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1、Digital Mediasector updateQ1 2023Qualitative insights into broader Digital Media trends and public and private valuations across the transaction spectrum,and interviews with todays leaders transforming the sector.Important disclosures appear at the end of this reportGP Bullhound Corporate Finance Lt
2、d and GP Bullhound Asset Management Limited are authorised and regulated by the Financial Conduct Authority GP Bullhound Inc is a member of FINRAGP Bullhound Luxembourg S.R.L.is regulated by the CSSF in Luxembourg2Q1 2023 Digital Media sector updateNote:Please see following slides for sourcesAbout u
3、sPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysTHE VIEWQ1 Digital Media Perspectives from GP BullhoundGenerative AI in personalisation Customised content is becoming increasingly critical for businesses to connect with customers Generative AI presents a compelling
4、 opportunity to push personalisation to another level Brands are actively embracing and testing this innovation in their business strategiesGrowing importance of influencer marketing Influencer marketing as a unique advertising strategy is predicted to grow in double digits in 2023 Growing business
5、partnerships with micro-influencers to stimulate customer engagement Beauty stays one of the most active industries in utilising influencer marketingVR headsets capabilities continue to improve Social Media giants like Meta and TikTok see headsets as a means of increasing adoption for VR Companies a
6、re rushing to make headsets more affordable and lighter VR technology continues to evolve and improveIncreasing adoption of live streaming The rise is primarily driven by growing demand from audiences and technology readiness to provide high-quality live streaming Streaming platforms continue to emb
7、race live streaming to broaden the range of their content offerings Celebrities,influencers,and brands utilise live streaming on social media platforms to build authenticity among their audiences3Q1 2023 Digital Media sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Rising generative AI usage in personal
8、ised user experiencesOverview In the post-pandemic digital world,tailored content is more valuable than ever as customer expectations of such experiences grow in significance.Personalised experiences can lead to higher customer engagement,satisfaction,and conversion McKinsey reports that over 75%of
9、consumers believe personalisation is critical to their consideration of a brand,and 78%would be more inclined to repurchase.Firms skilled at personalisation also generate 40%more revenue from these related activities than their average counterparts.Undoubtedly,it is imperative for companies to inves
10、t in these user experiences and relevant technologies OpenAIs successful launch of ChatGPT proved generative AIs capability and unlocked new potential for personalised user experiences.It can digest complex and unstructured information while being proficient in generating human-like content and emul
11、ating human communication.Brands have seized on the opportunity to capitalise on AIs incredible performance to explore the next level of personalisationActions in the market Brands promptly partnered and collaborated with OpenAI to stay ahead of the curve in the dynamic personalisation space through
12、 which they can gradually build relationships and cultivate brand loyalty with customers.In Q1 alone,Bain and BCG formed partnerships with OpenAI to assist clients in adopting generative AI tools and transform their businesses Buzzfeed personalised its content by using AI tools from OpenAI Spotify l
13、aunched an AI-powered DJ to automatically personalise users music choices Coca-Cola teamed up with Open AI and Bain to personalise ads and enhance its marketing strategy Salesforce partnered with OpenAI and launched Einstein GPT to personalise sales messages with customers Stripe revamped its custom
