Marketing, Media, Technology, and Service Industries M&A & November 2011 Investment Summary Expertise. Commitment. Results. TABLE OF CONTENTS Overview of Monthly M&A and Investment Activity 3 Monthly M&A and Investment Activity by Industry Segment 7 Additional Monthly M&A and Investment Activity Data 24 About Petsky Prunier 34 M&A & INVESTMENT SUMMARY NOVEMBER 2011 2 MARKETING, MEDIA, TECHNOLOGY, AND SERVICE INDUSTRIES Transaction Distribution • A to ta l of 245 deal s worth approximat el y $6.4 billion were announced in Novem ber 2011 • Digital Media/Commerce was the most active segment with 90 transactions • Digital Media/Commerce was also the highest value segment worth approximately $1.8 billion • Strategic buyers announced 107 deals for approximately $4.4 billion (44% of total volume) • VC/Growth Capital investors announced 130 deals for approximately $1.3 billion • Buyout investors announced eight deals for approximately $688 million NOVEMBER 2011 BUYER/INVESTOR BREAKDOWN Transactions Est. Value Strategic Buyout Venture/Growth Capital #% $MM%#$MM#$MM#$MM Digital Media/Commerce 90 37% 1,841.2 29% 25 899.5 2 384.1 63 557.6 Marketing Technology 60 24% 1,058.5 17% 25 695.6 2 40.0 33 322.9 Software & Information 30 12% 1,037.8 16% 7 742.2 0 0.0 23 295.6 Digital Advertising 26 11% 1,109.6 17% 15 976.2 1 64.2 10 69.2 Agency/Consulting 22 9% 981.9 15% 20 810.2 1 151.7 1 20.0 OtOut-o fHf-Home & Speci iltalty MMdiedia 9 4% 230.0 4% 9 230.0 0 000.0 0 000.0 Marketing Services 8 3% 135.7 2% 6 87.9 2 47.8 0 0.0 Total 245 100% 6,394.7 100% 107 4,441.6 8 687.8 130 1,265.3 Marketing, Media, Technology, and Service Industries M&A and Investment Volume - Last 13 Months 24. 0 $22.0 21.0 $18.3 $10.3 18.0 HPQ/ AU $14.7 $8.5 15.0 Skype/ $13.4 MSFT 12.0 $10.7 $9.6 $10.0 $9.4 9.0 $7.6 $6.0 $6.0 $6.4 6.0 $2.7 alue ($ in billions) in ($ alue 303.0 VV 149 182184 207246 241 254 248 245 263 275 279 245 - Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 M&A & INVESTMENT SUMMARY NOVEMBER 2011 3 SELECTED TRANSACTIONS WITH VALUATION INFORMATION DISCLOSED AND IPOS AFTER FINAL PRICING ($ in Millions) Selected Transactions With Multiples Information Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Advertising interclick, Inc. Ad Networks/Exchanges Yahoo!, Inc. $270.0 $117.4 10.9 2.3x 24.8x Prime Visibility Media Group Corporation Searc h Marketing blinkx, Inc . 36.0 29.9 - 1.2x NM Mobile Interactive Group Limited(1 ) Mobile Marketing Velti 25.0 20.0 - 1.3x NM Agency/Consulting Photon Group, Field Marketing & Retail Agencies Division Marketing Consulting Navis Capital Partners 151.7 119.3 21.8 1.3x 7.0x The Corkery Group(2 ) Healthcare Agency Cooney/Waters Group, Inc. 42.2 9.9 - 4.3x NM Mr. Youth, LLC(3 ) Social Agency LBi International AB 40.0 25.0 - 1.6x NM Out-of-Home & Specialty Media Carus Publishing(4 ) Custom Publishing ePals Corporation 15.0 16.0 1.0 0.9x 15.0x Marketing Technology Datasquirt Teleservic es/eServic es LiveOps, Inc. 11.8 2.3 - 5.1x NM Software & Information HealthDataInsights HC-Providers SoftSoftware ware HMS Holdings 400. 0 85. 0 - 47x4.7x NM HealthTrans(5 ) Healthcare-Providers SXC Health Solutions Corporat 250.0 270.0 - 0.9x NM Razor Risk Technologies Credit/Risk Software TMX Group 10.2 9.9 0.6 1.0x 17.0x Marketing Services Clark Holdings, Inc Logistics The Gores Group, LLC 7.8 63.2 0.0 0.9x NM Capscan Ltd(6 ) Data Processing/Enhancement GB Group PLC 17.9 11.2 1.9 1.0x 17.0x IPOs After Final Pricing* Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Media/Commerce Groupon Digital Promotion/Coupon IPO $11,666.7 $1,290.5 (380.7) 9.0x NM Angie's List Social Media/Apps IPO 660.7 78.7 (44.5) 8.4x NM (1) Revenue per paidcontent.org (2) Revenue per prweek.com (3) Revenue per Reuters (4) Revenue and EBITDA per Folio Magazine (5) Revenue per Chicago Tribune (6) Revenue and EBITDA per techmarketview.com M&A & INVESTMENT SUMMARY NOVEMBER 2011 4 IPO PIPELINE ($ in Millions) Securities in Registration (as of 11/30/2011) Aggreg ate LTM Date Company Name Segment Offering Value Rev Adj. EBITDA Nov-11 ExactTarget, Inc. Marketing Technology $100.0 $187.0 NM Nov-11 NEXON Corporation Digital Media/Commerce 1,300.0 NA NA Nov-11 Synacor, Inc. Marketing Technology 75.0 80.3 4.6 Nov-11 Yelp, Inc. Digital Media/Commerce 100.0 73.7 NM Oct-11 Lashou Digital Media/Commerce 100.0 7.0 NM