2. A Word from Gridley & Company, LLC
The post Web 2.0 digital environment is creating communities and different
“realms” where users can connect with others. The biggest example is social
networks, but they also include other various platforms as well as online games. In
many of these virtual worlds, especially niche ones, users are very engaged with
their communities and activities. These activities have spawned a particular class
of assets: virtual goods. By creating a currency that users actively work for and
trade, the users become even more engaged in their virtual world. This presents an
opportunity for marketers to reach audiences and provides a way for virtual world
operators to monetize their creation. In this report, we go through the different
players in the virtual goods ecosystem.
We hope you enjoy this comprehensive industry overview and our perspectives.
Please give us a call to discuss the content of this presentation.
Linda Gridley
President & CEO
linda.gridley@gridleyco.com
Karen Yau Smith 212-400-9710 Pratik Patel
Vice President Vice President
karen.smith@gridleyco.com pratik.patel@gridleyco.com
212-400-9718 212-400-9712
2
3. Fresh Opportunities in Virtual Goods
• Global virtual goods market amounts to $5.5 billion; U.S. market alone expected
to reach $2.5 billion by 2013
• Approximately 12% of Americans have bought a virtual good at some point
between July 2008 and July 2009, and average spending is up 14% in 2010 to $99
Virtual Goods Revenue Estimates
$7,000
$6,006
$6,000
$5,047
$5,000
$4,070
$3,544
$4,000
$M
$3,107 $3,028
$3,000 $2,523
$2,219
$2,000 $2,020
$1,325
$1,598 $2,462
$1,000 $1,060 $2,019
$1,547
$1,087
$265 $621
$0
2008 2009 2010 2011 2012 2013
U.S. Non-U.S.
Source: eMarketer (August 2009), Magid Survey (May 2010)
Note: More recent figures from Inside Virtual Goods estimate the U.S. market to be $1 billion and $1.6 billion for 2009 and 2010, respectively
3
4. Recent Investments Are Legitimizing Opportunity
• Former Disney CEO Michael Eisner invested $300,000 in seed
/ funding in social gaming company Diversion through his
investment company on October 18, 2010
• Google announced acquisition of Jambool (Social Gold) for a
/ rumored $70MM on August 13, 2010
• Google invested $100-$200 million in Zynga in an under-the-
/ table deal in July 2010
• SponsorPay raised $5 million in its first round of funding, led by
Hasso Plattner Ventures, on June 9, 2010
• Digital River acquired FatFooGoo for $10 million on May 5,
/ 2010
4
5. Industry Perspectives on Virtual Goods
• “Monetization in virtual goods will continue to grow, and we will see the
emergence of a select few successful platforms, as well as several popular virtual
currencies. Once such currencies have been established, the growth of secondary
markets and currency exchanges will most likely follow.”
- Vikas Gupta, Co-Founder/CEO, Social Gold by Jambool
• “Virtual goods will become a strong option for brands to drive engagement in
social media and will become the standard for branded advertising in social
media, finally providing clear value proposition for brands in social media and
social gaming.”
- Joe Hyrkin, Entrepreneur in Residence, Trinity Ventures
• “Growth will continue to be exponential as social gaming becomes more and
more mainstream. Everyone will make more money as the pie grows bigger for all
of us collectively.”
- Charles Ju, Founder, Playmesh
• “We have seen companies go from nothing in the last 18-24 months to tens and
hundreds of millions of dollars in revenues [from virtual goods].”
- Jeremy Liew, Lightspeed Venture Partners
5
6. Young Players in a Fresh Landscape
Ad
Networks
Social Virtual
Networks Platform
Currency
Providers
Providers
Game
Developers
Payment
Processors
6
8. Social Networks Provide Users
• Exhibited phenomenal growth within the past 5 years
- By 2013, an estimated 52% of internet users will be regular social network visitors
• Provide consumer base, marketplace, and contextual structure for virtual goods
transactions
Facebook MySpace Friendster hi5 Classmates.com Bebo
Michael Jones
Mark & Richard Mark Joanna
CEO Zuckerberg Jason Hirschorn Kimber Bill Gossman Goldston Shields
Registered
Users > 500,000,000 70,000,000 100,000,000 60,000,000 50,000,000 12,000,000
About 75% of Popular in
User users are User base Popular in Mexico, User base More
Profile outside the Predominantly South East Thailand, Predominantly popular
U.S. within U.S. Asia and within U.S. in UK than
Portugal in U.S.