14、er services with Open AI for better customer satisfaction GP Bullhound Perspective:With its immense potential,generative AI is a powerful analytical tool that is revolutionising various fields,including marketing.It can produce personalised and creative content at scale,which is not only efficient b
15、ut also cost-effective.However,we remain cautious about its use in the market,as it is still in its early stages and has issues related to accuracy and ethics that need to be addressedSource:Computer World,McKinsey,Techcrunch,The Verge,Fast Company,BCG,Bain,Opera,Silicon Angle,WSJ(as of 31 March 202
16、3)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSelect brands collaborated/partnered with OpenAI4Q1 2023 Digital Media sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Increasing significance of influencer marketingOverview In 2023,influencer marketing continue
17、s to thrive as a distinctive method for brands to reach specific audiences that traditional marketing fails to capture.Through influencers,brands can safely tap into new demographics and connect with audiences.By the end of 2023,the influencer market is likely to reach$17.4bn,reflecting 14%growth fr
18、om 2022.Furthermore,approximately 64%of marketers plan to increase their spending on influencer marketing this yearTrends Micro-influencers One emerging trend is the increasing number of partnerships between brands and micro-influencers.Micro-influencers have fewer than 10,000 followers and usually
19、interact with audiences more frequently.They are also viewed as more genuine and relatable than mega-influencers By partnering with multiple micro-influencers,brands can reach highly targeted audiences and benefit from the influencers ability to interact with their followers on a more personal level
20、.This reflects the growing importance of authenticity and trust in influencer marketing A study showed that micro-influencers have the highest engagement rate across social media platforms and create 91%of engagement posts.On Instagram,these micro-influencers have a higher engagement rate(6%)than la
21、rger influencers and are more likely to share direct recommendations Beauty industry Beauty has always been one of the most active industries in influencer marketing.This quarter is not an exception.The highly visual nature of the beauty industry,coupled with fierce competition among beauty companie
22、s,has created a necessity for consistent communication with consumers.Influencers have emerged as the most efficient and direct means for beauty brands to connect with their targeted audience:Ceraves#MoisturizeLikeADerm campaign with dermatologist Dr.Daniel Sugai on TikTok gained 446 million video v
23、iews Este Lauder launched#AdvancedNightRepair campaign with macro-influencers and other lifestyle influencers and achieved the most substantial MoM increase of 28%in video views As an increasing number of celebrities enter the beauty industry with their brands,social media remains a crucial tool.Cel
24、ebrities,in addition to their social media platforms,can also leverage influencer communities to generate buzz and visibilitySource:Brand Mentions,Forbes,Traackr,Upfluence,Martech Series,Collabstr,Open Influence,ModashAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryT
25、akeawaysInfluencer by number of followersMega-influencers1m+followers 1 social platformsUp to$1m/postMacro-influencers500k-1m followers=1 social platformsMicro-influencers10k-50k followers=1 social platformsNano-influencers1k-10k followers=1 social platformsMid-tier-influencers50k-500k followers=1 s
26、ocial platforms5Q1 2023 Digital Media sector updateGP BULLHOUNDS SECTOR TAKEAWAYS VR headsets keep improving capabilitiesOverview VR headsets have undergone significant changes in recent years,transitioning from bulky and costly eyesores to stylish and accessible devices,which is the result of incre
27、asing competition and technological advancement After an influx of tech companies to the space,more products and headset options were available to customers.The most popular ones today are standalone VR,wireless VR,and mixed-reality headsetsOutlook Major players pushed VR headsets to the market in Q