Sep-11 Guidewire Software, Inc. Software & Information 100.0 172.5 19.1 Aug-11 MobiTV, Inc. Marketing Technology 75.0 72.3 NM Aug-11 Bazaarvoice, Inc. Marketing Technology 86.3 73.6 NM Aug-11 Brightcove Software & Information 50.0 48.6 NM Aug-11 Eloqua Corporation Marketing Technology 100.0 59.5 NM Aug-11 Jive Software Marketing Technology 100.0 69.4 NM Aug-11 TIM W.E. SGPS Digital Advertising 181.3 246.6 20.2 Jul-11 Loyalty Alliance Enterprise Corp. Marketing Services 75.5 23.9 9.7 Jul-11 Demandware Marketing Technology 100.0 45.9 1.3 Jul-11 Greenway Medical Software & Information 100.0 89.9 4.9 Jul-11 Zynga Digital Media/Commerce 1,000.0 888.5 181.2 Jun-11 Cafepress Digital Media/Commerce 80.0 160.8 13.5 Apr-11 WageWorks, Inc. Software & Information 52.0 84.6 27.5 Mar-11 Newgistics Marketing Services 86.3 182.8 18.9 Nov-10 Kayak.com Vertical Search 50.0 199.6 38.7 Feb-10 Reply.com Digital Advertising 60.0 38.3 8.1 M&A & INVESTMENT SUMMARY NOVEMBER 2011 5 IPO PIPELINE ($ in Millions) IPO Performance (as of 11/30/2011) Initial Offering Final Price Stock Price at Close Stock Price on Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Nov 30, 2011 Nov-11 ANGI Angie's List, Inc. United States $11.00-$13.00 $13.00 16.26, up 25% $11.56 Nov-11 GRPN Groupon United States 16.00-18.00 20.00 26.11, up 31% 17.50 Aug-11 TUDO Tudou Holdings Limited China 28.00-30.00 29.00 25.56, down 11.9% 12.02 Jul-11 Z Zillow, Inc. United States 12.00-14.00 20.00 35.77, up 79% 22.39 Jn11Jun-11 RATE Bankrate , Inc. United States 14. 00-16 .00 15. 00 16. 44, up 996%.6% 18. 13 Jun-11 AWAY HomeAway United States 25.00 - 27.00 27.00 40.21, up 49% 26.16 Jun-11 P Pandora United States 10.00 - 12.00 17.42 17.42, down 13% 10.18 Jun-11 TAOM Taomee Holdings Ltd. China 9.00 - 11.00 9.00 8.23, down 8% 4.77 May-11 LNKD LinkedIn Corp. United States 12.00 - 14.00 11.00 14.75, up 34% 65.93 May-11 FENG Phoenix New Media United States 12. 00 - 14.00 14. 00 18. 01, up 29% 6166.16 May-11 RENN RenRen Inc. United States 22.00 - 24.00 25.00 38.84, up 55% 3.70 May-11 DATE Jiayuan.com International China 10.00 - 12.00 11.00 10.52, down 4% 7.38 May-11 NQ NetQin Mobile India 32.00 - 35.00 45.00 94.25, up 109% 5.86 May-11 ACTV The Active Network United States 16.00 - 18.00 15.00 15.9, up 6% 12.68 May-11 YNDX Yandex China 9.50 - 11.50 11.50 9.30, down 19% 21.98 Apr-11 MKTG Responsys United Kingdom 8.50 - 10.00 12.00 15.40, up 28% 8.34 Mar-11 QIHU Qihoo 360 Technology United States 10.50 - 12.50 14.50 34.00, up 134% 16.42 Mar-11 SREV ServiceSource International China 7.50 - 9.00 10.00 12.18, up 22% 13.34 Mar-11 CSOD Cornerstone OnDemand China 9.00 - 11.00 13.00 19.07, up 47% 16.12 Feb-11 EPOC Epocrates, Inc. China 13.00 - 15.00 16.00 21.96, up 37% 8.53 Jan-11 VELT Velti Plc China 9.00 - 11.00 12.00 15.58, up 30% 7.40 Jan-11 DMD Demand Media, Inc. United States 14.00 - 16.00 17.00 22.65, up 33% 7.09 Jan-11 NLSN Nielsen Holdings B.V. Netherlands 20.00 - 22.00 23.00 25.00, up 9% 29.05 Dec-10 ISS Isoftstone Holdings Ltd. China 11.00 - 13.00 13.00 16.62, up 28% 8.87 Dec-10 MOBI Sky-mobi Ltd. China 8.00 - 10.00 8.00 6.00, down 25% 4.14 Dec-10 DANG E-Commerce China Dangdang China 13.00 - 15.00 16.00 29.91, up 87% 4.72 Dec-10 YOKU Youku.com China 9.00 - 11.00 12.80 33.44, up 161% 19.53 M&A & INVESTMENT SUMMARY NOVEMBER 2011 6 DIGITAL ADVERTISING Transactions by Segment and Buyer Type • Digital Video was the most active segment with seven deals, while Ad Networks/Exchanges was the highest value segment worth approximately $385 million • Select acquisitions › Yahoo!’s $270 million acquisition of interclick, which provides a data valuation platform for advertisers › Lenco Mobile’s $42 million acquisition of iLoop Mobile, a provider of mobile services and technology for interactive mobile marketing › blinkx’s $36 million acquisition of Prime Visibility Media Group, an online marketing company offering search engine optimization, email marketing, media buying and website design • Select investments › The $30 million investment in BrightRoll, a provider of digital video advertising services, led by Trident Capital › The $12 million investment in YuMe Networks, which operates as an online mobile video advertising technology and network, from Samsung Ventures and Translink Capital DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Est.