Audio Sector Report

Home , EMI Music Publishing, LiveXLive, Paul Wachter, SpringHill Company

AUDIO SECTOR REPORT Contact: JOHN LAMBROS Music Streaming Liftoff! Managing Director Tel: +1 (212) 999-7083 Q2 2020 [email protected] EXECUTIVE SUMMARY Q2 2020 Music Sector Wrap-Up

» While COVID-19 positively impacted the growth of music streaming – as it has with online video, ecommerce and digital health and wellness apps and technologies – there were three other significant events in the quarter that impacted the sector:

» First, Warner Music Group (WMG) priced its initial public offering at $25 per share for 77 million shares, raising a total of $1.925 billion at a ~$13 billion valuation ― This was the largest IPO of the year thus far in terms of dollars, most of which went to selling shareholder / owner Access Industries

» Second, Goldman Sachs’ highly anticipated annual "Music in the Air" report was published in May ― While some of the near-term forecasts for live music and adjacent sectors were hurt due to the pandemic, digital music growth remained strong and the long-term outlook on the general music industry remains bullish

― Recent public market activity of music companies underpins the success of the category in Q2 despite adverse macroeconomic trends

» Third, Spotify’s (SPOT) market cap appreciated over 70% since January, and we expect to see the company use its equity to continue its aggressive M&A strategy ― In May, the company announced an exclusive multi-year deal with “The Joe Rogan Experience” worth over $100 million

― In June, the company announced podcast partnerships with Warner Bros / DC Comics and Kim Kardashian West – highlighting Spotify’s continued interest in the podcasting space

» Within our core music group, Music Publishers lead the public company pack, trading at 5.2x EV / 2020E Revenue and 17.9x EV / 2020E EBITDA ― DSPs also had a strong quarter, trading at 4.5x EV / 2020E Revenue and 17.7x EV / 2020E EBITDA

» Strategics and financial sponsors are seeking increased exposure to this rapidly growing segment through high-profile audio financings

— KKR’s investment in Artlist highlighted Q2 2020 activity — SoundCloud also announced a $75 million investment earlier in the year from Sirius XM to accelerate product development

» We expect this trend to continue as the digital audio market continues to evolve with top artists splintering across emerging platforms that leverage technology to create differentiated offerings

2 TABLE OF CONTENTS

I. GCA Overview

II. Music In the News

III. Digital Music Trends and Insights

IV. Public Markets

V. M&A and Financings

VI. Public Comps Backup

3 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

STREAMING PUBLISHING

RIGHTS DISTRIBUTION MANAGEMENT

Advisor to Fulwell 73 ARTIST SERVICES ENGAGEMENT TOOLS

acquired AI TOOLS & VIDEO & CREATIVE ANALYTICS from

PROMOTIONAL LIVE EVENT SERVICES MANAGEMENT Advisor to MBO Group Advisor to Chrysalis Advisor to WMG

GCA Overview 25 >500 >180 157 50% OFFICES AROUND M&A TRANSACTIONS PER PE DEALS IN THE CROSS-BORDER THE WORLD PROFESSIONALS YEAR LAST TWO YEARS TRANSACTIONS

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. 5 GCA OVERVIEW Selected Recent Internet & Digital Media Transactions

6 GCA OVERVIEW Case Study: SISTER’s Investment in The SpringHill Company Transaction Overview The SpringHill Company Overview

» On April 3, SISTER announced its $100 million Headquarters: Los Angeles, CA investment in The SpringHill Company Founded: 2015 » SISTER invested alongside the financial services companies Guggenheim Investments and UC Description: Provider of media content intended to create compelling stories Investments, as well as Jason Stein’s SC for television, features and digital. The company offers different Holdings feature films, webseries, television series and short films, enabling users to get an altogether different experience while » The company’s new board will include SISTER’s enjoying their favorite shows. The SpringHill Company was co- founder Elisabeth Murdoch, Serena Williams, founded by NBA star LeBron James and his business consortium Apollo Global Management’s co-founder Marc in 2015. Rowan, investment banker Paul Wachter, Live Nation CEO Michael Rapino and Boston Red Sox chairman Tom Werner Production Partners

Content Offering Overview

Television

What’s My Million Dollar The Wall Warriors of Student Athlete Shut Up & Name Mile Teams compete in Liberty City Explores the Dribble The story of Everyday athletes trivia for cash Series covering a business of college History of the NBA Selected Transaction Commentary Muhammad Ali compete in the prizes Miami youth sports and its impact on mile for $1 million football program pop culture I’ve always wanted to use the Together with our new partners “platform of basketball to empower “and incredible team, we are Feature Films those around me. Now I’m building a consumer and

incredibly excited about the entertainment business that’s

opportunity to build a company committed to diversity, that’s

“ that empowers“ creators, unafraid to stand up for what we consumers and everything it believe in and that’s resonating touches. with our community. More Than A Game I Am Giant Covers LeBron James’ high school basketball team in Akron Chronicles Victor Cruz’s improbable rise to football stardom, Ohio, detailing the story of five friends chasing victory and the life-shattering injury that derailed his career and his LeBron James, Maverick Carter, James’ path to superstardom dramatic attempt at a comeback Co-Founder, SpringHill Co-Founder, SpringHill

