Audio Sector Report

537K

AUDIO SECTOR REPORT Let the Good Times Roll! – Recap of Q4 2020 EXECUTIVE SUMMARY Q4 2020 Music Sector Wrap-Up » 2020 has proven to be a very active year in digital audio with tremendous value creation – DSPs up 42% and Publishers up 32% -- with an acceleration in M&A-led consolidation continuing into 2021 (as of this writing SONY has acquired AWAL for $430MM) » In this report we focus on some of the activity in the creator services market: ― Summit Partner’s investment in Output; Beatport’s acquisition of Loopmasters; Francisco Partner’s majority investment in Native Instruments (GCA was the exclusive advisor to Native Instruments in this pending transaction set to close in Q1 ‘21) ― We like this part of the value chain and believe it will draw further investment interest and consolidation in 2021 ― Our thesis rests on a simple point of view: the digital re-platforming of the music sector has highlighted the importance and value of the “picks and shovels” in the value chain – the software, hardware, devices, essential to streamlining the process from music creation to digital distribution » And nothing has slowed down the “song as asset class” investment thesis either – led and defined by the bold moves of Hipgnosis Songs Funds Ltd. in both buying catalogues, accumulating 129 catalogues and 60,000+ songs as of 12/31, and raising capital ― With Shamrock, Providence Equity and KKR also committed to catalogue investing, some of the smartest money in the entertainment market today, it is safe to say that we really are only at the start of a solid 10-year investment cycle » Lastly, in this report we take a look at the continuing evolution of the live streaming market – a pandemic-accelerated growth segment of the market with enormous potential, longevity and global potential ― Tencent Music, YouTube, LiveNation, Bandsintown all invested in streaming capabilities and partnerships during Q4 ’20, eager to capitalize on the momentum in this part of the market ― We expect to see multiple new partnerships and entrants to continue to emerge, as the potential opportunity has been measured by some analysts to be at a near $2Bn market size

Select Q4 Active Acquirers Select Q4 Active Investors

2 TABLE OF CONTENTS

I. GCA Overview

II. Digital Music Trends and Insights

III. Public Markets

IV. M&A and Financings

V. Public Comps Backup

3 GCA OVERVIEW GCA’s Dedicated Sector Knowledge and Execution Excellence GCA Music Focus GCA’s Global Music Leadership Team

STREAMING PUBLISHING JOHN LAMBROS SASCHA PFEIFFER Member of the Board, Member of the Board, President, GCA US Co-Head, Europe RIGHTS [email protected] [email protected] DISTRIBUTION MANAGEMENT

SAMEER JINDAL JONATHAN NORMAN ENGAGEMENT ARTIST SERVICES Managing Director, Managing Director, TOOLS Head, India Digital Media [email protected] [email protected]

AI TOOLS & VIDEO & ANALYTICS CREATIVE DAVID FEGLEY MALTE ABRAMS Vice President Director [email protected] [email protected] PROMOTIONAL LIVE EVENT SERVICES MANAGEMENT

GCA Overview 25 >500 500+ 245 80% OFFICES AROUND M&A TRANSACTIONS IN PE DEALS IN THE REPEAT OR THE WORLD PROFESSIONALS LAST 3 YEARS LAST 3 YEARS REFERRED CLIENTS

Notes: The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Advisors Corporation and GCA Altium have advised on. 4 GCA OVERVIEW Native Instruments’ Sale to Francisco Partners

GCA acted as exclusive financial advisor to EMH Partners on the sale of a majority stake in Native Instruments, the leading vendor of software and software-enabled hardware for digital audio production, to Francisco Partners

SITUATION SOLUTION » Native Instruments is the global leader in digital music » GCA generated strong process momentum by introducing creation software and hardware, with more than 1.5 several very eager bidders early, of which Francisco TRANSACTION DATE million active users Partners emerged as the most motivated Pending » Native Instruments was founded in 1996 in Berlin and » Navigated the process through COVID environment with January 2021 employs more than 400 employees worldwide, operating video conference meetings between the parties in seven global offices DEAL TYPE » Drew in parties that had actively followed the company in M&A » In 2017, EMH Partners invested $60MM in Native the past to increase number of process participants – Instruments, followed by a further investment in 2020 to even during the lockdown achieve majority ownership in the Company SECTOR » Received multiple proposals from PE with different Digital Media, Music, » With Francisco Partners, Native Instruments is planning to transaction structures and assisted the company and Software, Technology further enhance its product leadership, drive board in evaluating and optimizing the various options consolidation in the growing and fragmented market for » Drove price and certainty through closure digital music creation, and extend its already leading position in the industry

5 GCA OVERVIEW Leading Global Investment Bank Providing Strategic M&A and Capital Markets Advisory Services

STOCKHOLM

MANCHESTER LEEDS PARIS FRANKFURT BIRMINGHAM MUNICH KYOTO NAGOYA ZURICH TOKYO LONDON SHANGHAI NEW YORK LAUSANNE MILAN NEW DELHI OSAKA TEL AVIV SAN FRANCISCO FUKUOKA TAIPEI MUMBAI SINGAPORE HO CHI MINH CITY

Global platform: Sector expertise: Exceptional cross- 25 offices in key Experienced team: Expansive coverage border capabilities: markets across Over 500 employees and deep Half of all America, Asia and across the globe specialization transactions Europe Broad spectrum Diversified Strong reputation of clients: business model: and track record: Leading Geographically High number of conglomerates, top balanced, synergistic repeat clients and private equity firms and complementary referrals and emerging high- focus areas growth companies

I. GCA Overview

II. Digital Music Trends and Insights

III. Public Markets

IV. M&A and Financings

V. Public Comps Backup

7 DIGITAL MUSIC TRENDS & INSIGHTS Q4 2020 Music Sector Wrap-Up – Key Subsegment Trends

» The digital re-platforming of the music sector has driven increased focus as well as strategic and financial interest in the “pick and shovels” business models – the software and the hardware essential to streamlining the process from music creation to digital distribution » Business models are evolving rapidly, in some cases displacing the traditional recording studio with advances in devices, Creator Platforms plug-ins, software, digital sounds and collaboration tools & Services » In Q4 2020, there were several transactions in this area: Summit Partners’ investment in Output, Beatport’s acquisition of Loopmasters, the majority sale of Native Instruments to Francisco Partners (pending), and the rumored Goldman Sachs investment in Splice » We expect to see more investment and consolidation in this category as the growth opportunities are enormous, and the reoccurring nature of companies’ business models are highly attractive to investors

» Nothing seems to be slowing down the investment interest in this thesis – drawing numerous buyers and sellers from all across the market » Is it estate planning? Lack of live touring during COVID? Fear of tax hikes? The lure of cash certainty? Major artists including Bob Dylan, Stevie Nicks, The Killers, and Taylor Swift have all been monetize their catalogs through song funds The Song As An » Hipgnosis continues to be “the axe” setting the tempo, volume, and defining the narrative by upping the quantum of dollars Asset Class pouring into the market » Newly public Round Hill Music Royalty Fund and PE-backed funds like Tempo (Providence), Shamrock Capital Content Fund – to name a few – are chasing assets, with new entrant KKR joining the fray, acquiring Ryan Tedder’s catalogue. » With some of the smartest money in the market today investing in “the song as asset class” theme, no wonder we feel we are at the start of a good 10-year market cycle

» COVID has helped to highlight many things that are here to stay for a very long time, and live-streaming concerts » The quarter saw a tremendous amount of organizing and partnering across technology and live markets Live Streaming » Tencent Music Entertainment, YouTube, LiveNation, and Bandsintown all invested in their live streaming capabilities during Q4 2020, eager to capitalize on continued momentum in the market » We expect new entrants and partnerships to continue to emerge

