 $150.5 $16.00 12.1 $193.2 28.4% $1,170.7 16.5% 23.1% 87.5% 10.9% 01/23/2014 Care.com $15.00 6.2 $92.3 $17.00 6.2 $104.6 13.3% $505.7 20.7% 13.3% 42.9% (51.3%) 11/16/2013 Zulily $17.00 13.2 $224.8 $22.00 13.2 $291.0 29.4% $2,685.4 10.8% 29.4% 71.4% 6.4% 11/12/2013 Chegg $10.50 17.3 $181.1 $12.50 15.0 $187.5 3.5% $1,079.0 17.4% 19.0% (22.6%) (44.7%) 11/06/2013 Twitter $18.50 80.5 $1,489.3 $26.00 80.5 $2,093.0 40.5% $14,162.1 14.8% 40.5% 72.7% 38.0% 11/05/2013 Wix $15.50 8.9 $137.3 $16.50 7.7 $127.1 (7.4%) $600.9 21.1% 6.5% (1.2%) 27.3% 10/29/2013 Criteo $24.50 8.3 $202.9 $31.00 9.3 $288.1 42.0% $1,714.2 16.8% 26.5% 14.2% 30.4% 09/19/2013 Rocket Fuel $25.50 4.6 $117.3 $29.00 4.6 $133.4 13.7% $942.3 14.2% 13.7% 93.4% (44.4%) 08/06/2013 YuMe $13.00 5.8 $75.0 $9.00 5.1 $46.1 (38.5%) $286.2 16.1% (30.8%) 0.0% (44.0%) 07/18/2013 RetailMeNot $21.00 10.5 $219.5 $21.00 10.5 $219.5 0.0% $1,054.4 20.8% 0.0% 31.9% (30.4%) 06/26/2013 Tremor Video $12.00 8.6 $103.5 $10.00 7.5 $75.0 (27.5%) $485.0 15.5% (16.7%) (15.0%) (71.3%) 06/20/2013 Gogo $16.00 12.7 $202.4 $17.00 11.0 $187.0 (7.6%) $1,462.2 12.8% 6.3% (5.9%) (2.8%) 10/10/2012 Shutterstock $14.00 5.2 $72.5 $17.00 5.2 $88.0 21.4% $558.3 15.8% 21.4% 27.4% 306.5% 09/19/2012 Trulia $15.00 6.9 $103.5 $17.00 6.9 $117.3 13.3% $448.4 26.2% 13.3% 41.2% 170.8% 07/19/2012 Kayak(2) $23.50 4.0 $94.6 $26.00 4.0 $104.7 (3.8%) $1,002.5 9.1% 10.6% 27.6% na 05/17/2012 Facebook $31.50 400.6 $12,618.9 $38.00 421.2 $16,006.9 26.8% $81,247.2 19.7% 20.6% 0.6% 105.3% 04/26/2012 Acquity Group(2) $9.00 12.8 $115.0 $6.00 11.1 $66.7 (42.0%) $141.1 47.2% (33.3%) (97.8%) na 04/24/2012 Envivio $11.00 8.9 $98.1 $9.00 7.8 $69.8 (28.9%) $239.9 29.1% (18.2%) (5.7%) (85.1%) 03/28/2012 CafePress $17.00 4.5 $76.5 $19.00 4.5 $85.5 11.8% $322.6 26.5% 11.8% 0.2% (87.6%) 03/28/2012 Millennial Media $10.00 10.2 $102.0 $13.00 10.2 $132.6 30.0% $973.6 13.6% 30.0% 92.3% (87.7%) 03/01/2012 Yelp $13.00 8.2 $106.9 $15.00 8.2 $123.3 15.4% $898.1 13.7% 15.4% 63.9% 264.9% 02/24/2012 Bazaarvoice $9.00 9.0 $81.0 $12.00 9.0 $108.0 33.3% $682.3 15.8% 33.3% 37.6% (33.0%) 02/23/2012 Proto Labs $14.00 4.9 $69.2 $16.00 4.9 $79.1 14.3% $371.0 21.3% 14.3% 81.3% 319.8% 02/17/2012 Brightcove $11.00 5.8 $63.3 $11.00 5.8 $63.3 0.0% $290.1 21.8% 0.0% 30.0% (29.3%) 02/09/2012 Synacor $11.00 7.8 $86.2 $5.00 6.8 $34.1 (60.5%) $127.9 26.7% (54.5%) 5.0% (60.0%) Mean(3) $858.2 1.8% $6,209.9 16.9% 5.1% 22.3% 16.4% Median(3) $123.3 7.5% $898.1 15.8% 10.6% 24.2% (11.1%)