Notes: Sources: Pitchbook, LinkedIn, Press Releases, Company Website. 7 TABLE OF CONTENTS

I. GCA Overview

II. Music In the News

III. Digital Music Trends and Insights

IV. Public Markets

V. M&A and Financings

VI. Public Comps Backup

8 MUSIC IN THE NEWS Warner Music Group’s IPO Transaction Overview Warner Music Group Overview

» On June 3, Warner Music Group priced its long- Headquarters: New York, NY anticipated initial public offering at $25 a share Founded: 1958 for 77 million shares, raising a total of $1.925 billion, representing the largest IPO of the year to Description: Warner Music Group is a leading major label in the music date industry. The company comprises an array of businesses aimed » The IPO priced at the higher end of its $23 to at helping artists achieve creative and financial success while $26 price range and the size of the deal was also providing consumers with the highest-quality music content available. WMG provides recorded music / artists services and Initial Public increased from an original 70 million shares, ultimately valuing the company at ~$13 billion publishing solutions and operates through numerous Offering international affiliates and licensees in more than 50 countries. » Shares were up ~22% on afternoon trading the day of the IPO » The company will not receive any funding from Selected Companies & Subsidiaries ~$1,925MM the IPO, as the selling stockholders, primarily Access Industries, received all proceeds Services & Solutions Overview

Recorded Music » Primarily through major labels Atlantic and Warner Records in the U.S. » Offer discovery and development of artists and any marketing, promotion, distribution, sale and licensing of their music

Artist & Label Services Selected Transaction Commentary » Primarily through WEA (Warner-Elektra-Atlantic) and Alternative

Distribution Alliance (ADA) It’s a vote of confidence in the The valuation reflects the

» Provide services to artists outside the traditional recorded music “way people see music’s growth “growing awareness of the value of business such as touring, merchandising and sponsorships trajectory and how they see content. Often times“ the spotlight distribution shaping up in mature is on tech, but tech in many forms

Publishing and developing markets. I think utilizes music.

» Primarily through Warner Chappell Music subsidiary they see that there is still a long runway for traditional“ streamers to » Own or control rights to more than 1.4 million songs across grow and expand but also new 80,000 songwriters and composers business models. » Revenue derived from performance, digital, mechanical and Stephen Cooper, synchronization sources CEO, Warner Music Group

Notes: Sources: Capital IQ, Pitchbook, SEC Filings, Press Releases, Company Website. 9 MUSIC IN THE NEWS Warner Music Group’s IPO (cont.) Financing History Financial Summary ($Bn)

DATE DEAL TYPE INVESTOR AMOUNT VALUATION Total Revenue Adj. EBITDA Revenue Growth

5 $4.5 25% 6/3/20 IPO Public $1,925MM $12,750MM 5 $4.0 4 $3.6 20% 4

7/28/16 Debt Undisclosed $300MM N/A 3 15% 11.7% 12.0% 3

3/31/14 2 10% Debt $9MM N/A 10.2% 6/30/13 2 $1.0 1 $0.6 $0.7 5% 7/20/11 M&A N/A $3,300MM 1

0 0% FY '17A FY '18A FY '19A Trading Statistics

$MM (except per share data) 6/30/20 $35.00 40.0 35.0 Share Price $29.50 $33.00 30.0 Fully Diluted Shares Out. 510.0 25.0 Equity Value $15,045.0 $31.00 20.0 Less: Cash and Eq. $484.0 $29.00 $29.50 Stock Price Stock 15.0 Plus: Debt $3,370 10.0 Plus: Minority Interest $21.0 $27.00

5.0 (MM) Volume Trading Daily Net Debt $2,907.0 $25.00 - Enterprise Value $17,952.0 6/3/20 6/8/20 6/13/20 6/18/20 6/23/20 6/28/20

Notes: Sources: Capital IQ, Pitchbook, SEC Filings, Press Releases, Company Website. 10 MUSIC IN THE NEWS Spotify’s Massive Market Growth in 1H 2020

» Many digital music companies, especially major DSPs, have experienced tremendous stock appreciation in the wake of the COVID-19 pandemic » Spotify’s strong subscriber growth in Q1 coupled with the continued upside and growth prospects internationally, however, have put the company in a league of its own » Investors have been especially bullish on listener engagement with music platforms, and Spotify’s efforts to own both playlists and podcasts globally has proven to be a powerful combination Announces exclusive podcasting $300.00 deals with Warner Bros / DC $258.19 Share Price 14.0 Comics and Kim Kardashian West $48.0Bn Market Cap