Notes: Sources: Press Releases, Wall Street Research 8 CREATOR PLATFORMS & SERVICES Technology Driving the Explosive Growth of Independent Music Independent Music on the Rise… …Fueling The Engine of Streaming Platforms like SPOT 1» The Independent Artists market continues to rapidly gain market share in the 3» 2020 has been a banner year for Spotify, with a rapid growth in both listeners broader music market. In 2020, the segment grew 32% year-over-year and and artists on the platform. Given platform engagement, it’s no surprise that currently represents ~10% of the broader market… the Company’s stock price and market cap have more than doubled in the year

2500 $2,124 Total Subscribers (MM) Tracks Uploaded Daily (K) Non-Major % of Streams

2000 $1,607

1500 124 VS. 20 VS. 15 VS. 154 40 18 32 % 2019 2020 2018 2019 2018 2019 1000 Independent Artists Global Recorded

500

Revenue ($MM) 24% 100 % 20 %

0 Spotify 2020 Stock Price Chart 2019 2020 $400 $314.66 Share Price $59.7Bn Market Cap $350 2» ...Largely driven by a growth of technology and the proliferation of easy-to- 119.7% use software, this independent artist expansion has been seen across the $300 entire music value chain MARKET CAP APPRECIATION 2500 (1/1/20 – 12/31/20) $833 $2,124 $250

2000 $1,216 $75 $584 $1,607 $200

1500

$63 $960 $150 1000

500 $100 $151.62 Share Price $27.2Bn Market Cap

0 $50 Tier 1 Tier 2 Tier 3 2019 TAM Tier 1 Tier 2 Tier 3 2020 TAM Distributors ($MM) Sync & Production ($MM) Artist Services ($MM) - Jan-20 Mar-20 May-20 Jun-20 Aug-20 Oct-20 Dec-20 Notes: Sources: Raine, Goldman Sachs, Music Business Worldwide, Wall Street Research, Capital IQ. 9 CREATOR PLATFORMS & SERVICES The Music Landscape The digital re-platforming of the entire music sector has driven increased focus and strategic interest in the software, devices and hardware essential to streamlining the process from music creation to digital distribution

`Major Labels `Large Scale Publishers `Indie Labels Live Concert Streaming

DSPs DIY & Distribution Distributors

`Rights Management Artist & Label Services Artist Platforms

AI Tools & Analytics Fan Engagement Video & Creative Creator Platforms & Services Live Event Management

ArtistArtist Services Services Live ConcertLive Concert EngagementEngagement Publishing Distribution && Rights Rights MUSIC VALUE CHAIN: StreamingStreaming ToolsTools Notes: ManagementManagement

This is a representative list and may not include all relevant companies. 10 CREATOR PLATFORMS & SERVICES Multiple Point Solutions and Business Models Proliferate the Market

» The Creator Platforms & Services category is a critical part of the digital music market driving the broader theme of democratization in the music industry which is a fundamental investment thesis underpinning the secular trends and growth in the market » There are a very broad set of point-solutions and offerings that have been developed to help artists create, produce and monetize, however few provide an end-to-end solution – we see a clear trend toward building out end-to-end solutions driven by M&A consolidation » Analysts estimate that production tools, software, and devices are becoming increasingly more affordable, leveraging digital distribution to drive composition and collaboration and unlocking an entirely new creative model » Both private equity investors and strategics have taken a keen interest in this segment of the marketplace, and given the largely reoccurring nature of the business models, high retention, and expanding market size, we expect to see both further investment and consolidation in the near term Representative Ecosystem

Media Production Music Production Music Production Software Social Music Digital Distribution & Monetization AI Audio Mastering Music Production Software Software ( ) Production Platform ( ) Software

Online Audio Mastering Social Streaming Service Online Music Promotion Music Production Software Audio Mastering Software Online Audio Mastering ( ) ( ) ( ) ( )

Music Streaming Marketplace Music Production Online Audio Mastering Music Merchandising Music Production Platform Music Production Music Production Platform Software ( ) ( ) Platform ( )

Music Production Marketplace Music Streaming Platform Music Production Platform Music Business Development Music Marketing Platform ( ) ( ) ( ) ( )

Notes: Sources: Capital IQ, PitchBook, SEC filings, press releases, company website, IBISWorld, Music Business Worldwide. 11 CREATOR PLATFORMS & SERVICES Technology Solutions Underpin Every Link in the Value Chain

1 2 3 4 5

Production Sounds Collaboration Distribution Marketing

Description:

» Represents the largest source of » Works in tandem with the » Two largest sub-components » Represents a less widespread » Allows artists the ability to investment for the average production aspect of the consist of production / creation focus by the typical independent create landing pages for their independent artist creator value chain, with collaboration (mixing, writing, artists music, promotional links to » Centered around DAWs, artists incorporating unique etc.) and performance » Roughly 30% of independent send to listeners, social bios, recording and editing software sounds and samples into their collaboration (singing, playing, artists focus any amount of and advertising for new that hosts internal and third-party music and during and post- etc.) investment on getting their music releases, tickets, and effects (plugins) and virtual production » Becoming increasingly more in front of the ears of others; merchandise instruments (VSTs) » Widespread availability of prevalent amongst smaller-scale increasing prevalence of free » Like distribution, generally for » Far more central to the creative sounds and samples for artists, especially during the solutions, however, means the more “serious” independent process than previous generations independent artists meant to COVID pandemic actual usage of distribution artists who are already emulate traditional studio and services is much higher spending on getting their music » Thousands of software products » Highlights the shift in the music instrument sounds and out in the marketplace in market; constantly being industry becoming increasingly » Considered one of the most workflows transformed by new tools and social, collaborative, and critical areas of investment as » Current long-tail of artists workflows; established DAWs, » Generally geared towards accessible and will be a defining artists grow and transition from utilizing free services or nevertheless, dominate market electronic and hip-hop genres characteristic of the future of amateur musician to professional spending small amounts share creator tools artist infrequently

Representative Companies:

Notes: Sources: Company websites, Music Business Worldwide. 12 CREATOR PLATFORMS & SERVICES Case Study: Output Raises Series A Funding Transaction Overview Output Overview

» On October 21st, Output announced a $45 Headquarters: Los Angeles, CA million Series A investment from Summit Founded: 2013 Partners Employees: ~75 » This minority investment represents Output’s first fundraise and will support the Company’s Description: Output develops music software and instruments, providing Received a Series A continued global growth and expansion of its new sounds and sources of inspiration. Output has a growing Investment from digital production platform, including the audience of hobbyists and first-time producers across 167 addition of playable instruments and mobile countries and recorded a 300% increase in MRR in the 12 applications in 2021 months before announcing this investment. » Output will be one of the first SaaS solutions at this scale to offer loops, samples, and melodic High Profile User Base content in one unified platform for music $45MM creation Kendrick Lamar Rihanna Product Overview Arcade Justin Timberlake Stranger Things » Arcade is a sample playground with new content delivered daily » Subscription costs $10/month Selected Transaction Commentary Instruments “ We believe Output is at the “ Technology democratized the » Library of 10 distinct engines and more than 20 expansions forefront of digital music creation, creation process for video and offering a truly elegant, photos. It makes sense that » Regular updates to sound library professional-grade platform that is technology adoption would accessible to music makers at all transition to music making. We are Effects levels. Gregg and team have built working to inspire a new » Dynamic effects to edit and improve sounds, both in the studio or an innovative company culture and generation of music makers with a

in real-time playback a vibrant community of musicians– platform that brings the power of a

and they have done it all in a studio to anyone, wherever they » Allows producers to alter, distort, and repair sounds “ thoughtful, capital efficient are. Summit’s deep experience…“ Studio Gear manner. make them an ideal partner to help » Professional hardware for building the audio workspaces accelerate our global impact. » Including speakers, stands and workspace organization Andrew Collins, Gregg Lehrman, MD, Summit Partners CEO, Output Notes: Sources: Capital IQ, Pitchbook, Press Releases, Company Website. 13 CREATOR PLATFORMS & SERVICES Case Study: Beatport Acquisition of Loopmasters Transaction Overview Loopmasters Overview