28、1 2023 to accelerate the development and adoption of VR.The competition has heated up as big tech players strive to achieve a leading position in the industry:In February,Meta and Tencent discussed selling Metas Quest 2 headsets exclusively in China.If the partnership forms,Meta will be engaging wit
29、h Chinese customers for the first time since 2009,when it was blocked by the Chinese government Meta reduced Quest 2s price by$70 to make it more affordable,and confirmed the release of Quest 3 in 2023 Following the successful hit of“The Last of Us”on HBO,Sony released its PlayStation VR2 in Februar
30、y,which improves accessibility,comfortability and image resolution,as well as brings movies,gaming,and VR together.The price is still on the higher end Qualcomm,Samsung,and Google partnered together to develop a mixed-reality platform,a sign of increasing competition in the industry HTC,a Taiwanese
31、company,launched standalone Vive XR Elite,which weighs less than half of Metas Quest Pro and is more portable and convenient Apple is set to showcase its AR/VR headset at WWDC in June 2023 GP Bullhound Perspective:VR is an exciting,futuristic technology that is in the introduction/growth stage,where
32、 significant barriers exist and need to be addressed.Top ranked issues include poor user experience,lack of quality content,and high costs,which will be gradually solved by generations of VR headsets As tech companies invest heavily in the space and advancements are being made in the field,including
33、 constantly updated hardware and content,we stay optimistic about the space and wait for the inflection point where users can seamlessly and comfortably enjoy VR technology in day-to-day lifeSource:WSJ,Venture Beat,CNBC,Road to VRAbout usPublic comparablesTransaction trendsPublic company analysesCEO
34、 commentaryTakeawaysSelect VR headsetsMeta Quest 3Sony PlayStation VR2 HTC Vive XR Elite6Q1 2023 Digital Media sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Live streaming expansion on social media and streaming platformsOverview After the pandemic,weve seen a rise in popularity of live streaming due
35、to peoples increased familiarity with virtual connectivity and entertainment,as well as technological advancements that have substantially improved video,audio quality,and internet reliability As a result of technology readiness and rising demand for real-time streaming,social media streaming and pl
36、atforms are poised to bring more live events to a global audience.The global live streaming market was valued at$1.2bn in 2022 and is set to reach$6.6bn in 2030 at a CAGR of 23.4%Because of its convenient and accessible format,live streaming has been adopted in a variety of industries,such as gaming
37、,sports,concerts,and retail.In 2023,it has become a critical marketing tool for consumer brands and celebrities to engage with fans and build their global communitiesStreaming platforms In addition to traditional broadcasted sports and news events,modern streaming platforms like Netflix,YouTube,Amaz
38、on Video,and HBO Max have expanded their use of live streaming to cover other forms of events,such as music concerts and comedy shows In February,HBO Max live streamed the long-awaited music concert:“The Weeknd:Live at SoFi Stadium”In March,Netflix launched its very first live streaming comedy show:
39、“Chris Rock:Selective Outrage”In January,YouTube announced it would live stream all six stages of Coachella to provide its viewers with a cohesive experienceof the concert By embracing live streaming,these platforms can offer viewers a more diverse and captivating range of content,as well as tap int
40、o its growing popularity.This trend toward broader applications of live streaming is likely to continue as more innovative approaches emerge and technology evolvesSource:Vantage Market Research,HBOmax.,Netflix,Youtube,Insider Intelligence,DigidayAbout usPublic comparablesTransaction trendsPublic com
41、pany analysesCEO commentaryTakeawaysSocial Media Social media continues to be a vital tool for brands to connect with customers from various communities.Live streaming on social media helps brands to establish credibility by providing a real-time view of their offerings.By engaging with customers in