71.1% 12.0 $250.00 MARKET CAP APPRECIATION Announces exclusive Rosenblatt Securities (1/1/20 – 6/30/20) multi-year deal with upgrades Spotify target “The Joe Rogan share price to $275 Trump declares 10.0 national emergency Experience” podcast (was previously $190) $200.00 due to COVID-19 $151.62 Share Price $27.2Bn Market Cap Announces Q1 earnings; paid subscribers have grown 31% 8.0 year-over-year to 130MM $150.00 WMG IPO Stock Price Stock Definitive agreement 6.0 to acquire The Ringer $100.00 Goldman Sachs

releases music report (MM) Volume Trading Daily 4.0

$50.00 2.0

- - 1/2/20 2/1/20 3/2/20 4/1/20 5/1/20 5/31/20 6/30/20

Notes: Sources: Capital IQ, Pitchbook, SEC Filings, Press Releases, Company Website. 11 MUSIC IN THE NEWS Main Takeaways from Goldman Sachs’ “Music in the Air” Report

EXPECTED STREAMING SUBSCRIPTION GROWTH IS VERY EMERGING MARKET GROWTH AND PENETRATION WILL 1 STRONG 2 DRIVE SIGNIFICANT VALUE CREATION » The number of paid streaming subscribers is expected to » By 2030, emerging markets are projected to account for 67% nearly quadruple within the next decade of total paid subscribers, compared to just 38% in 2019 2030E 12.3% 1,220 2019A CAGR (2019A – 2030E) 403 PAID SUBSCRIBERS 129 212 341 817

2019A 2030E Developed Market Paid Subscribers Emerging Market Paid Subscribers

SPOTIFY IS ONLY JUST GETTING GOING MUSIC PUBLISHING REMAINS ONE OF THE MOST ATTRACTIVE 3 4 WAYS TO “PLAY” THE SECULAR GROWTH IN THE MUSIC INDUSTRY » Spotify’s growth has proven to be exceptional in recent years » With paid streaming fueling growth in digital royalties and » Nevertheless, there is still widespread opportunity for the increased usage of musical content driving higher company to expand – using Netflix as a comparison, Spotify performance royalties, the continued growth in music still has dozens and dozens of untapped markets to fuel publishing is here to stay further growth » Given a projected growth rate of a steady ~6% CAGR from 2019 – 2030 for music publishing, we expect continued M&A 79 MARKETS 194 MARKETS and financing activity in the sector, as players continue to VS. shore up their publishing footholds

Notes: Source: Goldman Sachs. 12 TABLE OF CONTENTS

I. GCA Overview

II. Music In the News

III. Digital Music Trends and Insights

IV. Public Markets

V. M&A and Financings

VI. Public Comps Backup

13 DIGITAL MUSIC TRENDS AND INSIGHTS Music & Podcasting Streaming Growth and Acceleration Global Recorded Music Revenues ($Bn) U.S. Monthly Podcast Listeners (MM, Age 12+)

29.9% 164 $28 % CAGR (2013A – 2023E) $26 17.8 STREAMING $24 CAGR (2013A – 2023E) 140 $22 LISTENERS $20 120 $19 103 $17 $16 88 $15 $14 $15 $20 75 $16 $18 65 $11 $13 57 $1 $2 $3 $5 $7 $9 46 40 32

'13A '14A '15A '16A '17A '18E '19E '20E '21E '22E '23E '13A '14A '15A '16A '17A '18A '19E '20E '21E '22E '23E

Physical Digital (excl. streaming) Streaming

Performance Rights Synchronization

Streaming is mainstream – and whether a song, playlist or podcast, streaming audio represents one of the most exciting, dynamic and high-growth entertainment markets today

Notes: Sources: Goldman Sachs, Activate Consulting. 14 DIGITAL MUSIC TRENDS AND INSIGHTS Industry Highlights Global Recorded Music Revenue Split ($Bn) » Tremendous rebound in the global music industry in recent years, driven by streaming and digital transformation 2030E 2020E $1 ― Digital sales growth has outpaced physical sales’ $1 decline $3 ― Global recorded music revenues are projected to $2 $4 reach $22Bn in 2020E, with streaming representing $3 roughly 60% $13 » 1.2Bn user opportunity by 2030 is supported by multiple $4 $36 macro, secular trends including continued global proliferation of DSP platforms » Apple Music, Amazon, Spotify and Tencent Music remain Streaming Physical Performance Rights the most popular global streaming services; however, Digital (excl. streaming) Synchronization nearly 40% of listeners utilize more than one streaming service (1) » With stability in streaming and better technology to Top Streaming Platforms’ Global Market Share monetize and track listening, songs have become a real “asset class,” with valuations for premium libraries reaching 15-20x NPS ― Hipgnosis (LON: SONG), the only pure-play, publicly 8% traded music royalty fund, has acquired 22 song catalogues with more than 6,000 songs since 2018 19% ― Round Hill Capital, Kobalt Capital, Concord Bicycle, 21% Tempo Music and many other funds are all aggressively competing for song libraries and IP ownership 36% » The increased direct exposure artists have to their fans Other through digital decreases dependence on traditional 4% publisher relationships, which has fueled the growth of tech-enabled independent artists and record labels 12% Notes: Sources: Goldman Sachs, Activate Consulting, Wall Street Research. 1) Size of shaded areas are proportionate to % total market share. 15 DIGITAL MUSIC TRENDS AND INSIGHTS Key Constituents Driving the Music Industry