» On December 16th, Beatport announced it had Headquarters: Eastbourne, UK acquired UK-based Loopmasters, a long-time Founded: 2003 partner in the music creation software industry Employees: ~50 » In acquiring Loopmasters, Beatport also gains Loopmasters’ two consumer brands: Loopcloud Description: Provider of music production software, samples, plugins, and more, and Plugin Boutique through the Loopmasters platform or the partner brands of Loopcloud and Plugin Boutique. The Loopmasters ecosystem offers Acquired » Both the founder of Loopmasters, Matt Pelling, instructional courses, DAW presets, Loops, MIDI, One Shots, and Plugin Boutique’s General Manager, Gareth Sampler Patches, and more for all levels and desires in music Halsall, have signed multi-year contracts and will creation. continue to lead Loopmasters under Beatport’s ownership Selected Product Formats

Product Ecosystem Overview Loopmasters » Provides a vast library of sounds, samples, and other tools vital to the music creation process Selected Transaction Commentary » Caters to all skill-levels, focuses, and genres of artists with free products and educational courses We have been very impressed The phenomenal growth of “by the power of the Beatport “Plugin Boutique, the leading Loopcloud brand with the global DJ global seller of virtual » Offers access to millions of sounds in the worlds most fully- producer marketplace… instrument plug-ins, and the featured sample manager [Loopmasters] strongly believes recent launch of Loopcloud, an » Provides the largest sample library in the world, with over 3.5 that the combination of these innovative subscription service

million unique samples two great companies will deliver for the samples market, are a

an unparalleled, end-to-end testament to the talent of their

“ content supply“ chain for music team, and we couldn’t be Plugin Boutique producers for many years to happier to welcome them to the » Marketplace for music software plugins for all avenues of music come. Beatport family. production » Customers can read reviews of products from other users, as well as demo products before committing to purchase Matt Pelling, Robb McDaniels, CEO, Loopmaster CEO, Beatport Notes: Sources: Capital IQ, Pitchbook, Press Releases, Company Website. 14 DIGITAL MUSIC TRENDS AND INSIGHTS MUSIC VALUE CHAIN: ArtistArtist Services Services Production & The Evolving Music Landscape Live ConcertLive Concert Engagement Publishing Distribution && Rights Rights Engagement StreamingStreaming Tools ManagementManagement Tools

`Major Labels `Large Scale Publishers `Indie Labels Live Concert Streaming

DSPs DIY & Distribution Distributors

`Rights Management Artist & Label Services Artist Platforms

DAWs, Creator Platforms & Services AI Tools & Analytics Fan Engagement Video & Creative Live Event Mgmt.

Notes: This is a representative list and may not include all relevant companies; please email [email protected] for inclusion 15 THE SONG AS AN ASSET CLASS Oct-20: Vine acquires Nov-20: Round Hill raises Song Funds Indicative of Macro Trends in Music Calvin Harris catalog $282M in fund IPO

+ ~$2.0Bn Raised in 2H 2020 Aug-20: Concord raises ~$1Bn in debt financing Founded in 2017 Founded in 2019

Ithaca Holdings Gasoline Alley Jun-17: Concord Music Jun-19: Primary Wave acquires Imagem Music Jan-18: Round Hill Jun-18: Hipgnosis raises Founded in 2011 Founded in 2013 acquires Gasoline Alley Group acquires Carlin Music $268.4MM in IPO

Jul-14: Round Hill Jun-16: Primary Wave Jun-19: Ithaca Holdings Founded in 2010 establishes $209MM+ establishes $300MM+ IP Apr-19: Hipgnosis raises Aug-19: Hipgnosis raises acquires Big Machine Royalty Fund I Fund I $185.6MM in stock offering $62.8MM in stock offering Label Group

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Gaspin Media Feb-19: Ithaca Holdings Jan-20: Concord Music Jan-12: Kobalt acquires Oct-16: Primary Wave Dec-17: Kobalt acquires acquires Atlas Music Sep-19: Hipgnosis raises acquires Pulse Music AWAL acquires Gaspin Media Songs Music Publishing Publishing $297.2MM in stock offering Group

May-16: Shamrock Nov-17: Kobalt raises Jan-18: Round Hill Feb-19: Primary Wave 2011: Kobalt raises Capital closes $250MM $600MM fund sponsored Nov-17: Round Hill establishes $263MM establishes $500MM+ IP $350MM fund Entertainment IP Fund by RPMI Railpen acquires ZYNC Music Royalty Fund II Fund II

KEY: Stargate Concord Music Kobalt Music Royalty Exng. Jun-17: Royalty Exchange Oct-18: Shamrock Capital raises $6.4MM in Later acquires Stargate Music Sep-20: Hipgnosis raises Hipgnosis Primary Wave Shamrock Stave VC Publishing Catalog ~$500MM in stock offering Ithaca Holdings Round Hill Tempo Music

Notes: Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 16 THE SONG AS AN ASSET CLASS Hipgnosis Continues its Growth Trajectory (LSE:SONG) » Hipgnosis Songs Fund (LSE:SONG) has recently proposed the issuance of up to 1.5Bn shares, aiming to raise over $2Bn. The prospectus, filed on January 21st, states that the Company has its sights set on “pipeline catalogs [with] a combined purchase price of over £1 billion” » Highlighted by the landmark catalog acquisition from Kobalt Music, Hipgnosis has dramatically increased the size of its portfolio in Q4 » The Company now has more than 120 catalogs and over 60,000 songs in its portfolio, including 10 out of Spotify’s top 30 all-time most played songs Recent Stock Performance (LSE: SONG) Highlighted Q4 Activity

14.0M Mkt. Cap £1.2Bn € 1.26 EV / LTM Rev 12.9x 1 2

€ 1.24 12.0M 4 October 13, 2020 November 2, 2020 Hipgnosis Songs Fund announces the Hipgnosis announces it has acquired over acquisition of 100% of the publishing interest 33,000 songs and cuts in songs from Kobalt € 1.22 and writer’s share of income of L.A. Reid’s Music Copyrights for a total consideration of 10.0M 162-song catalog. $322.9MM..

€ 1.20 8.0M 3 4

€ 1.18 November 13, 2020 December 24, 2020 3 6.0M 2 Hipgnosis acquires a 50% stake in “Super Mariah Carrey’s 1994 hit “All I Want for 1 Freak” singer Rick James catalog. , including Christmas Is You,” a Hipgnosis portfolio song, € 1.16 50% of Rick James’ publishing interests, broke Spotify’s single-day streaming record writer’s share and neighboring rights. with over 17MM streams. 4.0M

€ 1.14

“2020 was a transformational year for Hipgnosis. Against one of the most challenging economic backdrops of our lives, we raised more capital than “ any 2.0M other listed investment fund, outperformed the FTSE 250 index by 21.5% and € 1.12 [became] the 35th highest dividend-yielding company on the FTSE 250. Merck Mercuriadis, 0 € 1.10 CEO, Hipgnosis Oct 01 Nov 01 Dec 01 Volume Share Price

Notes: Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 17 THE SONG AS AN ASSET CLASS Round Hill Music Royalty Partners’ IPO (LSE:RHM) Transaction Overview Round Hill Music Royalty Partners Overview

» On November 13th, Round Hill Music Royalty Headquarters: New York, NY Partners priced its initial public offering at $1 per Founded: 2010 share for 282 million shares, raising a total of $282 million Description: Round Hill Music is a private equity firm exclusively dedicated to investments in revenue generating music copyright assets. RHM » Listed on the Specialist Fund Segment of the is led by an experienced investment team with an established London Stock Exchange, shares have reputation and proven track record. Round Hill has become an appreciated 5% since listing industry leader in taking an institutional approach to investing in Initial Public royalty streams generated by music copyrights. Offering » The Fund intends to purchase a portfolio of 120,000 songs from 40 catalogs by artists Recent Headlines including the Beatles, Celine Dion, and the nd Rolling Stones » February 2 , 2021: Round Hill’s listed fund makes its first acquisition, purchasing $282MM more than 18,000 songs from another Round Hill-managed fund. This acquisition was priced at $282MM and included compositions by The Beatles, The Rolling Stones, Otis Redding, and many more Selected Catalogue Investments » January 27th, 2021: Round Hill’s CEO, Josh Gruss, voices his skepticism about the priorities of the major music publishing companies, supporting the growing trend » Jaded of independent publishers circumventing the long-standing industry titans » Aerosmith th » Train Kept A Rolling » January 18 , 2021: Round Hill acquires the back catalogue of Atlanta-based band Collective Soul and a futures agreement with founder, front man, and songwriter Ed Roland » She Loves You » The Beatles » From Me To You Selected Transaction Commentary » I Saw Her Standing There “ When considered against the “ All of us at Round Hill are very » Amazing (Just the Way You Are) global turbulence prevalent during pleased and encouraged by the

» Bruno Mars » Billionaire the IPO process due to COVID-19, strong level of support for the IPO » Marry Me this achievement clearly of Round Hill Music Royalty Fund“ demonstrates a strong investor Ltd. This marks the next stage in

» All By Myself appetite for both the music royalty Round Hill’s development.