42、 real time,brands can boost awareness and foster loyalty.Live streaming on social media platforms like Facebook,Instagram,TikTok,andYouTube has become an increasingly popular marketing strategy for brands to reach their target audience in a more meaningful and interactive way Livestream commerce is
43、also on the rise.With the anticipation of more shopping features built into social media platforms,viewers can easily discover and purchase products.According to Insider Intelligence,about 320 million people in China are estimated toshop via live stream this yearSelect live streaming events7Q1 2023
44、Digital Media sector updateA LEADING TECHNOLOGY ADVISORY AND INVESTMENT FIRM,PROVIDING TRANSACTION ADVICE AND CAPITALGP Bullhounds recent Digital Media activityAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysInvestmentBankingInvestmentManagementACQUIRED BYAC
45、QUIRED BYACQUIRED BYACQUIRED BYACQUIRED BYINVESTMENT BYINVESTMENT BYFund VINVESTMENT BYFund IVINVESTMENT BYFund IIIINVESTMENT BYFund IVACQUIRED BYACQUIRED BY8Q1 2023 Digital Media sector updateDateTargetLead Investor(s)Target descriptionAmount($m)21-MarDeepMotionBandai Namco EntertainmentTechnology-
46、advanced music publisher75020-MarCCP GamesA16zIceland-based online gaming creator,developer,and distributor4019-MarIllumixLightspeed Venture,Henry Kravis Augmented reality infrastructure solution provider1813-MarSupreme OptimizationTrinity Hunt PartnersPuerto Rico-based digital marketing agency focu
47、sed on life sciencesn/a6-MarBeliever EntertainmentLightspeed Venture and a16z Game developer founded by Michael Chow and Steven Snow5526-FebTypeface Lightspeed Venture Partners,Menlo VenturesEnterprise content creation platform powered by AI6517-FebDont Nod EntertainmentFollow-on public equity offer
48、ingFrench video game developer497-FebThe MessengerJimmy FinkelsteinNews site founded by Jimmy Finkelstein506-FebRarefied AtmosphereSageview Capital LLCValor Equity PartnersS3 VenturesProvider of TV streaming services656-FebIgnite VisibilityMountaingate Capital ManagementPremier full-service digital
49、marketing agencyn/a5-FebA360 MediaVVIP VenturesAmerican magazine publisher10019-JanPLAI Labsa16zSocial media platform powered by AI and Web3 technology3216-JanCarry1st BITKRAFT Esports Ventures,a16zNigeria-based software-gaming developer27DateTargetBuyerTarget descriptionEV($m)EV/LTM Rev29-MarDigita
50、l Media ManagementKeywords StudiosCelebrity digital media agency1003x29-MarSentricBelieve Music rights management company51n/a13-MarLifehacker Ziff DavisWebsite focused on providing tips to live life better n/an/a13-MarVibenomicsMood MediaIn-store digital advertising providern/an/a28-FebBidtellectSi
51、mpli.fiDemand-side advertising platform n/an/a27-FebRemezclaMy CodeDigital publisher and creative agency focused on Latin culturen/an/a7-Feb7digital GroupSongtradrB2B digital music solutions provider252.8x5-FebVideoByteKargoViewer-first video advertising platformn/an/a5-FebVox MediaPenske MediaDigit
52、al content creator focused on online publishing100n/a16-JanGasDiscord Polling app intended to boost users confidencen/an/a12-JanFexy StudiosThe Arena GroupCreative agency that produces films and video contentn/an/a10-JanOverheard Doing Things MediaSocial media brand aimed at sharing overheard conver
53、sationsn/an/a5-JanSkyBox LabsNetEase Canadian full-service game developern/an/a31-JanTomb RaiderAmazonSurvival video game based on the original story of Larta Croft600n/a17-FebBarstool SportsPenn National GamingSports and pop culture blog website and digital media company606n/aNOTABLE DIGITAL MEDIA
54、M&A DEALS&PRIVATE FINANCINGSNotable transactions from Q1 2023Selected M&A transactionsSelected private financingsSources:Pitchbook,Capital IQ and MergerMarket(as of 31 March 2023),GP Bullhound intelligenceAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways9Q1 2
55、023 Digital Media sector updateSELECT DIGITAL MEDIA IPOSSelect digital media IPOsSources:Capital IQ(as of 31 March 2023)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysDescription(IBSE:MACKO):Turkish sports websitesListing date:26-Jan-2023Offering amount:$17