8
9. Social Networking M&A Transactions
($ in millions)
Implied LTM LTM
Enterprise Revenue EBITDA
Date Acquiror Target Value Multiple Multiple
10/22/10 Kabam, Inc. WonderHill, Inc. NA NA NA
10/06/10 Beyond.com, Inc. Orbius, Inc. NA NA NA
09/14/10 GameHouse, Inc. Backstage Technologies Inc NA NA NA
09/02/10 Recruiter.com RecruitingBlogs.com Inc. NA NA NA
08/31/10 AOL, Inc. Rally Up, Inc. NA NA NA
08/30/10 Google Inc. SocialDeck Inc. NA NA NA
08/25/10 Undisclosed Meetrandom.com $0.2 NA NA
08/20/10 Facebook, Inc. Hot Potato NA NA NA
08/06/10 Google Inc. Slide, Inc. 182.0 NA NA
08/04/10 Black Pants, Inc. Diva Dirt NA NA NA
07/21/10 NetParty, LLC Charlotte Young Professionals, LLC NA NA NA
07/09/10 Insparisk, LLC AuthorizedInspector.com NA NA NA
07/08/10 Facebook, Inc. nextstop.com, Inc. NA NA NA
07/01/10 FertilityAuthority.com, LLC FertileThoughts.com NA NA NA
06/16/10 Criterion Capital Partners, LLC Bebo, Inc. < 10.0 NA NA
06/08/10 Salem Web Network Big Jump Media, Inc. 2.5 NA NA
06/09/10 Vocus Inc. Two Cats and a Cup of Coffee 1.6 NA NA
06/08/10 PurePhoto, Inc. PhotographyMentor.com, LLC NA NA NA
05/26/10 Facebook, Inc. Sharegrove Inc. NA NA NA
05/04/10 Trans Global Group, Inc. RandPort, Inc. NA NA NA
03/26/10 Maverick Capital, Ltd. Loopt, Inc. NA NA NA
03/22/10 WebMediaBrands Inc Rotorblog.com NA NA NA
02/02/10 Ali Wing, Inc. The Cradle, LLC NA NA NA
12/16/09 Ontela, Inc. Photobucket, Inc. NA NA NA
12/09/09 MOL AccessPortal Bhd Friendster, Inc. 39.4 NA NA
9
10. Social Networking M&A Transactions (cont’d)
($ in millions)
Implied LTM LTM
Enterprise Revenue EBITDA
Date Acquiror Target Value Multiple Multiple
12/08/09 Global Grind Digital, Inc. CelebrityTweet NA NA NA
10/09/09 Stratus Media Group, Inc. ProElite, Inc. NA NA NM
09/27/09 GovDelivery, Inc. GovLoop NA NA NA
08/26/09 Delivery Concepts, LLC Eats Media, LLC NA NA NA
08/19/09 MySpace, Inc. iLike, Inc. $19.5 NA NA
07/31/09 Atrinsic, Inc. Shopit.com, Inc. 2.7 NA NA
07/28/09 Cascadia Investments, Inc. www.phace.mobi NA NA NA
07/06/09 Match.com, LLC People Media L.L.C. 57.0 NA NA
06/04/09 Cascadia Investments, Inc. TinyTwirp.com NA NA NA
04/07/09 No Sleep Media LLC Limbo Inc. NA NA NA
03/09/09 Stardoll AB Piczo, Inc. NA NA NA
03/02/09 TuitionU.com Inc. GreenNote, Inc. NA NA NA
01/27/09 Digital Age Motorsports, LLC Hot Import Nights LLC NA NA NA
01/26/09 Alloy Inc. Takkle, Inc. 0.7 NA NA
01/13/09 MixMatchMusic, Ltd. Mix2r Media Inc. NA NA NA
12/17/08 IB3 Networks, Inc. MGV Communications NA NA NA
12/01/08 Six Apart Ltd. Pownce, Inc. NA NA NA
08/27/08 Lifetime Entertainment Services Inc. ParentsClick Network, Inc. NA NA NA
08/24/08 Amazon.com Inc. Tastemakers, Inc. NA NA NA
08/04/08 AOL, LLC (nka:Historic AOL LLC) Socialthing, Inc. NA NA NA
07/30/08 Deluxe Corp. PartnerUp, Inc. 3.8 NA NA