» Celine Dion » I’m Alive asset class, the performance of » That’s The Way It Is which is highly uncorrelated to “ movements in the global economy » I Got You (I Feel Good) but also new business models. » James Brown » Living In America » Rocky IV Soundtrack Trevor Bowen, Josh Gruss, Chair, RHM CEO, Round Hill

Notes: Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 18 THE SONG AS AN ASSET CLASS Recent Catalog Acquisition Activity

Date Investor Catalog Transaction Details At KKR, we are focused on a “number of investment initiatives Undisclosed deal value; catalog across the music and

1/21 Ryan Tedder includes 500 songs spanning entertainment industries, and we

publishing and recording rights believe Ryan’s unique combination of artistic “ brilliance and business acumen will help us amplify these 600+ copyrights for $300- 12/7 Bob Dylan efforts. $400MM Nat Zilkha, Partner, KKR 80% interest in the copyrights for 12/4 Stevie Nicks ~$100MM To say we’re excited to welcome “the incredible Stevie Nicks to the Primary Wave family would be a

dramatic understatement. If

11/17 The Killers Full pre-2020 catalog Primary Wave were starting our company today, Stevie Nicks“ would be one of the shining pillars, a true legend among legends. 11/16 Taylor Swift First six albums for $300-400MM

Larry Mestel, 50% of artist’s recorded music CEO, Primary Wave 11/13 Rick James masters, as well as 50% stake in James’ neighboring rights income Vine’s process was extremely “smooth. We valued their quick response time, exceptional 33,000+ songs for $322.9MM; 11/2 B-52’s & 50 Cent knowledge of the space, and

purchased from Kobalt straight-forward approach. We are very comfortable that they will be“ great stewards of the catalog. 10/22 Calvin Harris 150+ songs for ~$100MM Mark Gillespie, Harris’ Manager

Notes: Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 19 LIVE STREAMING Recent Partnerships Driving Continued Growth in Live Streaming

Platform Live Streaming Offering Transaction Details » Early in the pandemic, the likes of Twitch, YouTube, Instagram, TikTok, Acquisition; Jan 2021 and Facebook filled a gap with their live streaming capabilities Venture Investment; Jan 2021 » Unprecedented growth in the sector has inspired dozens of new Acquisition; Jan 2021 companies to launch, offering higher quality music live streaming performances to fans Launch; Jan 2021

» These new platforms and partnerships are driving increasing volume to live Launch; Dec 2020 streams, several of which this year have attracted millions of concurrent viewers Acquisition; Nov 2020

» Live streaming partnerships are Acquisition; Nov 2020 becoming increasingly prevalent as incumbents seek to build out their capabilities and capitalize on Partnership; Nov 2020 consumer demand

» Live streaming is propelling growth Partnership; Nov 2020 across the music landscape, as more than 80% of viewers states they are likely to take commercial action Acquisition; Oct 2020 after watching a live stream Partnership; Sep 2020

Notes: Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 20 LIVE STREAMING Bandsintown Group Introduces Bandsintown PLUS Announcement Overview Bandsintown Group Overview

» On January 12th, Bandsintown, a global hub of Headquarters: New York, NY live music discovery, announced the launch of Founded: 2004 Bandsintown PLUS Description: Developer of a multi-sided platform designed to connect fans to » Bandsintown PLUS delivers a first-of-its-kind their favorite artists, both in concert and in live stream. The subscription-based live streaming experience for Company's platform is used to manage artists’ tour dates and fans of all genres synchronize them to the artists’ websites, blogs, and social Launches media sites, enabling music enthusiasts to track different artists » For $9.99 a month, fans get an “All Access Pass” and receive notifications when they are playing nearby. to over 25 live shows per month, produced exclusively for Bandsintown PLUS Wide Variety of Musical Genres

Upcoming Live Streams

» Adeline » February 4th Selected Transaction Commentary

» Chromeo » February 5th For the past year, we’ve been Touring artists have been “hungry for live shows and for a “economically ravaged by COVID- chance to support the artists we 19’s restrictions. Bandsintown love. Bandsintown PLUS is an PLUS is a chance to help innovate

» Tycho » February 6th opportunity to break the barriers the industry, creating new sources of cost and location that have of revenue“ for artists, while historically hindered live music deepening connections with their experiences. Now, with fans.

» Omar Apollo » February 12th Bandsintown PLUS, live music can be more affordable,“ more accessible, and more approachable. » Poolside » February 25th Fabrice Sergent, Managing Partner, Bandsintown

Notes: Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 21 DIGITAL MUSIC TRENDS AND INSIGHTS Q4 2020: M&A and Financing Activity

M&A Transactions ($MM) Financings ($MM)

Ann. Enterprise Ann. Enterprise Acquirer Target AcquirerInvestor Target Amount Date Value Date Value

12/30 $300+ 12/17 Quincy Jones $33

12/16 NA 11/19 NA

12/8 NA 11/1 $165

12/4 NA 10/27 NA

11/20 NA 10/23 ~$1

11/16 NA 10/22 NA

11/10 $235 10/21 $45

Notes: Sources: PitchBook, Capital IQ, Wall Street Research, Music Business Wire. 22 DIGITAL MUSIC TRENDS AND INSIGHTS Top 10 Leaders in Private Funding Raised-to-Date

Company Headquarters Founded Amt. Raised ($MM) (1) Company Description

Developer of an online music platform offering free Hangzhou, China 2013 $1,410 and paid online streaming and downloads

Shanghai, China 2012 ~$652 Provider of an online audio streaming platform Ximalaya

Operates a publishing, recording, content London, England 2000 ~$561 management and rights services platform

Developer of a music streaming platform designed to Berlin, Germany 2007 $507 offer audio distribution and music sharing

The merger of TouchTunes and PlayNetwork created New York, NY 2017 ~$305 Octave, the largest in-venue, interactive music and entertainment platform

Provider of music and video distribution services Paris, France 2005 ~$217 intended for artists and labels to improve sales

Provider of music streaming services designed to Paris, France 2006 $187 offer personalized music tracks

Developer of a platform designed for musicians to New York, NY 2013 ~$112 create music, connect and collaborate easily

Provider of music distribution and marketing services Brooklyn, NY 2017 $70 to create partnerships between artists and brands

Developer of a global music distribution and rights Los Angeles, CA 2012 $60 management platform

Notes: Sources: PitchBook, LinkedIn, company websites. 1) Includes debt and equity financing. 23 DIGITAL MUSIC TRENDS AND INSIGHTS Selected Active Investors

Investor Type Investor Logos

Accelerators / Seed

Venture Capital / Private Equity

Corporate Investors

Alternative Investors

Notes: Sources: Capital IQ, PitchBook, Wall Street Research. 24 DIGITAL MUSIC TRENDS AND INSIGHTS Most Active Deal Makers