1 THE MAJORS 2 THE DSPs

» The Majors’ incumbent status carries significant weight » Stabilized the music industry by reinventing music services and across the market – few are willing to challenge them monetization in the age of streaming directly » Of the market leaders, only Spotify and Tencent Music are » Pending IPOs for Warner Music and Universal Music will be singularly committed to audio streaming; Amazon, Apple and significant events and mark a “new chapter” for the Google / YouTube view streaming as an accessory to their core industry services » Several other incumbents control their respective » There is a long tail of streaming providers who will likely be territories in the industry including rights (ASCAP, BMI, consolidated over the next 3-7 years SESAC) and live entertainment (Live Nation) 48% COMBINED MARKET SHARE OF SPOTIFY AND TENCENT

3 THE INDEPENDENTS 4 INNOVATIVE TECH UPSTARTS

» Consists of newer publishers, rights holders and » Innovative, disruptive and diverse, this category includes distribution companies building scale across the industry labels, rights administrators and artist distributors leveraging technology to drive new business models

» These companies are creating and consolidating services across the streaming landscape to help independent labels » Generally fit the size profile for growth equity investors and emerging artists expand their market potential — Revenues range from $1MM to $50MM, with varying degrees of profitability

Notes: Source: Goldman Sachs. 16 DIGITAL MUSIC TRENDS AND INSIGHTS Emergence of Technology Leading to the Growing Presence of the Artists Direct and Independent Segments Global Recorded Music Industry Market Share

Artists Direct 1.7% 2.3% 2.7% 3.4% Independent labels have maintained their market share while Independents 27.9% 27.2% 27.7% 27.4% Artists Direct have expanded their share versus the incumbents, a key 16.9% 17.5% 17.7% 18.3% driver to change throughout the industry

22.9% 22.6% 22.1% 20.6%

30.6% 30.3% 29.7% 30.3%

2015 2016 2017 2018

Technology enables both lower cost and greater scale for artists direct and independent labels, who continue to take incremental market share from the major labels

Notes: Source: Midia. 17 DIGITAL MUSIC TRENDS AND INSIGHTS Surge of Fund Activity Centered on Music Rights Management, Production and Services

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 $268.4M in IPO

Jul-14: Round Hill Jun-16: Primary Wave Jun-19: Ithaca Holdings Founded in 2010 establishes $209M+ establishes $300M+ IP Apr-19: Hipgnosis raises Aug-19: Hipgnosis raises acquires Big Machine Royalty Fund I Fund I $185.6M in stock offering $62.8M 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 $297.2M in stock offering Group

May-16: Shamrock Nov-17: Kobalt raises Jan-18: Round Hill Feb-19: Primary Wave 2011: Kobalt raises Capital closes $250M $600M fund sponsored Nov-17: Round Hill establishes $263M establishes $500M+ IP $350M 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 $6.4M in Later acquires Stargate Music Hipgnosis Primary Wave Shamrock Stave VC Publishing Catalog Ithaca Holdings Round Hill Tempo Music

Notes: Sources: Pitchbook, Press Releases, Company websites. 18 DIGITAL MUSIC TRENDS AND INSIGHTS Live Concert Streaming is Here to Stay Live Concert Streams » COVID-19 has accelerated the growth of live concert streaming, a promising area we have been tracking within Date Artist Platform the music sector » Live streaming, which is reportedly a $5Bn market 6/9 Phish globally, is an inexpensive way for artists to expand their audience and deepen relationships with fans 6/14 BTS ― Bandsintown LIVE launched with Twitch on March 6/24 All in WA 20th with a DJ Black Coffee concert and has become a hub for live concert superfans attracting more than Electric 6/25 2.3MM views on this channel alone Blockaloo The Roots ― With ~475MM combined users, Fortnite and 6/27 Minecraft enable artists to host live concerts with Roddy Ricch unprecedented scale 7/3 Zac Brown Band ― The largest in-person concert ever drew ~3.5MM; Travis Scott’s Fortnite concert drew 12.3MM 7/7 Paul McCartney concurrent viewers » Technology to support live virtual performances is in a Selected Market Commentary very early stage Live is on the rise and rightfully Accessing live streams has » Latency, privacy and security represent the largest “so, but it is still in its infancy and is “become second nature to our hurdles to successful live concert performances, but still the baby brother of broadcast audiences, whether that is within companies large and small are working to minimize these video. The scale of the cloud and our own sites and apps, or on disruptions, as they see tremendous opportunity in the live reach of the Internet have allowed social sites. We now live stream

different audiences to more easily multiple times a day across

streaming market reach their niche content and multiple platforms, along“ with 24/7 » The broader live music industry will benefit from growth allows for advertisers “ to more channel simulcast streams and accurately put relevant content in major live events. in streaming concerts through increased ticket sales and front of intenders. fan engagement ― People who stream concerts are 67% more likely to Joe Green, VP, Alec Hendry, buy a ticket to a similar event in the future Turner Broadcasting Sr. Director, Viacom