07/20/08 CrowdFunder, Inc. Gubb, Inc. 0.2 NA NA
07/09/08 Bigstring Corp. Buddystumbler, Inc. 0.1 NA NA
03/30/08 Buzznet, Inc. Tagshine Corp. NA NA NA
03/24/08 Follett Corporation Fourteen40, Inc. NA NA NA
10
11. Social Networking M&A Transactions (cont’d)
($ in millions)
Implied LTM LTM
Enterprise Revenue EBITDA
Date Acquiror Target Value Multiple Multiple
03/13/08 AOL, LLC Bebo, Inc. $860.0 NA NA
02/28/08 LiveUniverse.com, Inc. Revver, Inc. NA NA NA
02/07/08 uLocate Communications, Inc. (nka:W Zync, Inc. NA NA NA
12/31/07 USA Today International Corporation BNQT NA NA NA
12/19/07 Tiger Global Management; MYNET Yonja, LLC NA NA NA
12/06/07 Double Eagle Holdings, Ltd. Ultimate Social Network, Inc. 1.8 NA NA
12/04/07 Fox Digital Media Beliefnet, Inc. NA NA NA
11/17/07 Penthouse Media Group, Inc. Various, Inc. 500.0 NA NA
11/02/07 Microsoft Corporation WebFives Corp. NA NA NA
10/09/07 Disaboom Inc. Lovebyrd.com, LLC 0.1 NA NA
08/28/07 BabyCenter, LLC Maya's Mom, Inc. NA NA NA
08/25/07 Hi-Media S.A. Fotolog, Inc. 90.0 NA NA
08/14/07 Jack 9 Entertainment, Inc. CommunityX.net NA NA NA
07/02/07 SideStep, Inc. TripUp, Inc. NA NA NA
06/12/07 American Capital Strategies, Ltd. Zencon Technologies, L.L.C. NA NA NA
06/11/07 The Amergence Group SonicMountain, Inc. NA NA NA
05/30/07 Canvas Technology Inc. Flektor, Inc. NA NA NA
05/30/07 MySpace, Inc. Photobucket, Inc. NA NA NA
05/10/07 SonicMountain, Inc. Odeo, Inc. NA NA NA
04/17/07 ProElite, Inc. MMAMix.com NA NA NA
03/09/07 NA Decentral.tv Corp. NA NA NA
02/09/07 Cisco Systems, Inc. Five Across, Inc. NA NA NA
11
12. Online Games Are The Swans…
• Global population of virtual worlds expected to grow to about 640 million by 2015
• According to eMarketer, social games could generate $2.2 billion in virtual dollars
by 2012
Year Capital
Company Founded Type Investors Raised ($mm)
www.bigfishgames.com 2002 Social Balderton Capital, General Catalyst Partners, $88.3
Seattle, WA Networking Salmon River Capital LLC
www.bigpoint.net 2002 Social GMT Communications Partners LLP, Peacock 8.2
New York, NY Networking Equity Fund
www.gaiaonline.com 2003 MMOG Benchmark Capital, DAG Ventures LLC, 19.9
San Jose, CA Institutional Venture Partners, Redpoint
Ventures, Sony Pictures Television Inc.,Time
Warner Investments
www.secondlife.com 2000 Virtual World Benchmark Capital, Catamount Ventures 19.0
San Francisco, CA Management LLC, Globespan Capital Partners,
Omidyar Network
(Linden
Lab)
www.playdom.com 2008 Social Lightspeed Venture Partners, New Enterprise 76.0
Mountain View, CA Networking Associates, Norwest Venture Partners
(Disney)
www.sulake.com 2000 Social 3i Group plc, Balderton Capital, Benchmark 35.9
Helsinki, Finland Networking Capital, Elisa Oyj, Movida Group, Taivas
www.there.com 2005 Virtual World NA NA
San Mateo, CA
(Makena)