(1) As of December 31, 2014. (2) No longer trading due to acquisition. (3) Excludes Alibaba and Facebook with exception of price change statistics. Note: Only companies trading on U.S. exchanges are included. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media Public Equity Market Overview 19

William Blair

2012-2014(1) Selected Follow-Ons From the IDM Sector

Price Change % % Mkt Cap Deal Value Deal Value % Primary Secondary (at pricing) as % Mkt Discount to Offer/ Offer/ Pricing Date Issuer ($ MM) Shares Shares (mm) Cap (mm) File/Offer Last Trade 1 Day Current 12/02/14 JD.com 618.9 0.0% 100.0% 33,040.7 1.9% (5.0%) 5.0% 3.4% 0.2% 11/11/14 TrueCar 125.2 26.6% 73.4% 1,343.5 9.3% (1.5%) (2.8%) 2.9% 25.0% 09/03/14 GrubHub 421.3 10.8% 89.2% 3,219.5 13.1% (5.9%) (1.4%) (1.5%) (7.7%) 07/23/14 MeetMe 11.5 100.0% 0.0% 90.0 12.8% (13.4%) (13.4%) 3.5% (29.0%) 07/17/14 Orbitz Worldwide 321.8 0.0% 100.0% 978.9 32.9% (8.0%) (8.0%) 8.2% 11.3% 05/30/14 Glu Mobile 34.5 100.0% 0.0% 330.1 10.5% (13.8%) (13.8%) 3.9% 2.0% 05/22/14 Orbitz Worldwide 49.5 0.0% 100.0% 755.2 6.6% (12.7%) (4.6%) 9.7% 14.8% 05/22/14 Activision Blizzard 859.0 0.0% 100.0% 14,922.0 5.8% (0.8%) (0.8%) (0.8%) 132.0% 05/21/14 TechTarget 31.3 0.0% 100.0% 208.9 15.0% (20.1%) (0.2%) 8.0% 33.1% 04/25/14 Viggle 35.0 100.0% 0.0% 158.7 22.1% (85.5%) (52.9%) (28.1%) (64.1%) 03/27/14 58.com 456.0 33.3% 66.7% 3,054.4 14.9% (26.7%) (2.9%) 6.1% 2.9% 03/21/14 Criteo 236.3 10.0% 90.0% 2,613.2 9.0% (23.6%) (1.1%) (2.5%) (11.7%) 01/07/14 Groupon 163.1 0.0% 100.0% 8,103.7 2.0% (0.8%) (0.8%) 0.7% (36.6%) 12/20/13 Facebook 3,853.5 38.6% 61.4% 140,016.5 2.8% (0.9%) (0.1%) 4.9% 38.9% 12/11/13 HomeAway 256.1 7.5% 92.5% 3,275.2 7.8% (7.3%) (2.5%) 1.2% (27.2%) 12/11/13 RetailMeNot 187.4 40.8% 59.2% 1,415.5 13.2% (14.6%) (3.5%) 1.2% (44.2%) 11/20/13 Spark Networks 25.0 0.0% 100.0% 161.2 15.5% (11.0%) (11.0%) (7.0%) (42.5%) 10/30/13 Yelp 288.9 100.0% 0.0% 4,675.0 6.2% (2.7%) (0.1%) 1.1% (20.6%) 09/19/13 Shutterstock 317.4 31.9% 68.1% 2,092.6 15.2% 9.5% (0.5%) 17.4% 1.5% 09/18/13 Pandora 523.3 75.2% 24.8% 4,850.0 10.8% 4.2% (2.5%) 9.4% (32.1%) 09/12/13 Glu Mobile 13.2 100.0% 0.0% 184.6 7.2% (12.9%) (12.9%) 8.1% 70.0% 09/04/13 LinkedIn 1,380.0 100.0% 0.0% 28,022.8 4.9% (9.4%) (6.7%) 11.4% 0.0% 08/19/13 Zillow 473.7 56.3% 43.7% 3,209.7 14.8% (10.1%) (3.2%) (1.6%) 27.1% 05/02/13 Spark Networks 41.0 32.6% 67.4% 151.8 27.0% (13.8%) (4.7%) 7.2% (44.8%) 03/14/13 Trulia 212.5 56.4% 43.6% 947.4 22.4% 6.3% (2.2%) 3.1% 52.3% 10/23/12 Millennial Media 162.7 8.0% 92.0% 1,097.9 14.8% (11.7%) (0.7%) 13.9% (89.9%) 09/06/12 Zillow 190.1 87.0% 13.0% 1,062.7 17.9% 1.3% (1.1%) 1.1% 142.4% 05/15/12 Angie's List 112.2 8.1% 91.9% 757.3 14.8% (4.0%) (1.1%) 4.1% (56.4%) 05/10/12 Web.com 136.4 0.0% 100.0% 752.2 18.1% (4.1%) (1.7%) (2.1%) 14.1% 03/28/12 Zynga 593.0 0.0% 100.0% 8,832.3 6.7% (10.3%) (2.0%) 7.0% (78.7%)