Company Headquarters Number of Deals Investments & M&A

New York, NY 25

Santa Monica, CA 18

New York, NY 18

Shenzhen, China 14 Ximalaya

Stockholm, Sweden 8

New York, NY 5

Cupertino, CA 5

Seattle, WA 5

New York, NY 4

Beverly Hills, CA 4

Notes: Sources: Capital IQ, PitchBook, Wall Street Research. 25 TABLE OF CONTENTS

I. GCA Overview

II. Digital Music Trends and Insights

III. Public Markets

IV. M&A and Financings

V. Public Comps Backup

26 PUBLIC MARKETS Stock Performance CY 2020 Share Price Performance

260%

220% 198.4% 180%

140% 97.5% 100% 64.0% 60% 47.0% 42.3% 20% 32.5% 21.5% (20%) -13.0% (60%) Jan-20 Feb-20 Mar-20 May-20 Jun-20 Aug-20 Sep-20 Nov-20 Dec-20

Music DSPs Live Diversified Digital Services Advertising Data & High-Growth Publishers Entertainment Technology & Marketplace Analytics SaaS

Core Music Technology Platforms Relevant Other Categories

Music Diversified Digital Services DSPs Live Entertainment Advertising Data & Analytics High-Growth SaaS Publishers Technology & Marketplace

32.5% 42.3% -13.0% 47.0% 97.5% 64.0% 21.5% 198.4%

2020 Share Price Performance

Notes: Source: Capital IQ. 27 PUBLIC MARKETS Trading Metrics Enterprise Value / 2020E Revenue (1) Enterprise Value / 2020E EBITDA (1)

28.3x 27.4x 20.3x 20.7x 19.4x 19.0x 18.1x 16.5x 16.0x 10.9x 8.6x 8.3x 6.7x 5.9x 5.5x 4.9x

High- Advertising Diversified Live Digital Data & DSPs Music Diversified Music Digital Data & High- DSPs Live Advertising Growth Technology Entertainment Services & Analytics Publishers Technology Publishers Services & Analytics Growth Entertainment SaaS Marketplace Marketplace SaaS

Core Music Technology Platforms Relevant Other Categories

Music Diversified Digital Services DSPs Live Entertainment Advertising Data & Analytics High-Growth SaaS Publishers Technology & Marketplace

5.5x / 20.7x 5.9x / 16.5x 8.6x / 16.0x 10.9x / 27.4x 8.3x / 19.4x 20.3x / 4.9x 6.7x / 19.0x 28.3x / 18.1x

2020E Revenue / 2020E EBITDA Multiple (1) Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 1) Multiples represent mean figures. 28 TABLE OF CONTENTS

I. GCA Overview

II. Digital Music Trends and Insights

III. Public Markets

IV. M&A and Financings

V. Public Comps Backup

29 M&A AND FINANCINGS Precedent M&A Transactions

($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description

12/30/20 $300+ NA NA NA NA Provider of on-demand postcasts and audio recordings

12/17/20 $2 NA NA NA NA Owner and operator of audio production studio in Italy

12/16/20 NA NA NA NA NA Operator of a website that provides sample music libraries for producers and musicians worldwide

12/8/20 NA NA NA NA NA Provider of independent music merchandising services

12/4/20 NA NA NA NA NA Provider of distribution and label services to the music industry

11/20/20 NA NA NA NA NA Mobile application allowing users to record videos with professional vocal effects

11/16/20 NA NA NA NA NA Provider of highly flexible music liscencing services

Provider of hosting and ad-insertion capabilities for publishers and targeted ad 11/10/20 $235 NA NA NA NA sales for brand partners

11/2/20 Major Triad Media NA NA NA NA NA Creator, producer and distributor of music-based products and services for broadcast media use

10/29/20 ~$6 NA NA NA NA Group of web-oriented businesses specializing in merchandise personalization

10/23/20 $39 NA NA NA NA Manufacturer and distributor of automobile speakers

10/21/20 NA NA NA NA NA Independent German live music promotion company and event agency

10/16/20 $39 NA NA NA NA Provider of artist management and music production services

9/24/20 NA NA NA NA NA Provider of a podcast service that uses AI to customize playlists for listeners

9/21/20 $4 NA NA NA NA Provider of comprehensive solutions across music-based marketing

9/15/20 NA NA NA NA NA Operator of a hip-hop news, reviews and commentary outlet

9/10/20 NA NA NA NA NA Operator of a full-service music publishing company

9/4/20 NA NA NA NA NA American record label established by record producer J.R. Rotem in conjunction with Warner Music

8/27/20 NA NA NA NA NA Provider of music rights data, administration and management services

Provider of subscription digital music services designed to give members advertisement-free access 8/25/20 $70 NA NA NA NA to millions of songs

Notes: Sources: Capital IQ, PitchBook, Wall Street Research, Music Business Wire. 30 M&A AND FINANCINGS Precedent M&A Transactions (cont.)

($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description

8/19/20 NA NA NA NA NA High end mastering studio, founded in 1998 by mastering engineer Barry Grint

Operator of a social media publishing platform intended to create and curate content shareable on 8/14/20 ~$85 NA NA NA NA mobile-first platforms

7/20/20 NA NA NA NA NA Operator of a music production company with 3,500+ songs in its catalog

7/14/20 NA NA NA NA NA Operator of a boutique music placement and licensing company

5/19/20 NA NA NA NA NA Operates as a music publishing company in South Africa

Provides digital solutions for identifying musical content, recommending music and anticipating 4/23/20 NA NA NA NA NA music-related trends Developer of a news narration platform designed to eliminate the gap between writing for print and 3/23/20 $9 NA NA NA NA the digital audio market Operator of a media-tech company intended to deliver innovative rights management and 3/20/20 $38 NA NA NA NA distribution solutions to the music and video industries South Korean entertainment company, offering a record label, talent agency, music production, 2/21/20 $75 3.0x NM 23.5x NM event management and concert production services

2/20/20 Formax $5 NA NA NA NA Provider of sound recording and music publishing services

2/5/20 $250 NA NA NA NA Owns and operates a website and podcasting network

1/29/20 $450 NA NA NA NA Owns and operates a sports and culture blogging website and podcast network

1/22/20 NA NA NA NA NA Provider of technology and services for content owners, record labels and distributors

1/2/20 $868 NA NA NA NA Hospitality company providing fans access and tickets to premier live events

10/18/19 $19 NA NA NA NA Operates regional commercial radio broadcast networks in Western Australia

9/12/19 NA NA NA NA NA Developer of an online music production marketplace designed to connect and hire top musicians

Specializes in the development, acquisition, production, financing and distribution of entertainment 8/22/19 $3,800 3.8x 3.2x 33.9x 15.2x content

8/6/19 $10 NA NA NA NA Organizes and operates the largest country music festival in the United States

7/30/19 NA NA NA NA NA Cloud-based application software for music creators, artists, producers and music rights holders

Operates an online portal for musicians and dealers to buy, sell and trade new, used and vintage gear 7/22/19 $275 7.6x NA NA NA and guitars

Notes: Sources: Capital IQ, PitchBook, Wall Street Research. 31 M&A AND FINANCINGS Precedent M&A Transactions (cont.)