www.zynga.com 2007 Social Avalon Ventures, Foundry Group, Institutional 589.6
San Francisco, CA 12
Networking Venture Partners, Kleiner, Perkins Caufield &
Byers, Union Square Ventures
13. Online Gaming M&A Transactions
($ in millions)
Implied LTM LTM
Enterprise Revenue EBITDA
Date Acquiror Target Value Multiple Multiple
10/22/10 Kabam, Inc. WonderHill, Inc. NA NA NA
09/14/10 GameHouse, Inc. Backstage Technologies Inc NA NA NA
09/13/10 DeNA Global, Inc. Gameview Studios, LLC NA NA NA
08/30/10 Google Inc. SocialDeck Inc. NA NA NA
08/17/10 Zynga, Inc. Conduit Labs, Inc. NA NA NA
08/11/10 Joytoto Company Limited Joytoto America, Inc. NA NA NA
08/02/10 Titan Gaming, Inc. Xfire, Inc. NA NA NA
07/27/10 Walt Disney Co. Playdom, Inc. $763.2 NA NA
07/08/10 MTV Networks Company Social Express, Inc. NA NA NA
06/24/10 Playdom, Inc. Hive7.com, Inc. NA NA NA
06/03/10 Zynga, Inc. Challenge Games, Inc. NA NA NA
05/18/10 Playdom, Inc. Acclaim Games, Inc. NA NA NA
05/12/10 ngmoco, Inc. Stumptown Game Machine, LLC NA NA NA
04/26/10 Playdom, Inc. Merscom, LLC NA NA NA
04/20/10 News Corp. Irata Labs NA NA NA
03/03/10 Playdom, Inc. Offbeat Creations, Inc. NA NA NA
02/24/10 hi5 Networks, Inc. Big Six Games, Inc. NA NA NA
02/08/10 Zynga, Inc. Serious Business, Inc. NA NA NA
02/03/10 Almaz Capital Partners Alawar Entertainment Inc. 13.0 NA NA
01/13/10 iEntertainment Network Inc. Thriller New Media, Inc. NA NA NA
01/06/10 Cascadia Investments, Inc. CustomFlashGames.com NA NA NA
12/03/09 Intralot SA CyberArts Licensing LLC 34.3 NA NA
12/03/09 Artix Entertainment LLC Epic Inventions LLC NA NA NA
11/18/09 NeoEdge Networks, Inc. Offspring NA NA NA
11/12/09 Playdom, Inc. Trippert, Inc. and Green Patch, Inc. NA NA NA
13
14. Online Gaming M&A Transactions (cont’d)
($ in millions)
Implied LTM LTM
Enterprise Revenue EBITDA
Date Acquiror Target Value Multiple Multiple
11/09/09 Electronic Arts Playfish $391.3 NA NA
08/24/09 Live Gamer, Inc. TwoFish, Inc. NA NA NA
07/28/09 Cascadia Investments, Inc. www.phace.mobi NA NA NA
01/16/09 Sony Online Entertainment, LLC Octopi LLC NA NA NA
12/09/08 Infogrames Entertainment SA Cryptic Studios, Inc. 74.8 4.40x NA
10/10/08 SouthPeak Interactive Corp. Gamecock Media Group 32.5 8.83x NM
09/23/08 Funtank, LLC Candystand.com NA NA NA
08/18/08 IG Interactive Entertainment Limited True Games Interactive, Inc. NA NA NA
07/28/08 NA Octopi LLC NA NA NA
06/30/08 Mediastay North America Inc. LSF Network, Inc., Luckysurf Assets NA NA NA
04/01/08 THQ Inc. Elephant Entertainment, LLC NA NA NA
11/12/07 Big Fish Games, Inc. Thinglefin, Inc. NA NA NA
09/21/07 RealNetworks Inc. Game Trust, Inc. 20.2 NA NA
07/20/07 Finam Capital Partners Alawar Entertainment Inc. NA NA NA
05/15/07 Sony Online Entertainment, LLC Sigil Games Online, Inc. NA NA NA
04/30/07 NA Interplay Entertainment Corp. NA NA NM