Notes: Sources: Ludwig van Toronto, Akamai, Statista, Wall Street Research. 19 DIGITAL MUSIC TRENDS AND INSIGHTS MUSIC VALUE CHAIN: ArtistArtist Services Services The Music Value Chain Live ConcertLive Concert EngagementEngagement Publishing Distribution & &Rights Rights StreamingStreaming ToolsTools ManagementManagement

`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

Notes: This is a representative list and may not include all relevant companies. 20 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. 21 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. 22 DIGITAL MUSIC TRENDS AND INSIGHTS Most Active Deal Makers

Company Headquarters Number of Deals Investments & M&A

New York, NY 23

Santa Monica, CA 18

New York, NY 15

Shenzhen, China 10 Ximalaya

Stockholm, Sweden 7

New York, NY 5

Seattle, WA 4

Cupertino, CA 4

New York, NY 4

Beverly Hills, CA 4

Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 23 TABLE OF CONTENTS

I. GCA Overview

II. Music In the News

III. Digital Music Trends and Insights

IV. Public Markets

V. M&A and Financings

VI. Public Comps Backup

24 PUBLIC MARKETS Stock Performance Q2 2020 Share Price Performance 90% 83% 75% 80%

60% 54% 45% 45% 36% 30% 31%

15% 17%

- (0%)

(15%) Apr-20 May-20 Jun-20

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

Core Music Technology Platforms Relevant Other Categories

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

17% 45% (0%) 36% 83% 54% 31% 80% Q2 2020 Share Price Performance

Notes: Source: Capital IQ. 25 PUBLIC MARKETS Trading Metrics Enterprise Value / 2020E Revenue(1) Enterprise Value / 2020E EBITDA(1)

22.0x 25.5x 19.0x 22.1x 20.9x 18.2x 17.9x 17.7x 12.9x 15.6x 11.5x 7.4x 5.2x 5.1x 4.5x 2.6x

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

5.2x / 17.9x 4.5x / 17.7x 2.6x / 11.5x 7.4x / 25.5x 5.1x / 22.1x 12.9x / 20.9x 19.0x / 18.2x 22.0 / 15.6x 2020E Revenue / 2020E EBITDA Multiple(1) Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 1) Multiples represent mean figures. 26 TABLE OF CONTENTS

I. GCA Overview

II. Music In the News

III. Digital Music Trends and Insights

IV. Public Markets

V. M&A and Financings

VI. Public Comps Backup

27 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

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 4/23/20 NA NA NA NA NA anticipating music-related trends Developer of a news narration platform designed to eliminate the gap between writing for 3/23/20 $9 NA NA NA NA print and 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 2/21/20 $75 3.0x NM 23.5x NM production, 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

Developer of an online music production marketplace designed to connect and hire top 9/12/19 NA NA NA NA NA musicians Specializes in the development, acquisition, production, financing and distribution of 8/22/19 $3,800 3.8x 3.2x 36.2x 15.2x entertainment content

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

Cloud-based application software for music creators, artists, producers and music rights 7/30/19 NA NA NA NA NA holders Operates an online portal for musicians and dealers to buy, sell and trade new, used and 7/22/19 $275 7.6x NA NA NA vintage gear and guitars

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 4/11/19 $217 5.7x NA 15.1x NA video productions

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

Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 28 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

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 2/12/19 NA NA NA NA NA independent labels and content owners manage their music Privately-owned radio company, which operates radio stations in Maryland, Delaware and 2/6/19 $19 NA NA NA NA New 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 1/30/19 $162 0.5x 0.4x 10.7x 3.3x through digital advertising and content distribution

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

Provides music and audio streaming technologies and services for businesses and 1/22/19 $40 NA NA NA NA 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 7/25/18 $51 0.7x NA NA NA and 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

(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 5/2/18 $397 3.0x NA 9.7x NA 101 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 4/12/18 NA NA NA NA NA services to identify and pay royalties to music publishers Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 1) Sony acquired the remaining 60% of EMI Music Publishing in this transaction. 29 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 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 1/10/18 NA NA NA NA NA creative 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, 12/1/17 $28 1.0x NA NA NA recording 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 6/9/17 $200 NA NA NA NA book talent 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

Offers broadcasting services and operates thematic channels for the digital pay-television 1/30/17 $289 1.7x NA 7.5x NA market in 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 1/3/17 $8 NA NA NA NA Mexico, Europe, Africa, Asia and Australia Provider of entertainment data and technology for music, consumer electronics, 12/20/16 $560 NA NA NA NA automakers, media and cable and satellite operators

Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 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

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 7/21/16 NA NA NA NA NA works in YouTube videos Developer of an application programming interface designed to deliver powerful music and 5/12/16 NA NA NA NA NA licensing capabilities

Summary Statistics Mean 3.1x 1.7x 13.6x 7.8x

Median 2.5x 1.3x 9.9x 6.3x

Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 31 M&A AND FINANCINGS Precedent Financings

($MM) Announced Amount Enterprise Date Investor Target Invested Value (EV) Target Description A royalty-free music and sound effects company that licenses content to creators on YouTube and other 6/29/20 $48 NA platforms

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

An audio platform that enables customers to create, record, promote and share their original content across 2/11/20 $75 NA the Internet

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

(1) Operator of an online music distribution platform, offering unlimited releases to all major digital music 1/20/20 $1 $19 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 11/6/19 $30 NA and 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 LiveXLive Media Inc is the premium internet networks devoted to live music and music-related video 7/25/19 $10 NA 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 7/1/19 $20 $370 YouTube 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 3/27/19 $20 NA free of charge

2/6/19 $100 NA Developer of a platform designed to discover, organize and listen to podcasts Ximalaya Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 1) Strategic investment to help the company launch Bluebox 32 M&A AND FINANCINGS Precedent Financings (cont.)

($MM) Announced Amount Enterprise Date Investor Target Invested Value (EV) Target Description Provider of music and video distribution services intended for artists and labels to turn audience 1/2/19 $148 $400 engagement into sales

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

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 assist artists publish and monetize their work and distribute it 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 5/22/18 $16 NA many 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 5/2/18 $31 NA stations, 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 4/16/18 $12 NA reach 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 9/11/17 ~$20 $75 each other Provider of a video analytics and rights management platform designed to quickly find and claim all copies 8/17/17 $7 $9 of your content Provider of an online radio application designed to provide access to sports, music, talk and news streams 8/11/17 $50 NA from 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 7/17/17 NA NA effects using voice recognition

Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 33 M&A AND FINANCINGS Precedent Financings (cont.)

($MM) Announced Amount Enterprise Date Investor Target Invested Value (EV) Target Description Developer of an enterprise platform intended to provide distribution and payments solutions to artists and 5/26/17 $8 $18 their teams

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

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 Provider of music distribution and marketing services, facilitating partnerships between artists and the 12/31/16 $70 NA brands Developer of an online music marketing platform designed to provide data management, reporting and 8/29/16 $3 NA analytics services

Notes: Sources: Capital IQ, Pitchbook, Wall Street Research. 34 TABLE OF CONTENTS

I. GCA Overview

II. Music In the News

III. Digital Music Trends and Insights

IV. Public Markets

V. M&A and Financings

VI. Public Comps Backup

35 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 6/30/2020 Cap ST. Invest. Debt Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E

Music Publishers Sony Corporation $68.94 $84,119 $8,944 $17,438 $98,858 1.3x 1.4x 8.6x 13.1x 2% (8%) 15% 10%

Vivendi SA $25.67 $29,718 $2,667 $9,422 $36,721 2.1x 2.0x 15.6x 15.0x 11% 2% 13% 14%

Warner Music Group Corp. $29.50 $15,045 $484 $3,370 $17,952 NA 4.0x NA 24.2x NA NA NA 17%

Hipgnosis Songs Fund Limited $1.45 $892 $81 $17 $828 NA 20.6x NA 24.8x NA NA NA 83%

YG Entertainment Inc. $29.68 $536 $75 $22 $542 2.3x 2.6x NM 23.0x (7%) (13%) 3% 11%

SM Entertainment Co. $20.01 $469 $261 $72 $434 0.7x 0.9x 5.2x 7.4x 7% (19%) 14% 12%

Summary Statistics Mean 1.6x 5.3x 9.8x 17.9x 3% (9%) 11% 25% Median 1.7x 2.3x 8.6x 19.0x 4% (10%) 14% 13%

DSPs NetEase $429.38 $59,342 $10,664 $2,845 $53,161 6.2x 5.4x 20.8x 19.7x (12%) 15% 30% 27%

Spotify Technology S.A. $258.19 $48,012 $1,649 $700 $47,062 6.2x 5.3x NM NM 27% 17% 1% (1%)

Sirius XM Holdings Inc. $5.87 $25,705 $40 $8,340 $34,005 4.4x 4.4x 14.1x 14.2x 35% (1%) 31% 31%

Tencent Music Entertainment Group $13.46 $22,580 $2,957 $19 $19,654 5.4x 4.7x 29.1x 30.2x 31% 16% 19% 15%

LINE Corporation $50.28 $12,065 $1,739 $2,157 $12,616 5.9x 5.3x NM NM 13% 12% (6%) 3%

Stingray Group Inc. $3.87 $285 $2 $278 $562 2.3x 2.7x 6.5x 6.9x 89% (12%) 36% 39%