($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description

5/23/19 NA NA NA NA NA Operates a multi-channel network that enables users to monetize their music

4/25/19 Salerton $107 NA NA NA NA Owns and operates a music library

Global music company that publishes music for television, film, advertising and corporate video 4/11/19 $217 5.7x NA 15.1x NA productions

3/27/19 $200 NA NA NA NA Provider of music distribution and monetization services for independent musicians

3/26/19 $56 NA NA NA NA Produces podcasts, focusing on creating scripted, story-driven programming

2/19/19 NA NA NA NA NA Provider of music composition, licensing and rights management solutions

Provider of music distribution, marketing and technology services intended to help independent 2/12/19 NA NA NA NA NA labels and content owners manage their music Privately-owned radio company, which operates radio stations in Maryland, Delaware and New 2/6/19 $19 NA NA NA NA Jersey

2/6/19 ~$200 NA NA NA NA Digital media company focused on producing narrative podcasts

2/6/19 ~$140 NA NA NA NA Operates a mobile application and a website that broadcasts short audio clips

Operates an online advertising technology company that connects brands and audiences through 1/30/19 $162 0.5x 0.4x 10.7x 3.3x digital advertising and content distribution

1/24/19 NA NA NA NA NA Offers on-demand music, audio streaming and AI technology

1/22/19 $40 NA NA NA NA Provides music and audio streaming technologies and services for businesses and individuals

12/7/18 NA NA NA NA NA Owns and operates recording studios

9/24/18 $3,454 2.3x 2.1x NM NM Provides music discovery platform services in the United States and internationally

9/13/18 $55 NA NA NA NA Offers podcasts publishing services

Provides music for major domestic and overseas music platforms such as iTunes, YouTube and 7/25/18 $51 0.7x NA NA NA Spotify

7/23/18 Tron $140 NA NA NA NA Develops Internet content delivery technologies for customers worldwide

6/26/18 $218 2.7x NA NM NA Provides music distribution services in South Korea

6/11/18 $10 NA NA 10.0x NA Provides sound design, casting, music and writing services

Notes: Sources: Capital IQ, PitchBook, Wall Street Research.. 32 M&A AND FINANCINGS Precedent M&A Transactions (cont.)

($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description (1) 5/21/18 $2,269 7.8x NA 20.6x NA Operates as a music publishing company

Owns and operates Newcap Radio, which is one of Canada's leading radio broadcasters with 101 5/2/18 $397 3.0x NA 9.7x NA broadcast licenses

5/2/18 $69 NA NA NA NA Organizes live music events in Brazil

Music licensing platform that enables content creators, aggregators and digital music services to 4/12/18 NA NA NA NA NA identify and pay royalties to music publishers Manages licensing and commercial releases of video game music, including bespoke PR and 4/9/18 $6 0.7x NA 6.7x NA marketing for the artists and composers

4/4/18 $50 NA NA NA NA Global music publisher headquartered in London

3/23/18 NA NA NA NA NA Operator of music streaming application in India

Provides monthly subscription packages to license music tracks and sound effects for creative 1/10/18 NA NA NA NA NA projects

12/11/17 $400 7.1x NA NA NA Developer of an application that connects artists and fans through music discovery

Provides audio and lighting products include musical instruments, live sound equipment, recording 12/1/17 $28 1.0x NA NA NA products and accessories for music retailers

10/15/17 $295 4.1x NA NM NA Investment holding company active in the entertainment and music sectors

9/22/17 $245 NA NA NA NA Operates as an independent music publisher

8/31/17 $50 1.7x NA NM NA Provides radio music services in the United States and internationally

6/19/17 $18 NA NA NA NA Provides rights management, production, publication and live event services Music Catalogue Provides ticketing, marketing and analytics tools that help event promoters and venues book talent 6/9/17 $200 NA NA NA NA and streamline operations

5/9/17 $11 NA NA NA NA Provides an online service that turns iPhones into wireless karaoke microphones

5/3/17 $26 NA NA NA NA Distributor of a high-quality, focused roster of independent record labels

4/13/17 $626 1.3x 1.3x 8.0x 6.7x Provides in-store media solutions in the United States and internationally

2/13/17 $922 1.4x 1.3x 6.3x 5.9x Engages in music distribution, commercial systems, ICT and other businesses in Japan

2/2/17 $2,813 2.3x NA 8.6x NA Provides radio broadcasting services in the United States

Notes: Sources: Capital IQ, PitchBook, Wall Street Research. 1) Sony acquired the remaining 60% of EMI Music Publishing in this transaction. 33 M&A AND FINANCINGS Precedent M&A Transactions (cont.)

($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description Offers broadcasting services and operates thematic channels for the digital pay-television market in 1/30/17 $289 1.7x NA 7.5x NA France

1/4/17 $1,200 4.4x NA NA NA Provider of music licensing and administration services

Broadcasts live events and world premieres from stages, festivals and music events in Mexico, 1/3/17 $8 NA NA NA NA Europe, Africa, Asia and Australia Provider of entertainment data and technology for music, consumer electronics, automakers, media 12/20/16 $560 NA NA NA NA and cable and satellite operators

11/23/16 NA NA NA NA NA Owns and operates an online music streaming, sharing and distribution platform

Identifies and collects money earned by songwriters and music publishers for use of their works in 7/21/16 NA NA NA NA NA YouTube videos Developer of an application programming interface designed to deliver powerful music and licensing 5/12/16 NA NA NA NA NA capabilities

Summary Statistics Mean 3.1x 1.7x 13.4x 7.8x

Median 2.5x 1.3x 9.9x 6.3x

Notes: Sources: Capital IQ, PitchBook, Wall Street Research. 34 M&A AND FINANCINGS Precedent Financings

($MM) Announced Amount Enterprise Date Investor Target Invested Value (EV) Target Description 12/17/20 Quincy Jones $33 NA Ticketing technology platform for music and events

Blends broadcast technology and real-time gaming graphics to transform artists into digital avatars in a virtual 11/19/20 NA NA world

11/1/20 $165 NA Retailer of musical instruments

10/27/20 NA NA Developer of a digital discovery platform intended to change the music business with artificial intelligence

Developer of a music streaming platform built for connecting fans directly with artists in familiar music player 10/23/20 ~$1 NA interfaces

10/22/20 NA NA Provider of a range of audio production services for film, TV, gaming and streaming

10/21/20 $45 NA Developer of audio software for musicians, composers, producers & sound designers across all genres

9/21/20 ~$12 NA Developer of an online music services platform designed to offer unlimited music streaming

9/15/20 ~$5 NA Developer of speaker systems designed to offer quality audio for automotive and professional consumers

9/11/20 Undisclosed ~$6 NA Operator of a lyrics interpretation platform that helps people share facts and insights about songs

9/10/20 $9 NA Subscription-based audio content platform, offering audio journalism content through its app

9/2/20 $50 $530 India's largest commercial music streaming service

9/1/20 $8 NA Manufacturer of outdoor sound systems

Baron Davis, Kevin Lee, Developer of an enterprise platform intended to provide distribution and payments solutions to artists and their 8/26/20 $10 NA Mark Gillespie teams Operator of a music licensing platform designed to help artists and songwriters to license and monetize their 8/24/20 St. Baker Family Office $30 NA content Developer of a music streaming platform that assists artists in publishing, monetizing and distributing their work 7/15/20 ~$3 NA directly to fans

7/2/20 NA NA Provider of a mobile application that facilitates royalties sharing between artists

A royalty-free music and sound effects company that licenses content to creators on YouTube and other 6/29/20 NA NA platforms

6/2/20 ~$7 NA Developer of an entertainment application designed to support fan communities

3/3/20 NA $56 NA Developer of a music-mixing application designed to enable editing and mixing of songs

Notes: Sources: Capital IQ, Music Business Worldwide, PitchBook, Wall Street Research. 35 M&A AND FINANCINGS Precedent Financings (cont.)