14
15. …And Virtual Goods Are The Golden Eggs
• Microtransactions drive the virtual goods market
- Microtransactions expected to grow to $17.3 billion in 2015
Capital
Year Raised
Company Founded Investors ($mm)
www.ariasystems.net 2002 Hummer Winblad Venture Partners, Venrock $14.0
Media, PA
www.come2play.com 2007 NA 1.0
NA
www.dealunited.com 2007 Bertelsmann Digital Media Investments, High-Tech 6.2
Munich, Bavaria Gründerfonds Management GmbH, Sympasis Innovation
Capital GmbH, VI Partners AG
www.fatfoogoo.com 2006 Acquired by Digital River, Inc. on May 5, 2010; previous NA
Vienna, Austria investors include Digital River and Gamma Capital
(Digital River) Partners
www.gwallet.com 2008 Adams Street Partners, LLC, Trinity Ventures 10.5
San Francisco, CA
www.getgambit.com 2007 Shopping.com NA
San Jose, CA
(Kickflip)
www.heyzap.com 2009 Union Square Ventures, Y Combinator $3.7
San Francisco, CA
15
16. …And Virtual Goods Are The Golden Eggs
• Microtransactions drive the virtual goods market
- Microtransactions expected to grow to $17.3 billion in 2015
Capital
Year Raised
Company Founded Investors ($mm)
www.livegamer.com 2007 Charles River Ventures, FirstMark Capital LLC, Kodiak $36.6
New York, NY Venture Partners
www.mochimedia.com 2005 Purcahsed by Shanda Games (NasdaqGS: GAME) on Jan. 14.0
(Shanda San Francisco, CA 31, 2010, for $80.0MM; previous investors include Accel
Games) and Shasta Ventures
www.peanutlabs.com 2005 BV Capital, BV Capital Management, LLC, eVenture 4.2
San Francisco, CA Capital Partners GmbH, LundKenner A/S
www.playspan.com 2006 Easton Capital Investment Group, Ecosystem Ventures 48.3
Santa Clara, CA LLC, Menlo Ventures, Novel TMT Ventures Limited, STIC
International, STIC Investments Inc.
www.qinteractive.com 1995 Intrepid Investments NA
Chicago, IL
www.sometrics.com 2007 AT&T, Inc., Big Sky Partners, Greycroft, LLC, Steamboat
Los Angeles, CA Ventures, LLC, The MailRoom Fund NA
www.sponsorpay.com 2009 Hasso Plattner Ventures, Kite Ventures, Team Europe
Berlin, Berlin Ventures 4.6
16
17. …And Virtual Goods Are The Golden Eggs
• Microtransactions drive the virtual goods market
- Microtransactions expected to grow to $17.3 billion in 2015
Capital
Year Raised
Company Founded Investors ($mm)
supersonicads.com 2008 NA $2.0
London, UK
www.twofish.com 2006 Rustic Canyon Partners, TriplePoint Capital LLC, Venrock 9.5
Palo Alto, CA
www.viximo.com 2007 North Bridge Venture Partners, Sigma Partners 9.0
Cambridge, MA
17
18. Virtual Goods M&A Transactions
($ in millions)
Implied LTM LTM
Enterprise Revenue EBITDA
Date Acquiror Target Value Multiple Multiple
08/09/10 Google Inc. Jambool, Inc. $70.0 NA NA
03/09/10 InComm, Inc. Zeev Exchange, Inc. NA NA NA
08/24/09 Live Gamer, Inc. TwoFish, Inc. NA NA NA
07/28/09 Live Gamer, Inc. N-Cash Co., Ltd. NA NA NA