Mean(2) $285.4 37.4% 62.6% $4,493.3 12.9% (10.6%) (5.3%) 3.1% (5.6%)

Median(2) $190.1 26.6% 73.4% $1,343.5 13.1% (9.4%) (2.5%) 3.4% (4.4%) (1) As of December 31, 2014. (2) Deal value and market cap at pricing excludes Facebook. Note: Only companies trading on U.S. exchanges are included. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Internet & Digital Media 20 Public Equity Market Overview

William Blair

M&A Activity

2009-2014 Sector Breakdown 2009-2014 Deal Value Breakdown(1)

2,275 Transactions ($ in millions)

5.9% Content 121 7.0% Services 6.0% 78 74 76 Gaming 52 58 39.7% 48 E-commerce 18.1% Online Advertising

18.6% Social Networking 4.7% Digital Media

(1) Data does not include deals with an undisclosed deal value. Note: Includes North American Internet & Digital Media M&A transactions from December 1, 2009 to December 31, 2014. Sources: Capital IQ, 451 research, and various media outlets.

M&A Activity – 2014

Vertical Number of Deals Percentage of Total Content 76 29.5% E-commerce 64 24.8% Gaming 13 5.0% Online Advertising 55 21.3% Services 26 10.1% Social Network 9 3.5% Digital Media 15 5.8% Total 258 100.0% Note: Includes North American Internet & Digital Media M&A transactions from January 1, 2014 to December 31, 2014. Sources: Capital IQ, 451 research, and various media outlets.

Internet & Digital Media M&A Activity 21

William Blair

William Blair Internet & Digital Media Team

Rob Metzger, head of technology, joined the corporate finance department of William Blair in 1999. While at William Blair and in his prior position at ABN AMRO Incorporated, he focused on the corporate finance needs of , financial technology, and specialty finance companies. Mr. Metzger graduated in 1989 with highest honors from the University of Illinois, receiving a B.S. in accountancy. In 1995, he graduated with distinction from Northwestern University’s Kellogg School of Management, receiving an M.B.A. in finance and strategy. He is a certified public accountant.

[email protected] +1 312 364 8517

James Hoak, at William Blair, has more than nine years of experience and has completed more than 40 transactions. Mr. Hoak’s responsibilities consist of leading West Coast investment banking execution efforts on public and private capital raises and M&A transactions. Before joining William Blair, he worked at Financial Technology Partners and at RBC Capital Markets. Mr. Hoak received a B.B.A. from the University of Iowa and an M.B.A. from Northwestern University’s Kellogg School of Management.

[email protected] +1 415 248 5908

Raphael Grunschlag, managing director and head of European technology banking, has been an investment banker with William Blair since 2012 and focuses on expanding the firm’s technology practice across Europe and the Middle East. He has more than 16 years of investment banking experience, having advised on more than $24 billion of transactions across M&A, ECM, and debt financings. Before joining William Blair, Mr. Grunschlag served as head of European technology investment banking at Bank of America Merrill Lynch (2005-2011), led the European Internet and software team for the CSFB Technology Group (1999-2005), and worked at Hambrecht & Quist (1995-1999). He holds a master’s degree in international affairs from Columbia University’s School of International and Public Affairs as well as a bachelor’s degree in Middle Eastern and Asian languages and cultures from Columbia.

[email protected] +44 20 7868 4501

Internet & Digital Media 22 William Blair Internet & Digital Media Team

William Blair

Disclosures

William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Conduct Authority ("FCA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the and are not offered to persons or institutions outside of the United States. This material has been approved for distribution in the United Kingdom by William Blair International Limited, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being “Eligible Counterparties” and Professional Clients). This Document is not to be distributed or passed on to any “Retail Clients.” No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision. William Blair & Company | 222 West Adams Street | , Illinois 60606 | +1 312 236 1600 | williamblair.com January 21, 2015

Internet & Digital Media Disclosures 23

William Blair’s investment banking group combines signi�icant transaction experience, rich industry knowledge, and deep relationships to deliver successful advisory and �inancing solutions to our global base of corporate clients. We serve both publicly traded and privately held companies, executing , growth �inancing, �inancial restructuring, and general advisory projects. This comprehensive suite of services allows us to be a long-term partner to our clients as they grow and evolve. About William Blair From 2010-2014, the investment banking group completed more than 330 merger-and- Investment Banking acquisition transactions worth $73 billion in value, involving parties in 36 countries and �ive continents, was an underwriter on more than 20% of all U.S. initial public offerings, and raised nearly $100 billion in public and private �inancing.