($MM) Announced Amount Enterprise Date Investor Target Invested Value (EV) Target Description An audio platform that enables customers to create, record, promote and share their original content across the 2/10/20 $75 NA Internet

1/31/20 $16 NA Developer of a multi-channel virtual entertainment platform for live concerts

(1) 1/20/20 $1 $19 Operator of an online music distribution platform, offering unlimited releases to all major digital music stores

1/3/20 $37 NA Provides an OTT streaming service that combines frame-accurate synchronization and ultra-low latency

12/19/19 $9 NA Offers artist management and music production services

Operates as an entertainment media company, enabling aggregation, licensing and delivery of music, video and 11/6/19 $30 NA media content

10/24/19 $30 $200 Developer of an online subscription podcast platform

9/11/19 $20 NA Operator of music streaming application in India

9/6/19 $700 NA Developer of an online music platform offering free and paid streaming and downloads in China

8/27/19 ~$30 NA Developer of a curated mobile platform designed to facilitate on-demand audio and podcasts

Developer of a global music distribution and rights management platform intended to reach music fans via 8/13/19 $40 NA hundreds of digital, physical and mobile retailers

7/25/19 $10 NA LiveXLive Media Inc is the premium internet networks devoted to live music and music-related video content

7/16/19 $60 $660 Operates a platform enabling content creators and artists to fund their work

7/1/19 $30 NA Developer of an online audio mastering software designed to refine and polish finished stereo mixes

Developer of a royalty-free music library that provides cutting edge production music for films, TV and YouTube 7/1/19 $20 $370 content

5/21/19 $25 NA Provider of event organization services intended to offer public music entertainment

Developer of music and video streaming application with more than 5 million tracks that can be streamed free of 3/27/19 $20 NA charge

2/6/19 $100 NA Developer of a platform designed to discover, organize and listen to podcasts Ximalaya Provider of music and video distribution services intended for artists and labels to turn audience engagement into 1/2/19 $148 $400 sales

11/2/18 $150 NA Provider of an education platform intended to offer one-on-one tutoring services of music related aspects

Notes: Sources: Capital IQ, PitchBook, Wall Street Research 1) Strategic investment to help the company launch Bluebox . 36 M&A AND FINANCINGS Precedent Financings (cont.)

($MM) Announced Amount Enterprise Date Investor Target Invested Value (EV) Target Description

10/17/18 NA NA Operator of a SaaS-based musical platform intended to distribute music at a fraction of the price

10/12/18 $600 NA Developer of an online music platform offering free and paid online streaming and downloads in China

Developer of a music streaming platform that assists artists in publishing, monetizing and distributing their work 8/8/18 $6 NA directly to fans

8/2/18 $186 $1,161 Provider of music streaming services designed to offer personalized music tracks

7/1/18 $618 $3,710 Developer of an online audio streaming platform Ximalaya Operates an app allowing users to upload their music directly to music streaming platforms and track how many 5/22/18 NA NA people are listening to their music and how much money it generates Provider of curated direct-to-consumer and B2B services, including audio television channels, radio stations, 5/2/18 $31 NA music apps and SVOD content

4/25/18 $14 NA Developer of an audio platform designed to deliver contextual recommendations for listeners of podcasts

Developer of an audio streaming platform designed for radio presenters and DJs to upload their shows and reach 4/16/18 $12 NA a new audience

3/1/18 $10 NA Operates online music platforms that enable streaming, online karaoke and live streaming services in China

11/15/17 $4 NA Operator of a digital music distribution platform

Operator of an entertainment and sports agency, specializing in talent management, literary and strategic 10/6/17 $26 NA marketing and consulting services Developer of a digital media network platform intended to help listeners better understand the world and each 9/11/17 ~$20 $75 other Provider of a video analytics and rights management platform designed to quickly find and claim all copies of your 8/17/17 $7 $9 content Provider of an online radio application designed to provide access to sports, music, talk and news streams from 8/11/17 $50 NA around the world

8/2/17 $400 $5,000 Operator of a global entertainment, sports and content company

Developer of a global music distribution and rights management platform intended to reach music fans via 7/19/17 $20 NA hundreds of digital, physical and mobile retailers Developer of a voice interactive storytelling application designed to synchronize theme music and sound effects 7/17/17 NA NA using voice recognition Developer of an enterprise platform intended to provide distribution and payments solutions to artists and their 5/26/17 $8 $18 teams

6/9/17 $452 NA Radio broadcasting company that offers music streaming and automated music recommendation services

Notes: Sources: Capital IQ, PitchBook, Wall Street Research. 37 M&A AND FINANCINGS Precedent Financings (cont.)

($MM) Announced Amount Enterprise Date Investor Target Invested Value (EV) Target Description

5/8/17 $87 $647 Provider of publishing, recording and rights management platform

4/11/17 $109 $1,161 Developer of an online music platform, offering free and paid online streaming and downloads in China

3/20/17 $4 NA Operator of an online platform intended to seamlessly collect royalties globally

3/15/17 $24 NA Provides Internet music, content planning and music distribution services in South Korea

A music-streaming application created to provide lossless audio and high definition music and videos with 1/23/17 $45 NA curated editorial

12/31/16 NA NA Provider of music distribution and marketing services, facilitating partnerships between artists and the brands

Developer of an online music marketing platform designed to provide data management, reporting and analytics 8/29/16 NA NA services

Notes: Sources: Capital IQ, PitchBook, Wall Street Research. 38 TABLE OF CONTENTS

I. GCA Overview

II. Digital Music Trends and Insights

III. Public Markets

IV. M&A and Financings

V. Public Comps Backup

39 PUBLIC COMPS BACKUP Public Market Comparable Companies

($MM, except per share data) Trading Metrics Operating Metrics CIQ Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin Revenue Company 12/31/2020 Cap ST. Invest. Debt Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E

Music Publishers Sony Corporation $110.89 $137,108 $12,841 $24,577 $149,336 1.9x 1.8x 13.0x 13.1x 2% 3% 15% 14%

Vivendi SA $31.33 $37,023 $3,034 $8,208 $42,986 2.4x 2.2x 18.2x 15.6x 11% 11% 13% 14%

Warner Music Group Corp. $37.27 $19,170 $566 $3,760 $22,381 NA 5.0x NA 26.6x NA NA NA 19%

Hipgnosis Songs Fund Limited $1.64 $1,657 $263 $106 $1,499 NA 19.4x NA 25.7x NA NA NA 76%

YG Entertainment Inc. $43.94 $803 $101 $23 $790 3.3x 3.4x NM 36.3x (7%) (2%) 3% 9%

SM Entertainment Co. $27.50 $644 $287 $59 $564 1.0x 1.1x 6.8x 7.2x 7% (12%) 14% 15%

Summary Statistics Mean 2.1x 5.5x 12.7x 20.7x 3% (0%) 11% 25% Median 2.2x 2.8x 13.0x 20.6x 4% 0% 14% 15%

DSPs NetEase $121.95 $84,270 $14,490 $3,276 $74,751 8.7x 6.7x 29.2x 28.1x (12%) 31% 30% 24%

Spotify Technology S.A. $319.35 $60,544 $2,137 $706 $59,113 7.7x 6.1x NM NM 27% 26% 1% (2%)

Tencent Music Entertainment Group $26.16 $43,884 $3,653 $815 $41,061 11.3x 9.2x NM NM 31% 23% 19% 17%

Sirius XM Holdings Inc. $6.16 $25,502 $71 $8,967 $34,398 4.4x 4.3x 14.2x 13.8x 35% 2% 31% 31%

Stingray Group Inc. $5.87 $429 $8 $284 $705 2.9x 3.4x 8.2x 7.7x 89% (15%) 36% 45%

LiveXLive Media $4.20 $303 $21 $23 $305 8.0x 5.8x NM NM 21% 38% NM (9%)

Summary Statistics Mean 7.2x 5.9x 17.2x 16.5x 32% 17% 23% 17% Median 7.9x 6.0x 14.2x 13.8x 29% 25% 30% 20%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 40 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

Live Entertainment Live Nation Entertainment $73.93 $15,777$2,625$6,519 $20,304 1.8x10.9x21.6x NM 7% (84%) 8% NM iHeartMedia $14.04 $2,056 $714 $6,935$8,287 2.3x2.9x8.4x16.0x (42%)(21%) 27%18%

Madison Square Garden Sports Corp. $171.70 $4,140 $71 $1,094$5,166 3.2x10.3x NMNM 0% (69%) 4% NM

Madison Square Garden Entertainment Corp. $97.42 $2,352 $965$250 $1,666 NA 6.9x NANM NA NA NANM

Eventbrite $17.89 $1,639 $543$222 $1,318 4.1x12.1x NMNM 10% (66%)(1%) NM

Summary Statistics Mean 2.8x8.6x15.0x16.0x (6%)(60%) 10%18% Median 2.7x10.3x15.0x16.0x 3% (68%) 6%18%