04/21/09 PlaySpan, Inc. Spare Change Payments, Inc. NA NA NA
07/15/08 PlaySpan, Inc. Internet Payment Solutions, Inc. NA NA NA
18
19. Platform Providers Facilitate the Process
Capital
Year Raised
Company Founded Investors ($mm)
www.doubletrump.com 2006 Cedar Fund, Giza Venture Capital NA
New York, NY
www.sponsorpay.com 2009 Hasso Plattner Ventures, Kite Ventures, Team Europe $4.6
Berlin, Germany Ventures
www.offerpalmedia.com 2007 D.E. Shaw Venture Capital, InterWest Partners, North Bridge 19.6
Fremont, CA Venture Partners
www.payvment.com NA NA NA
www.rixty.com NA NA 1.2
San Francisco, CA
www.srpoints.com 2007 Technology Crossover Ventures 48.0
Vancouver, Canada
(Adknowledge)
www.trialpay.com 2006 Atomico Investment Holdings Limited, Battery Ventures, 15.8
Mountain View, CA Index Ventures
19
20. Payment Processors Power the Process
Capital
Year Raised
Company Founded Investors ($mm)
www.billingservicesgroup.com 2005 ABRY Partners LLC, Artemis Investment Management NA
AIM: BILL Ltd., CapitalSouth Partners, CapitalSouth Partners
San Antonio, TX Fund L.P., Patient Safety Technologies Inc., Waterside
Capital Corporation
www.paymentech.com 1985 First Data Corp. NA
Dallas, TX
(J.P.Morgan
Chase & Co.)
www.daopay.com NA NA NA
London, UK
(DaoTec Ltd.)
www.orcaone.com NA NA NA
New York, NY
www.paybycash.com 1998 NA $28.3
Charlottesville, VA
(Playspan Inc.)
www.paymentpin.com 2004 NA NA
Montreal, Canada
www.paypal.com 1998 Acquired by eBay on October 3, 2002, for $1.5BN NA
San Jose, CA
www.jambool.com 2006 Bay Partners, Charles River Ventures, Hit Forge, 6.0
(Google) San Francisco, CA Madrona Venture Group
20
21. Facebook’s Push into Virtual Goods
• Facebook introduced a virtual currency / payment platform called
Facebook Credits
• Credits are used to make purchases within the Facebook platform, e.g.
premium items in games, virtual gifts, and other services
• Facebook gets a 30% fee for usage of Credits
• Target stores have started selling Facebook Credits gift cards nation-
wide
• According to Sean Parker, who was founding President, Facebook
Credits will make up a third of Facebook’s income in the next twelve
months
21
22. Investment Considerations
Highlights Risks
Recent investment and partnership Monetization of virtual goods dependent
activity in virtual goods underscore on volume of users and scale
potential growth in the industry
Virtual payment infrastructure is still in
– Facebook’s partnerships with PayPal its infancy
and Zynga
Software model is still a hindrance in
Margins are spectacular virtual currency adoption
– Packaged software model still persistent
– Lack of free-to-play model
22
23. Investment Recommendations
• Virtual goods ecosystem for gaming is maturing around Facebook
• Removes points of control for incumbents (Zynga, etc.)