56、.2mOffering price/Share:$2.0Market cap:$55.6m%Change/IPO price:11.0%Selected metrics:N/A48.5%in price since IPODescription(SEHK:2405):Chinese digital media marketing services providerListing date:30-Mar-2023Offering amount:$17.8mOffering price/Share:$0.09Market cap:$85.6m%Change/IPO price:22.2%Selec
57、ted metrics:Revenue in FY2021 was$14m,an increase of 22.8%over FY 2020EBITDA for FY2021 was$8m,a 55.8%EBITDA margin55.6%in price since IPO10Q1 2023 Digital Media sector updateGP BULLHOUND DIGITAL MEDIA INDEX PERFORMANCEGP Bullhound Digital Media indicesSource:Capital IQ(as of 31 March 2023)About usP
58、ublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCompanies2022/2023E avg.rev growth2023E avg.EBITDA margin2023E avg.EV/revenue2023E avg.EV/EBITDAMusic,video,photosDiversified online content and social media18.1%12.0 x2.8x3.2%Western gaming16.8%23.5%13.6x3.7xAsian gami
59、ng15.6%12.5x2.3x7.2%10.2%35.0%10.6x3.8x11Q1 2023 Digital Media sector updateGP BULLHOUND DIGITAL MEDIA INDICES-LAST 12 MONTHSGP Bullhound Digital Media indicesSource:Capital IQ(as of 31 March 2023)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysLTM share pri
60、ce performance(rebased to 0%as of 31 March 2022)-60.0%-50.0%-40.0%-30.0%-20.0%-10.0%0.0%10.0%20.0%Diversified online contentMusic,video,photosWestern GamingAsian GamingS&P 500Dow Jones Industrial Average-4.4%-14.3%-18.3%-40.1%Q2-22Q3-22Q4-22-33.5%-28.7%-20.9%-34.4%-17.2%-16.7%-6.8%-11.3%Q1-23-21.1%-
61、25.2%-15.3%-26.6%-13.0%-11.1%-12.2%0.7%-7.5%-5.3%-16.5%-10.6%At the close of Q1,while most of the digital media indices ended in red,the losses narrowed.Along with the broader market,digital media indices were under pressure due to more interest rate hikes,a potential recession,and untamed inflation
62、.In comparison to March 31,2022,the index price of music,video,photos was up by 0.7%and the best performer in Q1 2023,outperforming the Dow and S&P12Q1 2023 Digital Media sector update54.948.644.920.314.19.28.17.46.7 6.2 5.8 5.7 5.75.0 4.94.2 4.2 3.71.7 1.5010,00020,00030,00040,00050,00060,00070,000
63、67.133.020.15.93.32.72.61.00.70.6GP BULLHOUND DIGITAL MEDIA INDICES MARKET CAPITALISATION VALUATIONSGP Bullhound Digital Media indices market capitalisationDiversified online content and social media($in billions)Source:Capital IQ(as of 31 March 2023)About usPublic comparablesTransaction trendsPubli
64、c company analysesCEO commentaryTakeawaysWestern gaming($in billions)Music,video,photos($in billions)Asian gaming($in billions)153.925.818.617.215.414.09.69.27.02.20.90.40.3549.5462.037.817.710.44.92.82.11.70.6Meta GroupTencentNaspersSnapchatZillowWeiboTripAdvisorYelpMomoYallaThe GP Bullhound divers
65、ified Digital Media indices had a phenomenal quarter,rising by 30%compared to Q4 22.The best performers were Diversified content rising by 38.5%.Its peers also had a strong performance:Asian gaming(+19.0%),Music,video,photos(+13.9%),and Western gaming(+7.8%).This rise comes from better-than-expected
66、 quarterly results and growing MAU across four segments,though the macroenvironment remained gloomy as markets absorbed the impact of instability in the financial system.Percentages are QoQ comparisons to Q4 2213Q1 2023 Digital Media sector updateNTM EV/REVENUE TRENDS LAST FIVE YEARS OVERVIEWEvoluti
67、on of GP Bullhound Digital Media indices valuation Source:Capital IQ(as of 31 March 2023)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways0.0 x2.0 x4.0 x6.0 x8.0 x10.0 xDiversified online content and social mediaMusic,video,photosWestern gamingAsian gamingIn
68、Q1,NTM revenue multiples ticked up across the GP Bullhound Diversified Indices.Western gaming was the only index that lagged.Compared to last quarter,Diversified content became the biggest winner with its Q1 23 multiple,which increased by 1.3x.Asian gaming and music,video,photos were other gainers a
69、s current multiples rose by 1.0 x and 0.2x,respectivelyMedian EV/NTM Revenue5Y3Y1Y31-Mar-23Diversified online content5.0 x 4.4x 3.0 x 3.8x Music,video,photos3.7x 3.4x 2.1x 2.5x Western gaming4.4x 4.6x 3.2x 2.9x Asian gaming3.3x 3.6x 2.6x 3.5x 14Q1 2023 Digital Media sector updateGAMING REGRESSION AN