Diversified Technology Apple Inc. $135.25 $2,270,506 $76,826 $112,043 $2,305,723 8.7x8.1x29.9x28.6x 1% 8%29%28%

Microsoft Corporation $241.06 $1,818,153 $131,989 $82,782 $1,768,946 13.3x11.8x29.8x25.6x12%13%45%46%

Amazon.com $3,302.20 $1,662,871 $84,396 $101,229 $1,679,704 6.0x4.4x40.3x30.5x20%36%15%14%

Alphabet Inc. $2,041.27 $1,378,312 $136,694 $27,872 $1,269,490 7.8x7.1x21.5x20.0x19%10%36%35%

Facebook $264.83 $754,148 $61,954 $11,177 $703,371 10.0x8.4x17.8x16.0x26%19%56%53%

Alibaba Group Holding Limited $267.79 $724,398 $70,790 $22,676 $697,246 10.0x7.1x31.2x23.4x39%40%32%30%

The Walt Disney Company $177.85 $322,667 $17,914 $62,323 $381,005 5.1x6.3x20.6x46.3x26% (20%) 25%14%

Netflix $543.95 $240,913$8,206 $18,511 $251,218 12.5x10.1x NMNM 28%24%16%20%

Adobe Inc. $486.70 $232,983$5,992$4,708 $231,699 20.8x18.1x46.0x37.5x24%15%45%48%

Snap Inc. $59.08 $88,028$2,725$1,978 $87,281 NM 35.7x NMNM 45%42% (13%) 0%

Avid Technology $20.10$889$49$244 $1,084 2.7x3.0x19.3x18.3x (1%)(11%) 14%16%

Summary Statistics Mean 9.7x10.9x28.5x27.4x22%16%27%28% Median 9.3x8.1x29.8x25.6x24%15%29%28%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 41 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

Digital Services & Marketplace Shopify Inc. $1,255.51 $154,173 $6,121 $903 $148,955 NM NM NM NM 7% 82% 8% 27%

Uber Technologies $56.88 $100,323 $7,286 $10,073 $104,350 7.4x 8.3x NM NM 7% (11%) NM NM

MercadoLibre $1,899.19 $94,712 $2,664 $1,465 $93,514 41.0x 24.9x NM NM 7% 65% (3%) 8% eBay Inc. $61.19 $42,181 $3,826 $8,143 $46,498 4.3x 4.6x 12.6x 12.4x 7% (6%) 34% 37%

Zillow Group $155.07 $36,081 $3,790 $2,321 $34,611 13.2x 10.6x NM NM 96% 25% 0% 9%

Etsy $219.60 $27,690 $1,525 $1,110 $27,275 49.7x 25.0x NM NM 35% 99% 34% 44%

Expedia Group $141.65 $20,038 $4,376 $9,348 $26,490 2.2x 4.9x 12.5x NM 8% (55%) 18% (5%)

Lyft $51.15 $16,240 $2,453 $1,025 $14,811 4.1x 6.3x NM NM 7% (34%) (20%) NM

Grubhub Inc. $72.21 $6,698 $413 $615 $6,900 5.3x 3.8x 38.3x NM 7% 41% 14% 6%

LendingTree $344.87 $4,526 $187 $697 $5,035 4.5x 5.6x 24.9x 44.1x 46% (19%) 18% 13%

TripAdvisor $34.60 $4,655 $446 $517 $4,726 3.0x 7.9x 10.9x NM (3%) (62%) 28% (5%)

Rakuten $10.34 $14,072 $30,491 $20,319 $4,095 0.4x 0.3x 2.1x 7.3x 7% 22% 17% 4%

Yelp Inc. $35.15 $2,601 $591 $210 $2,219 2.2x 2.6x 10.2x 18.1x 8% (15%) 21% 14%

Shutterstock $68.66 $2,514 $383 $43 $2,174 3.3x 3.3x 21.5x 15.1x 5% 1% 15% 22%

Summary Statistics Mean 10.8x 8.3x 16.6x 19.4x 17% 9% 14% 15% Median 4.3x 5.6x 12.6x 15.1x 7% (3%) 17% 11%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 42 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

Advertising The Trade Desk $851.25 $39,978 $557 $312 $39,733 NM 49.2x NM NM 38% 23% 32% 31%

HubSpot $404.33 $18,554 $1,185 $788 $18,157 27.1x 20.9x NM NM 31% 30% 13% 12%

Wix.com Ltd. $278.68 $15,506 $998 $913 $15,420 20.2x 15.8x NM NM 26% 28% 15% 10%

Magnite $43.41 $4,860 $104 $45 $4,802 30.7x 22.0x NM NM 25% 40% 16% 16%

LivePerson $66.88 $4,473 $199 $203 $4,477 15.4x 12.3x NM NM 17% 25% (5%) 8%

Criteo S.A. $23.33 $1,405 $627 $306 $1,118 1.2x 1.4x 3.9x 4.9x (3%) (15%) 31% 29%

Summary Statistics Mean 18.9x 20.3x 3.9x 4.9x 22% 22% 17% 18% Median 20.2x 18.4x 3.9x 4.9x 26% 26% 15% 14%

Data & Analytics IHS Markit Ltd. $89.45 $35,475 $126 $5,271 $40,634 9.2x 9.5x 22.9x 22.2x 10% (3%) 40% 43%

Experian plc $37.05 $33,842 $169 $4,334 $38,067 7.6x 7.4x 22.5x 21.7x 3% 3% 34% 34%

Verisk Analytics $188.79 $30,695 $226 $3,439 $33,909 13.0x 12.2x 27.8x 24.2x 9% 7% 47% 50%

Equifax Inc. $182.48 $22,197 $1,536 $4,377 $25,077 7.2x 6.1x 21.3x 17.3x 3% 17% 34% 35%

TransUnion $93.41 $17,775 $601 $3,788 $21,063 8.0x 7.8x 20.0x 20.3x 13% 2% 40% 38%

Nielsen Holdings plc $22.62 $8,075 $2,250 $10,540 $16,553 2.6x 2.7x 8.9x 9.0x (0%) (4%) 29% 30% comScore $4.03 $293 $32 $267 $528 1.4x 1.5x NM 18.1x (7%) (8%) 1% 8%

Summary Statistics Mean 7.0x 6.7x 20.6x 19.0x 4% 2% 32% 34% Median 7.6x 7.4x 21.9x 20.3x 3% 2% 34% 35%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 43 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

High-Growth SaaS Zoom Video Communications $385.25 $112,450$1,872 $70 $110,649 NM 42.9x NMNM 85%322%19%35%

Twilio Inc. $396.64 $59,897$3,299 $662 $57,260 NM 34.3x NMNM 72%49% 9% 9%

Okta $281.35 $36,425$2,536$1,953 $35,842 NM 43.6x NMNM 44%43% (7%) 3%

Zscaler $212.39 $28,501$1,416 $927 $28,012 NMNMNMNM 47%47%10%13%

Coupa Software Incorporated $337.23 $24,340$1,354$1,511 $24,497 NM 46.7x NMNM 46%38%13%17%

Slack Technologies $43.27 $24,929$1,575 $905 $24,281 39.0x27.4x NMNM 56%43% (19%)(4%)

Smartsheet Inc. $72.33 $8,842 $420$69 $8,491 31.4x22.4x NMNM 52%40% (18%)(10%)

Cloudera $16.83 $5,264 $395$206 $5,075 6.5x5.9x NM 23.4x63%10% 6%25%

Zix Corporation $8.81$484$24$196$6573.8x3.0x16.4x12.7x145%26%23%24%

Summary Statistics Mean 20.2x28.3x16.4x18.1x68%69% 4%12% Median 19.0x30.8x16.4x18.1x56%43% 9%13%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 44 GCA Advisors, LLC is the US entity of GCA, a global investment bank that provides strategic M&A and capital markets advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 locations across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks. www.gcaglobal.com

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