• Creates more liquid market for consumers
• Levels playing field for newcomers – opportunity in creative game
creation still very large
• Tremendous opportunity for virtual goods in many other areas where
consumers will engage
• Customer loyalty
• Shopping
• Health
• Education
• Many others
23
25. Highly Focused Industry Expertise Underlies
Our Investment Banking Services
• Founded in 2001, headquartered in New York, NY
• Sharp focus provides valuable strategic insights and perspectives for clients
Advertising & Internet Services
Marketing Services • Adserving / Online Media Network
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• Loyalty Marketing • Customer / Web Analytics
• Market Research • Online Research
• Specialty Marketing Services • Electronic Payments / Internet Banking
INFORMATION
• Teleservices • EC / Web Integrators
&
TECHNOLOGY
&
Database / SERVICES Financial Technology and
Information Services Outsourcing Services
• Data Analytics / Decisioning
• Payment and Transaction Processing
• Consumer / Specialty Data Providers
• Financial Security
• Business Data Providers
• Financial Technology / Outsourcing
• Financial Information Services
• Business Process Services
• Specialty Information Providers
• IT Consulting / Systems Integration
• IT Research
• IT Outsourcing
25
26. About Gridley
• Leading boutique Investment Bank specializing in Information Services
– Comprehensive perspective on Advertising, Marketing, Financial Technology and Information Services
trends and transactions
• Strong industry reputation on assignments led by senior bankers
– Sellside = Excellent strategic positioning and valuation
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26
27. Gridley Provides Comprehensive Investment
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Existing Portfolio & New
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Directors
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Management and Board of
Directors
27
28. Gridley Provides Comprehensive Investment
Banking Services
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Targeting Consulting
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Pricing and Issues and
Structuring Documentation
M&A AND
ADVISORY
Due Diligence CAPABILITIES M&A Modeling and
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Fairness Opinions
Other General Presentations
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28
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Our Extensive Network of Relationships
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timely topics each year
29
30. Event History – Track Record of Finding
Successful Companies
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30
31. Participation at Industry Events Extends Our
Network and Showcases Our Thought Leadership
Conferences with Gridley Participation
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to Implementing the Revenue Growth Target Strategy”
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“Innovation and Shareholder Value: Why You Need to Take Analytics Real
Time”
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Investment Conference “How to Play Your Hand in the M&A Market”
Feb. 2010 OnMedia NYC 2010 Panelist:
“Pricing Private Companies: What’s the 2010 Strategy?”
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Challenges of 2010 “Is the Long Tail Wagging? Have the Vertical Networks Lived Up to Their
Own Hype?”
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“Role of Institutional Advertising in Shaping Internet Advertising”
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Bust? “Are Verticals Standing Up?”
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“Resolved: Sorry, It’s Still Not Ready”
31
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Read Our Quarterly Newsletter
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generated publications in the industry
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The Compass Readership
3,000 +23.7%
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33. The Media Also Seeks Out Our Insights on
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33
34. Selected Recent Gridley Transactions
• Gridley clients include industry leaders and premier emerging growth companies
• Gridley provides strategic advisory work in addition to the transactions listed below
$20,500,000 Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed
Acquired by Acquired by Acquired Acquired Acquired by Acquired Acquired
The Dolan Company WPP Group plc FetchBack Inc. M3 Mobile Marketing MDC Partners Inc. Pepperjam Silverlign Group Inc.
Advisor Advisor Advisor Advisor Advisor Advisor Advisor
$20,000,000 $157,000,000 Undisclosed Undisclosed Undisclosed Undisclosed
$367,000,000
Email Business of
Ad serving Business of
Investment by Acquired by Acquired Acquired by Acquired by Sold to Sold to
TZP Group LLC Roper Industries, Inc. e-Dialog, Inc. WPP Group plc Quest Software One to One Interactive, Inc. Aegis plc
Placement Agent Advisor Advisor Advisor
Advisor Advisor Advisor
Undisclosed $113,189,337 $17,450,000 Undisclosed Undisclosed $138,000,000 Undisclosed
PrePay Intelligent Network
Solutions (INS) Business Unit of
Sold to Secondary Offering Acquired by Acquired by Acquired by Acquired Acquired by
Parthenon Capital LLC Verisign Schulman, Ronca, & ISIS Equity Partners, Inc. Modem Media, Inc. Valassis Communications Inc
Bucuvalas, Inc.
Advisor Co-Manager Issued Fairness Opinion Advisor Advisor Advisor Advisor
$58,000,000 Undisclosed $55,200,000 Undisclosed Undisclosed
Advisory Communications Marketing One to One, Inc. d/b/a
Systems, Inc. (ACS) d/b/a
Acquired Acquired by Acquired by Acquired by
Follow-On Offering
Performics, Inc. ARAG Group Carlson Marketing Group Alliance Data Systems, Inc.
Advisor Advisor Co-Manager Advisor Advisor
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35. Gridley & Company LLC
10 East 53rd Street, 24th Floor
New York, NY 10022
212.400.9720 tel
212.400.9717 fax
Twitter: @gridleyco
www.gridleyco.com
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