LiveXLive Media $3.62 $215 $6 $16 $226 5.9x 4.1x NM NM 21% 45% NM (11%)

Summary Statistics Mean 5.2x 4.5x 17.6x 17.7x 29% 13% 18% 15% Median 5.9x 4.7x 17.4x 16.9x 27% 15% 24% 15%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 36 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

Live Entertainment Live Nation Entertainment $44.33 $9,374 $3,270 $5,220 $12,140 1.1x 3.0x 12.9x NM 7% (64%) 8% (9%) iHeartMedia $8.35 $1,218 $647 $6,879 $7,459 2.0x 2.4x 7.6x 11.5x (42%) (16%) 27% 21%

Madison Square Garden Sports Corp. $146.89 $3,524 $1,337 $632 $2,863 1.8x 4.5x 43.4x NM 0% (61%) 4% (14%)

Madison Square Garden Entertainment Corp. $75.00 $1,801 $1,335 $281 $788 NA 1.5x NA NM NA NA NA (15%)

Avid Technology $7.27 $318 $81 $286 $523 1.3x 1.5x 9.3x 11.6x (1%) (12%) 14% 13%

Eventbrite $8.57 $777 $373 $23 $427 1.3x 2.8x NM NM 10% (53%) (1%) NM

Summary Statistics Mean 1.5x 2.6x 18.3x 11.5x (5%) (41%) 10% (1%) Median 1.3x 2.6x 11.1x 11.5x 0% (53%) 8% (9%)

Diversified Technology Apple Inc. $364.80 $1,581,165 $94,051 $118,761 $1,605,875 6.1x 6.0x 20.8x 22.0x 1% 1% 29% 27%

Microsoft Corporation $203.51 $1,543,306 $137,642 $84,025 $1,489,689 11.2x 10.1x 25.1x 22.1x 12% 11% 45% 45%

Amazon.com $2,758.82 $1,376,033 $49,292 $78,151 $1,404,892 5.0x 4.1x 33.7x 31.1x 20% 24% 15% 13%

Alphabet Inc. $1,418.05 $967,990 $117,229 $16,804 $867,565 5.3x 5.1x 14.7x 15.2x 19% 4% 36% 34%

Facebook $227.07 $647,453 $60,289 $10,814 $597,978 8.5x 7.8x 15.1x 16.0x 26% 9% 56% 48%

Alibaba Group Holding Limited $215.70 $578,885 $51,287 $17,711 $561,569 8.0x 6.4x 25.2x 21.6x 39% 25% 32% 30%

The Walt Disney Company $111.51 $201,417 $14,339 $59,555 $260,199 3.5x 4.0x 14.1x 31.1x 26% (13%) 25% 13%

Netflix $455.04 $200,128 $5,152 $16,266 $211,242 10.5x 8.5x NM 46.0x 28% 23% 16% 19%

Snap Inc. $23.49 $33,953 $2,082 $1,233 $33,105 19.3x 15.7x NM NM 45% 23% (13%) (9%)

Twitter $29.79 $23,329 $7,671 $4,137 $19,796 5.7x 6.0x 16.1x 24.6x 13% (5%) 36% 25%

Summary Statistics Mean 8.3x 7.4x 20.6x 25.5x 23% 10% 28% 24% Median 7.1x 6.2x 18.5x 22.1x 23% 10% 31% 26%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 37 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

Digital Services & Marketplace Shopify Inc. $949.20 $113,303 $2,361 $141 $111,083 NM NM NM NM 7% 39% 8% 5%

Uber Technologies $31.08 $53,892 $8,996 $9,499 $55,371 3.9x 4.2x NM NM 7% (6%) NM (18%)

MercadoLibre $985.77 $49,003 $2,276 $1,125 $47,851 21.0x 15.8x NM NM 7% 33% (3%) (1%) eBay Inc. $52.45 $36,855 $4,430 $9,195 $41,620 3.9x 4.0x 11.3x 10.7x 7% (4%) 34% 38%

Expedia Group $82.20 $11,589 $4,099 $7,377 $16,338 1.4x 2.7x 7.7x NM 8% (50%) 18% 0%

Rakuten $8.84 $12,000 $16,949 $17,698 $12,763 1.1x 0.9x 6.7x 13.4x 7% 18% 17% 7%

Etsy $106.23 $12,607 $804 $854 $12,657 23.1x 16.2x NM 46.9x 35% 42% 34% 35%

Zillow Group $57.48 $12,699 $2,561 $2,279 $12,416 4.8x 3.7x NM NM 96% 30% 0% (3%)

Lyft $33.01 $10,128 $2,670 $533 $7,991 2.2x 2.8x NM NM 7% (21%) (20%) NM

Grubhub Inc. $70.30 $6,484 $597 $793 $6,680 5.2x 4.3x 37.1x NM 7% 20% 14% 4%

LendingTree $289.53 $3,782 $51 $429 $4,160 3.7x 4.7x 20.6x 32.6x 46% (21%) 18% 14%