70、ALYSISGaming:NTM valuation/growth+margin regression2023E revenue growth+2023 EBITDA marginSource:Capital IQ(as of 31 March 2023)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysActivision BlizzardElectronic ArtsTake-Two InteractiveUbisoft Entertainment Embrac
71、er GroupStillfront GroupKeyword StudiosTeam17Rovio EntertainmentNetEaseNintendoSeaNEXONNcsoft37GamesBANDAI NAMCOPerfect World NetmarbleKingsoft CyberAgentG-bits Konami Koei TecmoBeijing Kunlun TechCapcom YOOZOODeNAy=1310.55%x-53.77%R=52.51%0 x2x4x6x8x10 x12x14x0%10%20%30%40%50%60%70%NTM sales(x)West
72、ern gamingAsian gamingR=45.1%Valuation is often seen as a function of a companys growth and profitability.An exemplary regression analysis of forward-looking sales multiples and expected revenue growth,combined with profitability rates for the gaming companies in respective indices,demonstrates that
73、 there is a relatively strong dependence between these parameters15Q1 2023 Digital Media sector updateGP BULLHOUND DIGITAL MEDIA INDICES 2023E EBITDA MARGIN BENCHMARKING Digital media 2023E EBITDA margin benchmarking Source:Capital IQ(as of 31 March 2023)About usPublic comparablesTransaction trendsP
74、ublic company analysesCEO commentaryTakeawaysDiversified online content and social media Western gaming Music,video,photosAsian gaming Average profitability across the four indices grew slightly quarter-over-quarter.Notably,the diversified content index expanded by 280bps,and the Music,video,photos
75、index continued to pick up 110bps in Q1 202346.0%31.8%(5.9%)9.9%20.0%29.5%20.2%23.2%17.3%32.8%Meta GroupTencentNaspersSnapchatZillowWeiboTripAdvisorYelpMomoYalla22.0%(2.0%)17.3%21.0%30.1%18.8%(6.0%)(9.3%)49.1%8.5%(4.9%)(2.2%)7.6%Average:11.5%Average:22.5%38.3%32.6%20.3%28.8%50.9%19.4%71.3%33.6%35.1%
76、16.7%23.5%10.6%30.7%32.8%16.6%20.8%29.8%42.8%29.3%25.1%24.6%18.6%48.2%42.0%22.8%7.6%9.9%50.8%27.6%10.1%Average:34.7%Average:26.2%16Q1 2023 Digital Media sector updateDIGITAL MEDIA:USER GROWTH+REVENUE GROWTH+EBITDA MARGIN(%)Rule of 60 for non-gaming digital mediaSource:Capital IQ(as of 31 March 2023)
77、About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysA common way to look at the“health”of a consumer internet company is by using the“Rule of 60”:a combination of user growth,revenue growth and profitability.Consumer internet companies that fall above the“Rule o
78、f 60”line demonstrate the healthiest characteristicsIn this analysis,we looked at YoY growth in MAUs and quarterly revenue,as well as quarterly EBITDA marginsAlthough all the digital media players continued to be under the 60%bar,some presented evident upward trends,such as Facebook and Pinterest.Th
79、is quarter,Facebook and Spotify lead the pack landing at 40%and 32%.Pinterest experienced a steep rise of 15%this quarter.Unfortunately,Snapchat and Roku lost steam,hitting near 0%in the“Rule of 60”game.Like last quarters theme,while MAU have grown and EBITDA margins improved significantly by massiv
80、e layoffs this quarter,the rule of 60 metric was weighed down by subpar and decelerated revenue growth-40%0%40%80%120%160%Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22FacebookTencentWeiboNetflixSpotifyRokuPinterestSnapchat60%17Q1 2023 Digital Media sector updateLEADING COMPANIES
81、 AND CEOS TRANSFORMING THE SECTORMatthew Benson,CEOAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCEO-EFUSE Matthew BensoneFuse is a gaming software company that simplifies the organisation,broadcast,and distribution of gaming events,leagues,and tournaments
82、.As an infrastructure solution,the companys technology stack addresses obstacles in event management and production by automating player verification,team building,scheduling,score tracking,and other high-choir tasks to allow productions to scale quickly.eFuse hosts 100+employees and is headquartere