TripAdvisor $19.01 $2,551 $798 $725 $2,478 1.6x 3.8x 5.7x NM (3%) (58%) 28% (10%)

Yelp Inc. $23.13 $1,663 $487 $237 $1,413 1.4x 1.7x 6.5x 18.1x 8% (20%) 21% 10%

Shutterstock $34.97 $1,246 $296 $46 $996 1.5x 1.6x 9.8x 11.1x 5% (4%) 15% 14%

Summary Statistics Mean 5.7x 5.1x 13.2x 22.1x 17% (0%) 14% 7% Median 3.7x 3.8x 8.8x 15.8x 7% (4%) 17% 5%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 38 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

Advertising Adobe Inc. $435.31 $208,803 $4,351 $4,697 $209,149 18.8x 16.4x 41.5x 34.7x 24% 14% 45% 47%

The Trade Desk $406.50 $18,723 $446 $370 $18,647 28.3x 27.1x NM NM 38% 4% 32% 26%

Wix.com Ltd. $256.22 $13,202 $726 $448 $12,924 17.0x 13.5x NM NM 26% 26% 15% 16%

HubSpot $224.35 $9,788 $969 $610 $9,430 14.1x 11.7x NM NM 31% 20% 13% 9%

LivePerson $41.43 $2,743 $171 $200 $2,772 9.5x 8.0x NM NM 17% 19% (5%) 2%

Magnite NA NA $71 $21 ($51) NM NM NM 25.2x 25% 19% 16% (1%)

Criteo S.A. $11.39 $703 $437 $164 $462 0.5x 0.6x 1.6x 2.9x (3%) (22%) 31% 22%

Summary Statistics Mean 14.7x 12.9x 21.6x 20.9x 23% 12% 21% 17% Median 15.5x 12.6x 21.6x 25.2x 25% 19% 16% 16%

Data & Analytics Experian plc $35.57 $32,280 $277 $4,522 $36,531 7.3x 7.3x 21.6x 21.2x 3% 0% 34% 34%

IHS Markit Ltd. $75.50 $29,959 $208 $5,777 $35,542 8.0x 8.3x 20.1x 19.4x 10% (3%) 40% 43%

Verisk Analytics $170.20 $27,617 $207 $3,334 $30,743 11.8x 11.1x 25.2x 23.6x 9% 7% 47% 47%

Equifax Inc. $171.88 $20,864 $370 $3,508 $24,045 6.9x 6.6x 20.4x 20.2x 3% 4% 34% 33%

TransUnion $87.04 $16,520 $319 $3,817 $20,115 7.6x 7.8x 19.1x 21.4x 13% (3%) 40% 37%

Nielsen Holdings plc $14.86 $5,297 $359 $8,949 $14,074 2.2x 2.3x 7.6x 7.9x (0%) (4%) 29% 29% comScore $3.10 $220 $37 $266 $449 1.2x 1.2x NM 13.6x (7%) (5%) 1% 9%

Summary Statistics Mean 6.4x 6.4x 19.0x 18.2x 4% (1%) 32% 33% Median 7.3x 7.3x 20.2x 20.2x 3% (3%) 34% 34%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 39 PUBLIC COMPS BACKUP Public Market Comparable Companies (cont.)

High-Growth SaaS Zoom Video Communications $253.54 $71,524 $1,105 $72 $70,491 NM 39.1x NM NM 85% 195% 19% 26%

Twilio Inc. $219.42 $30,730 $1,843 $648 $29,535 26.5x 19.4x NM NM 72% 36% 9% 6%

Okta $200.23 $24,951 $1,447 $1,161 $24,665 42.9x 31.7x NM NM 44% 35% (7%) (3%)

Slack Technologies $31.09 $17,525 $1,525 $840 $16,857 27.1x 19.3x NM NM 56% 40% (19%) (9%)

Coupa Software Incorporated $277.04 $18,582 $706 $718 $18,594 48.8x 37.8x NM NM 46% 29% 13% 15%

Zscaler $109.50 $14,292 $391 $41 $13,941 39.0x 28.6x NM NM 47% 36% 10% 9%

Smartsheet Inc. $50.92 $6,098 $544 $75 $5,628 20.8x 15.4x NM NM 52% 35% (18%) (13%)

Cloudera $12.72 $3,757 $412 $212 $3,558 4.5x 4.2x NM 20.3x 63% 7% 6% 21%

Zix Corporation $6.90 $377 $16 $198 $559 3.2x 2.6x 14.0x 11.0x 145% 24% 23% 24%

Summary Statistics Mean 26.6x 22.0x 14.0x 15.6x 68% 49% 4% 8% Median 26.8x 19.4x 14.0x 15.6x 56% 35% 9% 9%

Notes: Sources: Capital IQ, Wall Street Research. Multiples <0x and >50x considered NM. 40 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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