83、d in Columbus,Ohio,US.“In spite of competitive esports experiencing consolidation and overall market correction,gaming,as an entertainment medium,continues to accelerate at an inspiring pace.The infrastructure behind it,however,has very much stayed behind.Were solving many of gamings most essential
84、problems by making it easy for major publishers,brands,and communities to organise,broadcast,and engage consumers in new and captivating ways.Our sophisticated technology will power hyper scalability and welcome an entirely new class of partners to produce impactful gaming leagues,tournaments,and sp
85、ecial events.Between academic,collegiate,semi-pro,professional,and high-quality brand activations,were positioned to be the key,high-margin infrastructure service for a nearly limitless marketplace.”SELECT CLIENTS18Q1 2023 Digital Media sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTOR
86、Martin Kenwright,FounderAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysFOUNDER-VTIMEMartin KenwrightFounded in 2013,vTime is an AI-powered metaverse company merging the real,augmented,and virtual worlds with social and gaming platforms.Founded and led by ga
87、ming industry experts,its flagship product,vTime XR,a cross-reality social network that allows users to socialise in AR and VR,is used in over 190 countries with more than 1.4 million downloads since 2015.“The metaverse or embodied internet is a realm of infinite possibilities,offering unprecedented
88、 opportunities for people to connect,learn,work,and play.When paired with AI,the impact is nothing short of extraordinary.Cutting-edge technology is paving the way for a new era of innovation and growth,and pioneering brands are already exploring uncharted territory in new realities.At vTime,weve de
89、dicated the last decade to building a state-of-the-art technology stack that empowers us to create immersive social and gaming experiences for any partner with ease.Through our unwavering commitment to innovation and expertise in social VR,weve developed a value proposition that cuts across myriad v
90、erticals and use cases.From intelligent avatars,fuelled by machine learning to invoke a deeper human connection,to environment creation made simple through AI,were making it easy for anyone to bring their ideas to life and unlock a world of limitless possibilities.Since the 1980s,Ive founded and led
91、 some of the worlds most successful and pioneering games studios,but in my whole career,I have never been more excited about whats to come than now.”SELECT INVESTORS19Q1 2023 Digital Media sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORMatt Campagna,CEO&Co-FounderAbout usPublic compa
92、rablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCEO&CO-FOUNDER-REFLEXION Matt CampagnaReflexion improves cognitive performance by training and assessing neuro skills using cutting-edge touchscreen lightboards and virtual reality headsets.By improving skills such as reaction tim
93、e,eye-hand coordination,and peripheral vision,Reflexion helps athletes make better decisions on the field and recover faster from injuries.The company is pushing neuro training into the mainstream by now using its products to detect and slow cognitive decline in the aging population.“Reflexion began
94、 with my co-founder sliding headfirst into the boards during an ice hockey game and sustaining a severe concussion.We were determined to create a solution that would help athletes recover faster and improve cognition to prevent these injuries.This led us to building touchscreen lightboard cognitive
95、training products that have become a game-changer in sports performance training.After proving our technology in sports,the next chapter is to address the largest cognitive epidemic we all face cognitive decline later in life.Leveraging virtual reality headsets that make Reflexion dramatically more
96、accessible,we are applying everything that we have learned in elite sports training to assess and slow cognitive decline in our aging population.Over the next five years,cognitive training will be as much a staple of wellness as strength training,and it is our mission to catalyse this inevitable shi
97、ft.”SELECT CLIENTS20Q1 2023 Digital Media sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORTommy Palm,CEO&Founder,Paul Brady,President&Co-FounderAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCEO RESOLUTION GAMES Tommy PalmResolution Games is
98、a Stockholm-based studio focused on creating virtual reality and augmented reality immersive experiences.It is changing multiplayer game development and publishing with its approach to delivering new IP across VR/AR platforms and beyond.The studios titles include some of the most downloaded games in
99、 the space,like Demeo,Spatial Ops,Ultimechs,Blaston,Bait!,Acron:Attack of the Squirrels!and Cook-Out:A Sandwich Tale.“We believe that visual computing(VR,AR,MR)will change the world in unfathomably positive ways.From improving access to education,healthcare and work to bringing people together and c
100、onnecting them through play.Thats where Resolution Games comes in.No form of innovation breaks in a new paradigm shift like games.We are committed to be the driving force that paves the way for this positive change because we have an insatiable appetite for innovation.We will continue to be the ones
101、 to set the standards and establish the best practices not only for the future of games,but for the next big platform shift since the creation of the internet.”SELECT INVESTORSPAUL BRADY,LEFT,AND TOMMY PALM,RIGHT21Q1 2023 Digital Media sector updateGP BULLHOUND DIGITAL MEDIA INDEX PUBLIC COMPARABLES
102、Public comparables Diversified online content and social mediaSource:Capital IQ(as of 31 March 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO c
103、ommentaryTakeaways22Q1 2023 Digital Media sector updateGP BULLHOUND DIGITAL MEDIA INDEX PUBLIC COMPARABLESPublic comparables Music,videos and photosSource:Capital IQ(as of 31 March 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from averag
104、e calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways23Q1 2023 Digital Media sector updateGP BULLHOUND DIGITAL MEDIA INDEX PUBLIC COMPARABLESPublic comparables Western gaming Source:Capital IQ(as of 31 March 2023);Note:Multiples in excess of 75.0 x
105、or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways24Q1 2023 Digital Media sector updateGP BULLHOUND DIGITAL MEDIA INDEX PUBLIC COMPARABLESPublic comparables Asian gamin
106、g(1/2)Source:Capital IQ(as of 31 March 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways25Q1 2023 Digital Media sector updateG
107、P BULLHOUND DIGITAL MEDIA INDEX PUBLIC COMPARABLESPublic comparables Asian gaming(2/2)Source:Capital IQ(as of 31 March 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPubl
108、ic company analysesCEO commentaryTakeaways26Q1 2023 Digital Media sector updateMethodologyAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysThis report is based on the expert insights of GP Bullhounds worldwide team alongside detailed analysis of investment tr
109、ends across the global technology landscape.GP Bullhounds Digital Media sector comprises companies in the following sectors:Diversified online content and social media(Meta,Tencent,Naspers,Snapchat,Zillow,Weibo,Yalla,Momo,TripAdvisor,Yelp),Music,videos and photos(Netflix,Spotify,SiriusXM,Tencent Mus
110、ic,iQIYI,Bilibili,Roku,Pinterest,YY,HUYA,DouYu International,Storytel,Warner Music Group),Western gaming(Activision Blizzard,Electronic Arts,Keyword Studios,Take-Two Interactive,Ubisoft Entertainment,Embracer Group,Stillfront Group,Paradox Interactive,Team17,Rovio Entertainment),and Asian gaming(Net
111、Ease,Nintendo,Sea,NEXON,Ncsoft,37Games,BANDAI NAMCO,Perfect World,Netmarble,Kingsoft,CyberAgent,Square Enix,G-bits,Giant,Konami,Koei Tecmo,Beijing Kunlun Tech,Capcom,YOOZOO,DeNA).Alec DaffernerPARTNEREric CrowleyPARTNERJoy SioufiPARTNERKelemen PappPARTNERAdam BirnbaumEXECUTIVE DIRECTORLuis RosalesAS
112、SOCIATEAllen KoganDIRECTORStefano CapriroloVICE PRESIDENTOur Digital Media practice is led by our San Francisco-based Partner,Alec Dafferner,who has over 20 years of experience in technology and media dealmaking.GP Bullhounds Digital Media teamMaria LazarevaASSOCIATE,INSIGHTSIrene LinANALYST27Q1 202
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